Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 198

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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 and commercialization of the Company’s technology in certain countries of the Asia Pacific
region.

In the event we either fail to complete the formation of the APAC Joint
Venture or fail to repay the amounts under the Tasly Convertible Debt when they become due, the lender will have an option to convert
the outstanding balance and accrued but unpaid interest (in part or in full) into senior unsecured promissory notes on substantially the
same terms as the outstanding Senior Notes as of September 30, 2025 (which terms include conversion into Company Common Stock). Notwithstanding
the conversion provisions above, any repayment obligations (in part or in full) of the outstanding principal balance and accrued but unpaid
interest under the Tasly Convertible Debt may, at the lender’s option, be made through conversion of part or all amounts payable into
(i) senior unsecured promissory notes on substantially the same terms as the outstanding Senior Notes as of September 30, 2025, $0.50
per share, or (ii) Company Common Stock at a conversion price of $1.92 per share.

44

Our outstanding PPP Loan of $1.4 million bears interest at 1% per annum.
The repayment of the PPP Loan was expected to be made in equal monthly payments of principal and interest from October 25, 2022 until
May 25, 2026; however, we are currently in the process of applying for forgiveness for this loan.

Our outstanding promissory notes accrue interest at 5% and 12% per
annum, most of which do not have a set maturity date. Any promissory notes that did have an initial maturity date, which has passed, the
Company has verbally agreed to pay off these loans subsequent to the Closing. The Company is currently in default; accordingly, the Company
classified the entire outstanding amount as a current liability on the condensed consolidated balance sheet.

Additional funds may be necessary to maintain current operations and
will be required for successful product commercialization efforts. Subsequent to the period ended September 30, 2025, management obtained
additional funds from the ELOC, however, conditions exist that raise substantial doubt about our ability to continue as a going concern
within one year from the date the unaudited condensed consolidated financial statements as of and for the nine months ended September
30, 2025 are issued.

Long-Term Liquidity Requirements

We expect our cash and cash equivalents on hand, and cash that we