Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 265

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 265
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 a warrant liability measured at fair value, with subsequent
changes in the fair value of the warrant recorded in other non-operating losses (gains) in the condensed consolidated statements of operations.
If a warrant meets both conditions for equity classification, the warrant is initially recorded, at its relative fair value on the date
of issuance, in stockholders’ deficit in the condensed consolidated balance sheets, and the amount initially recorded is not subsequently
remeasured at fair value.

Gain on PPP Loan Forgiveness

On April 16, 2020 and May 25, 2021, we borrowed $1.2 million (the “PPP
Loan 1”) and $1.3 million (the “PPP Loan 2”), respectively, as a Paycheck Protection Program loan (together the “PPP
Loans”). The Paycheck Protection Program, established as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”)
Act, provides for loans to qualifying businesses and is administered by the U.S. Small Business Administration (the “SBA”).
The annual interest rate of the PPP Loans is 1%. The PPP Loans are eligible for forgiveness, provided the borrower has met the respective
forgiveness requirements, has timely submitted an application for forgiveness and the forgiveness has been granted by the SBA. PPP Loan
1 has been approved for loan forgiveness, and management intends to apply for PPP Loan 2 forgiveness in 2025. PPP Loan 2 is currently
in default due to non-payment, and is classified as a current liability on the balance sheet.

Interest Expense

Interest expense consists primarily of the interest on our convertible
notes, senior notes, Tasly convertible debt, promissory notes, and PPP Loans.

Other Income

Other income consists primarily of income earned from sale of equipment
and a short-term sublease of a portion of our facilities.

41

Results of Operations

Comparison of the Three Months Ended September 30, 2025 to the
Three Months Ended September 30, 2024

The following table sets forth our unaudited condensed consolidated
statements of operations and comprehensive loss for the interim periods indicated (in thousands):

    For the three months ended September 30,  

    2025  
    2024  
    Change $  
    Change % 
  
    Government grant revenue 
     -  
     75  
     (75) 
     -100%
  
    Operating expenses: 
     -