Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 156

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 156
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 risk in its assessment of fair value.

Assets and liabilities measured at fair value are classified in their
entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance
of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific
to the asset or liability.

As of September 30, 2025 and December 31, 2024, the Company’s
financial assets and liabilities measured at fair value on a recurring basis, were as follows (in thousands):

    As of September 30, 2025 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Assets: 

    Digital assets (Bitcoin) 
    $972  
    $—  
    $—  
    $972 
  
    Liabilities: 

    Related Party Convertible Notes at fair value 
    $—  
    $—  
    $4,127  
    $4,127 
  
    Loans payable - related party 
     —  
     —  
     14,359  
     14,359 
  
    Warrant liabilities - Private Placement Warrants 
     —  
     —  
     287  
     287 
  
    Warrant liabilities - Representative’s Warrants 
     —  
     —  
     23  
     23 
  
    Total liabilities measured at fair value 
    $—  
    $—  
    $18,797  
    $18,797 

    As of December 31, 2024  

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Related Party Convertible Notes at fair value 
    $—  
    $—  
    $2,234  
    $2,234 
  
    Total liabilities measured at fair value 
    $—  
    $—  
    $2,234  
    $2,234 

17

The Private Placement Warrants and the Representative’s Warrants
are accounted for as liabilities in accordance with ASC 815-40 and are presented within liabilities on the condensed consolidated balance
sheets. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair