Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 50

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 50
---
 the Purchase Agreement, from time to time
during the term of the Purchase Agreement. Sales of Common Stock by the Company to Ascent under the Purchase Agreement, and the timing
of any such sales, are solely at the Company’s option, and the Company is under no obligation to sell any securities to Ascent under the
Purchase Agreement. As of September 30, 2025, approximately $3.5 million in shares of its Common Stock was sold pursuant to the Purchase
Agreement.

Under the Purchase Agreement, the Company has the right, but not the
obligation, from time to time at its sole discretion for a period of up to 36 months, unless the Purchase Agreement is earlier terminated,
to direct Ascent to purchase up to a specified maximum amount of shares of Common Stock in one or more purchases as set forth in the Purchase
Agreement, by delivering a written notice, if any, to Ascent in accordance with the Purchase Agreement on any trading day we select.

As consideration for Ascent’s commitment to purchase shares of
Common Stock at the Company’s direction upon the terms and subject to the conditions set forth in the Purchase Agreement, upon our
execution of the term sheet relating to the Purchase Agreement, the Company issued Ascent warrants (the “Commitment Warrants”)
to purchase up to 900,000 shares of Company Common Stock (the “Commitment Warrant Shares”). The Commitment Warrants have an
exercise price of $0.01 per shares and can be cashless exercised. The warrants were equity classified prior to their exercise due to the
terms of the warrant which was indexed to the Company’s own stock, settlement was in shares only, and the terms met the fixed-for-fixed
condition (fixed number of shares for fixed price). These warrants were recorded at their fair value on grant date which was $0.9 million
and were expensed to financing fees in accordance with US GAAP accounting for standby equity purchase agreements (“SEPA”).

Issuance fees such as warrant costs associated to a SEPA or ELOC are
expensed upfront, as this arrangement is not considered indexed to the Company's stock under step 2 in ASC 815-40-15-7 and therefore is
liability classified. The associated equity classified warrants were not remeasured after initial issuance, and as of September 30, 2025,
these warrants were exercised and all 900,000 shares of Common Stock were issued.

When the Company draws on the