Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 286

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 286
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the fair value option to account for the Tasly Convertible debt. Accordingly, no features of the Convertible debt are bifurcated and separately
accounted for. The fair value of the Convertible debt was $2.2 million as of December 31, 2024, compared to $1.71 million as of December 31,
2023. Accrued stated interest on the Convertible debt was $0.2 million for the year ended December 31, 2024 compared to less than $0.1 million
for the year ended December 31, 2023. The total loss on fair value remeasurement is $0.33 million, of which, $0.31 million in loss
on fair value remeasurement is from the year ended December 31, 2024, compared to less than $0.1 million in loss on fair value remeasurement
from the year ended December 31, 2023.

Senior Notes 2021

August 2021 Senior Notes — In August 2021 the Company received $4.0 million in total gross proceeds from the issuance of senior
unsecured promissory notes (the “August 2021 Senior Notes”). Simple interest on the unpaid principal balance of the August 2021
Senior Notes accrued from the issuance date at a rate of 12% per year and is payable at maturity. The August 2021 Senior Notes were
to mature on the earlier of (a) issuance of the next round of preferred stock of (b) August 25, 2022.

On December 6, 2021,
the August 2021 Senior Notes were amended to provide the note holders with an option to convert the notes’ outstanding principal
balance and accrued but unpaid interest into (a) the shares of convertible preferred stock issued upon consummation of a Qualified
Financing at a conversion price equal to the per share price paid by investors in such Qualified Financing, subject to 20% discount, or
(b) shares of the Company’s Series C convertible preferred stock at the conversion price equal to the original issue price
prior to Qualified Financing in the event the Qualified Financing had not occurred prior to February 25, 2022, or (c) shares
of the Company’s Series C convertible preferred stock at the conversion price equal to the original issue price upon change
of control.

The optional conversion upon
Qualified Financing represents an embedded feature that is required to be bifurcated