Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 170

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 170
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2024. The carrying value of the promissory notes as of
September 30, 2025 and December 31, 2024 was $0.9 million and $0.9 million, respectively.

Paycheck Protection Program

On May 25, 2021, the Company borrowed $1.3 million (the “PPP
Loan 2”) as a Paycheck Protection Program loan. 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 Loan 2 is 1%.

Under the terms of PPP Loan 2, if the Company does not submit a forgiveness
application within 24 weeks of the initial disbursement of the loan (the “Covered Period”), the Company must begin to make
equal monthly payments of principal and interest starting 10 months from the end of the Covered Period until May 25, 2026. Interest on
the loan continues to accumulate during any deferment period. As of September 30, 2025, the Company has not applied for forgiveness under
PPP Loan 2, but does intend to apply for loan forgiveness prior to December 31, 2025. This forgiveness is not guaranteed, based on the
delayed timeline, but the Company has begun to make contact with the loan administrators.

As of December 31, 2024 and September 30, 2025, the Company was in
default on PPP Loan 2 due to non-payment of minimal repayment amounts required by the terms of PPP Loan 2. Accordingly, the Company classified
the entire amount outstanding under PPP Loan 2 as current and accrued respective late penalties for the total amount of less than $0.1
million as of September 30, 2025 and December 31, 2024, respectively. The total past due amount of PPP Loan 2 repayments as of September
30, 2025 and December 31, 2024 was $1.0 million and $0.8 million, respectively.

As of September 30, 2025, the contractual future minimum payments for
the PPP Loan 2 were as follows (in thousands):

    Year Ending December 31, 
    Amount 

    2025 
    $1,241 
  
    2026 
     145