Profusa, Inc. 10-Q

Item 1. Financial Statements. PROFUSA, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) September 30, 2025 (UNAUDITED) December 31 2024 Assets Current assets: Cash 3,009 191 Prepaid expenses and other current assets 214 69 Digital assets 972 — Total current assets 4,195 260 Deferred offering costs — 2,757 Other non-current assets 55 56 Total assets 4,250 3,073 Liabilities, and stockholders’ deficit Current liabilities: Accounts payable 6,982 4,954 Excise tax payable 1,957 — Accrued liabilities 7,848 3,968 Due to related party 41 — Convertible notes payable Convertible debt payable (including loans and notes payable to a related party of $ 4,127 and $ 25,056 as of September 30, 2025 and December 31, 2024, respectively) 4,281 45,921 Promissory notes (including notes payable to related parties of $ 878 and $ 850 as of September 30, 2025 and December 31, 2024, respectively) 1,045 910 PPP loan 1,386 1,376 Total current liabilities 23,540 57,129 Warrant liabilities at fair value 311 — Loans payable - related party at fair value 14,359 — Total liabilities 38,210 57,129 Commitments and contingencies (Note 7) Convertible Preferred Stock: Series A convertible preferred stock: $ 0.0001 par value – 0 shares authorized. issued and outstanding at September 30, 2025 and 4,350,314 shares authorized, issued and outstanding at December 31, 2024, (Liquidation preference $ 5,307 at December 31, 2024) — 5,231 Series B convertible preferred stock: $ 0.0001 par value – 0 shares authorized, issued and outstanding at September 30, 2025, and 5,293,175 shares authorized, issued and outstanding at December 31, 2024, (Liquidation preference $ 13,815 at December 31, 2024) — 13,701 Series C/C-1 convertible preferred stock: $ 0.0001 par value – 0 shares authorized, issued and outstanding at September 30, 2025, and 8,220,445 shares authorized issued and outstanding at December 31, 2024, (Liquidation preference $ 45,062 at December 31, 2024) — 46,217 Total convertible preferred stock — 65,149 Stockholders’ deficit: Undesignated preferred stock: $ 0.0001 par value – 5,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2025, and December 31, 2024 — — Common stock: $ 0.0001 par value – 600,000,000 authorized shares at September 30, 2025 and December 31, 2024, and 41,731,496 and 8,593,991 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 4 — Additional paid-in-capital 118,250 5,753 Accumulated deficit ( 152,214 ) ( 124,958 ) Total stockholders’ deficit ( 33,960 ) ( 119,205 ) Total liabilities and stockholders’ deficit 4,250 3,073 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 PROFUSA, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Government grant revenue $ - $ 75 $ - $ 100 Operating expenses: Research and development 722 411 1,549 1,349 General and administrative 20,987 767 22,587 2,169 Total operating expenses 21,709 1,178 24,136 3,518 Loss from operations ( 21,709 ) ( 1,103 ) ( 24,136 ) ( 3,418 ) Other income (expense) Gain (loss) on change in the fair value of related party convertible debt 258 ( 320 ) ( 52 ) ( 427 ) Gain on the change in fair value of warrant liabilities 884 — 884 — Loss on the change in fair value of digital assets ( 28 ) — ( 28 ) — Interest expense (including related parties amounts of $ 97 and $ 575 for the three months ended September 30, 2025 and September 30, 2024, and $ 1,326 and $ 1,774 for the nine months ended September 30, 2025 and September 30, 2024, respectively) ( 169 ) ( 1,073 ) ( 2,496 ) ( 3,138 ) Financing costs ( 1,443 ) — ( 1,443 ) — Other income (expense) 15 ( 1 ) 15 5 Total other expense, net ( 483 ) ( 1,394 ) ( 3,120 ) ( 3,560 ) Net loss and comprehensive loss ( 22,192 ) ( 2,497 ) ( 27,256 ) ( 6,978 ) Net loss per share, basic and diluted $ ( 0.70 ) $ ( 1.29 ) $ ( 2.29 ) $ ( 3.60 ) Weighted-average common shares outstanding, basic and diluted 31,731,118 1,938,392 11,905,811 1,938,392 (1) $49 thousand and $145 thousand of interest was reclassified from interest expense into gain (loss) on change in the fair value of related party convertible debt for the three and nine months ended September 30, 2024, respectively. This reclassification has no impact on total other income (expense) or net loss and comprehensive net loss. The accompanying notes are an integral part of these condensed consolidated financial statements. 2 PROFUSA, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS) Series A Convertible Preferred Stock Series B Convertible Preferred Stock Series C/C-1 Convertible Preferred Stock Common Stock (1) Additional paid in Accumulated Total Stockholders’ Shares Amount Shares Amount Shares Amount Shares Amount capital deficit Deficit Balance at January 1, 2025 (1) 4,350,314 5,231 5,293,175 13,701 8,220,445 46,217 1,938,392 — 5,753 ( 124,958 ) ( 119,205 ) Stock-based compensation expense — — — — — — — — 5 — 5 Net loss — — — — — — — — — ( 2,716 ) ( 2,716 ) Balance at March 31, 2025 4,350,314 5,231 5,293,175 13,701 8,220,445 46,217 1,938,392 — 5,758 ( 127,674 ) ( 121,916 ) Stock-based compensation expense — — — — — — — — 82 — 82 Net loss — — — — — — — — — ( 2,348 ) ( 2,348 ) Balance at June 30, 2025 4,350,314 5,231 5,293,175 13,701 8,220,445 46,217 1,938,392 — 5,840 ( 130,022 ) ( 124,182 ) Conversion of preferred stock into common stock ( 4,350,314 ) ( 5,231 ) ( 5,293,175 ) ( 13,701 ) ( 8,220,445 ) ( 46,217 ) 6,178,315 1 65,148 — 65,149 Common stock issued to employees — — — — — — 477,283 — 428 — 428 Stock-based compensation expense — — — — — — — — 189 — 189 Conversion of debt to common shares in connection with the merger — — — — — — 14,782,446 1 46,890 — 46,891 Issuance of common stock to Northview stockholders as a result of the merger — — — — — — 6,482,397 1 ( 12,347 ) — ( 12,346 ) Issuance of inducement shares to related party in connection with the merger — — — — — — 2,901,833 — 7,254 — 7,255 Issuance in shares in connection with exercise of ELOC — — — — — — 8,070,830 1 3,536 — 3,537 Issuance of warrants in connection with exercise of ELOC Warrants — — — — — — — — 982 — 982 Issuance in shares in connection with exercise of ELOC Warrants — — — — — — 900,000 — — — — Issuance of warrants to financial advisor in connection with the merger — — — — — — — — 330 — 330 Net loss — — — — — — — — — ( 22,192 ) ( 22,192 ) Balance at September 30, 2025 — — — — — — 41,731,496 4 118,250 ( 152,214 ) ( 33,960 ) (1) Retroactively restated for the reverse recapitalization as described in Note 3. The accompanying notes are an integral part of these condensed consolidated financial statements. 3 PROFUSA, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS) Series A Convertible Preferred Stock Series B Convertible Preferred Stock Series C/C-1 Convertible Preferred Stock Common Stock (1) Additional paid in Accumulated Total Stockholders’ Shares Amount Shares Amount Shares Amount Shares Amount capital deficit Deficit Balance at January 1, 2024 4,350,314 5,231 5,293,175 13,701 8,220,445 46,217 1,938,392 — 5,732 ( 115,728 ) ( 109,996 ) Stock-based compensation expense — — — — — — — — 5 — 5 Net loss — — — — — — — — — ( 2,071 ) ( 2,071 ) Balance at March 31, 2024 4,350,314 5,231 5,293,175 13,701 8,220,445 46,217 1,938,392 — 5,737 ( 117,799 ) ( 112,062 ) Stock-based compensation expense — — — — — — — — 6 — 6 Net loss — — — — — — — — — ( 2,410 ) ( 2,410 ) Balance at June 30, 2024 4,350,314 5,231 5,293,175 13,701 8,220,445 46,217 1,938,392 — 5,743 ( 120,209 ) ( 114,466 ) Stock-based compensation expense — — — — — — — — 5 — 5 Net loss — — — — — — — — — ( 2,497 ) ( 2,497 ) Balance at September 30, 2024 4,350,314 5,231 5,293,175 13,701 8,220,445 46,217 1,938,392 — 5,748 ( 122,706 ) ( 116,958 ) (1) Retroactively restated for the reverse recapitalization as described in Note 3. The accompanying notes are an integral part of these condensed consolidated financial statements. 4 PROFUSA, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS) For the nine months ended, 2025 2024 Cash flows from operating activities Net loss ( 27,256 ) ( 6,978 ) Adjustments to reconcile net loss to net cash used in operating activities: Non-cash interest expense 2,496 3,138 Gain (loss) on change in fair value of related party convertible debt ( 198 ) 427 Noncash issuance of inducement shares in connection with the merger 7,584 2 Noncash issuance of warrants associated with ELOC costs 982 — Stock-based compensation expenses 704 16 Gain on change in fair value of warrant liabilities ( 884 ) — Loss on change in fair value of digital assets 28 Changes in assets and liabilities: Other receivables — 45 Prepaid expenses and other current assets ( 118 ) 97 Other non-current assets 1 ( 346 ) Accounts payable 3,197 690 Accrued liabilities 2,345 1,081 Net cash used in operating activities ( 11,119 ) ( 1,828 ) Cash flows from investing activities Purchase of digital assets ( 1,000 ) — Net cash used in investing activities ( 1,000 ) — Cash flows from financing activities Proceeds from issuance of notes 1,450 2,110 Proceeds from ELOC 3,537 — Proceeds from issuance of loans payable 11,000 — Proceeds from issuance of convertible loan 16 Net cash received from the reverse recapitalization 2 — Repayment of convertible notes ( 1,052 ) ( 150 ) Payment of deferred offering costs — ( 150 ) Net cash provided by financing activities 14,937 1,826 Net increase (decrease) in cash 2,818 ( 2 ) Cash at the beginning of the period 191 142 Cash at the end of the period 3,009 140 Supplemental disclosures of non-cash investing and financing information: Assumption of net liabilities of Northview 12,346 — Issuance in shares in connection with convertible note 7,254 — Increase (decrease) in unpaid deferred offering costs — ( 32 ) Issuance in shares in connection with ELOC transaction costs 3,537 — Issuance of warrants in connection with ELOC costs 982 Issuance in shares in connection with non-recourse note to employees 428 — Conversion of preferred stock into common stock 65,149 — Issuance of HCW warrants in lieu of cash payment 330 — Conversion of debt to equity 46,891 — Supplemental disclosure of cash flow information: Cash paid for interest 250 — Cash paid for taxes 13 — The accompanying notes are an integral part of these condensed consolidated financial statements. 5 PROFUSA, INC. AND SUBSIDIARY NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1 — Organization, Description of Business, Going Concern and Significant Risks and Uncertainties Description of Business Profusa, Inc. (the “Company”) was incorporated in the state of California on May 11, 2009 . The Company is engaged in the development of a new generation of biointegrated sensors that potentially empowers the individual with the ability to monitor their unique body chemistry. The Company’s technology enables the development of bioengineered sensors that are designed to become one with the body to detect and continuously transmit actionable, clinical-grade data for personal and medical use. The Company’s first offering in the European Union, the Lumee™ Oxygen Platform, is designed to report reliable tissue oxygen levels at various regions of interest, both acutely and long-term. The Lumee™ Oxygen Platform has been designed for use in applications where monitoring of compromised tissue is beneficial, such as peripheral artery disease that results in narrowing of blood vessels and reduced blood flow to the lower limbs; chronic wounds (diabetic ulcers, pressure sores) that do not heal properly; and reconstructive surgery. The Company’s research and development efforts are primarily focused on its Lumee™ Glucose Platform which is a system designed to monitor glucose levels in interstitial fluid, continuously and long-term. A tiny, biocompatible gel injected under the skin acts as a continuous glucose monitor (“CGM”) for several months. The ability of Lumee™ Glucose to provide continuous glucose monitoring with only an initial single injection, is an attractive alternative for people with diabetes to manage their disease without the need for frequent finger sticks required by standard glucometers, or the need for weekly sensor replacement as required by current short-term needle-type CGMs. On July 11, 2025 (the “Closing Date”), NorthView Acquisition Corporation (“Northview”), consummated its previously announced business combination (the “Business Combination”) with Profusa, Inc., a California corporation (“Legacy Profusa”), pursuant to that certain Merger Agreement and Plan of Reorganization, dated as of November 7, 2022 (as the same has been amended, supplemented or otherwise modified from time to time, the “Merger Agreement”), between Northview, Legacy Profusa, and NV Profusa Merger Sub Inc., a Delaware corporation and a direct, wholly-owned subsidiary of Northview (“Merger Sub” and, collectively, the “Parties”). The consummation of the Business Combination involved the merger (the “Merger”) of Merger Sub with and into Legacy Profusa, pursuant to which, at the closing of the transactions contemplated by the Merger Agreement (the “Closing”), the separate corporate existence of Merger Sub ceased, with Legacy Profusa as the surviving corporation becoming a wholly-owned subsidiary of Northview, pursuant to the terms of the Merger Agreement. As a result of the Business Combination, Northview owns 100 % of the outstanding common stock of Legacy Profusa. In connection with the closing of the Business Combination, Northview changed its name from “NorthView Acquisition Corporation” to “Profusa, Inc.” Going Concern The Company has incurred significant net operating losses from operations. As of September 30, 2025, the Company has a working capital deficit of approximately $( 19.3 ) million. For the nine months ended September 30, 2025, the Company incurred a net loss of approximately $( 27.3 ) million and used approximately $( 11.1 ) million of cash in operating activities. Management expects to continue to incur additional substantial losses in the foreseeable future as a result of research and development activities. The Company has been able to finance its operations primarily with the proceeds from the issuance of equity and debt instruments and to a lesser extent, revenues from government grants. Additional funds may be necessary to maintain current operations and will be required for successful product commercialization efforts. The Company’s condensed consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has reviewed the relevant conditions and events surrounding its ability to continue as a going concern including among others: historical losses, projected future results, increased tariffs, cash requirements for the upcoming year, funding capacity, net working capital deficit, and future access to capital. On February 11, 2025, NorthView executed a Securities Purchase Agreement (the “PIPE Subscription Agreement”) with Ascent Partners Fund LLC (“Ascent” or together with any party who may become party to the PIPE Subscription Agreement, the “PIPE Investors”). 6 On July 11, 2025, the Company consummated the Business Combination. At the Closing and pursuant to the PIPE Subscription Agreement, Profusa issued a PIPE Convertible Note in the principal amount of $ 10,000,000 (the “Initial Note”) for a purchase price of $ 9,000,000 , reflecting a 10 % Original Issuance Discount (“OID”). Management believes this liquidity is not sufficient to alleviate the relevant conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date the condensed consolidated financial statements are issued. On July 28, 2025, the Company entered into the PIPE Subscription Agreement and the Equity Line of Credit (“ELOC”) Registration Rights Agreement (the “ELOC Registration Rights Agreement”) with Ascent (the “Committed Equity Facility”). Upon the terms and subject to the satisfaction of the conditions contained in the PIPE Subscription Agreement, from and after the effective date, the Company will have the right, in its sole discretion, to sell to Ascent up to $ 100,000,000 of shares of the Company’s common stock, par value $ 0.0001 per share (“Common Stock”), subject to certain limitations set forth in 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. The Company has entered into this strategic Committed Equity Facility in order to continue to fund operating cash flows. On September 30, 2025, the Company met the requirements for the second tranche of the PIPE Subscription Agreement and Ascent purchased Convertible Notes in the aggregate principal amount of $ 2,222,222 for a purchase price of $ 2,000,000 (reflecting a 10 % OID) (“Second Purchase”). In accordance with the Company’s Bitcoin treasury strategy, the Company purchased 8.53 coins as of September 30, 2025, for a value of $ 1.0 million. The Company has a buy-and hold investment strategy; however, this investment additionally may act as a source of liquidity for the Company’s operating cash flow requirements as needed. The Company is currently working towards meeting regulatory requirements in Europe in order to commercialize the Lumee Oxygen reader in order to generate revenues in early 2026. In addition to management’s focus on commercialization, additional financing is available through the sale of Common Stock and executing tranches three and four of the PIPE Subscription Agreement which would provide an aggregate of up to an additional $ 10.0 million in cash for operating expenses to further the product research and development. Subsequent to the Closing, there continue to be factors which raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date the condensed consolidated financial statements are issued. The condensed consolidated financial statements do not contain any adjustments that might result from the outcome of this uncertainty. On September 11, 2025, Profusa, Inc. (the “Company”) received a notice (the “MVLS Notice”) from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying the Company that, based upon its review of the market value of listed securities (“MVLS”) of the Company’s common stock, par value $ 0.0001 per share (the “Common Stock”), from July 29, 2025 to September 10, 2025, the Company no longer meets Nasdaq Listing Rule 5450(b)(2)(A), which requires companies listed on the Nasdaq Global Market to maintain a minimum MVLS of $ 50,000,000 . The Company has been provided a compliance period of 180 calendar days, or until March 10, 2026, to regain compliance with Nasdaq Listing Rule 5450(b)(2)(A). If at any time during this compliance period, the Common Stock’s MVLS closes at $ 50,000,000 or more for a minimum of ten consecutive business days, Nasdaq will provide the Company with written confirmation of compliance and this matter will be closed, provided, however that Nasdaq may, in its discretion, require the Company to maintain the minimum MVLS for a period in excess of ten consecutive business days, but generally no more than 20 consecutive business days, before determining that the Company has demonstrated an ability to maintain long-term compliance. In the event the Company does not regain compliance with Nasdaq Listing Rule 5450(b)(2)(A) prior to the expiration of the compliance period, the Company will receive written notification that the Company’s securities are subject to delisting. At that time, the Company may appeal the delisting determination to a hearings panel. The Company is monitoring the MVLS of its listed securities and is considering available options to regain compliance with Nasdaq’s continued listing standards. There can be no assurance that the Company will be able to regain compliance with Nasdaq Listing Rule 5450(b)(2)(A) or maintain compliance with other applicable Nasdaq listing requirements. 7 On September 11, 2025, the Company received a second notice (the “Bid Price Notice”, and together with the MVLS Notice, the “Notices”) from Nasdaq notifying the Company that, based upon its review of the closing bid price of the Common Stock, from July 29, 2025 to September 10, 2025, the Company no longer meets Nasdaq Listing Rule 5450(a)(1), which requires companies listed on the Nasdaq Global Market to maintain a minimum bid price of $ 1.00 per share. The Company has been provided a compliance period of 180 calendar days, or until March 10, 2026, to regain compliance with Nasdaq Listing Rule 5450(a)(1). If at any time during this compliance period, the Common Stock has a closing bid price bid price of at least $ 1.00 per share for a minimum of ten consecutive business days, Nasdaq will provide the Company with written confirmation of compliance and this matter will be closed, provided, however that Nasdaq may, in its discretion, require the Company to maintain the minimum bid price for a period in excess of ten consecutive business days, but generally no more than 20 consecutive business days, before determining that the Company has demonstrated an ability to maintain long-term compliance. In the event the Company does not regain compliance with Nasdaq Listing Rule 5450(a)(1) prior to the expiration of the compliance period, then Nasdaq may grant the Company a second 180 calendar day period to regain compliance, provided, among other things, the Company meets the continued listing requirement for market value of publicly-held shares and all other initial listing standards for The Nasdaq Global Market, other than the minimum bid price requirement, and notifies Nasdaq of its intent to cure the deficiency. If the Company does not regain compliance within the allotted compliance periods, including any extensions that may be granted by Nasdaq, Nasdaq will provide notice that the Common Stock will be subject to delisting. The Company would then be entitled to appeal that determination to a Nasdaq hearings panel. The Company is monitoring the minimum bid price of its listed securities and is considering available options to regain compliance with Nasdaq’s continued listing standards. There can be no assurance that the Company will be able to regain compliance with Nasdaq Listing Rule 5450(a)(1) or maintain compliance with other applicable Nasdaq listing requirements. Significant Risks and Uncertainties The Company operates in a dynamic and highly competitive industry and believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations, or cash flows: ability to obtain future financing; advances and trends in new technologies and industry standards; results of clinical trials; regulatory approval and market acceptance of the Company’s products; development of sales channels; certain strategic relationships; litigation or claims against the Company based on intellectual property, patent, product, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. Products developed by the Company require approvals from the U.S. Food and Drug Administration (“FDA”) or other international regulatory agencies prior to commercial sales. There can be no assurance that the products will receive the necessary approvals. If the Company is denied approval, approval is delayed or the Company is unable to maintain approval, it could have a materially adverse impact on the Company. The Company has expended and will continue to expend substantial funds to complete the research, development and clinical testing of product candidates. The Company also will be required to expend additional funds to establish commercial-scale manufacturing arrangements and to provide for the marketing and distribution of products that receive regulatory approval. As of September 30, 2025, the Company may be required to seek additional equity or debt financing to commercialize its products. If adequate funds are unavailable on a timely basis from operations or additional sources of financing, the Company may have to delay, reduce the scope of or eliminate one or more of its research or development programs which would materially and adversely affect its business, financial condition and results of operations. Inflation, Monetary Response, and Economic Impacts The world economy is experiencing stubbornly high inflation, a challenge not faced for decades. Following the global financial crisis, with inflationary pressures muted, interest rates were extremely low for years and investors became accustomed to low volatility. The resulting easing of financial conditions supported economic growth, but it also contributed to a buildup of financial vulnerabilities. With inflation at multi-decade highs, monetary authorities in advanced economies are accelerating the pace of policy normalization. Policymakers have continued to tighten policy against a backdrop of rising inflation and currency pressures, albeit with notable differences across regions. Global financial conditions have tightened notably this year, leading to capital outflows. Amid heightened economic and geopolitical uncertainties, investors have aggressively pulled back from risk-taking and adjusted their investment preferences generally. Key gauges of systemic risk, such as higher dollar funding costs and counterparty credit spreads, have risen. There is a risk of a disorderly tightening of financial conditions that may be amplified by vulnerabilities built over the years. In addition, our business, growth, financial condition or results of operations could be materially adversely affected by instability or changes in a country’s or region’s economic conditions; inflation; changes in laws or regulations or in the interpretation of existing laws or regulations, whether caused by a change in government or otherwise; increased difficulty of conducting business in a country or region due to actual or potential political or military conflict; or action by the U.S. or foreign governments that may restrict our ability to transact business in a foreign country or with certain foreign individuals or entities. A possible slowdown in global trade caused by increasing tariffs or other restrictions could decrease consumer or corporate confidence and reduce consumer, government and corporate spending in countries inside or outside the U.S., which could adversely affect our operations. Climate-related events, including extreme weather events and natural disasters and their effect on critical infrastructure in the U.S. or internationally, could have similar adverse effects on our operations, users, or third-party suppliers. 8 Note 2 — Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Unaudited Interim Financial Information The interim unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and in accordance with the rules and regulations of the SEC. In the opinion of management, the interim unaudited financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of September 30, 2025, the results of its operations and changes to stockholders’ equity for the three and nine months ended September 30, 2025 and 2024, and its cash flows for the nine months ended September 30, 2025 and 2024. The results for the three and nine months ended September 30, 2025, are not necessarily indicative of results to be expected for the year ending December 31, 2025, or any other interim periods, or any future year or period. All amounts included herein have been rounded except where otherwise stated. As figures are rounded, numbers presented throughout this document may not add up precisely to the totals we provide and percentages may not precisely reflect the absolute figures. Certain disclosures have been consolidated or omitted from the unaudited interim condensed consolidated financial statements. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related disclosures as of December 31, 2024 and for the year then ended as found in the Form S-4/A filed by the Company with the SEC on April 3, 2025, as further amended. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses in the condensed consolidated financial statements and accompanying notes. The Company’s management regularly assesses these estimates, including those related to accrued liabilities, valuation of the convertible debt, and senior notes, warrants, milestone based earn-outs, valuation allowance for deferred tax assets, and valuation of stock-based awards. Actual results could differ from these estimates, and such differences could be material to the Company’s financial position and results of operations. Segment Information ASC 280, “Segment Reporting” (“ASC 280”), defines operating segments as components of an enterprise where discrete financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company operates as a single operating segment. The Company’s CODM is the chief executive officer, who has ultimate responsibility for the operating performance of the Company and the allocation of resources. The CODM uses cash flows as the primary measure to manage the business and does not segment the business for internal reporting or decision making. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and other receivables. Substantially all of the Company’s cash is held by one financial institution. Such deposits may, at times, exceed federally insured limits. The Company has not experienced any losses on its cash. 9 Cash The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of September 30, 2025 and 2024, cash consisted of cash on deposit with a bank denominated in U.S. dollars. Digital assets As a result of the adoption of ASU 2023-08, Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), digital assets are measured at fair value as of each reporting period. The fair value of digital assets is measured using the period-end closing price from Coinbase, in accordance with ASC 820. Since the digital assets are traded on a 24-hour period, the Company utilizes the price as of midnight UTC time. Changes in fair value are recognized in Gain (loss) on fair value of digital assets , in Operating income (loss) on the Statement of Operations. When the Company sells digital assets, gains or losses from such transactions are measured as the difference between the cash proceeds and the carrying basis of the digital assets as determined on a First In-First Out basis and are also recorded within the same line item, Gains (loss) on fair value of digital assets . The Company holds all digital assets with BitGo for custodial services, who were selected based on various factors, including their financial strength and industry reputation. Custodian risk refers to the potential loss, theft, or misappropriation of the Company’s digital assets due to operational failures, cybersecurity breaches, or financial difficulties experienced by these third parties. Although the Company periodically monitors the financial health, insurance coverage, and security measures of its custodians, reliance on such third parties inherently exposes the Company to risks that it cannot fully mitigate. Deferred Offering Costs Specific incremental costs, consisting of legal, accounting and other fees and costs, directly attributable to a proposed or actual offering of securities are deferred and charged against the gross proceeds of the offering. In the event of a significant delay or cancellation of a planned offering of securities, all of the costs are expensed. Offering costs capitalized as of September 30, 2025 and December 31, 2024 were $ 0 million and $ 2.8 million, respectively. During the three and nine months ended September 30, 2025, the Company charged $ 0.3 million against proceeds of the offering in additional paid-in capital and expensed approximately $ 15 million to general and administrative expenses in the statement of operations, which includes $ 2.4 million charged against the Business Combination transaction costs. The $ 0.3 million of deferred offering costs was deducted from the gross proceeds of the share issuance and is presented as a separate line item in the table below, reducing additional paid-in capital in the statement of changes in stockholders’ deficit. Deferred Offering Costs Balance as of December 31, 2024 $ 2,757 Charged against additional paid-in capital ( 283 ) Charged against transaction costs ( 2,474 ) Balance as of September 30, 2025 $ — 10 ELOC On July 28, 2025, the Company entered into the Purchase Agreement and the ELOC Registration Rights Agreement with Ascent. Upon the terms and subject to the satisfaction of the conditions contained in the Purchase Agreement, from and after the Effective Date, the Company will have the right, in its sole discretion, to sell to Ascent up to $ 100,000,000 of shares of its Common Stock, subject to certain limitations set forth in the Purchase Agreement, from time to time during the term of the Purchase Agreement. The ELOC is accounted for in accordance with US GAAP accounting for standby equity purchase agreements (“SEPA”) which are accounted for as an asset or liability pitot to the settlement of shares in equity and is not considered indexed to the Company's stock under step 2 in ASC 815-40-15-7 and therefore liability classified. 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”). Warrants are 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.. The associated equity classified warrants were not remeasured after initial issuance. In the instance of liability classified warrants, the Company revalues the warrants in subsequent periods with the change in fair value recorded in earnings. When the Company draws on the ELOC and issues shares, it recognizes the proceeds in equity. The amount recorded is based on the fair value of the cash received. The Company records ELOC transactions based on the actual cash received for each draw, as this is clearly measurable and traceable. Merger with Northview Acquisition Company The Company accounted for the merger with Northview as a reverse recapitalization. A reverse recapitalization occurs when the legal acquirer (the public shell company) issues shares to the shareholders of the legal acquiree (the operating company), and the operating company’s shareholders obtain control of the combined entity. Because the public shell company does not meet the definition of a business under ASC 805, the transaction is not accounted for as a business combination. Instead, the transaction is accounted for as a capital transaction; that is, as a recapitalization of the operating company. The historical financial statements are those of Legacy Profusa. The September 30, 2025 financial statements are those of Profusa Inc., with the assets and liabilities of Northview recognized at fair value as of the acquisition date. The equity structure, including the number and type of shares issued and outstanding reflects that of Legacy Profusa, and includes the equity instruments issued to effect the merger. Any contingent consideration is measured at fair value at the acquisition date. For contingent consideration that does not meet all the criteria for equity classification, such contingent consideration is required to be recorded at its initial fair value at the acquisition date, and on each balance sheet date thereafter. Changes in the estimated fair value of liability-classified contingent consideration are recognized on the condensed consolidated statements of operations in the period of change. Accrued Liabilities The Company recognizes accrued liabilities for expenses that have been incurred but not yet paid as of the reporting date. Accruals are recorded when (i) an obligation has been incurred, (ii) the amount is reasonably estimable, and (iii) the related goods or services have been received. Accrued liabilities primarily consist of compensation-related expenses (including salaries, bonuses, payroll taxes and benefits), professional fees, interest expense, operating costs, and other incurred but unpaid obligations. Management evaluates all known and estimated obligations at each reporting period and updates accruals based on the best available information. Accrued liabilities are classified as current when the Company expects to settle the obligation within one year. Changes in estimates are recognized in the period in which such changes become known. 11 Due to Related Parties Amounts due to related parties represent liabilities arising from transactions with entities or individuals that meet the definition of a related party under ASC 850, Related Party Disclosures . Such balances generally consist of short-term, non-interest-bearing payables for advances, expense reimbursements, shared services, or other operating costs incurred on behalf of the Company. These amounts are recorded at their carrying value, which approximates fair value due to their short-term nature. The Company recognizes related party payables when the underlying transaction has occurred, and the amount is fixed or determinable. Settlements of related party balances typically occur in cash; however, amounts may also be settled through offsets or other non-cash arrangements when appropriate. Management evaluates related party balances each reporting period to ensure proper classification, measurement, and disclosure. Amounts expected to be repaid within one year are classified as current liabilities. All related party transactions are conducted on terms the Company believes approximate those that would be obtained in arm’s-length transactions; however, because such arrangements are with related parties, the terms may differ from those obtainable from unrelated third parties. Fair Value of Financial Instruments The Company’s financial instruments consist of other receivables, accounts payable, warrant liabilities, earnout, promissory notes, convertible promissory notes and senior notes. The Company states accounts payable at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. See Note 4 Fair Value Measurements for instruments valued under Level 2 or Level 3. Earnout Arrangements In connection with the Business Combination, the Company entered into earnout arrangements that provide for the issuance of additional shares of the Company’s common stock to certain pre-Business Combination holders upon the achievement of specified post-closing share-price or operational milestones. The earnout agreement allows for settlement in shares of the company and does not allow for settlement in cash or other assets. The Company evaluates earnout arrangements in a de-SPAC transaction as a reverse recapitalization which is a capital transaction, under U.S. GAAP. The transaction was accounted for in line with SEC guidance (FRM Topic 12) and interpretations of ASC 805, Business Combinations , and the classification guidance under ASC 480, Distinguishing Liabilities from Equity. If the earnout arrangement does not require liability classification under ASC 480, it is then evaluated under the indexation guidance ASC 815-40-15, and the equity classification guidance ASC 815-40-25, to determine whether it should be classified as a liability or equity. All Milestones (Milestone I, II, III, and IV) do not require the liability classification under ASC 480, therefore the Company will proceed to assess under indexation guidance and equity classification guidance. Earnout agreements have specific indexation requirements (ASC 815-40) to be considered indexed to the entity’s own stock, and meet the equity classification requirements. Earnout agreements are considered indexed to the entity’s own stock when the earnout meets both of the following: (i) The earnout is based solely on inputs that are observable market data or inputs that are not observable but are consistent with the entity’s own stock (e.g., stock price, strike price, number of shares), and (ii) The earnout does not contain provisions that could require settlement in a way that is not consistent with equity classification. These steps are satisfied for Milestones I & II, the earnout may be considered indexed to the entity’s own stock. Milestone III does not meet the indexation guidance as it is based on an event occurring to achieve $ 6 million in, which is not a market data or input. The Milestone IV Earnout does meet the scope exception ASC 815-10-15-59(d) from derivative accounting since payments under these milestones are based on revenue amounts. Financial instruments such as these meet the “own equity” scope exception in ASC 815-10-15-74(a), and the financial instrument would be classified as equity with no subsequent remeasurement (unless the earnout is modified). Milestone III does not meet this “own equity” scope exception and is thus liability classified, valued on the Closing Date with subsequent changes in the valuation adjusted through earnings. The Company’s earnout Milestones I, II, and IV meet the equity classification criteria under ASC 815-40. As there is no obligation to net cash settle, there is a fixed quantity of shares, settlement is exclusively made in shares, and there are no downside protections or leverage features that protect the holder from a decline in price. As these conditions were all met, the earnout is considered both indexed to the entity’s own stock (or within the scope exception), and meet the equity classification requirements. These earnouts were fair valued on the Closing Date and will not be remeasured. Similarly, Milestone III was fair valued on the Closing Date and was determined to have a $ 0 value due to the current probability input of the event occurring being 0 %. Additionally, this Milestone III was revalued as of September 30, 2025 and continues to have a current probability of 0 % and no value was associated with the milestone. On the Closing Date, Milestones I and II had a value of $ 1.7 million, while Milestone IV had a value of $ 0 as this was also deemed improbable of occurring. Milestone III does not meet the indexed guidance as it is based on an event occurring to achieve $ 6 million in, which is not a market data or input. The Milestone IV Earnout does meet the scope exception ASC 815-10-15-59(d) from derivative accounting since payments under these milestones are based on revenue amounts. Warrants The Company reviews the terms of warrants to purchase its common stock to determine whether warrants should be classified as liabilities or stockholders’ deficit in its condensed consolidated balance sheets. In order for a warrant to be classified in stockholders’ deficit, the warrant must be (i) indexed to the Company’s equity and (ii) meet the conditions for equity classification. Legal costs incurred in connection with the issuance of equity-classified warrants are capitalized as a reduction to Additional Paid-In Capital if the warrants are issued in conjunction with an equity financing or equity-linked arrangement, and expensed immediately only if the costs are not directly attributable to the issuance. 12 If a warrant does not meet the conditions for stockholders’ deficit classification, it is carried on the condensed consolidated balance sheets as 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. Legal and professional fees incurred in connection with the issuance of liability-classified warrants, including those failing equity classification under ASC 815-40 are expensed immediately to the income statement as incurred. Income Taxes The Company has established deferred income tax assets and liabilities for temporary differences between the financial reporting bases and the income tax bases of its assets and liabilities at enacted tax rates expected to be in effect when such assets or liabilities are realized or settled pursuant to the provisions of ASC Topic 740 , “Income Taxes,” which prescribes a comprehensive model for the financial statement recognition, measurement, classification and disclosure of uncertain tax positions. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company has not recorded any unrecognized tax benefits as of September 30, 2025 and December 31, 2024. The Company has no tax provision for the nine months ended September 30, 2025 and 2024, due to the net losses and full valuation allowance against net deferred tax assets. Additionally, the Company does not earn a material amount of revenue or interest as of the date of these financial statements requiring a tax provision. Excise tax payable The Inflation Reduction Act of 2022, enacted in August 2022, imposed a 1 % non-deductible excise tax on net repurchases of shares by domestic corporations whose stock is traded on an established securities market. Recent Accounting Standards From time to time, new accounting standards are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. During the nine months ended September 30, 2025 and through the date of issuance of these condensed consolidated financial statements, there have been no new, or existing, recently issued accounting pronouncements that are of significance, or potential significance, that impact the Company’s condensed consolidated financial statements. Recently issued accounting standards not yet adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes ( Topic 740 ): Improvements to Income Tax Disclosures, which focuses on the rate reconciliation and income taxes paid. ASU No. 2023-09 requires a public business entity (PBE) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5 % of total income tax payments, net of refunds received. This pronouncement is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. Upon adoption, the Company will be required to disclose additional specified categories in the rate reconciliation in both percentage and dollar amounts. The standard, which is effective for the Company’s fiscal year ended December 31, 2025 is expected to be applied prospectively and will improve disclosures to include a more granular presentation of income taxes. The Company does not expect the adoption of ASU 2023-09 to have a material effect on our consolidated financial statements taken as a whole In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses (“DISE”). ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. As revised by ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, the provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. With the exception of expanding disclosures to include more granular income statement expense categories, the Company does not expect the adoption of ASU 2024-03 to have a material effect on our consolidated financial statements taken as a whole. 13 Note 3 — Recapitalization On July 11, 2025, the Company consummated the Business Combination. The consummation of the Business Combination involved the merger (the “Merger”) of Merger Sub with and into Legacy Profusa, pursuant to which, at the Closing, the separate corporate existence of Merger Sub ceased, with Legacy Profusa as the surviving corporation becoming a wholly-owned subsidiary of the Company. As a result of the Business Combination, the Company owns 100 % of the outstanding common stock of Legacy Profusa. In connection with the closing of the Business Combination, the Company changed its name from “NorthView Acquisition Corporation” to “Profusa, Inc.” More specifically, and as described in greater detail below, at the Effective Time of the Merger: ● each share of issued and outstanding Legacy Profusa Common Stock, including shares converted from convertible debt and convertible Preferred Stock, was converted into a number of shares of Company Common Stock, based on the Exchange Ratio (as defined in the Merger Agreement) that reflects an equity valuation of Legacy Profusa of $ 155,000,000 (as adjusted for the Incentive Equity Value, the Private Placement Value and the Aggregate Company Incentive Amount (as such terms are defined in the Merger Agreement)), divided by an assumed value of Company Common Stock of $ 10.00 per share, ● each option to purchase Legacy Profusa Common Stock was converted into an option to purchase Company Common Stock based on the Exchange Ratio, and ● each warrant to purchase Legacy Profusa Common Stock was converted into a warrant to purchase Company Common Stock based on the Warrant Ratio (as defined in the Merger Agreement). PIPE Transaction On February 11, 2025, the Company executed a Securities Purchase Agreement (the “PIPE Subscription Agreement”) with Ascent Partners Fund LLC (“Ascent”, and together with any additional investors who become parties to the PIPE Subscription Agreement, the “PIPE Investors”). Pursuant to the PIPE Subscription Agreement, the PIPE Investors are expected, subject to the conditions relating to such purchase set forth in the PIPE Subscription Agreement, to purchase from NorthView senior secured convertible notes in an aggregate principal amount of up to $ 22,222,222 (the “PIPE Convertible Notes”) for a purchase price of up to $ 20,000,000 , after 10 % OID. At the Closing and pursuant to the PIPE Subscription Agreement, the Company issued a PIPE Convertible Note in the principal amount of $ 10,000,000 (the “Initial Note”), reflecting a 10 % OID. The Initial Note matures on the date that is 18 -months from Closing (the “Maturity Date”) and is convertible at any time at the holder’s option at the lower of $ 10 or 95 % of the lowest daily volume-weighted average price per share (“VWAP”) of Company Common Stock in the 10 trading days prior to the original issue date for each PIPE Convertible and shall be adjusted, without limitation, based on down-round and most-favored nation (MFN) price and terms protections (the “Conversion Price”). The outstanding principal balance of the Profusa senior convertible promissory notes and all accrued but unpaid interest converted into Legacy Profusa Common Stock was exchanged for 4,170,932 shares of Company Common Stock, on an as converted price of $ 0.34 per share. The Exchange Ratio and the Company Reference Share Value (as defined in the Merger Agreement) were $ 0.94 and $ 9.40 , respectively. The outstanding principal balance of the Profusa senior secured convertible promissory notes and all accrued but unpaid interest converted into Legacy Profusa Common Stock was exchanged for 5,542,261 shares of Company Common Stock, on an as converted price of $ 0.50 per share. Upon Closing, the former holders of Legacy Profusa’s common stock, senior convertible notes, junior convertible notes and vested in-the-money options (the “Participating Securityholders”) received certain rights, under which in the future the Company may issue to the Participating Securityholders an aggregate of 3,875,000 shares of Company Common Stock (the “Milestone Earnout Shares”) during the respective earnout periods in equal quarterly installments upon achievement of the following four Milestone Events: ● Milestone I Earnout Rights: share price of Company Common Stock is equal to or greater than $ 12.50 for any 20 trading days during any 30 days trading period or consummation of a Subsequent Transaction (as defined in the Merger Agreement) where the stockholders of Profusa will receive a consideration of at least $ 12.50 for each share of Company Common Stock (“Milestone Event I”). The Milestone I period will commence on the 18-month anniversary and end on the two-year anniversary of the Closing Date (“Milestone Event I Period”); 14 ● Milestone II Earnout Rights: share price of Company Common Stock is equal to or greater than $ 14.50 for any 20 trading days during any 30 days trading period or consummation of a Subsequent Transaction where the stockholders of Profusa will receive a consideration of at least $ 14.50 for each share of Company Common Stock (“Milestone Event II”). The Milestone II period will commence on the 360-day anniversary and end on the two-year anniversary of the Closing Date (“Milestone Event II Period”); provided that such 30 days trading period does not overlap with the 30 days trading period used to satisfy the requirements of Milestone Event I; provided, further, that in the event that such 30 days trading period could satisfy either Milestone Event I or Milestone Event II, then Milestone Event II shall be deemed to be satisfied first; ● Milestone III Earnout Rights: the closing of the APAC Joint Venture, as described below in this Report, and the Companies receipt of the related $ 6 million funding, during the fiscal year ended December 31, 2025 (“Milestone Event III”); ● Milestone IV Earnout Rights: achievement of revenue of $ 11,864,000 for the fiscal year ended December 31, 2026 (“Milestone Event IV,” and, together with Milestone Event I, Milestone Event II and Milestone Event III, the “Milestone Events”). Milestone I Earnout Rights, Milestone II Earnout Rights, Milestone III Earnout Rights and Milestone IV Earnout Rights are further referred to collectively as “Milestone Earnout Rights”. In the event that the above milestones are achieved, this will dilute the ownership interests of existing shareholders. Reverse recapitalization The Business Combination was accounted for as a reverse recapitalization in accordance with US GAAP. Accordingly, Legacy Profusa was deemed the accounting acquirer (and legal acquiree) and Northview was treated as the accounting acquiree (and legal acquirer). Under this method of accounting, the reverse recapitalization was treated as the equivalent of Legacy Profusa issuing stock for the net assets (liabilities) of Northview, accompanied by a recapitalization. The net assets of Northview are stated at historical cost, with no goodwill or other intangible assets recorded. The consolidated assets, liabilities, and results of operations prior to the Business Combination are those of Legacy Profusa. All periods prior to the Business Combination have been retrospectively adjusted in accordance with the Business Combination Agreement for the equivalent number of common shares outstanding immediately after the Business Combination to effect the reverse recapitalization. The number of shares for all periods prior to the Closing Date have been retrospectively decreased using the exchange ratio that was established (the “Exchange Ratio”). All Milestones (Milestone I, II, III, and IV pass the criteria of liability classification under ASC 480 as they are not mandatorily redeemable, it does not represent an obligation to repurchase the issuer’s equity shares, and it is not settled by issuing a variable number of its equity shares. Milestone III however, does not pass the criteria of liability classification under ASC 480 as the settlement condition is based partially on the occurrence of an event which fails the index guidance for equity classification. All four Earnouts have only two potential settlement alternatives, i.e. either no shares are issued or 968,750 shares are issued (for each Earnout). This earnout agreement is considered indexed to the entity’s own stock, as the earnout meets both of the following: (i) The earnout is based solely on inputs that are observable market data or inputs that are not observable but are consistent with the entity’s own stock (e.g., stock price, strike price, number of shares), and (ii) The earnout does not contain provisions that could require settlement in a way that is not consistent with equity classification. These steps are satisfied for Milestones I & II, the earnout may be considered indexed to the entity’s own stock. Milestone III does not meet the indexed guidance as it is based on an event occurring to achieve $ 6 million in, which is not a market data or input. The Milestone IV Earnout does meet the scope exception ASC 815-10-15-59(d) from derivative accounting since payments under these milestones are based on revenue amounts. Financial instruments such as these meet the “own equity” scope exception in ASC 815-10-15-74(a), and the financial instrument would be classified as equity with no subsequent remeasurement (unless the earnout is modified). Milestone III does not meet this own equity scope exception and is thus liability classified, valued on the Closing Date with subsequent changes in the valuation adjusted through earnings. The Company’s earnout Milestones I, II, and IV meet the equity classification criteria under ASC 815-40. As there is no obligation to net cash settle, there is a fixed quantity of shares, settlement is exclusively made in shares, and there are no downside protections or leverage features that protect the holder from a decline in price. As these conditions were all met, the earnout is considered both indexed to the entity’s own stock (or within the scope exception), and meet the equity classification requirements. These earnouts were fair valued on the Closing Date and will not be remeasured. Similarly, Milestone III was fair valued on the Closing Date and was determined to have a $ 0 value due to the current probability input of the event occurring being 0 %. Additionally, this Milestone III was revalued as of September 30, 2025 and continues to have a current probability of 0 % and no value was associated with the milestone. On the Closing Date, Milestones I and II had a value of $ 1.7 million, while Milestone IV had a value of $ 0 as this was also deemed improbable of occurring. Milestone III does not meet the indexed guidance as it is based on an event occurring to achieve $ 6 million in, which is not a market data or input. The Milestone IV Earnout does meet the scope exception ASC 815-10-15-59(d) from derivative accounting since payments under these milestones are based on revenue amounts.. The earn-outs are considered to be part of the overall reverse recapitalization as it was negotiated between NorthView Sponsor I, LLC, the sponsor of NorthView (the “Sponsor”), and the selling shareholders. As such, it is represented as an equity restructuring that is accounted for as a reduction in additional paid-in capital. As this is an equity classified transaction the contingent consideration creates a reduction to the additional paid in capital account of $ 1.7 million, with an offset to additional paid in capital -Earn-out equity instrument. This accounting results in no impact on the face of the Statement of Stockholders’ Deficit until all necessary conditions to issue such shares have been satisfied by the end of the period. Once these contingently issuable shares are deemed issuable, they will also be included in earnings per share. 15 The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows and the consolidated statement of changes in stockholders’ equity: Cash-Trust Account, net of redemptions $ 1,276 Less: transaction costs and professional fees, paid directly from Trust Account 1,274 Net proceeds received from Trust 2 Less: private and representative warrant liabilities ( 1,193 ) Less: related party notes ( 41 ) Less: related party notes - working capital loan ( 2,162 ) Less: related party notes - PIPE Subscription Agreement ( 3,898 ) Less: excise tax payable ( 1,953 ) Less: accounts payable and accrued expenses ( 3,102 ) Reverse recapitalization, net $ ( 12,346 ) The number of shares of Common Stock to be issued following the consummation of the Business Combination were: Class A Common Stock NVAC Public Shares, outstanding prior to the Business Combination 101,777 Less: Redemption of NVAC Class A common stock ( 400 ) Public shares of NVAC 101,377 NVAC Founder Shares, outstanding prior the Business Combination 4,033,520 NVAC Representative Shares converted to Class A Common shares 450,000 NVAC Shares from Rights converted to Class A common shares 1,897,500 Business Combination shares Profusa Shares 8,593,991 Issuance of shares in connection with PIPE 2,901,833 Conversion of notes into shares 14,782,446 Common Stock immediately after the Business Combination 32,760,667 The number of Profusa Shares was determined as follows: Legacy Profusa Shares Profusa Shares after conversion ratio Preferred Stock 17,863,934 6,178,315 Class A Common Stock 5,604,651 2,415,676 Total 23,468,585 8,593,991 Transaction costs During the three and nine months ended September 30, 2025, based on the proceeds received, the Company expensed $ 15.1 million for transaction costs incurred in connection with the Business Combination. The transaction costs primarily represented fees incurred for financial advisory, legal and other professional services that were directly related to the Business Combination. Public and private placement warrants The 9,487,500 warrants (the “Public Warrants”) issued in Northview’s initial public offering (the “IPO”), 7,347,500 warrants issued in connection with private placement at the time of the IPO (the “Private Placement Warrants”) and 569,250 warrants issued to the representative of the underwriters in the IPO (the “Representative’s Warrants”) remained outstanding and became warrants for the Company. The Public Warrants qualify for equity classification upon Closing, and were fair value adjusted with no future gains or losses on fair value adjustment being recorded in future periods. The Private Placement Warrants and Representative’s Warrants contain provisions that preclude these warrants from being indexed to the Company’s stock., the settlement amount depending on who holds the instrument, and the holder is not an input to the fair value of a fixed-for-fixed option or forward on equity shares. As such, this provision would cause the warrants to fail Step 2 of the indexation guidance. The Private Placement and Representative’s Warrants remained liability classified with fair value adjustments being recorded through earnings each period. 16 Note 4 — Fair Value Measurement Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 — Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 — Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit 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 value presented within change in fair value of warrant liabilities in the condensed consolidated statements of operations. The Company uses a Monte Carlo simulation model to value the Private Placement Warrants and the Representative’s Warrants. The Private Placement Warrants and the Representative’s Warrants were classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. Inherent in pricing models are assumptions related to expected share-price volatility, expected life and risk-free interest rate. The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The key inputs into the Monte Carlo simulation model for the warrant liabilities were as follows at September 30, 2025 and July 11, 2025 (the “Closing Date”): September 30, 2025 July 11, 2025 Input Risk-free interest rate 3.73 % 3.99 % Expected term (years) 4.8 5.00 Expected volatility 91.80 % 42.00 % Exercise price $ 11.50 $ 11.50 Fair value of Common stock $ 0.30 $ 2.50 Warrant Liabilities The following table provides a summary of the changes in the fair value of the Company’s Level 3 warrant liabilities that are measured at fair value on a recurring basis for the three and nine months ended September 30, 2025 (in thousands): Private Placement Warrants Representative’s Warrants Total Level 3 Warrant liabilities Fair value at Beginning of period $ - $ - $ - Assumption of warrant liabilities 1,107 87 1,194 Change in fair value of warrant liabilities ( 820 ) ( 64 ) ( 884 ) Fair value at September 30, 2025 $ 287 $ 23 $ 311 Convertible notes payable, related party The Tasly Convertible note and the Convertible Promissory Note – Related Party (collectively “Related Party Convertible Debt Payable”) were valued using a Probability Weighted Expected Return Model to fair value the convertible note. The intrinsic conversion value as of September 30, 2025 is zero and the note has matured and is payable at the principal amounts plus accrued interest. Therefore, the fair value of the note is the face amount of the debt. 18 The following table provides a summary of the changes in the fair value of the Company’s Level 3 Related Party Convertible Debt Payable for the three and nine months ended September 30, 2025 and 2024 (in thousands): Related Party Convertible Debt Payable, at Fair Value Fair value as of January 1, 2025 $ 2,234 Loss on change in the fair value of related party convertible debt 156 Fair value as of March 31, 2025 2,390 Loss on change in the fair value of related party convertible debt 153 Fair value as of June 30, 2025 2,543 Assumption of related party convertible note upon closing of the Business Combination 2,162 Gain on change in the fair value of related party convertible debt ( 578 ) Fair value as of September 30, 2025 $ 4,127 Related Party Convertible Debt Payable, at Fair Value Fair value as of January 1, 2024 $ 1,714 Issuance of Tasly Convertible Notes 16 Loss on change in the fair value of related party convertible debt 44 Fair value as of March 31, 2024 1,774 Loss on change in the fair value of related party convertible debt 64 Fair value as of June 30, 2024 1,838 Loss on change in the fair value of related party convertible debt 320 Fair value as of September 30, 2024 $ 2,158 The Company has included a reclassification of $ 49 thousand and $ 145 thousand of interest was reclassified from interest expense into gain (loss) on change in the fair value of related party convertible debt for the three and nine months ended September 30, 2024, respectively. This reclassification has no impact on total other income (expense) or net loss and comprehensive net loss. Loan Payable - Related Party The Company uses a Monte Carlo simulation model to value the Loan Payable - Related Party. The Loan Payable - Related Party were classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. Inherent in pricing models are assumptions related to expected share-price volatility, expected life and risk-free interest rate. The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the loans payable. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the loans. The expected life of the loans are assumed to be equivalent to their remaining contractual term. 19 The key inputs into the Monte Carlo simulation model for the Loan Payable - Related Party were as follows at September 30, 2025 and July 11, 2025: September 30, 2025 July 11, 2025 Input Risk-free interest rate 3.66 % 4.00 % Expected term (years) 1.28 1.50 Expected volatility 72.6 % 82.70 % Fair value of Common stock $ 0.30 $ 2.50 The following table provides a summary of the changes in the fair value of the Company’s Level 3 related party loan payable for the three and nine months ended September 30, 2025 (in thousands): Loans payable - related party Fair value as of January 1, 2025 $ — Assumption of convertible note upon closing of the Business Combination 3,898 Proceeds Received 11,000 Repayments of debt ( 610 ) Loss on change in the fair value of related party convertible debt 71 Fair value as of September 30, 2025 $ 14,359 Note 5 — Balance Sheet Components Prepaid expenses and other current assets (in thousands) As of September 30, 2025 As of December 31, 2024 Prepaid legal $ - $ 25 Prepaid insurance 141 37 Prepaid other 73 7 $ 214 $ 69 Accrued Liabilities (in thousands) As of September 30, 2025 As of December 31, 2024 Accrued compensation $ ( 4,291 ) $ ( 3,472 ) Accrued other liabilities ( 3,557 ) ( 496 ) $ ( 7,848 ) $ ( 3,968 ) 20 Note 6 — Debt The following table sets forth a summary of the debt instruments and their changes during the nine months ended September 30, 2025 and 2024 (in thousands): Convertible Notes Loan Payable - Related Party Tasly Convertible Debt - Related Party Convertible promissory note - related party Senior Notes Promissory Notes PPP Loan Balance at January 1, 2025 $ 18,419 $ — $ 2,234 — $ 25,268 910 $ 1,376 Issuance of debt — 11,000 — — 1,350 100 — Debt repayments — ( 610 ) — — ( 443 ) — — Change in fair value — 71 ( 27 ) ( 242 ) — — — Conversion of debt to equity ( 19,612 ) — — — ( 27,279 ) — Debt assumed in connection with reverse recapitalization — 3,898 — 2,162 — — — Stated interest 1,193 — — — 1,258 35 10 Balance at September 30, 2025 ( 0 ) 14,359 2,207 1,920 154 1,045 1,386 Less: Current portion — — 2,207 1,920 154 1,045 1,386 Long term debt $ ( 0 ) $ 14,359 $ — $ — $ — — — Accounting basis Effective interest method Fair value option Fair value option Fair value option Effective interest method Simple interest method Compounding Interest Interest rate 12 10 24 — 0 - 12 0 - 12 1 Conversion price(s) per share 1 $ 7.00 various $ 0.50 — $ 0.50, 2.22, and 4.0 — — Maturity 7/11/2025 1/11/2027 7/11/2025 1/11/2026 7/11/2025 7/11/2025 5/25/2026 21 Convertible Notes Tasly Convertible Debt - Related Party at fair value Senior Convertible Notes Promissory Notes PPP Loan Balance at January 1, 2024 $ 16,316 $ 1,714 $ 20,155 $ 849 $ 1,362 Issuance of debt — 16 2,110 — — Debt repayments — — ( 150 ) — — Change in fair value — 427 — — — Stated interest 993 — 1,521 46 10 Amortization of debt discount and issuance costs 2 — — — — Balance at September 30, 2024 17,311 2,157 23,636 895 1,372 Less: Current portion 17,311 2,157 23,636 895 1,372 Long term debt $ — $ — $ — $ — $ — Convertible Debt Convertible Notes The annual effective interest rate of Convertible Notes was estimated from 12.54 % to 53.28 % per year for the nine months ended September 30, 2025 and from 12.66 % to 53.28 % per year for the nine months ended September 30, 2024. The interest expense for the three months ended September 30, 2025 and 2024 was $ 0.1 million and $ 0.5 million, respectively. The interest expense for the nine months ended September 30, 2025 and 2024 was $ 1.2 million and $ 1.6 million, respectively. Upon Closing, the following convertible notes were converted into Company Common Stock based on the principal and accrued interest as of July 11, 2025 (the Closing Date). Convertible Notes with an outstanding balance of $ 19.6 million in principal and accrued interest converted into 2,801,697 shares of Company Common Stock at $ 7.00 /share. Tasly Convertible Debt - Related Party at fair value In June 2023, the Company entered into a short-term loan agreement with a related party under which it may borrow up to $ 1.6 million, of which $ 1.0 million was borrowed on June 26, 2023, $ 0.3 million was borrowed on July 20, 2023, $ 0.3 million was borrowed on August 15, 2023 and the final $ 0.02 million was borrowed in February 2024 (the “Convertible debt”). The loans bear interest at a rate of 12 % per annum, 24 % per annum default interest rate, and originally matured on December 31, 2023 . The original maturity date was extended to March 31, 2024, subject to the parties’ decision to extend thereafter. Upon occurrence of certain events of default by the Company, including failure to repay in full the amounts owed at maturity, the lender will have an option to convert the entire outstanding balance and accrued but unpaid interest under the Convertible debt into senior unsecured promissory notes on substantially the same terms as the outstanding Senior Notes. In the event the Company fails to complete the formation of the APAC Joint Venture or fail to repay the amounts under the Tasly Convertible Debt when they become due, the lender will have an option to convert the entire outstanding balance and accrued but unpaid interest under the Convertible debt into either (i) senior unsecured promissory notes on substantially the same terms as the outstanding Senior Notes as of September 30, 2025, $ 0.50 per share, or (ii) the Company’s Common Stock at a conversion price of $ 1.92 per share. 22 The Company elected to apply the fair value option to account for the Tasly Convertible debt. Accordingly, no features of the Convertible debt are bifurcated and separately accounted for. As of September 30, 2025 and 2024, the fair value of the Convertible debt was $ 2.1 million and $ 1.7 million, respectively. On September 30, 2025, the remaining time event was 0 months as the APAC JV can effectively close now that the Closing has occurred. The intrinsic conversion value as of the Valuation Date, September 30, 2025, is zero and the note is in default as the maturity date has passed. The fair value of the note is the face amount of the debt plus accrued interest which is recorded as a liability above the face amount of the debt and is recorded as a current liability on the Condensed Consolidated Balance Sheet. Senior Convertible Notes January-March 2024 Senior Notes — During the months January through March 2024, the Company issued additional Senior Notes to investors with the principal amount of $ 0.7 million on substantially the same terms as the Senior Notes issued in 2022 (as amended in November 2022). April - June 2024 Senior Notes — During the months April through June 2024, the Company issued additional Senior Notes to investors with the principal amount of $ 0.4 million on substantially the same terms as the Senior Notes issued in 2022 (as amended in November 2022). Additionally, the Company repaid $ 0.1 million of principal on Senior Notes with investors during the respective period. July - September 2024 Senior Notes — During the months July through September 2024, the Company issued additional Senior Notes to investors with the principal amount of $ 0.7 million on substantially the same terms as the Senior Notes issued in 2022 (as amended in November 2022). Additionally, during the months of July through September 2024, the Company issued a Senior Convertible Note with the principal amount of $ 0.25 million. This note was issued at the same 12 % interest terms as all of their other Senior Notes and converted into shares of Company Common Stock upon the Closing. January-March 2025 Senior Notes — During the months January through March 2025, the Company issued additional Senior Secured Convertible Notes to investors with the principal amount of $ 0.8 million on substantially the same terms as the Senior Notes issued in 2022 (as amended in November 2022). These notes were issued at the same 12 % interest terms as all of their other Senior Secured Convertible Notes, and will convert into shares of Company Common Stock at $ 0.50 per share. April - June 2025 Senior Notes — During the months April through June 2025, the Company issued additional Senior Secured Convertible Notes to investors with the principal amount of $ 0.4 million issued on substantially the same terms as the Senior Notes issued in 2022 (as amended in November 2022). These notes were issued at the same 12 % interest terms as all of their other Senior Secured Convertible Notes, and will convert into shares of Company Common Stock at $ 0.50 per share. The annual effective interest rate of Senior Notes was estimated from 0% to 12.15 % and 0% to 12.55 % per year for the nine months ended September 30, 2025 and 2024, respectively. The interest expense for the three months ended September 30, 2025 and 2024 was $ 0.1 million and $ 0.5 million, respectively. The interest expense for the nine months ended September 30, 2025 and 2024 was $ 1.3 million and $ 1.5 million, respectively. Upon Closing, the following convertible notes were converted into Company Common Stock based on the principal and accrued interest as of July 11, 2025. Senior Convertible Notes with an outstanding balance of $ 20.6 million in principal and accrued interest converted into 5,143,898 shares of Company Common Stock at $ 4.00 /share, Senior Convertible Bridge Notes of $ 3.1 million in principal and accrued interest were repaid in cash in the amount of $ 0.2 million with the remaining $ 2.9 million converted into 1,294,590 shares of Company Common Stock at $ 2.22 /share, Senior Secured Convertible Notes of $ 2.8 million in principal and accrued interest converted into 5,542,261 shares of Company Common Stock at $ 0.50 /share. Of the 5,542,261 shares of Company Common Stock issued to Senior Secured Note holders, 710,220 shares were contributed by the Sponsor. As such, most of these notes were converted into Company Common Stock upon the Closing. As of September 30, 2025, $ 0.3 million remained outstanding. 23 Of the $ 0.3 million of Senior Notes remaining, $0 is outstanding with related parties and $ 0.3 million is outstanding with unrelated parties. Additionally, of the $ 25.3 million of Senior Notes outstanding on December 31, 2024, $ 9.5 million was outstanding with related parties and $ 15.8 million was outstanding with unrelated parties. Loans Payable - Related Party at fair value On February 11, 2025, NorthView executed a Securities Purchase Agreement (the “PIPE Subscription Agreement”) with Ascent Partners Fund LLC (“Ascent”, and together with any additional investors who become parties to the PIPE Subscription Agreement, the “PIPE Investors”). Pursuant to the PIPE Subscription Agreement, the PIPE Investors are expected, subject to the conditions relating to such purchase set forth in the PIPE Subscription Agreement, to purchase from NorthView senior secured convertible notes in an aggregate principal amount of up to $ 22,222,222 (the “PIPE Convertible Notes”) for an aggregate purchase price of up to $ 20,000,000 , reflecting a 10 % original issue discount to the face amount (“OID”). As of the Closing on July 11, 2025 Northview was presenting the PIPE Subscription Agreement at fair value on its balance sheet in the amount of $ 3.9 million which was brought over to the Company’s combined balance sheet and further adjusted to fair value on September 30, 2025. At the Closing and pursuant to the PIPE Subscription Agreement, the Company issued the Initial Note in the principal amount of $ 10,000,000 for a purchase price of $ 9,000,000 , reflecting a 10 % OID. The Initial Note matures on January 11, 2027 , which is 18-months from Closing on July 11, 2025 (the “Maturity Date”) and is convertible at any time at the PIPE Investor’s option at a conversion price equal to the lower of $ 10 or 95 % of the lowest daily VWAP of our Common Stock in the 10 trading days prior to the original issue date of the Initial Note and shall be adjusted, without limitation, based on down-round and most-favored nation (MFN) price and terms protections (the “Conversion Price”). The Initial Note includes a “Minimum Interest Amount” equal to 10 % of the principal amount, which represents a full year of interest payments under the Initial Note; provided, that such Minimum Interest Amount shall be reduced by the amount of interest accrued on the principal amount of the Initial Note. Interest shall accrue on the aggregate unconverted and then outstanding principal amount of the Initial Note at a rate of 10 % per annum, provided that the Minimum Interest Amount shall be fully earned and accrued on the original issue date of the Initial Note. Upon an event of default, the interest rate shall be adjusted and increase to 24 % per annum. Payments made in cash under the Initial Note shall be subject to a 5 % fee, which shall be in addition to any amounts owed thereunder. The Initial Note provides for certain events of default that are typical for a transaction of this type, including, among other things, any breach of the representations or warranties made by the Company and our subsidiaries. The Initial Note also provides for a 10 % late fee in case of late payments and mandatory prepayments upon Subsequent Offerings (as defined in the Initial Note) and, in the absence of an event of default, may be prepaid upon 10 business days prior notice, subject to certain conversion rights of the PIPE Investors. The Initial Note may not be converted by the PIPE Investors into shares of our Common Stock if such conversion would result in the investors or their affiliates owning in excess of 4.99 % of the number of shares of our Common Stock outstanding immediately after giving effect to the issuance of all shares issuable upon conversion of the Initial Note (the “Beneficial Ownership Limitation”); provided, that the PIPE Investors may increase or decrease the Beneficial Ownership Limitation upon at least 61 days’ prior notice to us so long as such increase does not exceed 9.99 % of the number of shares of our Common Stock outstanding immediately after giving effect to the issuance of all shares issuable upon conversion of the Initial Note. On August 1, 2025, pursuant to a Notice and Waiver, the Beneficial Ownership Limitation was increased from 4.99 % to 9.99 % and the Company waived the requirement for the 60 days’ advance notice for such increase. 24 On August 25, 2025, the Company entered into Amendment No. 1 (the “SPA Amendment”) to the PIPE Subscription Agreement. Pursuant to the SPA Amendment, Section 2.1 of the PIPE Subscription Agreement was amended and restated to provide for four tranches of Notes: (i) an initial closing for Notes in an aggregate principal amount of $ 10,000,000 (the “First Tranche”), which already occurred on July 11, 2025; (ii) a second closing for Notes in an aggregate principal amount of $ 2,222,222 (the “Second Tranche”) for a purchase price of $ 2,000,000 , subject to the satisfaction of certain conditions including the filing of a registration statement on Form S-1 covering all conversion shares and no Nasdaq listing deficiency; (iii) a third closing for Notes in an aggregate principal amount of $ 5,555,556 (the “Third Tranche”) for a purchase price of $ 5,000,000 , subject to the satisfaction of certain conditions including the full conversion or repayment of the First Tranche, effectiveness of a registration statement, no Nasdaq listing deficiency, and receipt of stockholder approval; and (iv) a fourth closing for Notes in an aggregate principal amount of $ 4,444,444 (the “Fourth Tranche”) for a purchase price of $ 4,000,000 , subject to the satisfaction of certain conditions including the full repayment of the First and Second Tranches, at least fifty percent ( 50 %) repayment or conversion of the Third Tranche, effectiveness of a registration statement, and no Nasdaq listing deficiency. The SPA Amendment supersedes and replaces all prior provisions relating to “Additional Closings” and “Additional Notes,” and all references to such terms in the PIPE Subscription Agreement and related documents are to be construed in accordance with the new tranche structure. Concurrently, on August 25, 2025, the Company entered into Amendment No. 1 (the “Note Amendment”) to the Initial Note. The Note Amendment modifies the terms of the Initial Note, specifically amending Section 4(b) to revise the conversion price provisions on any conversion date to be the lower of (i) the Conversion Price on such date and (ii) ninety-five percent ( 95 %) of the lowest daily VWAP for the Company’s Common Stock during the ten consecutive trading days immediately preceding the applicable conversion date (the “Alternate Conversion Price”), provided that in no event shall the conversion price be less than the floor price of $ 0.10 which was calculated based on twenty percent ( 20 %) of the closing sale price of the common stock on the principal trading market on the trading day immediately preceding the Note Amendment’s effective date, which was August 22, 2025. The Company has elected the fair value option under ASC 825-10, Financial Instruments - Fair Value Option, for its loans payable - related party under ASC 825, Financial Instruments . The election simplifies accounting by measuring the entire instrument at fair value, with changes in fair value recognized in earnings. As such, the Company does not separately recognize any interest, unamortized discount, premium, issuance costs, or other basis adjustments; these amounts are included in the carrying amount of the liability that is adjusted to fair value each period. Fair value is determined using observable market data when available and valuation models when observable inputs are not readily available. Changes in fair value attributable to both credit risk and market risk are recorded in Loss on change in fair value of related party convertible debt in the Condensed Consolidated Statement of Operations. See Note 4, Fair Value Measurement for further information. As of September 30, 2025, there was $ 14.4 million loans payable outstanding which has been classified as long-term in the condensed consolidated balance sheet. Promissory Notes In a series of transactions during 2010 and 2011, two of the Company’s founders provided $ 0.2 million to the Company to fund general corporate purposes in exchange for promissory notes. Our outstanding promissory notes accrue interest at 5 % and 12 % per annum, most of which do not have a set maturity date. Any promissory notes that did have an initial maturity date, which has passed, the Company has verbally agreed to pay off these loans subsequent to the consummation of the Business Combination. The Company is currently in default; accordingly, the Company classified the entire outstanding amount as a current liability on the condensed consolidated balance sheet. 25 During the year ended December 31, 2022, the Company borrowed $ 0.3 million from two of its founders at zero interest rate to finance its short-term operations, from which $ 0.2 million was repaid in the same period. During the year ended December 31, 2023, the Company borrowed short-term promissory notes of $ 0.3 million from an existing investor and additional $ 0.1 million from an unrelated party repayable on demand at any time after December 31, 2023, with annual interest rate of 12 %. During the three and nine months ended September 30, 2025 and 2024, one note of $ 0.1 million was issued and the Company did not make any repayments from the outstanding balance of the promissory notes. As of September 30, 2025 and December 31, 2024, accrued and unpaid interest on the promissory notes was $ 0.3 million and $ 0.3 million, respectively. Interest expense on the promissory notes was less than $ 0.1 million for each of the three and nine months ended September 30, 2025 and 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 Total $ 1,386 26 Convertible Promissory Note – Related Party at Fair value The Company now holds the convertible working capital promissory note which was previously held by Northview Acquisition Corporation with the Sponsor for up to $ 2.5 million. The Note is non-interest bearing and became convertible on the Closing Date, July 11, 2025. The Sponsor may elect to convert all or any portion of the unpaid principal balance of this Note into warrants, at a price of $ 1.00 per warrant. The note also allows for the conversion of the outstanding principal balance to be repaid in shares of Company Common Stock at a price of $ 2.22 per share at the election of the sponsor. As of September 30, 2025 and December 31, 2024, the Company had principal outstanding of $ 1,919,796 and is presenting the Note at fair value on its balance sheet at September 30, 2025 in the amount of $ 1,919,796 . The Company has deferred the repayment of the note to six months after the Closing and has classified this as a current asset due to the repayment being in default. Note 7 — Commitments and Contingencies Operating Lease Obligations Beginning in October 2024, the Company entered into a lease agreement whereby the Company agreed to rent its office and lab facilities under month-to-month tenancy. The monthly rent payable under the lease is $ 25 thousand. This month-to-month lease automatically renews every four months, unless written termination is provided. Operating costs for short-term leases include variable lease costs of $ 0.1 million and less than $ 0.1 million during the three months ended September 30, 2025 and 2024, compared to $ 0.2 million and $ 0.1 million during the nine months ended September 30, 2025 and 2024. Starting from August 2022, the Company recognized lease expense in the amount of monthly rent as incurred. The Company recognized operating lease costs for monthly rent of $ 75 thousand and $ 150 thousand for each of the three and nine month periods ending September 30, 2025 and 2024. Total operating lease costs with common area maintenance variable costs were $ 0.3 million and $ 0.2 million for the nine months ended September 30, 2025 and 2024. Contingencies and Indemnifications From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and that such expenditures can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but that have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. 27 Note 8 — Warrants The Company has four groups of warrants that total 17,536,750 which is made up of: 9,487,500 Public Warrants, 7,347,500 Private Placement Warrants, 569,250 Representative’s Warrants, and 132,500 HCW Warrants. Northview Warrants As part of the IPO, Northview issued the Public Warrants to third-party investors, where each whole warrant entitled the holder to purchase one share of the Company’s Common Stock at an exercise price of $ 11.50 per share. Simultaneously with the closing of the IPO, Northview completed the private sale of 7,347,500 Private Placement warrants where each warrant allows the holder to purchase one share of the Company’s Common Stock at $ 11.50 per share. Additionally, Northview granted underwriters 569,250 warrants exercisable at $ 11.50 per share (or an aggregate exercise price of $ 6,546,375 ) at the closing of the IPO. The Public Warrants became exercisable 30 days after the consummation of the Business Combination The Private Placement Warrants and Representative’s Warrants are non-redeemable in certain circumstances so long as they are held by the initial purchasers or their permitted transferees. The Private Placement and Representative’s Warrants may also be exercised by the initial purchasers or their permitted transferees for cash or on a cashless basis, but are otherwise similar to the Public Warrants underlying the Units sold in the IPO, as the Private Placement Warrants and Representative Share Warrants, along with the common stock issuable upon the exercise of the Private Placement Warrants and Representative Share Warrants also became transferable, assignable, or saleable 30 days after the completion of the Business Combination, which was during this period ended September 30, 2025. The Public Warrants were initially classified as a derivative liability instrument. Upon the closing of the Business Combination, the Public Warrants in accordance with the guidance contained in ASC 815 are no longer precluded from equity classification as they meet the “own equity” scope exception in ASC 815-10-15-74(a), allowing these financial instruments to be classified as equity with no subsequent remeasurement. The Public Warrants are indexed to the Company’s Common Stock as they meet both steps in the criteria under ASC 815-40-15-7, as they are not contingently exercisable and they are now considered indexed to equity, as the contingent settlement provisions are no longer applicable subsequent to the Close. The Public Warrants strike price and the number of shares used to calculate the settlement amount are fixed, so the instrument can be considered indexed to an entity’s own stock (as the only variables that could affect the settlement amount would be inputs to the fair value of a fixed-for-fixed forward or option on equity shares). The Private Warrants and Representative Warrants are not considered indexed to an entity’s own stock, and fails Step 2 of ASC 815-40-15-7. As such, the Company continues to recognize the Private Placement Warrants and Representative Share Warrants as liabilities at fair value as of the Closing Date, with an offsetting entry to additional paid-in capital and adjusts the carrying value of the instruments to fair value through other income (expense) on the condensed consolidated statement of operations at each reporting period until they are exercised. (See Note 4). 28 HCW Warrants HCW acted as Profusa’s financial advisor in connection with the Business Combination and received a transaction fee in connection therewith of $ 1,000,000 , payable in cash and 132,500 warrants to acquire an aggregate of 132,500 shares of New Profusa Common Stock at an exercise price of $ 0.01 per share. The Company accounts for the HCW warrants in accordance with the guidance contained in ASC 815. Such guidance provides that the HCW warrants are not precluded from equity classification. Equity-classified contracts are initially measured at fair value. Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity. The Company determined the initial fair value using a Black Scholes pricing model. The initial fair value was $ 0.3 million. ELOC On July 28, 2025, the Company entered into the Purchase Agreement and the ELOC Registration Rights Agreement with Ascent. Upon the terms and subject to the satisfaction of the conditions contained in the Purchase Agreement, from and after the Effective Date, the Company will have the right, in its sole discretion, to sell to Ascent up to $ 100,000,000 of shares of its Common Stock, subject to certain limitations set forth in 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 ELOC and issues shares, it recognizes the proceeds in equity. The amount recorded is based on the fair value of the shares issued or the cash received, whichever is more reliably measurable. The Company records the actual cash received for each draw, as this is clearly measurable and traceable. 29 Note 9 — Stock Option Plan In 2010, Legacy Profusa adopted the 2010 Equity Incentive Plan (the “Plan”) under which 2,000,000 shares of the Company’s Common Stock have been initially reserved for issuance to employees, directors and consultants. The number of reserved shares that had been increased over the years equaled 4,636,454 shares at the time of the Business Combination. The Company is currently drafting a new 2025 Equity Incentive Plan that will replace the 2010 Equity Incentive Plan. All previously issued options under the 2010 Equity Incentive plan will be held under the new plan, with no additional impact to the option holders. Options granted under the Plan may be either incentive stock options (“ISO”) or nonqualified stock options (“NSO”). ISOs may be granted only to Company employees, including officers and directors who are also employees. NSOs may be granted to Company employees, consultants and advisors. Upon the Closing, all outstanding Legacy Profusa options converted into options exercisable for shares of Company Common Stock with the same terms except for the number of shares exercisable and the exercise price, each of which was adjusted using the Exchange Ratio of approximately $ 0.346 . The mechanism of conversion resulted in the fair value of each option prior to the Closing equal to the fair value of each option after. All stock option activity presented in these statements has been retrospectively adjusted to reflect the conversion. A person who owns (or is deemed to own) stock possessing more than ten percent ( 10 %) of the total combined voting power of all classes of stock of the Company will not be granted an ISO unless the exercise price of such option is at least one hundred ten percent ( 110 %) of the Fair Market Value on the date of grant and the option is not exercisable after the expiration of five years from the date of grant. Options granted generally vest over four years . Activity under the Plan is set forth below: Stock Option Activity Options Outstanding Stock Option Activity Shares Available for Grant Number of Options Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (in years) Balances at January 1, 2025 539,564 1,027,897 $ 1.16 3.00 Options granted ( 539,564 ) 539,564 3.64 Options exercised — — - Options expired — — - Options cancelled/forfeited 4,114 ( 4,114 ) 1.83 Balances at September 30, 2025 4,114 1,563,347 $ 2.02 6.24 Exercisable at September 30, 2025 818,637 $ 3.02 5.33 30 Options Outstanding Stock Option Activity Shares Available for Grant Number of Options Weighted- Average Exercise Price Per Share Weighted-Average Remaining Contractual Term (in years) Balances at December 31, 2023 536,105 1,031,356 $ 1.16 3.70 Options granted — — - Options exercised — — - Options expired 3,459 ( 3,459 ) - Options cancelled/forfeited — — - Balances at September 30, 2024 539,564 1,027,897 $ 1.16 3.18 Exercisable at September 30, 2024 525,969 $ 1.41 4.51 During the three months ended September 30, 2025 and 2024, there was no stock option activity. Intrinsic values are calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that had exercise prices that were lower than the fair value per share of the common stock on the date of exercise. The total fair value of options vested for the three and nine months ended September 30, 2025 and 2024 was less than $ 0.1 million. As of September 30, 2025, the total unrecognized stock-based compensation expense for stock options was $ 3.0 million, which is expected to be recognized over a weighted-average period of 1.3 years. The Company estimates the fair value of stock options using the Black Scholes option-pricing model. The fair value of stock options is being recognized on a straight-line basis over the requisite service period of the awards. As of September 30, 2024, the total unrecognized stock-based compensation expense for stock options was less than $ 0.1 million, which is expected to be recognized over a weighted-average period of 1.1 years. The Company estimates the fair value of stock options using the Black Scholes option-pricing model. The fair value of stock options is being recognized on a straight-line basis over the requisite service period of the awards. Nonrecourse Promissory Notes to Early Exercise Stock Options In 2018, one of the Company’s executives early exercised 1,380,015 of his stock options by issuing a promissory note to the Company. As the promissory note is nonrecourse, this exercise of stock options with a promissory note is not considered a substantive exercise for accounting purposes. Therefore, no receivable for the promissory note was recorded on the Company’s balance sheet. This arrangement was accounted for as modifications to the original stock options which were exercised by issuing a promissory note. Such modification did not result in additional stock-based compensation expense. The full note amount of $ 428 thousand was considered settled and paid in full upon the Closing as this balance was netted within the total consideration due to the Company’s CEO as payment for the successful Closing, and as such, the transaction was recorded in stock-based compensation. The early exercised options were fully vested, with no remaining responsibility on a note as of July 11, 2025, at which time they converted into Company Common Stock. On both July 11, 2025 and September 30, 2025 these exercised options are included in the Company’s Common Stock outstanding. 31 Stock-Based Compensation Expense by Function The following table is a summary of stock compensation expense by function recognized for the three and nine months ended September 30, 2025 and 2024 (in thousands): Nine months ended September 30, 2025 2024 General Administrative $ 612 $ 5 Research and development 92 11 $ 704 $ 16 Three months ended September 30, 2025 2024 General Administrative $ 579 $ 3 Research and development 38 9 $ 617 $ 12 Note 10 — Related Party Transactions The Company has funded its operations to date primarily through private sales of convertible preferred stock, convertible debt, loans payable and promissory notes. These investments have included various related parties issued at arms-length. The following table presents the various significant related party transactions and investments in the Company for the periods presented (in thousands): Related Party Nature of relationship Description of investment or transaction September 30, 2025 December 31, 2024 Tasly Shareholder Convertible debt payable at fair value $ 2,207 $ 2,234 Ascent PIPE convertible note Shareholder Loan payable related party at fair value 14,359 - Northview Acquisition Corp Sponsor Shareholder Convertible debt payable at fair value 1,920 - The founders Shareholder Promissory notes 878 850 Various Individuals Shareholder Convertible debt payable $ - $ 22,822 Northview Acquisition Corp Sponsor Shareholder Due to from Related Party 41 - See Note 6 for full disclosures on debt, including the convertible debt payable, loans payable and promissory notes. Note 11 — Net Loss per Share Attributable to Common Stockholders Net loss per share of Company Common Stock is calculated in accordance with ASC Topic 260, Earnings Per Share using the two-class method. Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of Common Stock outstanding during the period. In periods of net loss, the two-class method requires that losses be allocated only to common shareholders. The computation of diluted net loss per share does not include dilutive common stock equivalents in the weighted-average shares outstanding, as the inclusion of common stock equivalents would be antidilutive. The common stock equivalents consist of stock options, convertible notes, warrants, and earn-out shares. Accordingly, for the periods presented in which the Company incurred a net loss, basic and diluted EPS are the same. 32 The following tables represent weighted average shares using the recasted common stock equity balance as presented in the Statement of Stockholders’ Deficit. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended Three Months Ended September 30, 2025 September 30, 2024 Numerator: Net loss $ ( 22,192 ) $ ( 2,497 ) Denominator: Weighted average shares used to computing basic and diluted net loss per share 31,731,118 1,938,392 Net loss per share attributable to common stockholders - basic and diluted: $ ( 0.70 ) $ ( 1.29 ) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Three Months Ended Three Months Ended September 30, 2025 September 30, 2024 Related party convertible notes payable at fair value (1) - - Loans payable - related party at fair value (1) - - Warrants 17,536,750 - Options to purchase common stock 1,563,347 1,027,897 Total 19,100,097 1,027,897 (1) The Related party convertible notes and Loan’s payable - related party are convertible upon occurrence of various conversion scenarios. Therefore, the number of shares of Company Common Stock issuable upon their conversion is not currently estimable. Nine Months Ended Nine Months Ended September 30, 2025 September 30, 2024 Numerator: Net loss $ ( 27,256 ) $ ( 6,978 ) Denominator: Weighted average shares used to computing basic and diluted net loss per share 11,905,811 1,938,392 Net loss per share attributable to common stockholders - basic and diluted: $ ( 2.29 ) $ ( 3.60 ) 33 The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Nine Months Ended September 30, 2025 September 30, 2024 Related party convertible notes payable at fair value (1) - - Loans payable - related party at fair value (1) - - Warrants 17,536,750 - Options to purchase common stock 1,563,347 1,027,897 Total 19,100,097 1,027,897 (1) The Related party convertible notes and Loan’s payable - related party are convertible upon occurrence of various conversion scenarios. Therefore, the number of shares of Company Common Stock issuable upon their conversion is not currently estimable. Note 12 – Segments The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer , Ben Hwang, who reviews financial information presented on a consolidated net loss basis as reported on the consolidated condensed statement of operations and comprehensive loss in order to make decisions about allocating resources and assessing performance for the entire Company. The CODM also utilizes the Company’s long-range plan, which includes product development roadmaps and long-range financial models, as a key input to resource allocation. The CODM function approves of key operating and strategic decisions. The CODM function views the Company’s operations and manages its business on a consolidated basis and as a single reportable operating segment. The CODM function is regularly provided with the following significant segment expenses. Significant expenses include research and development and general and administrative expenses, which are each separately presented in the Company’s consolidated condensed statements of operations and comprehensive loss. The CODM reviews significant expenses within both the research and development and the general and administrative categories. Other segment items within net loss include interest income, interest expense and gain (loss) on change in fair value of related party loan. See the consolidated condensed financial statements for other financial information regarding the Company’s operating segment. 34 Three Months Ended September 30, 2025 2024 Government grant revenue $ - $ 75 Operating expenses: Research personnel compensation costs, including stock-based compensation 287 380 CRO and regulatory costs 315 - Administrative personnel compensation costs, including stock-based compensation 4,125 302 Rent and office costs 97 34 Legal and accounting costs 976 426 Transaction costs 15,060 - Other expenses (1) 848 36 Total segment expenses 21,708 1,178 Loss from operations ( 21,708 ) ( 1,103 ) Other income (expense) - - Gain (loss) on change in the fair value of related party convertible debt 258 ( 319 ) Gain on change in the fair value of warrant liabilities 884 - Loss on change in the fair value of digital assets ( 28 ) - Interest expense ( 169 ) ( 1,073 ) Financing costs ( 1.443 ) - Other income (loss) 15 ( 1 ) Total other expense, net ( 484 ) ( 1,394 ) Net loss and comprehensive loss ( 22,192 ) ( 2,497 ) (1) Other expenses includes small balances of research materials and supplies along with insurance costs and other third party service providers. Nine Months Ended September 30, 2025 2024 Government grant revenue $ - $ 100 Operating expenses: Research personnel compensation costs, including stock-based compensation 945 1,198 CRO and regulatory costs 315 15 Administrative personnel compensation costs, including stock-based compensation 4,861 1,014 Rent and office costs 415 196 Legal and accounting costs 1,625 1,018 Transaction costs 15,060 - Other expenses (1) 915 77 Total segment expenses 24,136 3,518 Loss from operations ( 24,136 ) ( 3,418 ) Other income (expense) (Loss) on change in the fair value of related party convertible debt ( 52 ) ( 427 ) Gain on change in the fair value of warrant liabilities 884 - Loss on change in the fair value of digital assets ( 28 ) - Interest expense ( 2,496 ) ( 3,138 ) Financing costs ( 1,443 ) - Other income 15 5 Total other expense, net ( 3,210 ) ( 3,560 ) Net loss and comprehensive loss ( 27,256 ) ( 6,978 ) (1) Other expenses includes small balances of research materials and supplies along with insurance costs and other third party service providers. The Company has no significant long-lived assets recognized on the Consolidated Balance Sheets. 35 Note 13 — Subsequent Events The Company has evaluated its subsequent events from September 30, 2025 through the date these condensed consolidated financial statements were issued and has determined that there are no subsequent events requiring disclosure in these condensed consolidated financial statements other than the items noted below. In accordance with the Company’s Bitcoin treasury strategy, on October 7, 2025 the Company purchased $ 1.0 million of Bitcoin, for a total of 7.98 coins. This purchase of Bitcoin, brings the total Company’s holdings up to 16.51 coins in total as of the date of this filing, from 8.53 coins at September 30, 2025. On October 20, 2025, at a Special Meeting of Stockholders, the stockholders of the Company approved an amendment to the Company’s Amended and Restated Certificate of Incorporation, to increase the Company’s authorized number of shares of Common Stock from 300,000,000 shares to 600,000,000 shares. On October 8, 2025, the Company filed a Form S-1 registration statement which relates to the resale of up to 42,594,048 shares of Common Stock comprising: (a) up to 42,211,548 shares of Common Stock held by Ascent Partners Fund LLC pursuant to a common stock purchase agreement, dated as of July 28, 2025, and (b) up to 382,500 shares of Common Stock issued to certain parties in satisfaction of transaction costs incurred in connection with the Business Combination. On October 27, 2025, the Company received a deficiency letter from Nasdaq citing the listing rules require listed securities to maintain a minimum Market Value of Publicly Held Shares (MVPHS) of $ 15,000,000 . The Company has not met this requirement. The Company has 180 calendar days in which to regain compliance. If at anytime during this compliance period the Company’s MVPHS closes at $ 15,000,000 or more for a minimum of ten consecutive business days , Nasdaq will provide the Company written confirmation of compliance and this matter will be closed. In the event the Company does not regain compliance with the Rule prior to the expiration of the compliance period, it will receive written notification that its securities are subject to delisting. In October 2025, The Benchmark Company LLC exercised all 250,000 of their common stock warrants. On October 29 and October 30, 2025 the Company executed three additional tranches of ELOC puts with aggregate gross proceeds of $ 3.8 million for the issuance of 11,478,624 shares of Common Stock. These tranches were issued between $ 0.23 and $ 0.40 per share based on the daily VWAP. As part of these puts, and in line with the purchase agreement, the Company used the proceeds to repay $ 0.7 million of the principal balance outstanding on the Ascent PIPE convertible note and additionally incurred expenses of $ 0.1 million, resulting in net proceeds to the Company of $ 3.0 million. During the months of October and November, Ascent also converted $ 2.8 million of the principal balance into common stock, resulting in total loan repayments as of the date of this filing of $ 4.1 million, $ 3.5 million of which occurred subsequent to September 30, 2025. The $ 2.8 million principal balance converted into 12,220,837 shares of common stock. 36