Profusa — Q2 2026 Earnings Summary

Financial Performance

• Cash on hand at June 30, 2026, was $719,000.
• Total assets were $1.0 million.
• Current liabilities and total liabilities were $28.2 million.
• Total stockholders' deficit was $(27.1) million at June 30, 2026.
• Net loss for the three months ended June 30, 2026, was $(8.8) million compared to $(2.3) million in the same period of 2025.
• Net loss for the six months ended June 30, 2026, was $(12.2) million compared to $(5.1) million in the same period of 2025.
• Stockholders' equity as of July 31, 2026, is expected to be $28.4 million following the execution of the Option Agreement.
• Debt and liabilities holders executed $10.7 million of Series A Convertible Exchange Agreements, with $4.57 million converted into Series A Convertible Preferred Stock.

Guidance and Future Outlook

• The company anticipates sufficient working capital to fund operations in the near term.
• Auditors for G3 are expected to finalize and issue audited financial statements for 2024 and 2025 by mid-September.
• The combined company following the option exercise is expected to operate as a public diagnostics company with recurring revenues from a diversified base of providers.

Business Segments and Product Lines

• Profusa is developing tissue-integrated biosensors to detect and continuously transmit medical-grade data.
• G3 provides laboratory testing solutions, clinical insight, and reporting tools, including CLIA-certified and CAP/CLIA accredited national medical laboratories.
• G3's client base serves addiction treatment, pain management, and behavioral health providers.

Market and Competitive Landscape

• The combined entity aims to serve addiction treatment, pain management, and behavioral health sectors through national CLIA-certified laboratories.
• The 4:1 reverse stock split effective August 18, 2026, was executed to support meeting Nasdaq's minimum listing requirements.

Risks and Challenges

• Forward-looking statements highlight risks related to the ability to satisfy conditions of the Option Agreement and integrate G3.
• Risks include potential dilution from the issuance of common stock and Preferred Stock, and the risk that G3's indebtedness may not be refinanced or repaid on acceptable terms.
• Risks include the possibility that customer demand may be less than expected and the risk that Profusa does not receive Stockholder Approval.
• Risks also involve compliance with representations, warranties, and covenants set forth in the Agreement.

Management Commentary and Tone

• Executive Chairman and CEO Jack Stover stated, "I am very pleased with the timely progress we are making and support we are receiving towards executing the Option to acquire G3."

Other Key Points

• Profusa borrowed $650,000 under its current note agreement to fund near-term working capital needs.
• The Certificate of Designation for Non-Voting Series A Convertible Preferred Stock is now in effect.
• The Option Agreement provides Profusa the right, but not the obligation, to acquire G3 Vision Labs, Inc. and its subsidiaries.
• Upon option exercising, the combined company is expected to operate as a public diagnostics company.
• Additional details regarding the Agreement, consideration, and Preferred Stock are available in the Form 8-K filed on July 31, 2026.