Company: PFSA
Filing Date: 2025-07-15
Form Type: DEF 14C
Source: 0001213900-25-063839
Chunk: 11

Company: Profusa, Inc.
Filing Date: 2025-07-15
Form: DEF 14C
Chunk 11
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. Holders of our common stock considering exercising their redemption
rights should consult their own tax advisors as to whether the redemption of their common stock of the Company will be treated as a sale
or as a distribution under the Code.

Gain or Loss on a Redemption of Common Stock Treated as a Sale

If the redemption qualifies as a sale of common stock, a U.S. Holder
must treat any gain or loss recognized as capital gain or loss. Any such capital gain or loss will be long-term capital gain or loss if
the U.S. Holder’s holding period for the common stock so disposed of exceeds one year. Generally, a U.S. Holder will recognize gain
or loss in an amount equal to the difference between (i) the amount of cash received in such redemption and (ii) the U.S. Holder’s
adjusted tax basis in its common stock so redeemed. A U.S. Holder’s adjusted tax basis in its common stock generally will equal
the U.S. Holder’s acquisition cost (that is, the portion of the purchase price of a unit allocated to a share of common stock or
the purchase price of a share of common stock purchased in the open market) less any prior distributions treated as a return of capital.
Long-term capital gain realized by a non-corporate U.S. Holder generally will be taxable at a reduced rate. The deduction of capital losses
is subject to limitations.

Taxation of Distributions

If the redemption does not qualify as a sale of common stock, the U.S.
Holder will be treated as receiving a distribution. In general, any distributions to U.S. Holders generally will constitute dividends
for United States federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under
United States federal income tax principles. Distributions in excess of current and accumulated earnings and profits will constitute a
return of capital that will be applied against and reduce (but not below zero) the U.S. Holder’s adjusted tax basis in our common
stock. Any remaining excess will be treated as gain realized on the sale or other disposition of the common stock and will be treated
as described under “U.S. Federal Income Tax Considerations to U.S. Holders — Gain or Loss on a Redemption of Common Stock
Treated as a Sale”. Dividends we pay to a U.S. Holder that is a taxable corporation generally will qualify for the dividends received
deduction if the requisite holding period is satisfied. With certain exceptions, and provided certain