Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 150

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 150
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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”);

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●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