Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 203

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 203
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 significant operational improvements, which could delay or prevent us from achieving our
desired results.

We may seek business combination
opportunities with large, highly complex companies that we believe would benefit from operational improvements. While we intend to implement
such improvements, to the extent that our efforts are delayed or we are unable to achieve the desired improvements, the initial business
combination may not be as successful as we anticipate.

To the extent we complete
our initial business combination with a large complex business or entity with a complex operating structure, we may also be affected by
numerous risks inherent in the operations of the business with which we combine, which could delay or prevent us from implementing our
strategy. Although our management team will endeavor to evaluate the risks inherent in a particular target business and its operations,
we may not be able to properly ascertain or assess all of the significant risk factors until we complete our initial business combination.
If we are not able to achieve our desired operational improvements, or the improvements take longer to implement than anticipated, we
may not achieve the gains that we anticipate. Furthermore, some of these risks and complexities may be outside of our control and leave
us with no ability to control or reduce the chances that those risks and complexities will adversely impact a target business. Such combination
may not be as successful as a combination with a smaller, less complex organization.

21

Any failure to meet the initial listing requirements of Nasdaq
could result in an inability to list our common stock and warrants on Nasdaq and the obligation to comply with the “penny stock”
rules and could affect the combined company’s cash position following the closing of an initial business combination.

Prior to March 21, 2025, our charter prevented us from redeeming public
shares to the extent that it would cause our net tangible assets to be less than $5,000,001 (the “NTA Requirement”). The NTA
Requirement has been waived by our stockholders, and our charter was amended on March 21, 2025. The initial purpose of the NTA Requirement
in the charter was to ensure that we would not be subject to the “penny stock” rules of the SEC, and to therefore not be deemed
a “blank check company” as defined under Rule 419 of the Securities Act, because it complied with the NTA Requirement.

However, if our net tangible assets less than $5,000,001 upon closing
of the business combination with Profusa, the combined company’s failure to meet the initial listing requirements