Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 204

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 204
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 of Nasdaq could
result in (i) the inability of the combined company to list the common stock and warrants on Nasdaq and (ii) the obligation to comply
with the “penny stock” trading rules.

If an initial business combination is consummated but the combined
company is not able to list its common stock and warrants on Nasdaq, such securities would likely then trade only in the over-the-counter
market and the market liquidity of such securities could be adversely affected and their market price could decrease. If the common stock
and warrants were to trade on the over-the-counter market, selling such securities could be more difficult because smaller quantities
of such securities would likely be bought and sold, transactions could be delayed, and the combined company could face significant material
adverse consequences, including: (i) a limited availability of market quotations for its securities, (ii) reduced liquidity for its securities,
(iii) a determination that the common stock are a “penny stock” which will require brokers trading in such shares to adhere
to more stringent rules, including being subject to the depository requirements of Rule 419 of the Securities Act, and possibly result
in a reduced level of trading activity in the secondary trading market for the securities, (iv) limited or no news or analyst coverage,
and (v) a decreased ability to issue additional securities or obtain additional financing in the future. These factors could result in
lower prices and larger spreads in the bid and ask prices for the common stock and/or warrants, could substantially impair the combined
company’s ability to raise additional funds, and could result in a loss of institutional investor interest and fewer development
opportunities for the combined company. However, we note that the ability to meet Nasdaq listing requirements is currently a condition
to closing the business combination with Profusa.

We do not have a specified maximum redemption
threshold. The absence of such a redemption threshold may make it possible for us to complete our initial business combination with which
a substantial majority of our stockholders do not agree.

Our amended and restated certificate
of incorporation does not provide a specified maximum redemption threshold. As a result, we may be able to complete our initial business
combination even though a substantial majority of our public stockholders do not agree with the transaction and have redeemed their shares
or, if we seek stockholder approval of our initial business combination and do not conduct redemptions in connection with our initial
business combination pursuant to the tender offer rules, have entered into privately negotiated agreements