Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 251

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 251
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 satisfied using the same 30 consecutive trading day period, Milestone Event II will be deemed satisfied first. 120 •Subsequently, the parties decided that the stock issuances associated with Milestone Event I and Milestone Event II would be reduced to one -quarterof the Earnout Shares, respectively, and that the remaining Earnout Shares should be issued based upon revenue targets. The initial earnout provisions related to the revenue targets were as follows: •One -quarterof the Earnout Shares would be issued if the combined company achieves at least $16,000,000 in revenue in fiscal year 2023, and one -quarterof the Earnout Shares will be issued if the combined company achieves at least $90,000,000 in revenue in fiscal year 2024 (or up to one -halfof the Earnout Shares if both revenue milestones are achieved). •The revenue targets for fiscal year 2023 and fiscal year 2024 were later adjusted downward to $5,100,000 and $73,100,000, respectively, in conjunction with Profusa’s revised financial projections, as later modified by Amendment No. 1 to the Merger Agreement and Amendment No. 2 to the Merger Agreement, as discussed in this proxy statement/prospectus. While the negotiations took place between management of the respective companies, their respective boards both agreed that the valuation and potential consideration to be earned in connection with Milestone Event I and Milestone Event II were reasonable. Profusa’s most recent cash “burn rate” was approximately $400,000 per month, however that historical burn rate does not include the cost associated with being a public company and does not include further costs associated with ramping up clinical operations and seeking regulatory approval of the Lumee Glucose product. Therefore, the minimum net cash requirement of $15 million at Closing, which has been conditionally waived, was jointly agreed upon by the parties based upon the financial projections provided, the operating experience of the respective management teams, and the goal of having between 12 and 18 months of cash on hand at Closing. The Inducement Share amount of up to 1,300,000shares, allocated among Sponsor and Profusa, was suggested by NorthView’s investment bankers in order to reduce the cost basis of potential investors. It was agreed that Sponsor would initially provide up to 1,040,000 of the incentive shares and Profusa would provide up to 260,000shares from its Aggregate Merger Consideration. Further, the parties agreed