Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 231

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 231
---
 of redemption to the warrant holders. We may not redeem the
warrants when a holder may not exercise such warrants. Redemption of the outstanding warrants could force you (i) to exercise your warrants
and pay the exercise price therefor at a time when it may be disadvantageous for you to do so, (ii) to sell your warrants at the then-current
market price when you might otherwise wish to hold your warrants or (iii) to accept the nominal redemption price which, at the time the
outstanding warrants are called for redemption, is likely to be substantially less than the market value of your warrants. None of the
private placement warrants will be redeemable by us so long as they are held by their initial purchasers or their permitted transferees.

Our rights and warrants may have an adverse
effect on the market price of our common stock and make it more difficult to effectuate our initial business combination.

We issued rights that convert
into 1,897,500 shares of our common stock and warrants to purchase 9,487,500 shares of our common stock as part of the units offered in
our initial public offering and, simultaneously with the closing of our initial public offering, we issued an aggregate of 7,347,500 warrants
at a price of $1.00 per warrant in a private placement to our sponsor, I-Bankers and Dawson James. In addition, if our initial stockholders
make any working capital loans, up to $1,500,000 of such loans may be convertible, at the option of the lender, into private placement
warrants at a price of $1.00 per warrant of the post business combination entity. To the extent we issue shares of common stock to effectuate
a business combination, the potential for the issuance of a substantial number of additional shares of common stock upon conversion of
the rights or exercise of the warrants could make us a less attractive acquisition vehicle to a target business. Such rights and warrants,
if and when converted or exercised, would increase the number of issued and outstanding shares of our common stock and reduce the value
of the shares of common stock issued to complete the business combination. Therefore, our rights and warrants may make it more difficult
to effectuate a business combination or increase the cost of acquiring the target business.

Provisions in our amended and restated certificate
of incorporation and Delaware law may inhibit a takeover of us, which could limit the price investors might be willing to pay in the future
for our common stock and could ent