Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 62

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 62
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 target business
that subsequently declines in value.

In April 2021, our sponsor
acquired 5,175,000 founder shares for an aggregate purchase price of $25,000, or approximately $0.005 per share. In October 2021, our
sponsor forfeited 862,500 founder shares. On December 20, 2021, we effected a 1.1-for-1 stock dividend of our common stock, resulting
in an aggregate of 4,743,750 founder shares outstanding. Our officers and directors have a significant economic interest in our sponsor.
As a result, the low acquisition cost of the founder shares creates an economic incentive whereby our officers and directors could potentially
make a substantial profit even if we acquire a target business that subsequently declines in value and is unprofitable for public investors.

Risks Relating to Our Securities

You will not have any rights or interests in
funds from the trust account, except under certain limited circumstances. To liquidate your investment, therefore, you may be forced to
sell your public shares, rights, or warrants, potentially at a loss.

Our public stockholders will
be entitled to receive funds from the trust account only upon the earliest to occur of: (i) the completion of our initial business combination,
(ii) the redemption of any public shares properly tendered in connection with a stockholder vote to amend our amended and restated certificate
of incorporation (A) to modify the substance or timing of our obligation to redeem 100% of our public shares if we do not complete our
initial business combination within the combination period or (B) with respect to any other provision relating to stockholders’
rights or pre-business combination activity and (iii) the redemption of all of our public shares if we are unable to complete our business
combination within the combination period, subject to applicable law and as further described herein. Stockholders who do not exercise
their rights to the funds in connection with an amendment to our certificate of incorporation would still have rights to the funds in
connection with a subsequent business combination. In no other circumstances will a public stockholder have any right or interest of any
kind in the trust account. Accordingly, to liquidate your investment, you may be forced to sell your public shares, rights, or warrants,
potentially at a loss.

30

If third parties bring claims against us, the
proceeds held in the trust account could be reduced and the per-share redemption amount received by stockholders may be