Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 78

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 78
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 consummation
of our IPO and the concurrent private placement of warrants, we issued an aggregate of 17,404,250 warrants. We accounted for these as
a warrant liabilities and recorded at fair value upon issuance any changes in fair value each period reported in earnings as determined
by us. Potential targets may seek a business combination partner that does not have warrants that are accounted for as warrant liabilities,
which may make it more difficult for us to consummate an initial business combination.

General Risks

We are a newly formed company with no operating
history and no revenues, and you have no basis on which to evaluate our ability to achieve our business objective.

We are a newly formed company
with no operating results, and did not commence operations until obtaining funding through our initial public offering. Because we lack
an operating history, you have no basis upon which to evaluate our ability to achieve our business objective of completing our initial
business combination with one or more target businesses. We have no plans, arrangements or understandings with any prospective target
business concerning a business combination and may be unable to complete our initial business combination. If we fail to complete our
initial business combination, we will never generate any operating revenues.

If we are deemed to be an investment company
under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted,
which may make it difficult for us to complete our business combination.

If we are deemed to be an
investment company under the Investment Company Act, our activities may be restricted, including, without limitation, restrictions on
the nature of our investments, and restrictions on the issuance of our securities, each of which may make it difficult for us to complete
our business combination. In addition, we may have imposed upon us burdensome requirements, including, without limitation, registration
as an investment company; adoption of a specific form of corporate structure; and reporting, record keeping, voting, proxy and disclosure
requirements and other rules and regulations.

In order not to be regulated
as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we must ensure that we are engaged
primarily in a business other than investing, reinvesting or trading in securities and that our activities do not include investing, reinvesting,
owning, holding or trading “investment securities” constituting more than 40% of our total assets (exclusive of U.S. government
securities and cash items) on an unconsolidated basis. Our business