Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 197

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 197
---
 annum and their
outstanding principal and accrued but unpaid interest automatically converted into shares of Company Common Stock at $7.00 per share upon
consummation of the Business Combination. In addition, upon consummation of the Business Combination, all junior noteholders have a right
to receive additional shares upon achievement by the Company of certain share price and sales milestones (the earnout shares).

We commenced issuance of our senior convertible notes in April 2021
and continued issuing them until the Closing. Our senior convertible notes bore interest at 12% per annum and their outstanding principal
and accrued but unpaid interest automatically converted into shares of Company Common Stock between $0.50 and $4.00 per share upon consummation
of the Business Combination, based on the fixed conversion price defined in the notes. In addition, upon consummation of the Business
Combination, all senior noteholders obtained the right to receive additional shares upon achievement by the Company of certain share price
and sales milestones (the earnout shares).

On August 8, 2023, a new wholly owned subsidiary, Profusa Asia
Pacific Pte. Ltd (“APAC”), was created and incorporated by Legacy Profusa under the laws of Singapore. Upon creation,
the new entity was capitalized by Legacy Profusa by payment of $1,000 for 1,000 Ordinary Shares. As a result, at the time of
incorporation, the entity became a wholly owned subsidiary of Legacy Profusa. The entity was created with the expectation of jointly
conducting the business of developing, manufacturing and commercializing the Lumee Glucose and the Lumee Oxygen products, currently
under development by the Company, together with a third party. No business or activities will have been conducted by the entity from
the date of formation through and until the closing date of the proposed License Agreement and Shareholders Agreement between the
Company and Best Life Technology Ltd, an entity wholly owned and controlled by the Tasly. Subsequent to the Closing of the Business
Combination, the Company expects to sign and execute a License Agreement and Shareholders Agreement (the “APAC Joint
Venture”) setting forth the relative and other terms under which the development and business activities of the entity will be
conducted.

The Company is in the process of negotiating the formation of the APAC
Joint Venture, which includes the related party from which the amounts under the Tasly Convertible Debt was borrowed. The proceeds of
the loan are intended to continue the development