Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 104

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 104
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 into the Trust Account or use the
$29,171 (or a portion thereof) for tax obligations until a deposit is made into the trust on a future date.

8

Liquidity and Going Concern

As of June 30, 2025, the Company had $1,751
in restricted cash and a working capital deficit of $15,492,554. Prior to the completion of the Company’s IPO, the Company’s
liquidity needs had been satisfied through a capital contribution from the Sponsor of $25,000 for the founder shares to cover certain
of the offering costs and the loan under an unsecured promissory note from the Sponsor of $204,841, which was fully paid upon the IPO.
Subsequent to the consummation of the Initial Public Offering and Private Placement, the Company’s liquidity needs have been satisfied
through the proceeds from the consummation of the Private Placement not held in the Trust Account, and the drawdowns on the convertible
promissory note.

In order to finance transaction costs in connection
with an intended Business Combination, the initial stockholders or an affiliate of the initial stockholders or certain of the Company’s
officers and directors may, but are not obligated to, provide the Company Working Capital Loans (see Note 5).

On April 27, 2023, the Company signed a Convertible
Working Capital Promissory Note (“the Note”) with the Sponsor for $1,200,000. The Note is non-interest bearing and is due
the earlier of the consummation of a business combination or the date of liquidation. The Sponsor may elect to convert all or any portion
of the unpaid principal balance of this Note into warrants, at a price of $1.00 per warrant.

On January 10, 2024, the Company’s Board
of Directors approved, and the Company amended the Note to increase the principal amount of the Note that could be drawn on to $1.5 million.
The amended and restated Note also allows for the conversion of the outstanding principal balance of the Note to be repaid in shares
of Company common stock at a price of $2.22 per share at the election of the sponsor.

On May 31, 2024, the Company’s Board of
Directors approved, and the Company second amended its Note to increase the principal amount of the Note that could be drawn on to $2.5 million.
The second amended and restated Note also allows