Company: PFSA
Filing Date: 2025-04-03
Form Type: CORRESP
Source: 0001213900-25-028546
Chunk: 4

Company: Profusa, Inc.
Filing Date: 2025-04-03
Form: CORRESP
Chunk 4
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 (i) the                                        
 SPAC, (ii) the target company, (iii) target security holders, and (iv) SPAC security holders. Refer to Item 1605(b)(6) of Regulation S-K. 
 Please make conforming changes throughout your filing, including to your Questions and Answers on page xiii.                              |

: The Co-Registrants
acknowledge the Staff’s comment and have revised the disclosure on pages 168 through 174 of the Amendment.

Unaudited Pro Forma Financial Information, page 168

| ● | We note the additional disclosures provided in (a) and (b) on page 172. With reference to specific                                           
 terms of Milestone III, ensure how such milestones meet the requirements in (a) and (b). Ensure you provide a fulsome analysis and reference 
 the specific guidance in the authoritative literature that supports your accounting.                                                         |

:
The Co-Registrants acknowledge the Staff’s comment and have revised the disclosure on pages 179 and 180 of the Amendment. The Co-Registrants further
note that following the filing of Amendment No. 10 to the Registration Statement, Milestone Event IV was revised in connection with
Amendment No. 4 to the Merger Agreement. The Co-Registrants have finalized their analysis of Milestone Event III and Milestone Event
IV and confirm that all four Milestones continue to be indexed to the Company’s own stock.

Additionally, we have included further analysis of the relied
upon accounting guidance referenced below:

Milestones Event III and IV are Earnout Rights which meet the definition of a derivative instrument as defined by ASC 815-10-15-59(d). The milestones contain an underlying, notional amount and payment provisions, they require initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors, and they contain net settlement provisions as they relate to publicly traded shares. Further, management referenced the Milestone Earnout Rights, Sponsor Inducement Recoupment Earnout Rights and Profusa Inducement Recoupment Earnout Rights are considered to be indexed to the New Profusa’s own stock because:

(a) they are contingently exercisable exclusively on the basis of the New Profusa’s own share price and/or by reference to the Company’s own operations (i.e. revenue targets);

(b) their settlement amount is equal the difference between the fair value of a fixed number of the New Profusa’s