Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 52

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 52
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 a “penny
stock” which will require brokers trading in our shares of common stock to adhere to more stringent rules and could result in a
further reduced level of trading activity in the secondary trading market for our securities;

●greater difficulty and cost at being able to satisfy any applicable
stock exchange’s initial listing requirements for the post-business combination company;

●our securities no longer qualifying as “covered securities”
under the National Securities Markets Improvement Act of 1996 (“NSMIA”), meaning that sales of our securities would
be subject to regulation in each state in which that sale occurs, including in connection with our initial business combination, which
may negatively impact our ability to consummate our initial business combination or to otherwise issue additional securities or obtain
additional financing in the future and could negatively impact the ability of our security holders to trade, and result in further reduced
liquidity and demand for, our securities; and

●a limited amount of news and analyst coverage.

23

Additionally, under the Merger
Agreement, one of the conditions to Closing is the listing by Nasdaq of the New Profusa common stock and securities and satisfaction of
initial and continued listing requirement. Following the delisting of our securities from the Nasdaq, New Profusa may face increased difficulties
and uncertainties in meeting the initial and continued listing requirement of Nasdaq, such as the requirements as to the market value
of unrestricted publicly held shares and market value of listed securities, and therefore face increased uncertainties as to its ability
to successfully consummate the Business Combination.

Risks Relating to the Post-Business Combination
Company

Subsequent to the completion of our initial
business combination, we may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have
a significant negative effect on our financial condition, results of operations and our stock price, which could cause you to lose some
or all of your investment.

Even if we conduct extensive
due diligence on a target business with which we combine, we cannot assure you that this diligence will surface all material issues that
may be present inside a particular target business, that it would be possible to uncover all material issues through a customary amount
of due diligence, or that factors outside of the target business and outside of our control will not later arise. As a result of these
factors, we may be forced to later write-down or write-off assets, restructure our operations, or incur impairment or other charges that
could result in our reporting losses