Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 40

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 The Company was to pay Benchmark at the closing
of the Business Combination an advisory fee of $750,000 in two tranches. The first tranche will be $500,000 earned upon the closing of
the Business Combination in the surviving public entity’s common stock (“Tranche 1”). The number of shares to be issued
is calculated on the 30th day following the Closing by dividing $500,000 and the trailing 5-day VWAP of the Company’s
common stock as calculated by Bloomburg with a minimum price of $2.00.  The second tranche will be $250,000, at the Company’s
option, in either cash or in the surviving entity’s common shares calculated by dividing $250,000 by the lowest trailing 5-day
VWAP in the prior 30 days (“Tranche 2”). Upon funding of the Convertible Notes by investors introduced by Benchmark, the
Company will pay to Benchmark fees in cash equal to 5% of the net proceeds of any Convertible Note draw at the time of funding of such
draw (“Arrangement Fees”). The Tranche 2 fee shall be reduced by the amount of any fees paid to Benchmark for other transactions
during the Term other than Arrangement Fees associated with Convertible Notes, after the Business Combination, up to $250,000. As a result
of the Business Combination, Benchmark was paid in shares of the post-combination company in the amount of $500,000.

Securities Purchase Agreement

On February 11, 2025, in a private transaction,
the Company entered into a securities purchase agreement (the “SPA”) with an institutional investor (the “Investor”).
Pursuant to the SPA, the Investor is expected, subject to the conditions relating to such purchase set forth in the SPA, to purchase
from the Company’s senior secured convertible promissory notes in an aggregate principal amount of up to $22,222,222 (the “Convertible
Notes”) for a purchase price of up to $20,000,000, after a 10% original issue discount (“OID”). As a result of the
Business Combination, pursuant to the SPA, the Company issued a Convertible Note in the principal amount of $10,000,000 (the “Initial
Note”) for a purchase price of $9,000,000, reflecting a 10% OID. The Initial Note matures on the date that is 18-months from the
closing of the