Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 32

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 holders on the same
basis as the warrants included in the Units being sold in the IPO.

16

Note 5 – Related Party Transactions

Founder Shares

In April 2021, the Sponsor paid $25,000, or approximately
$0.005 per share, to cover certain of the offering costs in exchange for an aggregate of 5,175,000 shares of common stock, par value
$0.0001 per share (the “Founder Shares”). In October 2021, the Sponsor irrevocably surrendered to the Company for cancellation
and for no consideration 862,500 shares of common stock. On December 20, 2021, the Company effected a 1.1- for-1 stock dividend of its
common stock, resulting in the Sponsor holding an aggregate of 4,743,750 shares of common stock. The Founder Shares include an aggregate
of up to 618,750 shares subject to forfeiture if the over-allotment option is not exercised by the underwriters in full. On December
22, 2021, the over-allotment option was fully exercised and such shares are no longer subject to forfeiture.

The Sponsor has agreed not to transfer, assign
or sell any of their Founder Shares until the earlier to occur of: (A) one year after the completion of the initial Business Combination
or (B) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction after the initial Business
Combination that results in all of the Company’s public stockholders having the right to exchange their shares of common stock
for cash, securities or other property (the “Lock-up”). Notwithstanding the foregoing, if the last sale price of the Company’s
common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and
the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination,
the Founder Shares will be released from the Lock-up.

Convertible Promissory Note – Related
Party

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