Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 1638

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 10
Chunk 1638
---
In addition, in order to finance
transaction costs in connection with an intended initial business combination, our initial stockholders or an affiliate of our initial
stockholders or certain of our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete
an initial business combination, we would repay such loaned amounts. In the event that the initial business combination does not close,
we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust
account would be used for such repayment. Up to $1,500,000 of such loans may be, at the option of the lender, convertible into warrants
at a price of $1.00 per warrant of the post business combination entity. The warrants would be identical to the private placement warrants,
including as to exercise price, exercisability and exercise period. The terms of such loans, if any, have not been determined and no written
agreements exist with respect to such loans. We do not expect to seek loans from parties other than our initial stockholders or an affiliate
of our initial stockholders or certain officers and directors as we do not believe third parties will be willing to loan such funds and
provide a waiver against any and all rights to seek access to funds in our trust account.

We may pay consulting, finder
or success fees to our initial stockholders, officers, directors or their affiliates for assisting us in consummating our initial business
combination. Other than these consulting, finder or success fees, no compensation of any kind will be paid by us to our initial stockholders,
executive officers and directors, or any of their respective affiliates, for services rendered prior to or in connection with the completion
of an initial business combination. However, these individuals will be reimbursed for any out-of-pocket expenses incurred in connection
with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable business combinations.
Our audit committee will review on a quarterly basis all payments that were made to our initial stockholders, officers, directors or our
or their affiliates.

After our initial business
combination, members of our management team who remain with us may be paid consulting, management or other fees from the combined company
with any and all amounts being fully disclosed to our stockholders, to the extent then known, in the tender offer or proxy solicitation
materials, as applicable, furnished to our stockholders. It is unlikely the amount of such compensation will