Company: PFSA
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079829
Chunk: 270

Company: Profusa, Inc.
Filing Date: 2025-08-22
Form: S-1/A
Chunk 270
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5 — Debt (cont.) was introduced for conversion prior to a Qualified Financing; d) the conversion price discount of 60% in the event of change of control was introduced; e) conversion option prior to entering into a definitive agreement with a SPAC (the “Definitive Qualified Agreement”) was introduced. Under this option, in the event that the Company executes a Definitive Qualified Agreement, then the Senior Note holders will have the option (but not the obligation) to convert the entire outstanding principal balance and all accrued but unpaid interest into shares of the Company’s common stock at a conversion price equal to 40% of the per share price of the common stock as determined pursuant to the Definitive Qualified Agreement; provided, that, if such conversion price per share of the common stock is greater than $ 4.00, then such conversion price shall be deemed to be $ 4.00per share. This 2022 amendment was accounted for as debt extinguishment resulting in $ 8.8million debt extinguishment loss recognized in loss on debt extinguishment, net in the statements of operations. The optional conversion upon a Qualified Financing and Qualified conversion option represents embedded features that are required to be bifurcated and accounted for separately as a combined single derivative instrument initially and subsequently measured at fair value with the change in the gain (loss) on change in the fair value of derivative liabilities in the statements of operations. October 2022 Senior Notes— In September and October 2022, the Company issued an additional Senior Notes to existing investors with the principal amount of $ 1.3million on substantially the same terms as the Senior Notes issued in 2022 (as amended in September 2022). Senior Notes November 2022 Amendment On November 3, 2022, all Senior Notes were amended as follows: 1) all unpaid interest and principal shall be due and payable on the date which is fivebusiness days after the termination of the Merger prior to the occurrence of the Merger closing, 2) automatic conversion to SPAC shares of at then outstanding all notes and accrued interest upon the Merger at $ 4.00per share was introduced, 3) upon consummation of the Merger, all noteholders will have a right to receive additional shares upon achievement by the combined company of certain share price and sales milestones (the earnout shares) (the “November 2022 Senior Notes Amendment”). The November 2022 Senior Notes Amendment represented a TDR. Since the