Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 632

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 632
---

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Note 13 — Government Grant Revenue (cont.) the basis of reports that we provide to these agencies. Fixed fee grants are awarded for specific research and development programs undertaken by us. Under these grants we receive milestone payments from the government agencies upon our submission and approval by the government of agreed upon deliverables, consisting primarily of the documented results of the specific research and development programs. The expense related to these grants is recorded in research and development expenses Note 14 — Subsequent Events The Company has evaluated its subsequent events from December 31, 2023, through the date these consolidated financial statements are issued and has determined that there are no subsequent events requiring disclosure in these consolidated financial statements other than the items noted below. On January 12, 2024, the Company entered into Amendment No. 2 to the Merger Agreement with NorthView. Within the Amendment, the parties agreed to revise the definition of “Milestone Event III” and such that the Earnout Revenue milestone of $11,864,000 for the fiscal year ended December 31, 2024, was replaced with a milestone of consummating the APAC Joint Venture and receipt of the related funding of $6.0 million during the fiscal year ended December 31, 2024. During January 2024, the Company has received an aggregate amount of $0.5 million from the issuance of Senior Convertible Promissory Notes which are expected to be converted in 2024, upon the closing of the Company’s Qualified Financing transaction. These notes all have substantially the same terms as the Senior Notes issued in 2022 (as amended in November 2022) and accrue interest at 12% annually. The proceeds were used to fund working capital needs. Upon the Closing of the Merger with Northview, the outstanding principal balance of such notes and all accrued interest will be converted into the combined company’s equity securities, at a conversion price equal to $4.00 per share (40% of the $10.00share price used in the Exchange Ratio), plus Inducement Shares. On February 16, 2024, the Company’s Board of Directors approved, and the Company entered into, a binding term sheet with respect to two separate transactions, between the Company, NorthView, and Vellar Opportunities Fund Master, Ltd. (“Vellar”) for a private placement of Profusa shares (“the Stock Subscription”) equivalent to 2,500,000shares of Company