Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 1105

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1105
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, 2025, the agreement was modified by the parties such that the Company
will be required to pay $2,000,000, payable in cash, if a business combination is consummated.

F-17

Representative’s
Shares

On
December 22, 2021, the Company issued 450,000 shares (Representative Shares) of common stock (which included 37,500 Representative
Shares issued pursuant to the full exercise of the over-allotment option) at the consummation of the IPO to I-Bankers and Dawson
James (and/or their designees). I-Bankers and Dawson James (and/or their designees) have agreed not to transfer, assign or sell
any such shares until the completion of the initial Business Combination. In addition, I-Bankers and Dawson James (and/or their
designees) have agreed (i) to waive their redemption rights with respect to such shares in connection with the completion of the
initial Business Combination and (ii) to waive their rights to liquidating distributions from the Trust Account with respect to
such shares if the Company fails to complete its initial Business Combination within the Combination Period. The fair value of the Representative’s
Shares issued are recognized as offering costs directly attributable to the issuance of an equity contract to be classified in equity
and are recorded as a reduction of equity (see Note 1).

Representative’s
Warrants

The
Company granted to I-Bankers and Dawson James (and/or their designees) 569,250 warrants (which
included 74,250 warrants issued pursuant to the full exercise of the over-allotment option) exercisable at $11.50 per
share (or an aggregate exercise price of $6,546,375) at the closing of the IPO. The Representative Warrants issued are recognized as
derivative liabilities in accordance with ASC 815-40 and recorded as liabilities at fair value each reporting period (see Notes 1
and 8). The warrants may be exercised for cash or on a cashless basis, at the holder’s option, at any time during the period
commencing on the later of the first anniversary of the effective date of the registration statement of which the IPO forms a part
and the closing of the initial Business Combination and terminating on the fifth anniversary of such effectiveness date.
Notwithstanding anything to the contrary, I-Bankers and Dawson James have agreed