Company: PFSA
Filing Date: 2025-05-09
Form Type: S-4/A
Source: 0001213900-25-041151
Chunk: 390

Company: Profusa, Inc.
Filing Date: 2025-05-09
Form: S-4/A
Chunk 390
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 not be entitled to a tax deduction at that time. A participant will recognize compensation taxable as ordinary income (and subject to income tax withholding in respect of an employee) upon exercise of a non -qualifiedstock option equal to the excess of the fair market value of the shares purchased over their exercise price, and New Profusa (or the applicable employer) will be entitled to a corresponding deduction, subject to the limitations under Section 162(m) of the Code. A participant will not recognize income (except for purposes of the alternative minimum tax) upon exercise of an incentive stock option. If the shares acquired by exercise of an incentive stock option are held for the longer of two (2) years from the date the option was granted and one (1) year from the date it was exercised, any gain or loss arising from a subsequent disposition of those shares will be taxed as long -termcapital gain or loss, and New Profusa will not be entitled to any deduction. If, however, those shares are disposed of within the above -describedperiod, then in the year of that disposition the participant will recognize compensation taxable as ordinary income equal to the excess of the lesser of (1) the amount realized upon that disposition, and (2) the fair market value of those shares on the date of exercise over the exercise price, and New Profusa (or the applicable employer) will be entitled to a corresponding deduction, subject to the limitations under Section 162(m) of the Code. SARs A participant will not recognize taxable income at the time SARs are granted and New Profusa will not be entitled to a tax deduction at that time. Upon exercise, the participant will recognize compensation taxable as ordinary income (and subject to income tax withholding in respect of an employee) in an amount equal to the fair market value of any shares delivered and the amount of cash paid by New Profusa, and New Profusa (or the applicable employer) will be entitled to a corresponding deduction, subject to the limitations under Section 162(m) of the Code. Stock Awards A participant will not recognize taxable income at the time restricted stock (i.e., stock subject to restrictions constituting a substantial risk of forfeiture) is granted and New Profusa will not be entitled to a tax deduction at that time, unless the participant makes an election to be taxed at that time. If such election is made, the participant will recognize compensation taxable as ordinary income (and subject to income tax withholding in respect of an employee) at the time of the grant in an amount equal to the