Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 14

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 its right to withdraw
up to $100,000 of interest from the Company’s trust account to pay dissolution expenses, should the Company ultimately liquidate
prior to a business combination (the “Dissolution Expense Waiver”). As a result, the Company was no longer able to withdraw
up to $100,000 of interest for such dissolution expenses upon liquidation, and such interest will be held in the trust account and not
be released until the earliest to occur of (i) the completion of the initial business combination, (ii) the redemption of 100%
of the Offering Shares (as defined below) if the Company is unable to complete its initial Business Combination within the Extension,
and (iii) the redemption of Public Shares in connection with a vote seeking to amend the provisions of our Charter.

7

The Company also agreed to waive its right to
withdraw interest from the Company’s trust account to pay the Company’s tax expenses (the “Tax Expense Waiver”).
As a result, the Company was no longer able to withdraw interest in order to pay future tax expenses, and such interest will be held
in the trust account and not be released until the earliest to occur of (i) the completion of the initial business combination,
(ii) the redemption of 100% of the Offering Shares (as defined below) if the Company is unable to complete its initial Business
Combination within the Extension, and (iii) the redemption of Public Shares in connection with a vote seeking to amend the provisions
of our Charter.

Prior to such announcement, and subsequent to
the record date of February 21, 2025, for the Special Meeting, the Company withdrew approximately $23,200 of interest from the trust
account for tax expenses.

All of the Public Shares contain a redemption
feature which allows for the redemption of such Public Shares in connection with our liquidation, if there is a stockholder vote or tender
offer in connection with our initial business combination and in connection with certain amendments to our amended and restated certificate
of incorporation. In accordance with SEC and its guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99,
redemption provisions not solely within the control of a company require common stock subject to redemption to be classified outside
of permanent equity. Given that the Public Shares were issued with other freestanding instruments (i.e., public warrants), the initial
carrying value of common stock classified as temporary equity was the allocated proceeds