Company: PFSA
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001213900-25-054386
Chunk: 28

Company: Profusa, Inc.
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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tained by dividing (x) the product of the number of shares of common stock underlying the warrants, multiplied by the difference
between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market value.
The “fair market value” shall mean the average reported last sale price of the common stock for the 10 trading days ending
on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.

Note 4 – Private Placement

The Company’s Sponsor, I-Bankers and Dawson
James have purchased an aggregate of 7,347,500 Private Placement Warrants (which included 697,500 Private Placement Warrants issued pursuant
to the full exercise of the over-allotment option) at a price of $1.00 per warrant ($7,347,500 in the aggregate) in a private placement
that closed simultaneously with the closing of the IPO. Of such amount, 5,162,500 Private Placement Warrants were purchased by the Sponsor
and 2,185,000 Private Placement Warrants were purchased by I-Bankers and Dawson James.

The Private Placement Warrants are identical
to the warrants included in the units sold in the IPO, except that the Private Placement Warrants: (i) will not be redeemable by the
Company and (ii) may be exercised for cash or on a cashless basis, in each case so long as they are held by the initial purchasers or
any of their permitted transferees. If the Private Placement Warrants are held by holders other than the initial purchasers or any of
their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the holders on the same
basis as the warrants included in the Units being sold in the IPO.

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Note 5 – Related Party Transactions

Founder Shares

In April 2021, the Sponsor paid $25,000, or approximately
$0.005 per share, to cover certain of the offering costs in exchange for an aggregate of 5,175,000 shares of common stock, par value
$0.0001 per share (the “Founder Shares”). In October 2021, the Sponsor irrevocably surrendered to the Company for cancellation
and for no consideration 862,500 shares of common stock. On December 20, 2021, the Company effected a 1.1- for-1