Company: PFSA
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001213900-25-054386
Chunk: 108

Company: Profusa, Inc.
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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 and $8,908,052, respectively.

Securities Purchase Agreement

On February 11, 2025, in a private transaction,
the Company entered into a securities purchase agreement (the “SPA”) with an institutional investor (the “Investor”).
Pursuant to the SPA, the Investor is expected, subject to the conditions relating to such purchase set forth in the SPA, to purchase from
the Company’s senior secured convertible promissory notes (“Ascent Note”) in an aggregate principal amount of up to
$22,222,222 for a purchase price of up to $20,000,000, after a 10% original issue discount (“OID”). As of March 31, 2025 and
December 31, 2024, the Company is presenting the Ascent Note at fair value on its balance sheet at March 31, 2025 and December 31, 2024
in the amount of $23,487 and $0, respectively (See details on Note 6).

Related Party Loans

In order to finance transaction costs in connection
with an intended initial Business Combination, the initial stockholders or an affiliate of the initial stockholders or certain of the
Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (the “Working Capital
Loans”). If the Company completes the initial Business Combination, the Company would repay such loaned amounts out of the proceeds
of the Trust Account released to the Company. Otherwise, such loans would be repaid only out of funds held outside the Trust Account.
In the event that the initial Business Combination does not close, the Company may use a portion of the working capital held outside
the Trust Account to repay such loaned amounts but no proceeds from the Trust Account would be used to repay such loaned amounts. Up
to $1,500,000 of such loans may be convertible, at the option of the lender, into warrants at a price of $1.00 per warrant of the post
Business Combination entity. The warrants would be identical to the Private Placement Warrants, including as to exercise price, exercisability
and exercise period. At March 31, 2025 and December 31, 2024, the Company had no borrowings under the Working Capital Loans, other than
the Note described in “Note 5 – Related Party Transactions – Convertible Promissory Note – Related Party”.

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Administrative Service Fee

Commencing on the