Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 29

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 deemed improbable of occurring. Milestone III does not meet the indexed guidance as it is based
on an event occurring to achieve $6 million in, which is not a market data or input. The Milestone IV Earnout does meet the scope exception
ASC 815-10-15-59(d) from derivative accounting since payments under these milestones are based on revenue amounts..

The earn-outs are considered to be part of the overall reverse recapitalization
as it was negotiated between NorthView Sponsor I, LLC, the sponsor of NorthView (the “Sponsor”), and the selling shareholders.
As such, it is represented as an equity restructuring that is accounted for as a reduction in additional paid-in capital. As this is an
equity classified transaction the contingent consideration creates a reduction to the additional paid in capital account of $1.7 million,
with an offset to additional paid in capital -Earn-out equity instrument. This accounting results in no impact on the face of the
Statement of Stockholders’ Deficit until all necessary conditions to issue such shares have been satisfied by the end of the period.
Once these contingently issuable shares are deemed issuable, they will also be included in earnings per share.

15

The following table reconciles the elements of the Business Combination
to the consolidated statements of cash flows and the consolidated statement of changes in stockholders’ equity:

    Cash-Trust Account, net of redemptions 
    $1,276 
  
    Less: transaction costs and professional fees, paid directly from Trust Account 
     1,274 
  
    Net proceeds received from Trust 
     2 
  
    Less: private and representative warrant liabilities 
     (1,193)
  
    Less: related party notes 
     (41)
  
    Less: related party notes - working capital loan 
     (2,162)
  
    Less: related party notes - PIPE Subscription Agreement 
     (3,898)
  
    Less: excise tax payable 
     (1,953)
  
    Less: accounts payable and accrued expenses 
     (3,102)
  
    Reverse recapitalization, net 
    $(12,346)

The number of shares of Common Stock to be issued following the
consummation of the Business Combination were:

    Class A
 Common
 Stock 
  
    NVAC Public Shares, outstanding prior to the Business Combination 
     101,777 
  
    Less: Redemption of NVAC Class A common stock