Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 543

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 543
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50 per share for any 20 trading days within a 30 consecutive
trading day period (“Milestone Event I”). One-quarter of the Earnout Shares will be issued if, between the first and second
anniversary of the Closing, the combined company’s common stock achieves a daily volume weighted average market price of at least
$14.50 per share for a similar number of days (“Milestone Event II”). Pursuant to the Merger Agreement, the remaining one-quarter
of the Earnout Shares were to be issued if the combined company achieves at least $5,100,000 in revenue in fiscal year 2023, and one-quarter
of the Earnout Shares will be issued if the combined company achieves at least $73,100,000 in revenue in fiscal year 2024, (or up to
one-half of the Earnout Shares if both milestones are achieved).

On
September 12, 2023, the parties to the Merger Agreement entered into Amendment No. 1 to the Merger Agreement ( “Amendment No. 1”)
pursuant to which the parties agreed to revise the revenue earnout milestones to reflect updated projections provided by Profusa. Specifically,
Amendment No. 1 revised the definition of “Milestone Event III” and “Milestone Event IV” such that one-quarter
of the Earnout Shares would be issued to Profusa stockholders if the combined company achieves Earnout Revenue of $11,864,000 for the
fiscal year ended December 31, 2024, and one-quarter of the Earnout Shares would be issued to Profusa stockholders if the combined company
achieves Earnout Revenue of $99,702,000 for the fiscal year ended December 31, 2025. Amendment No. 1 also clarified the exercise price
of certain the Company Warrants. 

On January 12, 2024, the parties to the Merger Agreement entered
into an Amendment No. 2 to the Merger Agreement (“Amendment No. 2”) pursuant to which the parties agreed to revise the definition
of “Milestone Event III” and such that the Earnout Revenue milestone of $11,864,000 for the fiscal year ended December 31,
2024, was replaced with a milestone of consummating the APAC Joint Venture and receipt of the related funding (as described elsewhere
in this proxy statement/prospectus) during the fiscal year ended December 31, 2024