Company: PFSA
Filing Date: 2025-02-18
Form Type: PRE 14A
Source: 0001213900-25-014919
Chunk: 34

Company: Profusa, Inc.
Filing Date: 2025-02-18
Form: PRE 14A
Chunk 34
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 exceeds one year. Generally, a U.S. Holder will recognize
gain or loss in an amount equal to the difference between (i) the amount of cash received in such redemption and (ii) the U.S. Holder’s
adjusted tax basis in its common stock so redeemed. A U.S. Holder’s adjusted tax basis in its common stock generally will equal
the U.S. Holder’s acquisition cost (that is, the portion of the purchase price of a unit allocated to a share of common stock
or the purchase price of a share of common stock purchased in the open market) less any prior distributions treated as a return of capital.
Long-term capital gain realized by a non-corporate U.S. Holder generally will be taxable at a reduced rate. The deduction of capital
losses is subject to limitations.

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Taxation of Distributions

If the redemption does not qualify as a sale of common stock, the
U.S. Holder will be treated as receiving a distribution. In general, any distributions to U.S. Holders generally will
constitute dividends for United States federal income tax purposes to the extent paid from our current or accumulated earnings
and profits, as determined under United States federal income tax principles. Distributions in excess of current and
accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero)
the U.S. Holder’s adjusted tax basis in our common stock. Any remaining excess will be treated as gain realized on the
sale or other disposition of the common stock and will be treated as described under “U.S. Federal Income Tax
Considerations to U.S. Holders — Gain or Loss on a Redemption of Common Stock Treated as a Sale”.
Dividends we pay to a U.S. Holder that is a taxable corporation generally will qualify for the dividends received deduction if
the requisite holding period is satisfied. With certain exceptions, and provided certain holding period requirements are met,
dividends we pay to a non-corporate U.S. Holder generally will constitute “qualified dividends” that will be
taxable at a reduced rate.

U.S. Federal Income Tax Considerations to Non-U.S. Holders

This section is addressed to Non-U.S. Holders of our common stock
that elect to have their common stock redeemed for cash. For purposes of this discussion, a “Non-U.S. Holder” is a beneficial
owner (other than a partnership) that so