Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 7

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 7
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, our stockholders immediately prior to our initial business combination could own less than a majority of our outstanding shares
subsequent to our initial business combination. If less than 100% of the equity interests or assets of a target business or businesses
are owned or acquired by the post-transaction company, the portion of such business or businesses that is owned or acquired is what will
be valued for purposes of the 80% of net assets test. If the business combination involves more than one target business, the 80% of net
assets test will be based on the aggregate value of all of the target businesses and we will treat the target businesses together as the
initial business combination for purposes of a tender offer or for seeking stockholder approval, as applicable.

Financial Position

We had funds available in
the Trust Account for a business combination of approximately $8.3 million, as of December 31, 2024. On March 21, 2025, the Company’s
stockholders elected to redeem 532,958 public shares of Common Stock in connection with the extension of our business combination
period for up to three months, from March 22, 2025, ultimately until as late as June 22, 2025. In connection with this
extension, the Company is required to make a one-time contribution of $30,000 to the Trust Account for the entire extension period, which
occurred on March 21, 2025. Following the extension, we have available funds in the Trust Account of approximately $1.9 million as of
March 21, 2025. This amount includes $2.0 million of the business combination marketing fee payable to I-Bankers and Dawson James, payable
in cash upon the Closing of our business combination with Profusa. As the business combination marketing fee exceeds the funds available
in the Trust Account, the Company is expected to use proceeds from a private financing to pay a portion of the business combination marketing
fee at the closing of the business combination. 

3

Lack of Business Diversification

For an indefinite period of
time after the completion of our initial business combination, the prospects for our success may depend entirely on the future performance
of a single business.

Unlike other entities that
have the resources to complete business combinations with multiple entities in one or several industries, it is probable that we will
not have the resources to diversify our operations and mitigate the risks of being in a single line of business. By