Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 226

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 226
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 may adversely affect the market price of our common stock.

Pursuant to an agreement entered
into concurrently with the issuance and sale of the securities in our initial public offering, our initial stockholders and their permitted
transferees can demand that we register their shares of our common stock at the time of our initial business combination. In addition,
holders of our private placement warrants and their permitted transferees can demand that we register the private placement warrants and
the shares of common stock issuable upon exercise of the private placement warrants, and holders of securities that may be issued upon
conversion of working capital loans may demand that we register such warrants or the common stock issuable upon exercise of such warrants.
We will bear the cost of registering these securities. The registration and availability of such a significant number of securities for
trading in the public market may have an adverse effect on the market price of our common stock. In addition, the existence of the registration
rights may make our initial business combination more costly or difficult to conclude. This is because the stockholders of the target
business may increase the equity stake they seek in the combined entity or ask for more cash consideration to offset the negative impact
on the market price of our common stock that is expected when the common stock owned by our initial stockholders, holders of our private
placement warrants or holders of our working capital loans or their respective permitted transferees are registered.

34

We may issue additional shares of common stock
or preferred stock to complete our initial business combination or under an employee incentive plan after completion of our initial business
combination, and any such issuances would dilute the interest of our stockholders and likely present other risks.

Our amended and restated certificate
of incorporation authorizes the issuance of up to 100,000,000 shares of common stock, par value $0.0001 per share, and 1,000,000 shares
of undesignated preferred stock, par value $0.0001 per share.

We may issue a substantial
number of additional shares of common stock, and may issue shares of preferred stock, in order to complete our initial business combination
or under an employee incentive plan after completion of our initial business combination (although our amended and restated certificate
of incorporation provides that we may not issue securities that can vote with common stockholders on matters related to our pre-business
combination activity). However, our amended and restated certificate of incorporation provides, among other things, that prior to our
initial business combination, we