Company: PFSA
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001213900-25-054386
Chunk: 111

Company: Profusa, Inc.
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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 shares in connection with the completion of the initial Business Combination and (ii) to waive their
rights to liquidating distributions from the Trust Account with respect to such shares if the Company fails to complete its initial Business
Combination within the Combination Period. The fair value of the Representative’s Shares issued are recognized as offering
costs directly attributable to the issuance of an equity contract to be classified in equity and are recorded as a reduction of equity
(see Note 1).

Representative’s Warrants

The Company granted to I-Bankers and Dawson
James (and/or their designees) 569,250 warrants (which included 74,250 warrants issued pursuant to the full exercise of the over-allotment
option) exercisable at $11.50 per share (or an aggregate exercise price of $6,546,375) at the closing of the IPO. The Representative
Warrants issued are recognized as derivative liabilities in accordance with ASC 815-40 and recorded as liabilities at fair value each
reporting period (see Notes 1 and 8). The warrants may be exercised for cash or on a cashless basis, at the holder’s option, at
any time during the period commencing on the later of the first anniversary of the effective date of the registration statement of which
the IPO forms a part and the closing of the initial Business Combination and terminating on the fifth anniversary of such effectiveness
date. Notwithstanding anything to the contrary, I-Bankers and Dawson James have agreed that neither they nor their designees will
be permitted to exercise the warrants after the five year anniversary of the effective date of the registration statement of
which the IPO forms a part. The warrants and such shares purchased pursuant to the warrants have been deemed compensation by FINRA and
are therefore subject to a lock-up for a period of 180 days immediately following the date of the effectiveness of the registration
statement of which the IPO forms a part pursuant to FINRA Rule 5110I(1). Pursuant to FINRA Rule 5110I(1), these securities
will not be the subject of any hedging, short sale, derivative, put or call transaction that would result in the economic disposition
of the securities by any person for a period of 180 days immediately following the effective date of the registration statement
of which the IPO forms a part, nor may they be sold, transferred, assigned, pledged or hypothecated for a period of