Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 406

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 406
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s in pursuit of its Business Combination. As part of the closing, the Company had cash inflows of $1.3 million from the Trust
Account, net of redemptions, and the $9 million net PIPE convertible note. Cash outflows included marketing fees and vendor payments
which totaled $3.4 million due at closing. In connection with the Company’s assessment of going concern considerations in accordance
with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosures
of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management believes that subsequent to the closing
of the Merger, there continues to be factors which raise substantial doubt about the Company’s ability to continue as a going concern
within one year from the date the condensed consolidated financial statements are issued. The condensed consolidated financial statements
do not contain any adjustments that might result from the outcome of this uncertainty.

Risks and Uncertainties

On August 16, 2022, the
Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other
things, a new U.S. federal 1% excise tax on certain repurchases of stock occurring on or after January 1, 2023, by publicly
traded U.S. domestic corporations, by certain U.S. domestic subsidiaries of publicly traded foreign corporations, by “covered
surrogate foreign corporations” (as defined in the IR Act) and by certain affiliates of the foregoing. The excise tax is imposed
on the repurchasing corporation itself, not its stockholders from which shares are repurchased. The amount of the excise tax is generally
1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax,
repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock
repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax.

Any redemption or other repurchase
that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the
excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension
vote or otherwise would depend on a number of factors, including