Company: PFSA
Filing Date: 2025-07-18
Form Type: 8-K
Source: 0001213900-25-065686
Chunk: 43

Company: Profusa, Inc.
Filing Date: 2025-07-18
Form: 8-K
Chunk 43
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 Tasly Convertible Debt was borrowed. The proceeds of the loan are intended to continue the development and commercialization
of the Company’s technology in certain countries of the Asia Pacific region.

In the event we fail to complete
the Merger, and either fail to complete the formation of the APAC Joint Venture or fail to repay the amounts under the Tasly Convertible
Debt when they become due, the lender will have an option to convert the entire outstanding balance and accrued but unpaid interest (in
part of in full) into either (i) senior unsecured promissory notes on substantially the same terms as the outstanding Senior Notes as
of December 31, 2024, or (ii) our common stock at a conversion price of $2.33 per share.

Notwithstanding the conversion
provisions above, any repayment obligations (in part or in full) of the outstanding principal balance and accrued but unpaid interest
under the Tasly Convertible Debt may, at the lender’s option, be made through conversion of part or all amounts payable into (i)
senior unsecured promissory notes on substantially the same terms as the outstanding Senior Notes as of December 31, 2024 (which terms
include conversion into common stock of New Profusa in the event the Merger is consummated), or (ii) our common stock at a conversion
price of $2.33 per share.

Our outstanding PPP Loan of
$1.4 million bears interest at 1% per annum. The repayment of the PPP Loan is expected to be made in equal monthly payments of principal
and interest from October 25, 2022 until May 25, 2026; however, we are currently in the process of applying for forgiveness for this loan.

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Our promissory notes accrued
interest at 5% and 12% per annum, most of which did not have a set maturity date. The Company was in default, and agreed to repay all
promissory notes in parallel with the closing of the Business Combination, and accordingly, the Company classified the entire outstanding
amount as a current liability on the condensed consolidated balance sheet.

Additional funds may be necessary
to maintain current operations and will be required for successful product commercialization efforts. Management plans to obtain additional
funds as a result of the Business Combination and PIPE investment, issuance of additional equity or refinancing of current debt, which
is intended to mitigate the relevant conditions or events that