Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 326

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 326
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.3 million. These notes were converted
into New Profusa common stock upon the successful closing of the merger on July 11, 2025; see subsequent events (Note 14).

Tasly Convertible Debt

In June 2023, the Company
entered into a short-term loan agreement with a related party under which it may borrow up to $1.6 million, of which $1.0 million
was borrowed on June 26, 2023, $0.3 million was borrowed on July 20, 2023, $0.3 million was borrowed on August 15,
2023 and the final $0.02 million was borrowed in February 2024 (the “Convertible debt”).

The loans bear interest at
a rate of 12% per annum, 24% per annum default interest rate, and originally matured on December 31, 2023. The original maturity
date was extended to March 31, 2024, subject to the parties’ decision to extend thereafter. Upon occurrence of certain events
of default by the Company, including failure to repay in full the amounts owed at maturity, the lender will have an option to convert
the entire outstanding balance and accrued but unpaid interest under the Convertible debt into senior unsecured promissory notes on substantially
the same terms as the outstanding Senior Notes as of June 30, 2025. In the event the Company fails 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 under the Convertible debt into either (i) senior unsecured
promissory notes on substantially the same terms as the outstanding Senior Notes as of June 30, 2025, or (ii) the Company’s
common stock at a conversion price of $1.92 per share.

The Company elected to apply
the fair value option to account for the Tasly Convertible debt. Accordingly, no features of the Convertible debt are bifurcated and separately
accounted for. The fair value of the Convertible debt was $2.1 million as of June 30, 2025. Accrued stated interest on the Tasly
Convertible debt was $0.1 million and $0.2 million for the three and six months ended June 30, 2025, respectively.
Accrued stated