Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 234

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 234
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, we will never generate any operating revenues.

If we are deemed to be an investment company
under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted,
which may make it difficult for us to complete our business combination.

If we are deemed to be an
investment company under the Investment Company Act, our activities may be restricted, including, without limitation, restrictions on
the nature of our investments, and restrictions on the issuance of our securities, each of which may make it difficult for us to complete
our business combination. In addition, we may have imposed upon us burdensome requirements, including, without limitation, registration
as an investment company; adoption of a specific form of corporate structure; and reporting, record keeping, voting, proxy and disclosure
requirements and other rules and regulations.

In order not to be regulated
as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we must ensure that we are engaged
primarily in a business other than investing, reinvesting or trading in securities and that our activities do not include investing, reinvesting,
owning, holding or trading “investment securities” constituting more than 40% of our total assets (exclusive of U.S. government
securities and cash items) on an unconsolidated basis. Our business will be to identify and complete a business combination and thereafter
to operate the post-transaction business or assets for the long term. We do not plan to buy businesses or assets with a view to resale
or profit from their resale. We do not plan to buy unrelated businesses or assets or to be a passive investor.

We do not believe that our
anticipated principal activities will subject us to the Investment Company Act. The proceeds held in the trust account were previously
invested by the trustee only in United States government treasury bills with a maturity of 185 days or less or in money market funds investing
solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. However, to mitigate
the risk of us being deemed to be an unregistered investment company (including under the subjective test of Section 3(a)(1)(A) of the
Investment Company Act) under the proposed rules issued by the SEC and thus potentially subject to regulation under the Investment Company
Act, in January 2024, we instructed Continental, the trustee with respect to the Trust Account, to liquidate the U.S. government