Company: PFSA
Filing Date: 2025-04-28
Form Type: S-4/A
Source: 0001213900-25-035718
Chunk: 259

Company: Profusa, Inc.
Filing Date: 2025-04-28
Form: S-4/A
Chunk 259
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 provisions related to the revenue targets were as follows: •One -quarterof the Earnout Shares would be issued if the combined company achieves at least $16,000,000 in revenue in fiscal year 2023, and one -quarterof the Earnout Shares will be issued if the combined company achieves at least $90,000,000 in revenue in fiscal year 2024 (or up to one -halfof the Earnout Shares if both revenue milestones are achieved). 126 •The revenue targets for fiscal year 2023 and fiscal year 2024 were later adjusted downward to $5,100,000 and $73,100,000, respectively, in conjunction with Profusa’s revised financial projections, as later modified by Amendment No. 1 to the Merger Agreement and Amendment No. 2 to the Merger Agreement, as discussed in this proxy statement/prospectus. While the negotiations took place between management of the respective companies, their respective boards both agreed that the valuation and potential consideration to be earned in connection with Milestone Event I and Milestone Event II were reasonable. Profusa’s most recent cash “burn rate” was approximately $400,000 per month, however that historical burn rate does not include the cost associated with being a public company and does not include further costs associated with ramping up clinical operations and seeking regulatory approval of the Lumee Glucose product. Therefore, the minimum net cash requirement of $15 million at Closing, which has been conditionally waived, was jointly agreed upon by the parties based upon the financial projections provided, the operating experience of the respective management teams, and the goal of having between 12 and 18 months of cash on hand at Closing. While Nasdaq has several market tiers and listing standards under which a company may be listed, we currently expect that New Profusa will be listed on the Nasdaq Global Market pursuant to the Market Value Standard for initial listings. Such Market Value Standard does not have a minimum threshold requirement for stockholders’ equity or total assets of the listing company, however it is expected that at the time of listing, New Profusa will need to demonstrate its ability to operate as a going concern. In order to demonstrate New Profusa’s ability to operate as a going concern, we anticipate needing to demonstrate cash on hand at the time of closing of between $3.2million and $4.8million. We currently expect to have such cash amounts at the time of Closing. The Inducement Share amount of up to 1,300,