Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 63

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 Working Capital Loans (see Note 5).

On April 27, 2023, the Company signed a Convertible
Working Capital Promissory Note (“the Note”) with the Sponsor for $1,200,000. The Note is non-interest bearing and is due
the earlier of the consummation of a business combination or the date of liquidation. The Sponsor may elect to convert all or any portion
of the unpaid principal balance of this Note into warrants, at a price of $1.00 per warrant. On January 10, 2024, the Company’s
Board of Directors approved, and the Company amended the Note to increase the principal amount of the Note that could be drawn on to
$1.5 million. The amended and restated Note also allows for the conversion of the outstanding principal balance of the Note to be
repaid in shares of Company common stock at a price of $2.22 per share at the election of the sponsor. On May 31, 2024, the Company’s
Board of Directors approved and the Company entered into a second amendment of its Convertible Working Capital Promissory Note with the
sponsor to increase the principal amount of the Note that could be drawn on to $2.5 million. The second amended and restated Note
also allows for the conversion of the outstanding principal balance of the Note to be repaid in shares of Company common stock at a price
of $2.22 per share at the election of the sponsor. The Company had principal outstanding of $1,919,796 and is presenting the Note
at fair value on its balance sheet at June 30, 2025 and December 31, 2024 in the amount of $10,288,111 and $8,908,052, respectively.

The Company incurred significant costs 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 Mer