Company: PFSA
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0001213900-25-044417
Chunk: 413

Company: Profusa, Inc.
Filing Date: 2025-05-15
Form: 424B3
Chunk 413
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ersand Dawson James amended the Business Combination Marketing Agreement to revise a portion of the Business Combination Marketing Fee to be partially payable in NorthView securities and partially payable in cash upon the closing of the Merger with Profusa, with such securities to be subject to lock -upprovisions. Subsequently, on January19, 2025, the agreement was modified by the parties such that the Company will be required to pay $2,000,000, payable in cash, if a business combination is consummated. Critical Accounting Estimates Certain of our accounting policies require that management apply significant judgments in defining the appropriate assumptions integral to financial estimates. On an ongoing basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our consolidated financial statements are presented fairly and in accordance with U.S. GAAP. Judgments are based on historical experience, terms of existing contracts, industry trends and information available from outside sources, as appropriate. Some of the more significant estimates are in connection with determining the fair value of the warrant liabilities and convertible promissory note. However, by their nature, judgments are subject to an inherent degree of uncertainty, and, therefore, actual results could differ from our estimates. Convertible Promissory Note The fair value of the Company’s convertible promissory note is valued using a compound option formula on the convertible feature and a present value of the host contract. The valuation technique requires inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumption about the assumptions a market participant would use in pricing the working capital loan. Warrant Liabilities We account for the warrants issued in connection with the IPO in accordance with the guidance contained in ASC 815 -40. Such guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly, we classified each warrant as a liability at its fair value. This liability is subject to re -measurementat each balance sheet date. With each such re -measurement, the warrant liabilities will be adjusted to fair value, with the change in fair value recognized in our consolidated statements of operations. In determining the fair value of the Private Placement Warrants and the Representative’s Warrants assumptions related to expected share -pricevolatility, expected life and risk -freeinterest rate are utilized. The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the warrants. Recent Accounting Standards In November 2023, the FASB issued ASU