Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 82

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 82
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 the Sarbanes-Oxley Act particularly burdensome on us as compared to other public companies because
a target company with which we seek to complete our initial business combination may not be in compliance with the provisions of the Sarbanes-Oxley
Act regarding adequacy of its internal controls. The development of the internal control of any such entity to achieve compliance with
the Sarbanes-Oxley Act may increase the time and costs necessary to complete any such acquisition.

39

Cyber incidents or attacks directed at us could
result in information theft, data corruption, operational disruption and/or financial loss.

We depend on digital technologies,
including information systems, infrastructure and cloud applications and services, including those of third parties with which we may
deal. Sophisticated and deliberate attacks on, or security breaches in, our systems or infrastructure, or the systems or infrastructure
of third parties or the cloud, could lead to corruption or misappropriation of our assets, proprietary information and sensitive or confidential
data. As an early stage company without significant investments in data security protection, we may not be sufficiently protected against
such occurrences. We may not have sufficient resources to adequately protect against, or to investigate and remediate any vulnerability
to, cyber incidents. It is possible that any of these occurrences, or a combination of them, could have adverse consequences on our business
and lead to financial loss.

We would be subject to a second level of U.S.
federal income tax on a portion of our income if we are determined to be a personal holding company (a “PHC”) for U.S. federal
income tax purposes.

A U.S. corporation generally
will be classified as a PHC for U.S. federal income tax purposes in a given taxable year if (i) at any time during the last half of such
taxable year, five or fewer individuals (without regard to their citizenship or residency and including as individuals for this purpose
certain entities such as certain tax exempt organizations, pension funds and charitable trusts) own or are deemed to own (pursuant to
certain constructive ownership rules) more than 50% of the stock of the corporation by value and (ii) at least 60% of the corporation’s
adjusted ordinary gross income, as determined for U.S. federal income tax purposes, for such taxable year consists of PHC income (which
includes, among other things, dividends, interest, certain royalties, annuities and, under certain circumstances, rents). 

Depending on