Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 26

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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) were $0.94 and $9.40, respectively.

The outstanding principal balance of the Profusa senior secured
convertible promissory notes and all accrued but unpaid interest converted into Legacy Profusa Common Stock was exchanged for
5,542,261 shares of Company Common Stock, on an as converted price of $0.50 per share.

Upon Closing, the former holders of Legacy Profusa’s common stock,
senior convertible notes, junior convertible notes and vested in-the-money options (the “Participating Securityholders”) received
certain rights, under which in the future the Company may issue to the Participating Securityholders an aggregate of 3,875,000 shares
of Company Common Stock (the “Milestone Earnout Shares”) during the respective earnout periods in equal quarterly installments
upon achievement of the following four Milestone Events:

●Milestone I Earnout Rights: share price of Company Common Stock is equal to or greater than $12.50 for any 20 trading days during any 30 days trading period or consummation of a Subsequent Transaction (as defined in the Merger Agreement) where the stockholders of Profusa will receive a consideration of at least $12.50 for each share of Company Common Stock (“Milestone Event I”). The Milestone I period will commence on the 18-month anniversary and end on the two-year anniversary of the Closing Date (“Milestone Event I Period”);

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●Milestone II Earnout Rights: share price of Company Common Stock is equal to or greater than $14.50 for any 20 trading days during
any 30 days trading period or consummation of a Subsequent Transaction where the stockholders of Profusa will receive a consideration
of at least $14.50 for each share of Company Common Stock (“Milestone Event II”). The Milestone II period will commence on
the 360-day anniversary and end on the two-year anniversary of the Closing Date (“Milestone Event II Period”); provided that
such 30 days trading period does not overlap with the 30 days trading period used to satisfy the requirements of Milestone Event I; provided,
further, that in the event that such 30 days trading period could satisfy either Milestone Event I or Milestone Event II, then Milestone
Event II shall be deemed to be satisfied first;

●Milestone III Earnout Rights: the closing of the APAC Joint Venture, as described below in this Report, and the Companies receipt of the related