Company: PFSA
Filing Date: 2025-07-18
Form Type: 8-K
Source: 0001213900-25-065686
Chunk: 37

Company: Profusa, Inc.
Filing Date: 2025-07-18
Form: 8-K
Chunk 37
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 The Business Combination is expected to have a significant impact
on our future capital structure and operating results, de-risking our product development, manufacturing and commercialization.

In June 2023, the
Company entered into a short-term loan agreement with a related party under which it may borrow up to $1.6 million, of which $1.0 million
was borrowed on June 26, 2023, $0.3 million was borrowed on July 20, 2023, $0.3 million was borrowed on August 15, 2023 (the “Tasly
Convertible Debt”). An additional amount of less than $0.02 million was drawn on February 6, 2024. The loans bear interest at a
rate of 12% per annum with a default rate of 24% per annum and originally matured on December 31, 2023. The original maturity date was
extended to March 31, 2024, subject to the parties’ decision to extend thereafter. This loan was to be repaid (and was repaid) in
parallel with the closing of the Business Combination, and accordingly, the Company classified the entire amount outstanding under the
Tasly Convertible Debt as current on the Consolidated Balance Sheet.

As a result of
the Business Combination, we will be required to hire additional personnel and implement procedures and processes to address public company
regulatory requirements and customary practices. We expect to incur additional annual expenses as a public company for, among other things,
directors’ and officers’ liability insurance, director fees, and additional internal and external accounting, legal and administrative
resources.

Recent Developments

See above under
the heading “Business Combination” regarding the closing of the Business Combination.

The world economy is experiencing
stubbornly high inflation, a challenge not faced for decades. Following the global financial crisis, with inflationary pressures muted,
interest rates were extremely low for years and investors became accustomed to low volatility. The resulting easing of financial conditions
supported economic growth, but it also contributed to a buildup of financial vulnerabilities. With inflation at multi-decade highs, monetary
authorities in advanced economies are accelerating the pace of policy normalization. Policymakers have continued to tighten policy against
a backdrop of rising inflation and currency pressures, albeit with notable differences across regions. Global financial conditions have
tightened notably this year, leading to capital outflows. Amid heightened economic and geopolitical uncertainties, investors have aggressively
pulled back from risk-taking and