Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 73

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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 the notes. In addition, upon consummation of the Business
Combination, all senior noteholders obtained the right to receive additional shares upon achievement by the Company of certain share price
and sales milestones (the earnout shares).

On August 8, 2023, a new wholly owned subsidiary, Profusa Asia
Pacific Pte. Ltd (“APAC”), was created and incorporated by Legacy Profusa under the laws of Singapore. Upon creation,
the new entity was capitalized by Legacy Profusa by payment of $1,000 for 1,000 Ordinary Shares. As a result, at the time of
incorporation, the entity became a wholly owned subsidiary of Legacy Profusa. The entity was created with the expectation of jointly
conducting the business of developing, manufacturing and commercializing the Lumee Glucose and the Lumee Oxygen products, currently
under development by the Company, together with a third party. No business or activities will have been conducted by the entity from
the date of formation through and until the closing date of the proposed License Agreement and Shareholders Agreement between the
Company and Best Life Technology Ltd, an entity wholly owned and controlled by the Tasly. Subsequent to the Closing of the Business
Combination, the Company expects to sign and execute a License Agreement and Shareholders Agreement (the “APAC Joint
Venture”) setting forth the relative and other terms under which the development and business activities of the entity will be
conducted.

The Company is in the process of negotiating the formation of the APAC
Joint Venture, which includes the related party from which the amounts under the Tasly Convertible Debt was borrowed. The proceeds of
the loan are intended to continue the development and commercialization of the Company’s technology in certain countries of the Asia Pacific
region.

In the event we either fail to complete the formation of the APAC Joint
Venture or fail to repay the amounts under the Tasly Convertible Debt when they become due, the lender will have an option to convert
the outstanding balance and accrued but unpaid interest (in part or in full) into senior unsecured promissory notes on substantially the
same terms as the outstanding Senior Notes as of September 30, 2025 (which terms include conversion into Company Common Stock). Notwithstanding
the conversion provisions above, any repayment obligations (in part or in full) of the outstanding principal balance and accrued but unpaid
interest under the Tasly Convertible Debt may, at the lender’s option, be made