Company: PFSA
Filing Date: 2025-07-18
Form Type: 8-K
Source: 0001213900-25-065686
Chunk: 13

Company: Profusa, Inc.
Filing Date: 2025-07-18
Form: 8-K
Item: Item 2.03
Chunk 13
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senior unsecured promissory notes on substantially the same terms as the outstanding Senior Notes as of December 31, 2024 (which terms
include conversion into common stock of New Profusa in the event the Merger is consummated), or (ii) our common stock at a conversion
price of $2.33 per share.

Our outstanding PPP Loan of
$1.4 million bears interest at 1% per annum. The repayment of the PPP Loan is expected to be made in equal monthly payments of principal
and interest from October 25, 2022 until May 25, 2026; however, we are currently in the process of applying for forgiveness for this loan.

Our promissory notes accrued
interest at 5% and 12% per annum, most of which did not have a set maturity date. The Company was in default, and agreed to repay all
promissory notes in parallel with the closing of the Business Combination, and accordingly, the Company classified the entire outstanding
amount as a current liability on the condensed consolidated balance sheet.

Additional funds may be necessary
to maintain current operations and will be required for successful product commercialization efforts. Management plans to obtain additional
funds as a result of the Business Combination and PIPE investment, issuance of additional equity or refinancing of current debt, which
is intended to mitigate the relevant conditions or events that raise substantial doubt about our ability to continue as a going concern
within one year from the date the unaudited condensed consolidated financial statements as of and for the three months ended March 31,
2025 are issued. As the ability to refinance our current debt or raise additional equity financing is outside of management's control,
we cannot conclude that management's plans will be effectively implemented within one year from the date the unaudited condensed consolidated
financial statements as of and for the three months ended March 31, 2025 are issued and as such, raises substantial doubt about our ability
to continue as a going concern.

Since March 31, 2025, $0.7
million of additional working capital was raised to fund Company operations through the transaction closing date, of which $0.4 million
were converted in 2025 upon the closing of the Company’s Qualified Financing transaction and $0.3 million were repaid in cash.

Long-Term Liquidity Requirements

We expect our cash and cash
equivalents on hand, and cash that we expect to receive from the Business Combination and PIPE Investment