Company: PFSA
Filing Date: 2025-07-03
Form Type: PRE 14C
Source: 0001213900-25-061184
Chunk: 10

Company: Profusa, Inc.
Filing Date: 2025-07-03
Form: PRE 14C
Chunk 10
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 Holder takes into account not only stock actually owned by the U.S. Holder, but also shares of our stock that are constructively
owned by it. A U.S. Holder may constructively own, in addition to stock owned directly, stock owned by certain related individuals and
entities in which the U.S. Holder has an interest or that have an interest in such U.S. Holder, as well as any stock the U.S. Holder has
a right to acquire by exercise of an option, which would generally include common stock which could be acquired pursuant to the exercise
of the warrants. In order to meet the substantially disproportionate test, the percentage of our outstanding voting stock actually and
constructively owned by the U.S. Holder immediately following the redemption of common stock must, among other requirements, be less than
80% of our outstanding voting stock actually and constructively owned by the U.S. Holder immediately before the redemption. There will
be a complete termination of a U.S. Holder’s interest if either (i) all of the shares of our stock actually and constructively owned
by the U.S. Holder are redeemed or (ii) all of the shares of our stock actually owned by the U.S. Holder are redeemed and the U.S. Holder
is eligible to waive, and effectively waives in accordance with specific rules, the attribution of stock owned by certain family members
and the U.S. Holder does not constructively own any other stock. The redemption of the common stock will not be essentially equivalent
to a dividend if a U.S. Holder’s conversion results in a “meaningful reduction” of the U.S. Holder’s proportionate
interest in us. Whether the redemption will result in a meaningful reduction in a U.S. Holder’s proportionate interest in us will
depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in
the proportionate interest of a small minority stockholder in a publicly held corporation who exercises no control over corporate affairs
may constitute such a “meaningful reduction.”

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If none of the foregoing tests are satisfied, then the redemption will
be treated as a distribution and the tax effects will be as described below under “U.S. Federal Income Tax Considerations to U.S.
Holders — Taxation of Distributions.”

U.S. Holders of our common stock considering exercising their redemption
rights should consult their own tax advisors as to whether the redemption of their common stock