Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 187

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 187
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 and employees in connection with the transaction. If, for whatever reason, the transactions contemplated by the Merger Agreement
fail to close, we will be responsible for these costs, but will have no source of revenue with which to pay them. We may need to obtain
additional sources of financing in order to meet our obligations, which we may not be able to secure on the same terms as our existing
financing or at all. If we are unable to secure new sources of financing and do not have sufficient funds to meet our obligations, we
will be forced to cease operations and liquidate the trust account.

13

As the number of special purpose acquisition
companies evaluating targets increases, attractive targets may become scarcer and there may be more competition for attractive target
businesses. This could increase the cost of our initial business combination and could even result in our inability to find a suitable
target business or to consummate an initial business combination.

In recent years, the number
of special purpose acquisition companies that have been formed has increased substantially. Many potential target businesses for blank
check companies have already entered into an initial business combination, and there are still many blank check companies preparing and
seeking target businesses for an initial public offering, as well as many such companies currently in registration. As a result, at times,
fewer attractive targets may be available, and it may require more time, more effort and more resources to identify a suitable target
and to consummate an initial business combination.

In addition, because there
are more blank check companies seeking to enter into an initial business combination with available targets businesses, the competition
for available target businesses with attractive fundamentals or business models may increase, which could cause targets businesses to
demand improved financial terms. Attractive deals could also become scarcer for other reasons, such as economic or industry sector downturns,
geopolitical tensions, or increases in the cost of additional capital needed to close business combinations or operate target businesses
post-business combination. This could increase the cost of, delay or otherwise complicate or frustrate our ability to find and consummate
an initial business combination, and may result in our inability to consummate an initial business combination on terms favorable to our
investors altogether.

Changes in the market for directors and officers
liability insurance could make it more difficult and more expensive for us to negotiate and complete an initial business combination.

In recent months, the market
for directors and officers liability insurance for blank check companies has changed in ways adverse to us and our officers and directors