Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 66

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 $250,000,
at the Company’s option, in either cash or in the surviving entity’s common shares calculated by dividing $250,000 by the
lowest trailing 5-day VWAP in the prior 30 days (“Tranche 2”). Upon funding of the Convertible Notes by investors introduced
by Benchmark, the Company will pay to Benchmark fees in cash equal to 5% of the net proceeds of any Convertible Note draw at the time
of funding of such draw (“Arrangement Fees”). The Tranche 2 fee shall be reduced by the amount of any fees paid to Benchmark
for other transactions during the Term other than Arrangement Fees associated with Convertible Notes, after the Business Combination,
up to $250,000. As a result of the Business Combination, Benchmark was paid in shares of the post-combination company in the amount of
$500,000.

Non-Redemption Agreement

On May 8, 2025, the Company entered into a non-redemption agreement
(the “Non-Redemption Agreement”) with I-Bankers Securities, Inc. and Dawson James Securities, Inc. (together, the “Investors”),
pursuant to which such Investors agreed that to the extent that redemptions in connection with the vote to approve the Business Combination
reduces the Company’s trust account balance below $1.25 million, the Investors would offer such redeeming shareholders an
opportunity to rescind the redemption of their shares and would instead purchase such shares. Such purchases would be structured in compliance
with the requirements of Rule 14e-5 under the Exchange Act or would otherwise not constitute a tender offer pursuant
to the Exchange Act. As of the Closing Date, the Company’s trust account balance was not below $1.25 million.

Critical Accounting Estimates

Certain of our accounting policies require that
management apply significant judgments in defining the appropriate assumptions integral to financial estimates. On an ongoing basis,
management reviews the accounting policies, assumptions, estimates and judgments to ensure that our condensed consolidated financial
statements are presented fairly and in accordance with U.S. GAAP. Judgments are based on historical experience, terms of existing contracts,
industry trends and information available from outside sources, as appropriate. Some of the more significant estimates are in connection
with determining the fair value of the warrant liabilities and convertible promissory note. However, by their nature, judgments are subject
to an inherent degree of uncertainty, and,