Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 34

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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See details on Note 6).

As a result of the Business Combination, pursuant
to the SPA, the Company issued a PIPE Convertible Note in the principal amount of $10,000,000 (the “Initial Note”) for a
purchase price of $9,000,000, reflecting a 10% OID. The Initial Note matures on the date that is 18-months from the Closing and is convertible
at any time at the Investor’s option at a conversion price equal to the lower of $10 or 95% of the lowest daily volume-weighted
average price per share of the post-combination company common stock in the 10 trading days prior to the original issue date of the Initial
Note and shall be adjusted, without limitation, based on down-round and most-favored nation (MFN) price and terms protections (the “Conversion
Price”).

Related Party Loans

In order to finance transaction costs in connection
with an intended initial Business Combination, the initial stockholders or an affiliate of the initial stockholders or certain of the
Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (the “Working Capital
Loans”). If the Company completes the initial Business Combination, the Company would repay such loaned amounts out of the proceeds
of the Trust Account released to the Company. Otherwise, such loans would be repaid only out of funds held outside the Trust Account.
In the event that the initial Business Combination does not close, the Company may use a portion of the working capital held outside
the Trust Account to repay such loaned amounts but no proceeds from the Trust Account would be used to repay such loaned amounts. Up
to $1,500,000 of such loans may be convertible, at the option of the lender, into warrants at a price of $1.00 per warrant of the post
Business Combination entity. The warrants would be identical to the Private Placement Warrants, including as to exercise price, exercisability
and exercise period. At June 30, 2025 and December 31, 2024, the Company had no borrowings under the Working Capital Loans, other than
the Note described in “Note 5 – Related Party Transactions – Convertible Promissory Note – Related Party”.

17

Administrative Service Fee

Commencing on the effective date of the IPO,
the Company began paying its Sponsor a total of $5,000 per month for office space, utilities, secretarial