Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 613

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 613
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ering costs directly attributable to the issuance of an equity contract to be classified in equity
and are recorded as a reduction of equity (see Note 1).

Representative’s
Warrants

The
Company granted to I-Bankers and Dawson James (and/or their designees) 569,250 warrants (which
included 74,250 warrants issued pursuant to the full exercise of the over-allotment option) exercisable at $11.50 per
share (or an aggregate exercise price of $6,546,375) at the closing of the IPO. The Representative Warrants issued are recognized as
derivative liabilities in accordance with ASC 815-40 and recorded as liabilities at fair value each reporting period (see Notes 1
and 8). The warrants may be exercised for cash or on a cashless basis, at the holder’s option, at any time during the period
commencing on the later of the first anniversary of the effective date of the registration statement of which the IPO forms a part
and the closing of the initial Business Combination and terminating on the fifth anniversary of such effectiveness date.
Notwithstanding anything to the contrary, I-Bankers and Dawson James have agreed that neither they nor their designees will be
permitted to exercise the warrants after the five year anniversary of the effective date of the registration statement of
which the IPO forms a part. The warrants and such shares purchased pursuant to the warrants have been deemed compensation by FINRA
and are therefore subject to a lock-up for a period of 180 days immediately following the date of the effectiveness of the
registration statement of which the IPO forms a part pursuant to FINRA Rule 5110I(1). Pursuant to FINRA Rule 5110I(1),
these securities will not be the subject of any hedging, short sale, derivative, put or call transaction that would result in the
economic disposition of the securities by any person for a period of 180 days immediately following the effective date of the
registration statement of which the IPO forms a part, nor may they be sold, transferred, assigned, pledged or hypothecated for a
period of 180 days immediately following the effective date of the registration statement of which the IPO forms a part except
to any underwriter and selected dealer participating in the offering and their bona fide officers or partners. The warrants grant to
holders demand and “piggy back” rights for periods of five and seven years, respectively