Company: PFSA
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0001213900-25-044417
Chunk: 389

Company: Profusa, Inc.
Filing Date: 2025-05-15
Form: 424B3
Chunk 389
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 which are consistent with the ESPP. Summary of U.S. Federal Income Tax Consequences The following is a brief summary of certain United States federal income tax consequences generally arising with respect to the ESPP. This discussion does not address all aspects of the United States federal income tax consequences of participating in the ESPP that may be relevant to participants in light of their personal investment or tax circumstances and does not discuss any state, local or non -UnitedStates tax consequences of participating in the ESPP. Each participant is advised to consult his or her particular tax advisor concerning the application of the United States federal income tax laws to such participant’s particular situation, as well as the applicability and effect of any state, local or non -UnitedStates tax laws before taking any actions with respect to any awards. In general, the ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Code. Under Section 423 of the Code, an eligible employee who elects to participate in the ESPP will not recognize any taxable income and New Profusa will not be entitled to a deduction at the time shares of New Profusa Common Stock are purchased for the employee under the ESPP. If an employee disposes of the New Profusa Common Stock purchased under the ESPP within two years after the grant date (i.e., the first day of the offering period) or 214 one year after the purchase date if later, the employee will recognize compensation taxable as ordinary income, and New Profusa (or the employer subsidiary) will generally be entitled to a corresponding deduction, in an amount equal to the excess of the fair market value of the New Profusa Common Stock on the purchase date over the purchase price. The employee’s cost basis in the shares will be increased by the amount of ordinary income recognized by the employee, and the employee will recognize capital gain or loss equal to the difference between the price at which the shares are later sold (or otherwise disposed) and the cost basis for the shares, as so increased. New Profusa (or the employer subsidiary) will not be entitled to any deduction with respect to the amount recognized by such participant as capital gain. If an employee does not dispose of the New Profusa Common Stock purchased under the 423 Component of the ESPP until after the holding period described above, the employee will recognize compensation taxable as ordinary income in an amount equal to the lesser of (i) the excess of the fair market value of the shares at the time of disposition over the purchase price or (