Company: PFSA
Filing Date: 2025-07-18
Form Type: 8-K
Source: 0001213900-25-065686
Chunk: 11

Company: Profusa, Inc.
Filing Date: 2025-07-18
Form: 8-K
Item: Item 2.03
Chunk 11
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 of convertible preferred stock, junior and senior convertible notes, PPP Loans available to us under the
Paycheck Protection Program and promissory notes. From inception through March 31, 2025, we raised gross proceeds of $97.3 million from
the issuances of convertible preferred stock and convertible notes and loans, received $2.5 million from PPP Loans and received $0.9 million
from issuance of promissory notes. As of March 31, 2025, we had cash and cash equivalents of less than $0.01 million.

Our junior convertible notes
bore interest at 12% per annum and, as of March 31, 2025, their then outstanding principal and accrued but unpaid interest of $19,611,880
was to automatically convert into New Profusa Common Stock at $7.00 per share upon consummation of the Merger transaction. In addition,
following consummation of the Merger, all former holders of junior notes have a right to receive additional shares upon achievement by
New Profusa of certain share price and sales milestones (the earnout shares).

Further, our junior notes
were automatically convertible into the shares of convertible preferred stock issued upon consummation of a Qualified Financing (an equity
financing with aggregate proceeds to the Company of not less than $20.0 million) at a conversion price equal to the lesser of (i) the
per share price obtained by dividing $150.0 million by the Company’s fully diluted capitalization, or (ii) the per share price paid
by investors in the Qualified Financing, subject to 30% discount. Upon occurrence of a change of control, the junior notes were required
to be repaid in the amount equal to 200% of the junior notes’ outstanding principal balance plus accrued but unpaid interest.

We commenced issuance of our
senior convertible notes in April 2021 and continued issuing them through June 9, 2025. Our senior convertible notes bore interest at
12% per annum and, as of March 31, 2025, their then outstanding principal and accrued but unpaid interest of $26,617,117 was to automatically
convert into New Profusa Common Stock between $0.50 and $4.00 per share upon consummation of the Merger transaction based on the fixed
conversion price defined in the agreement. In addition, all former senior noteholders have a right to receive additional shares upon achievement
by New Profusa of certain