Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 15

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 determined in accordance with ASC 470-20. The
common stock is subject to ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option
to either (i) accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable
that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or (ii) recognize changes in
the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the
end of each reporting period. The Company has elected to recognize the changes immediately.

The Sponsor, officers and directors have agreed
to (i) waive their redemption rights with respect to their Founder Shares and public shares in connection with the completion of the
initial Business Combination, (ii) waive their rights to liquidating distributions from the Trust Account with respect to their Founder
Shares if the Company fails to complete the initial Business Combination within the Combination Period (although they will be entitled
to liquidating distributions from the Trust Account with respect to any public shares they hold if the Company fails to complete the
Business Combination within such time period); and (iii) vote their Founder Shares and any public shares purchased during or after the
IPO in favor of the initial Business Combination.

The Company’s Sponsor has agreed that it
will be liable to the Company if and to the extent any claims by a vendor for services rendered or products sold to the Company, or a
prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in
the Trust Account to below (i) $10.10 per public share or (ii) such lesser amount per public share held in the Trust Account as of the
date of the liquidation of the Trust Account due to reductions in value of the trust assets, in each case net of the amount of interest
which may be released to the Company to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights
to seek access to the Trust Account and except as to any claims under indemnity of the underwriters of the IPO against certain liabilities,
including liabilities under the Securities Act. Moreover, in the event that an executed waiver is deemed to be unenforceable against
a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims.

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