Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 549

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 549
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 warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly, the Company has classified each warrant as a liability at its fair value. This liability is subject to re -measurementat each balance sheet date. With each such re -measurement, the warrant liabilities will be adjusted to fair value, with the change in fair value recognized in the Company’s consolidated statements of operations (See Note 8).

In determining the fair value of the Private Placement Warrants and the Representative’s Warrants assumptions related to expected share-price volatility, expected life and risk-free interest rate are utilized. The Company estimates the volatility of its common stock based on historical volatility that matches the expected remaining life of the warrants.

Net Income Per Common Stock

The Company has two categories of shares, which are referred to as common stock subject to possible redemption and common stock. Earnings and losses are shared pro rata between the two categories of shares. The 17,404,250potential shares of common stock for outstanding warrants to purchase the Company’s shares were excluded from diluted earnings per share for the years ended December 31, 2023 and 2022 because the warrants are contingently exercisable, and the contingencies have not yet been met. As a result, diluted net income per share of common stock is the same as basic net income per share of common stock for the periods presented. The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income per share for each category of common stock:

|                                         |     | For the Year Ended 
 December 31, 2023  |           |     |        |           |     | For the Year Ended 
 December 31, 2022  |            |     |        |           |
|:----------------------------------------|:----|:-------------------|----------:|:----|:-------|----------:|:----|:-------------------|-----------:|:----|:-------|----------:|
|                                         |     | Common             
 stock subject      
 to possible        
 redemption         |           |     | Common 
 stock  |           |     | Common             
 stock subject      
 to possible        
 redemption         |            |     | Common 
 stock  |           |
| Basic and diluted net income per share: |     |                    |           |     |        |           |     |                    |            |     |        |           |
| Numerator:                              |     |                    |           |     |        |           |     |                    |