Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 353

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 353
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 target business’ attributes, introduce NorthView
to potential investors that are interested providing funding in connection with a Business Combination, assist NorthView in obtaining
stockholder approval for such business combination and assist NorthView with its press releases and public filings in connection with
such business combination (the “Business Combination Marketing Agreement”). In connection with such engagement, NorthView
agreed to pay I-Bankers and Dawson James a cash fee (the “Business Combination Fee”) for such services upon the consummation
of a business combination in an amount equal to 3.68% of the gross proceeds of its initial public offering (exclusive of any applicable
finders’ fees which might become payable). In connection with the Business Combination, NorthView, I-Bankers and Dawson James amended
the Business Combination Marketing Agreement to revise a portion of the Business Combination Fee to be partially payable in NorthView
securities and partially payable in cash upon the closing of the Merger with Profusa, with such securities to be subject to lock-up provisions. 
Subsequently, on January 19, 2025, the agreement was modified by the parties such that the Company will be required to pay $2,000,000,
payable in cash, if a business combination is consummated.

Critical Accounting Estimates

Certain of our accounting policies require that
management apply significant judgments in defining the appropriate assumptions integral to financial estimates. On an ongoing basis, management
reviews the accounting policies, assumptions, estimates and judgments to ensure that our consolidated financial statements are presented
fairly and in accordance with U.S. GAAP. Judgments are based on historical experience, terms of existing contracts, industry trends and
information available from outside sources, as appropriate. Some of the more significant estimates are in connection with determining
the fair value of the warrant liabilities and convertible promissory note. However, by their nature, judgments are subject to an inherent
degree of uncertainty, and, therefore, actual results could differ from our estimates.

Convertible
Promissory Note

The
fair value of the Company’s convertible promissory note is valued using a compound option formula on the convertible feature and
a present value of the host contract. The valuation technique requires inputs that are both unobservable and significant to the overall
fair value measurement. These inputs reflect management’s own assumption about the assumptions a market participant would use in
pricing the working capital loan.

Warrant
Liabilities

We
account for the warrants issued in connection with the IPO in accordance with the