Company: PFSA
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001213900-25-054386
Chunk: 113

Company: Profusa, Inc.
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 Agreement) to adjust for financing proceeds received by Profusa prior to
the Business Combination, along with debt conversions and incentive shares to be issued. Additionally, the Amendment (i) revised the
definition of “Milestone Event III” such that the parties extended the period for Profusa to consummate the APAC Joint Venture
(as defined in the Merger Agreement) and receive the related funding from December 31, 2024 until December 31, 2025, and (ii) revised
the definition of “Milestone Event IV” to change the earnout revenue target from $99,702,000 for the fiscal year ended December
31, 2025 to an earnout revenue target of $11,864,000 for the fiscal year ended December 31, 2026.

Advisory Agreement

On December 19, 2024, the Company engaged A.G.P
to serve as the placement agent in connection with a proposed business combination transaction. The Company shall pay to A.G.P. a cash
fee (the “Cash Fee”) equal to 9.0% in a convertible note offering, note, or other similar equity-linked offerings, and shall
be calculated from the face value of notes issued, which is payable at the close of a Business Combination. If the Business Combination
does not successfully close, A.G.P. will not be entitled to any cash fee.

Securities Purchase Agreement

On February 11, 2025, in a private transaction,
the Company entered into a securities purchase agreement (the “SPA”) with an institutional investor (the “Investor”).
Pursuant to the SPA, the Investor is expected, subject to the conditions relating to such purchase set forth in the SPA, to purchase from
the Company’s senior secured convertible promissory notes in an aggregate principal amount of up to $22,222,222 (the “Convertible
Notes”) for a purchase price of up to $20,000,000, after a 10% original issue discount (“OID”). The SPA contemplates
that the Convertible Notes will be purchased in multiple tranches:

(i)The initial closing amount of $9,000,000 will be purchased, subject to the conditions set forth in the SPA, at the consummation (the “Initial Closing Date”)
of the Business Combination. The Convertible Notes to be issued by the Company on the Initial Closing Date will be in an aggregate principal
amount of $10,000,000.

(ii)