Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 79

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 79
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 will be to identify and complete a business combination and thereafter
to operate the post-transaction business or assets for the long term. We do not plan to buy businesses or assets with a view to resale
or profit from their resale. We do not plan to buy unrelated businesses or assets or to be a passive investor.

We do not believe that our
anticipated principal activities will subject us to the Investment Company Act. The proceeds held in the trust account were previously
invested by the trustee only in United States government treasury bills with a maturity of 185 days or less or in money market funds investing
solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. However, to mitigate
the risk of us being deemed to be an unregistered investment company (including under the subjective test of Section 3(a)(1)(A) of the
Investment Company Act) under the proposed rules issued by the SEC and thus potentially subject to regulation under the Investment Company
Act, in January 2024, we instructed Continental, the trustee with respect to the Trust Account, to liquidate the U.S. government treasury
obligations or money market funds held in the Trust Account and thereafter to hold all funds in the Trust Account in an interest bearing
demand deposit account at a bank until the earlier of the consummation of a Business Combination or the liquidation of the Company. Following
such liquidation, we may receive less interest on the funds held in the Trust Account than we would have if we had not liquidated such
assets. As a result, our public stockholders would receive a lower amount upon any redemption or liquidation of the Company as compared
to what they would have received had the investments not been so liquidated. Because the investment of the proceeds will be restricted
to these instruments, we believe we will meet the requirements for the exemption provided in Rule 3a-1 promulgated under the Investment
Company Act. If we were deemed to be subject to the Investment Company Act, compliance with these additional regulatory burdens would
require additional expenses for which we have not allotted funds and may hinder our ability to consummate a business combination. If we
are unable to complete our initial business combination, our public stockholders may receive only approximately $10.10 per share on the
liquidation of our trust account and our rights and warrants will expire worthless.

38

Changes in laws or regulations, or a failure
to comply with any laws and regulations