Company: PFSA
Filing Date: 2025-10-29
Form Type: 424B3
Source: 0001213900-25-103174
Chunk: 288

Company: Profusa, Inc.
Filing Date: 2025-10-29
Form: 424B3
Chunk 288
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 into shares of the Company’s common stock
at a conversion price equal to 40% of the per share price of the common stock as determined pursuant to the Definitive Qualified
Agreement; provided, that, if such conversion price per share of the common stock is greater than $4.00, then such conversion price
shall be deemed to be $4.00 per share.

This 2022 amendment was
accounted for as debt extinguishment resulting in $8.8 million debt extinguishment loss recognized in loss on debt extinguishment,
net in the statements of operations.

The optional conversion upon
a Qualified Financing and Qualified conversion option represents embedded features that are required to be bifurcated and accounted for
separately as a combined single derivative instrument initially and subsequently measured at fair value with the change in the gain (loss)
on change in the fair value of derivative liabilities in the statements of operations.

October 2022 Senior Notes — In September and October 2022, the Company issued an additional Senior Notes to existing investors with
the principal amount of $1.3 million on substantially the same terms as the Senior Notes issued in 2022 (as amended in September 2022).

Senior Notes November 2022 Amendment

On November 3, 2022,
all Senior Notes were amended as follows: 1) all unpaid interest and principal shall be due and payable on the date which is five business
days after the termination of the Merger prior to the occurrence of the Merger closing, 2) automatic conversion to SPAC shares of at then
outstanding all notes and accrued interest upon the Merger at $4.00 per share was introduced, 3) upon consummation of the Merger, all
noteholders will have a right to receive additional shares upon achievement by the combined company of certain share price and sales milestones
(the earnout shares) (the “November 2022 Senior Notes Amendment”).

The November 2022 Senior
Notes Amendment represented a TDR. Since the total future undiscounted cash flows under Senior Notes were less than their outstanding
principal amount and unpaid accrued interest plus fair value of the bifurcated derivative immediately before November 2022 Senior
Notes Amendment, the Company recognized TDR gain of $3.98 million for the Senior Notes issued to unrelated parties in its Statement
of Operations for the year ended December 31, 2022 and it recognized $3.97 million in Additional Paid-in Capital for the year