Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 402

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 402
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 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 -Bankersand 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 -Bankersand Dawson James amended the Business Combination Marketing Agreement to revise a portion of the Business Combination Fee to be partially payable 220 in NorthView securities and partially payable in cash upon the closing of the Merger with Profusa, with such securities to be subject to lock -upprovisions. Subsequently, on January19, 2025, NorthView, I -Bankersand Dawson James modified the Business Combination Marketing Agreement such that the Business Combination Fee will be $2,000,000, payable in cash. Critical Accounting Estimates The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC Topic 480, Distinguishing Liabilities from Equity, and ASC Topic 815, Derivatives and Hedging(“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re -assessedat the end of each reporting period. 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 guidance contained in ASC 815 -40. Such guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly, we 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