Company: PFSA
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001213900-25-054386
Chunk: 163

Company: Profusa, Inc.
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 2
Chunk 163
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 average market price of at least $14.50 per
share for a similar number of days (“Milestone Event II”). Pursuant to the Merger Agreement, the remaining one-quarter of
the Earnout Shares were to be issued if the combined company achieves at least $5,100,000 in revenue in fiscal year 2023, and one-quarter
of the Earnout Shares will be issued if the combined company achieves at least $73,100,000 in revenue in fiscal year 2024, (or up to
one-half of the Earnout Shares if both milestones are achieved).

25

On September 12, 2023, the parties to the Merger
Agreement entered into Amendment No. 1 to the Merger Agreement ( “Amendment No. 1”) pursuant to which the parties agreed
to revise the revenue earnout milestones to reflect updated projections provided by Profusa. Specifically, Amendment No. 1 revised the
definition of “Milestone Event III” and “Milestone Event IV” such that one-quarter of the Earnout Shares would
be issued to Profusa stockholders if the combined company achieves Earnout Revenue of $11,864,000 for the fiscal year ended December
31, 2024, and one-quarter of the Earnout Shares would be issued to Profusa stockholders if the combined company achieves Earnout Revenue
of $99,702,000 for the fiscal year ended December 31, 2025. Amendment No. 1 also clarified the exercise price of certain the Company
Warrants.

Additionally, if Milestone Event I or Milestone
Event II are achieved by the second anniversary of the Closing, NorthView’s sponsor, NorthView Sponsor I, LLC and Profusa stockholders,
will be issued additional shares up to the amount of any shares forgone as an inducement to obtaining Additional Financings (as defined
in the Merger Agreement).

On February 11, 2025, 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
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