Company: PFSA
Filing Date: 2025-04-03
Form Type: S-4/A
Source: 0001213900-25-028544
Chunk: 306

Company: Profusa, Inc.
Filing Date: 2025-04-03
Form: S-4/A
Chunk 306
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 recent progress of Profusa’s Oxygen and Glucose monitoring systems with respect to regulatory approval in Europe and the United States. NorthView’s board determined that the changes reflected in the Updated Projections did not impact such factors considered by NorthView’s board. Further, consistent with NorthView’s analysis of the Initial Projections, NorthView’s board did not place significant reliance on the Updated Projections, but instead considered a variety of factors in determining whether to approve the Business Combination, as described below in the section titled “ — The NorthView Board’s Reasons for the Approval of the Business Combination.” Enterprise Value Marshall & Stevens’ valuations were conducted on an “enterprise value” basis, which is defined as the market value of invested capital (i.e., equity, debt and preferred equity, if any), less cash. Discounted Cash Flow Analysis The major inputs and assumptions used in Marshall & Stevens’ discounted cash flow method were as follows: •As discussed above, Profusa provided a forecast through 2028 as the basis for the Discounted Cash Flow analysis. The revenue growth from 2027 to 2028 was approximately 72.7%. Given this significant growth, Marshall & Stevens did not determine a terminal value at that point, but rather extended those projections to 2031 by reflecting an expected ramp -downin revenue growth to a growth rate of approximately 9.4% in 2031 and an expected long term growth rate of 2.5% in the terminal period. Profit margins were maintained throughout the extension period. •A weighted average cost of capital (WACC) was used as the discount rate in Marshall & Stevens’ analysis and applied to debt free, after -taxcash flows. The WACC was calculated to be approximately 35.0% and was determined based upon a cost of equity of approximately 38.5% and an after -taxcost of debt of approximately 4.4%. •A cost of equity was determined using a 20 -yearU.S. Treasury Rate (4.08%), Equity Risk Premium of 6.22% (Kroll Cost of Capital Navigator 2022 (“KCOC”)), Re -leveredEquity beta of 1.14 based upon the Guideline Companies discussed below, a size premium of 4.80% based upon KCOC data for the 10 thdecile, and a company specific risk premium of 22.50% based upon anticipated forecast risk. •After -taxcost of debt was determined using BBB rated bond yields and a