Company: PFSA
Filing Date: 2025-08-11
Form Type: S-1
Source: 0001213900-25-073872
Chunk: 258

Company: Profusa, Inc.
Filing Date: 2025-08-11
Form: S-1
Chunk 258
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) all unpaid interest and principal shall be due and payable on the date which is fivebusiness days after the termination of the Merger prior to the occurrence of the Merger closing, 2) the maximum aggregate initial principal amount was increased from $ 11.0million to $ 11.3million, 3) automatic conversion to SPAC shares of at then outstanding all notes and accrued interest upon the Merger at $ 7.00per share was introduced, 4) 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 Convertible Notes Amendment”). The November 2022 Convertible Notes Amendment represented a troubled debt restructuring (the “TDR”). The TDR did not result in a gain recognition. As a result, a new effective interest rate was established based on the $ 14.4million carrying value of the debt immediately prior to the November 2022 Convertible Notes Amendment and the future cash flows after such amendment, net of the issuance costs paid to or received from the Convertible Notes holders, which were capitalized and amortized based on the new effective interest rate. Fees paid to third parties in connection with the November 2022 Convertible Notes Amendment were expensed. The annual effective interest rate of Convertible Notes was estimated from 12.54% to 53.28% and 12.95% to 53.28% per year for the years ended December 31, 2024 and 2023, respectively. The interest expense for the years ended December 31, 2024 and 2023 was $ 2.1million and $ 2.3million, which includes the amortization of debt discount and issuance costs of $ 0.1million and $ 0.5million, respectively. As of December 31, 2024 and 2023, the outstanding balance of convertible notes includes related party convertible notes of $ 13.3million and $ 11.8million, respectively. Tasly Convertible Debt In June 2023, the Company entered into a short -termloan agreement with a related party under which it may borrow up to $ 1.6million, of which $ 1.0million was borrowed on June 26, 2023, $ 0.3million was borrowed on July 20, 2023, $