Company: PFSA
Filing Date: 2025-07-18
Form Type: 8-K
Source: 0001213900-25-065686
Chunk: 6

Company: Profusa, Inc.
Filing Date: 2025-07-18
Form: 8-K
Item: Item 2.03
Chunk 6
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. In accordance with the terms
and subject to the conditions of the Merger Agreement, at Closing, each share of issued and outstanding Profusa Common Stock was converted
into a number of shares of New Profusa Common Stock, based on the Exchange Ratio that reflects an equity valuation of Profusa of $155,000,000
(as adjusted for the Incentive Equity Value, the Private Placement Value and the Aggregate Company Incentive Amount), divided by an assumed
value of New Profusa Common Stock of $10.00 per share. As of immediately following the Closing, there were 32,788,877 shares of Profusa
Common Stock outstanding, no shares of Profusa preferred stock outstanding, and 17,404,250 Profusa warrants outstanding.

The Business Combination
was accounted for as a reverse capitalization in accordance with GAAP. Profusa was deemed the accounting predecessor of the combined business,
and New Profusa is the successor SEC registrant, meaning that Profusa’s financial statements for previous periods will be disclosed
in the registrant’s future periodic reports filed with the SEC. The Business Combination is expected to have a significant impact
on our future capital structure and operating results, de-risking our product development, manufacturing and commercialization.

In June 2023, the
Company entered into a short-term loan agreement with a related party under which it may borrow up to $1.6 million, of which $1.0 million
was borrowed on June 26, 2023, $0.3 million was borrowed on July 20, 2023, $0.3 million was borrowed on August 15, 2023 (the “ Tasly
Convertible Debt”). An additional amount of less than $0.02 million was drawn on February 6, 2024. The loans bear interest at a
rate of 12% per annum with a default rate of 24% per annum and originally matured on December 31, 2023. The original maturity date was
extended to March 31, 2024, subject to the parties’ decision to extend thereafter. This loan was to be repaid (and was repaid) in
parallel with the closing of the Business Combination, and accordingly, the Company classified the entire amount outstanding under the
Tasly Convertible Debt as current on the Consolidated Balance Sheet.

As a result of
the Business Combination, we will be required to hire additional personnel and implement procedures and processes to address public company
reg