Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 61

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 61
---
 a target business that is affiliated with our directors or executive
officers, although we do not currently intend to do so. Nor do we have a policy that expressly prohibits any such persons from engaging
for their own account in business activities of the types conducted by us. Accordingly, such persons or entities may have a conflict between
their interests and ours.

Since our initial stockholders, including our
sponsor, executive officers and directors, will lose their entire investment in us if our initial business combination is not completed,
a conflict of interest may arise in determining whether a particular business combination target is appropriate for our initial business
combination.

Our sponsor holds 4,743,750
founder shares. Certain members of our management team also have a financial interest in our sponsor. The founder shares held by our sponsor
will be worthless if we do not complete an initial business combination. In addition, our sponsor purchased 5,162,500 private placement
warrants, for an aggregate purchase price of $5,162,500. All of the foregoing private placement warrants will also be worthless if we
do not consummate our initial business combination. The personal and financial interests of our sponsor, executive officers and directors
may influence their motivation in identifying and selecting a target business combination, completing an initial business combination
and influencing the operation of the business following the initial business combination. This risk may become more acute as the end of
the combination period nears, which is the deadline for our completion of an initial business combination.

29

Since our sponsor, executive officers and directors
will not be eligible to be reimbursed for their out-of-pocket expenses if our business combination is not completed, a conflict of interest
may arise in determining whether a particular business combination target is appropriate for our initial business combination.

At the closing of our initial
business combination, our sponsor, executive officers and directors, or any of their respective affiliates, will be reimbursed for any
out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and performing
due diligence on suitable business combinations. There is no cap or ceiling on the reimbursement of out-of-pocket expenses incurred in
connection with activities on our behalf. These financial interests of our sponsor, executive officers and directors, may influence their
motivation in identifying and selecting a target business combination and completing an initial business combination.

Since our sponsor paid only approximately $0.005
per share for the founder shares, our officers and directors could potentially make a substantial profit even if we acquire a