Company: PFSA
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001213900-25-054386
Chunk: 63

Company: Profusa, Inc.
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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W,” respectively. In connection with the Business Combination, we will be required to demonstrate
compliance with Nasdaq’s initial listing requirements, which are more rigorous than the continued listing requirements, in order
to list the combined company’s securities on Nasdaq.

Because our securities trade on the Over the Counter (OTC) market,
which could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions, we
could face significant material adverse consequences, including.

●a
                                            determination that our public shares are a “penny stock,” which will require
                                            brokers trading in the public shares to adhere to more stringent rules and possibly result
                                            in a reduced level of trading activity in the secondary trading market for its securities;

●a
                                            limited availability of market quotations for the Company’s securities;

●reduced
                                            liquidity for the Company’s securities;

●a
                                            decreased ability to issue additional securities or obtain additional financing in the future.

Because we are no longer listed on Nasdaq, our securities could no
longer be considered to be “covered securities” under the National Securities Markets Improvement Act of 1996, and we could
be subject to regulation in each state in which we offer our securities, including in connection with our initial business combination,
which may make more difficult and costly to complete a business combination. Further, this may make us a less attractive business combination
partner for companies with which we would otherwise seek to pursue a business combination. In addition, our securityholders could be prohibited
from trading in our securities absent our registration in the state where such securityholder lives. To date we have not registered our
securities in any State, and do not currently plan to do so. This may make it difficult or impossible for our securityholders to trade
in our securities.

33

Item 2. Unregistered Sales of Equity Securities and Use of
Proceeds.

On December 22, 2021, we consummated our Initial
Public Offering of 18,975,000 Units, which included 2,475,000 Units issued pursuant to the full exercise of the over-allotment option
granted to the underwriters, generating gross proceeds of $189,750,000. I-Bankers Securities, Inc. and Dawson James Securities, Inc.
acted as joint book-running managers of the Initial Public Offering. The securities in the offering were registered under the Securities
Act on registration statements on Form S-1 (Nos. 333-257156