Company: PFSA
Filing Date: 2025-07-18
Form Type: 8-K
Source: 0001213900-25-065686
Chunk: 12

Company: Profusa, Inc.
Filing Date: 2025-07-18
Form: 8-K
Item: Item 2.03
Chunk 12
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 share price and sales milestones (the earnout shares).

On August 8, 2023, a new wholly
owned subsidiary, APAC, was created and incorporated by the Company under the laws of Singapore. Upon creation, the new entity was capitalized
by the Company by payment of $1,000 for 1,000 Ordinary Shares. As a result, at the time of incorporation, the entity became a wholly owned
subsidiary of the Company. The entity was created with the expectation of jointly conducting the business of developing, manufacturing
and commercializing the Lumee Glucose and the Lumee Oxygen products, currently under development by the Company, together with a third
party. No business or activities have been conducted by the entity from the date of formation through and until the closing date of the
proposed License Agreement and Shareholders Agreement between the Company and Best Life Technology Ltd, an entity wholly owned and controlled
by the Tasly Holding Group (“ Tasly”). In connection with and on or around the same date as the closing of the Business Combination,
the Company expects to sign and execute a License Agreement and Shareholders Agreement (the “ APAC Joint Venture”) setting
forth the relative and other terms under which the development and business activities of the entity will be conducted.

The Company is in the process
of negotiating the formation of the joint venture (“ APAC Joint Venture”), which includes the related party from which the
amounts under the Tasly Convertible Debt was borrowed. The proceeds of the loan are intended to continue the development and commercialization
of the Company’s technology in certain countries of the Asia Pacific region.

In the event we fail to complete
the Merger, and either fail to complete the formation of the APAC Joint Venture or fail to repay the amounts under the Tasly Convertible
Debt when they become due, the lender will have an option to convert the entire outstanding balance and accrued but unpaid interest (in
part of in full) into either (i) senior unsecured promissory notes on substantially the same terms as the outstanding Senior Notes as
of December 31, 2024, or (ii) our common stock at a conversion price of $2.33 per share.

Notwithstanding the conversion
provisions above, any repayment obligations (in part or in full) of the outstanding principal balance and accrued but unpaid interest
under the Tasly Convertible Debt may, at the lender’s option, be made through conversion of part or all amounts payable into (i)