Company: PFSA
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001213900-25-054386
Chunk: 12

Company: Profusa, Inc.
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 the Company is unable to complete its initial Business Combination within
the Extension, and (iii) the redemption of Public Shares in connection with a vote seeking to amend the provisions of our Charter.

Prior to such announcement, and subsequent to
the record date of February 21, 2025, for the Special Meeting, the Company withdrew approximately $23,200 of interest from the trust
account for tax expenses.

7

All of the Public Shares, or shares of our common
stock sold as part of the IPO, contain a redemption feature which allows for the redemption of such Public Shares in connection with
our liquidation, if there is a stockholder vote or tender offer in connection with our initial business combination and in connection
with certain amendments to our amended and restated certificate of incorporation. In accordance with SEC and its guidance on redeemable
equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of a company require
common stock subject to redemption to be classified outside of permanent equity. Given that the Public Shares were issued with other
freestanding instruments (i.e., public warrants), the initial carrying value of common stock classified as temporary equity was the allocated
proceeds determined in accordance with ASC 470-20. The common stock is subject to ASC 480-10-S99. If it is probable that the equity instrument
will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period from the date
of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption
date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying amount of
the instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the changes immediately.

The Sponsor, officers and directors have agreed
to (i) waive their redemption rights with respect to their Founder Shares and public shares in connection with the completion of the
initial Business Combination, (ii) waive their rights to liquidating distributions from the Trust Account with respect to their Founder
Shares if the Company fails to complete the initial Business Combination within the Combination Period (although they will be entitled
to liquidating distributions from the Trust Account with respect to any public shares they hold if the Company fails to complete the
Business Combination within such time period); and (iii) vote their Founder Shares