Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 48

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 48
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Any failure to meet the initial listing requirements of Nasdaq
could result in an inability to list our common stock and warrants on Nasdaq and the obligation to comply with the “penny stock”
rules and could affect the combined company’s cash position following the closing of an initial business combination.

Prior to March 21, 2025, our charter prevented us from redeeming public
shares to the extent that it would cause our net tangible assets to be less than $5,000,001 (the “NTA Requirement”). The NTA
Requirement has been waived by our stockholders, and our charter was amended on March 21, 2025. The initial purpose of the NTA Requirement
in the charter was to ensure that we would not be subject to the “penny stock” rules of the SEC, and to therefore not be deemed
a “blank check company” as defined under Rule 419 of the Securities Act, because it complied with the NTA Requirement.

However, if our net tangible assets less than $5,000,001 upon closing
of the business combination with Profusa, the combined company’s failure to meet the initial listing requirements of Nasdaq could
result in (i) the inability of the combined company to list the common stock and warrants on Nasdaq and (ii) the obligation to comply
with the “penny stock” trading rules.

If an initial business combination is consummated but the combined
company is not able to list its common stock and warrants on Nasdaq, such securities would likely then trade only in the over-the-counter
market and the market liquidity of such securities could be adversely affected and their market price could decrease. If the common stock
and warrants were to trade on the over-the-counter market, selling such securities could be more difficult because smaller quantities
of such securities would likely be bought and sold, transactions could be delayed, and the combined company could face significant material
adverse consequences, including: (i) a limited availability of market quotations for its securities, (ii) reduced liquidity for its securities,
(iii) a determination that the common stock are a “penny stock” which will require brokers trading in such shares to adhere
to more stringent rules, including being subject to the depository requirements of Rule 419 of the Securities Act, and possibly result
in a reduced level of trading activity in the secondary trading market for the securities, (iv) limited or no news or analyst coverage,
and (v) a decreased ability to issue additional securities