Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 42

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 42
---
 sheet and further adjusted to fair value on September 30, 2025.

At the Closing and pursuant to the PIPE Subscription Agreement, the
Company issued the Initial Note in the principal amount of $10,000,000 for a purchase price of $9,000,000, reflecting a 10% OID. The Initial
Note matures on January 11, 2027, which is 18-months from Closing on July 11, 2025 (the “Maturity Date”) and is
convertible at any time at the PIPE Investor’s option at a conversion price equal to the lower of $10 or 95% of the lowest daily
VWAP of our Common Stock in the 10 trading days prior to the original issue date of the Initial Note and shall be adjusted, without limitation,
based on down-round and most-favored nation (MFN) price and terms protections (the “Conversion Price”).

The Initial Note includes a “Minimum Interest Amount” equal
to 10% of the principal amount, which represents a full year of interest payments under the Initial Note; provided, that such Minimum
Interest Amount shall be reduced by the amount of interest accrued on the principal amount of the Initial Note. Interest shall accrue
on the aggregate unconverted and then outstanding principal amount of the Initial Note at a rate of 10% per annum, provided that the Minimum
Interest Amount shall be fully earned and accrued on the original issue date of the Initial Note. Upon an event of default, the interest
rate shall be adjusted and increase to 24% per annum. Payments made in cash under the Initial Note shall be subject to a 5% fee, which
shall be in addition to any amounts owed thereunder. The Initial Note provides for certain events of default that are typical for a transaction
of this type, including, among other things, any breach of the representations or warranties made by the Company and our subsidiaries.
The Initial Note also provides for a 10% late fee in case of late payments and mandatory prepayments upon Subsequent Offerings (as defined
in the Initial Note) and, in the absence of an event of default, may be prepaid upon 10 business days prior notice, subject to certain
conversion rights of the PIPE Investors.

The Initial Note may not be converted by the PIPE Investors into shares
of our Common Stock if such conversion would result in the investors or their affiliates owning in excess of 4.99% of the number of shares
of our Common Stock