Company: PFSA
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001213900-25-021270
Chunk: 35

Company: Profusa, Inc.
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 35
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 gain or loss
if the U.S. Holder’s holding period for the common stock so disposed of exceeds one year. Generally, a U.S. Holder will
recognize gain or loss in an amount equal to the difference between (i) the amount of cash received in such redemption and (ii) the
U.S. Holder’s adjusted tax basis in its common stock so redeemed. A U.S. Holder’s adjusted tax basis in its common
stock generally will equal the U.S. Holder’s acquisition cost (that is, the portion of the purchase price of a unit allocated
to a share of common stock or the purchase price of a share of common stock purchased in the open market) less any prior distributions
treated as a return of capital. Long-term capital gain realized by a non-corporate U.S. Holder generally will be taxable at a reduced
rate. The deduction of capital losses is subject to limitations.

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Taxation of Distributions

If the redemption does not qualify as a sale of common stock, the
U.S. Holder will be treated as receiving a distribution. In general, any distributions to U.S. Holders generally will constitute
dividends for United States federal income tax purposes to the extent paid from our current or accumulated earnings and profits,
as determined under United States federal income tax principles. Distributions in excess of current and accumulated earnings and
profits will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. Holder’s
adjusted tax basis in our common stock. Any remaining excess will be treated as gain realized on the sale or other disposition of the
common stock and will be treated as described under “U.S. Federal Income Tax Considerations to U.S. Holders — Gain
or Loss on a Redemption of Common Stock Treated as a Sale”. Dividends we pay to a U.S. Holder that is a taxable corporation
generally will qualify for the dividends received deduction if the requisite holding period is satisfied. With certain exceptions, and
provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. Holder generally will constitute
“qualified dividends” that will be taxable at a reduced rate.

U.S. Federal Income Tax Considerations to Non-U.S. Holders

This section is addressed to Non-U.S. Holders of our common stock
that elect to have their common stock redeemed for cash. For purposes of this discussion, a “