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

Company: Profusa, Inc.
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 25
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 shares for redemption (a “Redemption Event”).

On August 16, 2022, the Inflation Reduction Act of 2022
(“IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax
on certain repurchases (including redemptions) of stock by publicly traded domestic (i.e., U.S.) corporations and certain domestic subsidiaries
of publicly traded foreign corporations.

The excise tax is imposed on the repurchasing corporation itself,
not its stockholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the
shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are
permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same
taxable year. In addition, certain exceptions apply to the excise tax. The Treasury has been given authority to provide regulations and
other guidance to carry out, and prevent the abuse or avoidance of the excise tax. In this regard, on December 27, 2022, the Treasury
and the Internal Revenue Service issued a notice announcing their intent to issue proposed regulations addressing the application of
the excise tax, and describing certain rules on which taxpayers may rely prior to the issuance of such proposed regulations (the “Notice”).

Any redemption or other repurchase that occurs after December 31,
2022 in connection with a Redemption Event may be subject to the excise tax. Pursuant to the rules set forth in the Notice, however,
redemptions in connection with a liquidation of the Company are generally not subject to the excise tax. Whether and to what extent the
Company would be subject to the excise tax in connection with a Redemption Event would depend on a number of factors, including (i) the
fair market value of the redemptions and repurchases in connection with the Redemption Event, (ii) the structure of the business
combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection with the business combination
(or otherwise issued not in connection with the Redemption Event but issued within the same taxable year of the business combination)
and (iv) the content of regulations and other future guidance from the Treasury. In addition, because the excise tax would be payable