Company: PFSA
Filing Date: 2025-04-28
Form Type: S-4/A
Source: 0001213900-25-035718
Chunk: 308

Company: Profusa, Inc.
Filing Date: 2025-04-28
Form: S-4/A
Chunk 308
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35.0% and was determined based upon a cost of equity of approximately 38.5% and an after -taxcost of debt of approximately 4.4%. •A cost of equity was determined using a 20 -yearU.S. Treasury Rate (4.08%), Equity Risk Premium of 6.22% (Kroll Cost of Capital Navigator 2022 (“KCOC”)), Re -leveredEquity beta of 1.14 based upon the Guideline Companies discussed below, a size premium of 4.80% based upon KCOC data for the 10 thdecile, and a company specific risk premium of 22.50% based upon anticipated forecast risk. •After -taxcost of debt was determined using BBB rated bond yields and a tax rate of 28.00%. •The debt -to-capitalratio was estimated at 10.0% and the equity -to-capitalratio was estimated at 90.0% using input from the Guideline Companies discussed below.

152 •Estimated income tax expense of 28% of pre -taxincome; •Capital expenditures for projected year 2022, 2023, and 2025 based upon Profusa management estimates, remaining capital expenditures were projected at 1.00% of net revenue; •Working capital requirements were estimated based on Profusa’s normal debt -free, cash -freeworking capital to sales ratio of 29.5%, and the expectation that this level of debt -free, cash -freeworking capital would be sufficient going forward; •A terminal year multiple of approximately 3.1 (rounded) was calculated using the Gordon Growth Model and based upon a WACC of 35.0% and terminal growth rate of 2.5%. Marshall & Stevens performed sensitivity analyses, including varying the terminal growth rate, the WACC rate, and the revenue growth rate. The indication of enterprise value for Profusa using the discounted cash flow method was estimated to be between approximately $255,800,000 and $328,800,000. Guideline Public Company Analysis Marshall & Stevens reviewed and analyzed selected historical and projected information about Profusa provided by Profusa’s management and compared this information to certain financial information of nine (9) publicly traded companies that Marshall & Stevens deemed to be reasonably comparable to Profusa (each a “Guideline Company” and, collectively, the “Guideline Companies”). The initial Guideline Companies were provided by Profusa, and Marshall & Stevens reviewed these Guideline Companies to determine