Company: PFSA
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001213900-25-054386
Chunk: 47

Company: Profusa, Inc.
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 and the required approval by the stockholders of NorthView and Profusa. There is no assurance that the Business Combination
will be completed.

The aggregate consideration to be received by
the Profusa stockholders is based on a pre-transaction equity value of $155,000,000. The exchange ratio will be equal to (a) $155,000,000,
divided by an assumed value of NorthView Common Stock of $10.00 per share.

Pursuant to the Merger Agreement, subject to
certain future revenue and stock-price based milestones, Profusa stockholders will have the right to receive an aggregate of up to an
additional 3,875,000 shares of NorthView Common Stock (the “Earnout Shares”). One-quarter of the Earnout Shares will be issued
if, between the 18-month anniversary and the two year anniversary of the Closing, the combined company’s common stock achieves
a daily volume weighted average market price of at least $12.50 per share for any 20 trading days within a 30 consecutive trading day
period (“Milestone Event I”). One-quarter of the Earnout Shares will be issued if, between the first and second anniversary
of the Closing, the combined company’s common stock achieves a daily volume weighted average market price of at least $14.50 per
share for a similar number of days (“Milestone Event II”). Pursuant to the Merger Agreement, the remaining one-quarter of
the Earnout Shares were to be issued if the combined company achieves at least $5,100,000 in revenue in fiscal year 2023, and one-quarter
of the Earnout Shares will be issued if the combined company achieves at least $73,100,000 in revenue in fiscal year 2024, (or up to
one-half of the Earnout Shares if both milestones are achieved).

25

On September 12, 2023, the parties to the Merger
Agreement entered into Amendment No. 1 to the Merger Agreement ( “Amendment No. 1”) pursuant to which the parties agreed
to revise the revenue earnout milestones to reflect updated projections provided by Profusa. Specifically, Amendment No. 1 revised the
definition of “Milestone Event III” and “Milestone Event IV” such that one-quarter of the Earnout Shares would
be issued to Profusa stockholders if the combined company achieves Earnout Revenue of $11,864,000 for the fiscal year ended December
31,