Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 1168

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 1168
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 extension, the Company contributed $30,000 to the Trust Account, for the entire extension
period, on March 21, 2025. Additionally, the stockholders at the meeting approved the amendment of the Company’s charter to remove
the requirement that prevented the Company from redeeming public shares to the extent that it would cause the Company’s net tangible
assets to be less than $5,000,001 (the “NTA Requirement”), and our charter was amended on March 21, 2025 to reflect the extension
of the business combination and the removal of the NTA Requirement.

All of the Public Shares, or shares of our common
stock sold as part of the IPO, contain a redemption feature which allows for the redemption of such Public Shares in connection with our
liquidation, if there is a stockholder vote or tender offer in connection with our initial business combination and in connection with
certain amendments to our amended and restated certificate of incorporation. In accordance with SEC and its guidance on redeemable equity
instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of a company require common
stock subject to redemption to be classified outside of permanent equity. Given that the Public Shares were issued with other freestanding
instruments (i.e., public warrants), the initial carrying value of common stock classified as temporary equity was the allocated proceeds
determined in accordance with ASC 470-20. The common stock is subject to ASC 480-10-S99. If it is probable that the equity instrument
will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period from the date
of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption
date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the
instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the changes immediately.

The
Sponsor, officers and directors have agreed to (i) waive their redemption rights with respect to their Founder Shares and public shares
in connection with the completion of the initial Business Combination, (ii) waive their rights to liquidating distributions from the
Trust Account with respect to their Founder Shares if the Company fails to complete the initial Business Combination within the Combination
Period (although they will be entitled to