Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 207

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 207
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4 (our 36-month anniversary), we
are no longer in compliance with Nasdaq listing rules. On December 20, 2024, we received a delisting determination letter from Nasdaq.
As a result, our securities were immediately suspended from trading and delisted from Nasdaq on December 27, 2024. Our securities are
currently traded on OTC Pink.

In addition, in connection with any initial business combination, we
would be required to demonstrate compliance with the applicable exchange’s initial listing requirements, which are more rigorous
than the continued listing requirements, in order to continue to maintain the listing of our securities. We cannot assure you that we
will be able to meet those initial listing requirements at that time, particularly if we are no longer listed on a stock exchange.

Following the suspension and delisting of our securities from Nasdaq,
we and our securities are currently facing significant material adverse consequences, including:

●being less attractive to potential business combination targets
and therefore making it more difficult for us to complete an initial business combination;

●a decreased ability to issue additional securities or obtain
additional financing in the future;

●a limited availability of market quotations for our securities,
even if our securities were to be quoted on an over-the-counter market;

●reduced liquidity and demand for our securities;

●determination that our shares of common stock are a “penny
stock” which will require brokers trading in our shares of common stock to adhere to more stringent rules and could result in a
further reduced level of trading activity in the secondary trading market for our securities;

●greater difficulty and cost at being able to satisfy any applicable
stock exchange’s initial listing requirements for the post-business combination company;

●our securities no longer qualifying as “covered securities”
under the National Securities Markets Improvement Act of 1996 (“NSMIA”), meaning that sales of our securities would
be subject to regulation in each state in which that sale occurs, including in connection with our initial business combination, which
may negatively impact our ability to consummate our initial business combination or to otherwise issue additional securities or obtain
additional financing in the future and could negatively impact the ability of our security holders to trade, and result in further reduced
liquidity and demand for, our securities; and

●a limited amount of news and analyst coverage.

23

Additionally, under the Merger
Agreement, one of the conditions to Closing is the listing by Nasdaq of the New Profusa common stock and securities and satisfaction of
initial