Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 168

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 168
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5,555,556 (the “Third Tranche”) for a purchase price of $5,000,000,
subject to the satisfaction of certain conditions including the full conversion or repayment of the First Tranche, effectiveness of a
registration statement, no Nasdaq listing deficiency, and receipt of stockholder approval; and (iv) a fourth closing for Notes in an aggregate
principal amount of $4,444,444 (the “Fourth Tranche”) for a purchase price of $4,000,000, subject to the satisfaction of certain
conditions including the full repayment of the First and Second Tranches, at least fifty percent (50%) repayment or conversion of the
Third Tranche, effectiveness of a registration statement, and no Nasdaq listing deficiency. The SPA Amendment supersedes and replaces
all prior provisions relating to “Additional Closings” and “Additional Notes,” and all references to such terms
in the PIPE Subscription Agreement and related documents are to be construed in accordance with the new tranche structure.

Concurrently, on August 25, 2025, the Company entered into Amendment
No. 1 (the “Note Amendment”) to the Initial Note. The Note Amendment modifies the terms of the Initial Note, specifically
amending Section 4(b) to revise the conversion price provisions on any conversion date to be the lower of (i) the Conversion Price on
such date and (ii) ninety-five percent (95%) of the lowest daily VWAP for the Company’s Common Stock during the ten consecutive
trading days immediately preceding the applicable conversion date (the “Alternate Conversion Price”), provided that in no
event shall the conversion price be less than the floor price of $0.10 which was calculated based on twenty percent (20%) of the closing
sale price of the common stock on the principal trading market on the trading day immediately preceding the Note Amendment’s
effective date, which was August 22, 2025.

The Company has elected the fair value option under ASC
825-10, Financial Instruments - Fair Value Option, for its loans payable - related party under ASC 825, Financial Instruments.
The election simplifies accounting by measuring the entire instrument at fair value, with changes in fair value recognized in earnings.
As such, the Company does not separately recognize any interest, unamortized discount, premium, issuance costs, or other basis adjustments;
these amounts are included in the carrying amount of the liability that is adjusted to fair value each period