Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 238

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 238
---
 protect against, or to investigate and remediate any vulnerability
to, cyber incidents. It is possible that any of these occurrences, or a combination of them, could have adverse consequences on our business
and lead to financial loss.

We would be subject to a second level of U.S.
federal income tax on a portion of our income if we are determined to be a personal holding company (a “PHC”) for U.S. federal
income tax purposes.

A U.S. corporation generally
will be classified as a PHC for U.S. federal income tax purposes in a given taxable year if (i) at any time during the last half of such
taxable year, five or fewer individuals (without regard to their citizenship or residency and including as individuals for this purpose
certain entities such as certain tax exempt organizations, pension funds and charitable trusts) own or are deemed to own (pursuant to
certain constructive ownership rules) more than 50% of the stock of the corporation by value and (ii) at least 60% of the corporation’s
adjusted ordinary gross income, as determined for U.S. federal income tax purposes, for such taxable year consists of PHC income (which
includes, among other things, dividends, interest, certain royalties, annuities and, under certain circumstances, rents). 

Depending on the date and
size of our initial business combination, it is possible that at least 60% of our adjusted ordinary gross income may consist of PHC income
as discussed above. In addition, depending on the concentration of our stock in the hands of individuals, including the members of our
sponsor and certain tax exempt organizations, pension funds and charitable trusts, it is possible that more than 50% of our stock may
be owned or deemed owned (pursuant to the constructive ownership rules) by such persons during the last half of a taxable year. Thus,
no assurance can be given that we will not become a PHC in the future. If we are or were to become a PHC in a given taxable year, we would
be subject to an additional PHC tax, currently 20%, on our undistributed PHC income, which generally includes our taxable income, subject
to certain adjustments. 

Non-U.S. Holders may be subject to U.S. federal
income tax if we are considered a United States real property holding corporation.

A Non-U.S. Holder of our common
stock may be subject to U.S. federal income