Company: PFSA
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001213900-25-021270
Chunk: 34

Company: Profusa, Inc.
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 34
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 have an interest in such U.S. Holder, as well as any stock the
U.S. Holder has a right to acquire by exercise of an option, which would generally include common stock which could be acquired
pursuant to the exercise of the warrants. In order to meet the substantially disproportionate test, the percentage of our outstanding
voting stock actually and constructively owned by the U.S. Holder immediately following the redemption of common stock must, among
other requirements, be less than 80% of our outstanding voting stock actually and constructively owned by the U.S. Holder immediately
before the redemption. There will be a complete termination of a U.S. Holder’s interest if either (i) all of the shares
of our stock actually and constructively owned by the U.S. Holder are redeemed or (ii) all of the shares of our stock actually
owned by the U.S. Holder are redeemed and the U.S. Holder is eligible to waive, and effectively waives in accordance with specific
rules, the attribution of stock owned by certain family members and the U.S. Holder does not constructively own any other stock.
The redemption of the common stock will not be essentially equivalent to a dividend if a U.S. Holder’s conversion results
in a “meaningful reduction” of the U.S. Holder’s proportionate interest in us. Whether the redemption will result
in a meaningful reduction in a U.S. Holder’s proportionate interest in us will depend on the particular facts and circumstances.
However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest of a small minority stockholder
in a publicly held corporation who exercises no control over corporate affairs may constitute such a “meaningful reduction.”

If none of the foregoing tests are satisfied, then the redemption
will be treated as a distribution and the tax effects will be as described below under “U.S. Federal Income Tax Considerations
to U.S. Holders — Taxation of Distributions.”

U.S. Holders of our common stock considering exercising their
redemption rights should consult their own tax advisors as to whether the redemption of their common stock of the Company will be treated
as a sale or as a distribution under the Code.

Gain or Loss on a Redemption of Common Stock Treated as a Sale

If the redemption qualifies as a sale of common stock, a U.S. Holder
must treat any gain or loss recognized as capital gain or loss. Any such capital gain or loss will be long-term capital