Company: PFSA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004396
Chunk: 217

Company: Profusa, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 217
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 our sponsor, executive officers and directors
may influence their motivation in identifying and selecting a target business combination, completing an initial business combination
and influencing the operation of the business following the initial business combination. This risk may become more acute as the end of
the combination period nears, which is the deadline for our completion of an initial business combination.

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Since our sponsor, executive officers and directors
will not be eligible to be reimbursed for their out-of-pocket expenses if our business combination is not completed, a conflict of interest
may arise in determining whether a particular business combination target is appropriate for our initial business combination.

At the closing of our initial
business combination, our sponsor, executive officers and directors, or any of their respective affiliates, will be reimbursed for any
out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and performing
due diligence on suitable business combinations. There is no cap or ceiling on the reimbursement of out-of-pocket expenses incurred in
connection with activities on our behalf. These financial interests of our sponsor, executive officers and directors, may influence their
motivation in identifying and selecting a target business combination and completing an initial business combination.

Since our sponsor paid only approximately $0.005
per share for the founder shares, our officers and directors could potentially make a substantial profit even if we acquire a target business
that subsequently declines in value.

In April 2021, our sponsor
acquired 5,175,000 founder shares for an aggregate purchase price of $25,000, or approximately $0.005 per share. In October 2021, our
sponsor forfeited 862,500 founder shares. On December 20, 2021, we effected a 1.1-for-1 stock dividend of our common stock, resulting
in an aggregate of 4,743,750 founder shares outstanding. Our officers and directors have a significant economic interest in our sponsor.
As a result, the low acquisition cost of the founder shares creates an economic incentive whereby our officers and directors could potentially
make a substantial profit even if we acquire a target business that subsequently declines in value and is unprofitable for public investors.

Risks Relating to Our Securities

You will not have any rights or interests in
funds from the trust account, except under certain limited circumstances. To liquidate your investment, therefore, you may be forced to
sell your public shares, rights, or warrants, potentially at a loss.

Our public stockholders will