Company: PFSA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112723
Chunk: 151

Company: Profusa, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 151
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 will receive a consideration
of at least $14.50 for each share of Company Common Stock (“Milestone Event II”). The Milestone II period will commence on
the 360-day anniversary and end on the two-year anniversary of the Closing Date (“Milestone Event II Period”); provided that
such 30 days trading period does not overlap with the 30 days trading period used to satisfy the requirements of Milestone Event I; provided,
further, that in the event that such 30 days trading period could satisfy either Milestone Event I or Milestone Event II, then Milestone
Event II shall be deemed to be satisfied first;

●Milestone III Earnout Rights: the closing of the APAC Joint Venture, as described below in this Report, and the Companies receipt of the related $6 million funding, during the fiscal year ended December 31, 2025 (“Milestone Event III”);

●Milestone IV Earnout Rights: achievement of revenue of $11,864,000 for the fiscal year ended December 31, 2026 (“Milestone Event
IV,” and, together with Milestone Event I, Milestone Event II and Milestone Event III, the “Milestone Events”). Milestone
I Earnout Rights, Milestone II Earnout Rights, Milestone III Earnout Rights and Milestone IV Earnout Rights are further referred to collectively
as “Milestone Earnout Rights”.

In the event that the above milestones are achieved, this will dilute
the ownership interests of existing shareholders.

Reverse recapitalization

The Business Combination was accounted for as a reverse recapitalization
in accordance with US GAAP. Accordingly, Legacy Profusa was deemed the accounting acquirer (and legal acquiree) and Northview was treated
as the accounting acquiree (and legal acquirer).

Under this method of accounting, the reverse recapitalization was treated
as the equivalent of Legacy Profusa issuing stock for the net assets (liabilities) of Northview, accompanied by a recapitalization. The
net assets of Northview are stated at historical cost, with no goodwill or other intangible assets recorded. The consolidated assets,
liabilities, and results of operations prior to the Business Combination are those of Legacy Profusa. All periods prior to the Business
Combination have been retrospectively adjusted in accordance with the Business Combination Agreement for the equivalent number of common
shares outstanding immediately after the Business Combination to effect the reverse recapitalization. The number of shares for all periods
prior to