Form 4: Profusa CFO Converts $1.87M Note to Equity

CFO Fred Knechtel reported the conversion of a $1.87 million promissory note into 5.34 million shares of Profusa common stock.

Summary

• Fred Knechtel, CFO of Profusa, Inc., converted a $1,869,796 promissory note into 5,342,274 shares of common stock.
• The conversion occurred on May 4, 2026, at a floor price of $0.35 per share.
• The securities are held indirectly by NorthView Sponsor I LLC, where Mr. Knechtel serves as the managing member.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event; while it improves the balance sheet by removing debt, it results in shareholder dilution.

Positives

• Debt reduction of approximately $1.87 million from the company's balance sheet.
• Alignment of executive interests with shareholders through increased equity ownership.

Negatives

• Dilution of existing shareholders due to the issuance of 5.34 million new common shares.

Risks

• Potential downward pressure on share price due to increased share count.
• Reliance on the $0.35 floor price for conversion, which may deviate from market value.

Future Outlook

The filing does not provide forward-looking operational guidance, focusing strictly on the conversion of existing debt obligations into equity.

Management Comments

• Mr. Knechtel disclaims beneficial ownership of the securities held by NorthView Sponsor I LLC except to the extent of his pecuniary interest therein.

Industry Context

StockSavvy.ai notes that debt-to-equity conversions by insiders are common in growth-stage biotech and medical technology firms to strengthen balance sheets and reduce interest-bearing liabilities.

Comparison to Industry Standards

• The conversion price of $0.35 reflects a specific valuation floor common in private-to-public transition or restructuring agreements.
• The transaction is consistent with standard corporate governance practices regarding insider reporting of beneficial ownership changes.

Related Party Transactions

• The transaction involves NorthView Sponsor I LLC, an entity managed by the CFO, Fred Knechtel.

Stakeholder Impact

• Existing shareholders face dilution from the issuance of 5.34 million new shares.
• Creditors benefit from the conversion of debt into equity, improving the company's solvency profile.

Next Steps

• No further actions or milestones were disclosed in this filing.

Key Dates

Keywords

Profusa, PFSA, Insider Transaction, Debt-to-Equity Conversion, CFO, Equity Dilution