Company: VMCWF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023470
Chunk: 68

Company: Valuence Merger Corp. I
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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 to be deposited an additional $28,011 into the Company’s
Trust Account.

    8

VALUENCE
MERGER CORP. I

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE
30, 2025

Liquidity
and Going Concern

As
of June 30, 2025, the Company had cash of $92,661, and a working capital deficit of $4,652,885.

Based
on the foregoing, management believes that the Company will not have sufficient working capital and borrowing capacity from the Sponsor
or an affiliate of the Sponsor, or certain of the Company’s officers and directors to meet its needs through the earlier of the
consummation of a Business Combination or one year from this filing. However, the Working Capital Loans (as defined below) and the June
2024 Note will provide additional flexibility to continue the identification and pursuit of potential Business Combination targets. Over
this time period, the Company will be using available funds, including those from the Working Capital Loans, for the purpose of paying
existing accounts payable, identifying and evaluating prospective Business Combination candidates, performing due diligence on prospective
target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating
and consummating the Business Combination.

In
connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standards Board
(“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s
Ability to Continue as a Going Concern,” the Company has until up to March 3, 2026, if the Company, without shareholder approval,
elects to further extend such deadline and causes to be deposited the New Contributions in connection with each monthly extension of
the Combination Period, to consummate a Business Combination. It is uncertain that the Company will be able to consummate a Business
Combination by this time. If a Business Combination is not consummated by the end of the Combination Period, there will be a mandatory
liquidation of the Trust Account and potential subsequent dissolution of the Company. Management has determined that the liquidity condition
and mandatory liquidation of the Trust Account, should a Business Combination not occur, and potential subsequent dissolution raises
substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts
of assets or liabilities should the Company be