Company: VMCWF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023515
Chunk: 83

Company: Valuence Merger Corp. I
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 2024 Note, which was outstanding as of
September 30, 2025.

    14

VALUENCE
MERGER CORP. I

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

On
June 5, 2023, the Company issued an unsecured convertible promissory note to Valuence Partners LP, an affiliate of the Sponsor (the “VP
Convertible Promissory Note”), pursuant to which the Company may borrow up to an aggregate maximum amount of $1,650,941. The VP
Convertible Promissory Note is non-interest bearing and payable on the earlier of (i) the date of the Business Combination or (ii) the
winding up of the Company. At any time prior to payment in full of the principal balance of the VP Convertible Promissory Note, Valuence
Partners LP may elect to convert all or any portion of the unpaid principal balance into that number of warrants, each exercisable for
one Class A Share of the Company, equal to (x) the portion of the principal amount of the VP Convertible Promissory Note being converted,
divided by (y) $1.50, rounded up to the nearest whole number of warrants. The aggregate amount convertible into Conversion Warrants pursuant
to the Sponsor Convertible Promissory Note and the VP Convertible Promissory Note shall not exceed $1,500,000. The VP Convertible Promissory
Note was accounted for using the bifurcation method, and was determined that the conversion feature had no value and was recorded at
par value. As of September 30, 2025 and December 31, 2024, $1,650,941 had been borrowed against VP Convertible Promissory Note.

Advance
from Related Party

On
March 7, 2022, in connection with the unexercised over-allotment option, an investor in the Sponsor agreed for the Company to retain
the residual $198,384 in the form of an advance. The Sponsor advanced to the Company additional $810,000 and $255,000 during the year
2024 and during the nine months ended September 30, 2025, respectively, for general working capital needs. At September 30, 2025 and
December 31, 2024, advances from related party totaled $1,553,460 and $