Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 1358

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 10
Chunk 1358
---
date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.

Cash
and Cash Equivalents

As
of December 31, 2024 and 2023, the Company had cash of $61,037 and $684,816, respectively. The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of December
31, 2024 and 2023.

Cash
and Investments Held in Trust Account

At
December 31, 2024 and 2023, substantially all of the assets held in the Trust Account were held in money market funds, which are
invested primarily in U.S. Treasury securities. All of the Company’s investments held in the Trust Account are classified as
trading securities. Trading securities are presented on the balance sheets at fair value at the end of each reporting period. Gains
and losses resulting from the change in fair value of investments held in Trust Account are included in interest earned on cash and
investments held in Trust Account in the accompanying statements of operations. The estimated fair values of investments held in
Trust Account are determined using available market information.

    F-12

Warrant
Instruments

The
Company accounts for the 17,939,643 warrants issued in connection with the Initial Public Offering and the underwriters’ exercise
of their over-allotment option as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance in FASB Accounting Standards Codification 480, “Distinguishing Liabilities from Equity” (“ASC
480”), and ASC 815, “Derivatives and Hedging” (“ASC 815”). The assessment considers whether the warrants
are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants
meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s
own ordinary shares and whether