Company: VMCWF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010983
Chunk: 25

Company: Valuence Merger Corp. I
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 contain embedded derivative instruments
that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all
the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually
resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible
debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest
expense.

The
Company has determined that the conversion feature included in convertible promissory notes - sponsor and convertible note - related
party had no value and these notes were recorded at par value.

Recent
Accounting Standards  

In
August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives
and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an
Entity’s Own Equity” (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major
separation models required under current GAAP. ASU 2020-06 removes certain settlement conditions that are required for equity contracts
to qualify for the derivative scope exception, and it also simplifies the diluted earnings per share calculation in certain areas. ASU
2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early
adoption permitted. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results
of operations or cash flows. The Company has not adopted this guidance as of March 31, 2025.

Management
does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material
effect on the Company’s unaudited condensed financial statements.

NOTE
3 - PUBLIC OFFERING

Pursuant
to the Initial Public Offering, the Company sold 22,009,963 Units, inclusive of 2,009,963 Units sold to the underwriters on March 8,
2022, upon the underwriters’ election to partially exercise their over-allotment option, at a purchase price of $10.00 per Unit