Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 895

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 895
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 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 December 31, 2023, $1,650,941 has been borrowed against VP Convertible Promissory Note.

    F-17

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. During 2024, the Sponsor advanced to
the Company additional $810,000
for general working capital needs. At December 31, 2024 and
2023, advances from related party totaled $1,008,384
and $198,384,
respectively. Amounts advanced by the Sponsor to the Company are without fixed terms and payable on demand.

NOTE
6 - COMMITMENTS AND CONTINGENCIES

Risks
and Uncertainties

Management
continues to evaluate the impact of ongoing geopolitical instability events, including the Russia-Ukraine conflict and the Israel-Hamas
conflict. As a result of the Russia-Ukraine conflict, various nations, including the United States, have instituted economic sanctions
against the Russian Federation and Belarus. Further, the impact of the Russia-Ukraine conflict, Israel-Hamas conflict and related sanctions
on the world economy is not determinable as of the date of these financial statements and the specific impact on the Company’s
financial condition, results of operations, and cash flows is also not determinable as of the date of these financial statements.

Registration
Rights

Pursuant
to a registration rights agreement entered into on February 28,