Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 1292

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9C
Chunk 1292
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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 the warrant holders could potentially require “net cash settlement” in a circumstance outside
of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional
judgment, is conducted at the time warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For
issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component
of issuance costs of temporary equity at the time of issuance. For issued or modified warrants that do not meet all of the criteria for
equity classification, the warrant issuance costs are required to be recorded at their initial fair value on the date of issuance, and
each balance sheet date thereafter. The fair value of the Public Warrants has been estimated using its quoted market price as of December
31, 2024. As the Company’s warrants meet the criteria for equity classification, the Company has accounted for the warrants as
equity classified.

Class
A Ordinary Shares Subject to Possible Redemption

The
Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480,
“Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability
instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature
redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events
not solely within the Company’s control) are classified in temporary equity. At all other times, ordinary shares are
classified as shareholders’ equity (deficit). The Company’s Public Shares feature certain redemption rights that are considered
to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at December 31, 2024
and 2023, the Public Shares are presented at redemption value as temporary equity, outside of the shareholders’ deficit
section of the Company’s balance sheets.

In
connection with the May 2023 Meeting, shareholders holding 15,799,245 Class A ordinary shares exercised their right to redeem their shares
for a pro rata portion of the funds in the Trust Account. As a result, approximately $167.8 million (approximately $10.62 per ordinary
share) was removed from the Trust Account to pay such holders and