Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 182

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 182
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. Such warrants
will have terms identical to the Private Placement Warrants. The June 2024 Note was accounted for using the bifurcation method and it
was determined that the conversion feature had no value, and the June 2024 Note was recorded at par value. On June 4, 2024, the Company
borrowed $300,000 under the June 2024 Note, which was outstanding as of December 31, 2024.

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 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,