Company: VMCWF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010983
Chunk: 68

Company: Valuence Merger Corp. I
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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 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 unaudited condensed 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 March 31, 2025 and December 31, 2024, the Company had cash of $69,188 and $61,037, 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 March 31, 2025 and December 31, 2024.

Cash
and Investments Held in Trust Account

At
March 31, 2025 and December 31, 2024, substantially all of the assets held in the Trust Account were held in cash in a demand deposit
account.  

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 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