Company: VMCWF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010983
Chunk: 30

Company: Valuence Merger Corp. I
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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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 March 31, 2025 and December 31, 2024, $1,650,941 had been borrowed against VP Convertible Promissory Note.

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. The Sponsor advanced to the Company additional $810,000
and $191,000 during the year 2024 and during the 3 months ended March 31, 2025, respectively, for general working capital needs. At
March 31, 2025 and December 31, 2024, advances from related party totaled $1,198,384
and $1,008,384,
respectively. The amounts advanced by the Sponsor to the Company are non-interest bearing 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 unaudited condensed 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 unaudited
condensed financial statements.

Registration
Rights

Pursuant
to a registration rights agreement entered into on February 28, 2022, the holders of the