Company: VMCWF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010983
Chunk: 46

Company: Valuence Merger Corp. I
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 form of interest income from the proceeds derived from the IPO placed in
the Trust Account.

For
the three months ended March 31, 2025, we had a net income of $24,976 , which consisted of interest earned on investments held in the
Trust Account of $181,347 , offset by operating costs of $156,371.

For
the three months ended March 31, 2024, we had a net income of $588,681, which consisted of interest earned on investments held in the
Trust Account of $846,150, offset by operating costs of $257,469.

Liquidity
and Capital Resources; Going Concern Consideration

As
of March 31, 2025, we had cash of $69,188 and a working capital deficit of $4,442,236.

In
connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standards Board
(“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s
Ability to Continue as a Going Concern,” the Company has until up to March 3, 2026 to consummate a Business Combination or liquidate,
provided that we cause to be deposited the New Contributions in connection with each monthly extension of the Combination Period. It
is uncertain that the Company will be able to consummate a Business Combination by this time. If a Business Combination is not consummated
by this date, there will be a mandatory liquidation of the Trust Account and potential subsequent dissolution of the Company. Management
has determined that the liquidity condition and mandatory liquidation, should a Business Combination not occur, and potential subsequent
dissolution raises substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made
to the carrying amounts of assets or liabilities should the Company be required to liquidate after the end of the Combination Period
(up to March 3, 2026, if we, with shareholder approval, elect to further extend the Combination Period monthly to such deadline). Based
on the foregoing, management believes that the Company will not have sufficient working capital and borrowing capacity from the Sponsor
or an affiliate of the Sponsor, or certain of the Company’s officers and directors to meet its needs through the earlier of the
consummation of a Business Combination or one year from this Annual Report. However, the Working Capital Loans and the June 2024 Note
will provide additional flexibility to