Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 172

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 172
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At
December 31, 2024 and 2023, substantially all of the assets held in the Trust Account were held in money market funds, which are
invested primarily in U.S. Treasury securities. All of the Company’s investments held in the Trust Account are classified as
trading securities. Trading securities are presented on the balance sheets at fair value at the end of each reporting period. Gains
and losses resulting from the change in fair value of investments held in Trust Account are included in interest earned on cash and
investments held in Trust Account in the accompanying statements of operations. The estimated fair values of investments held in
Trust Account are determined using available market information.

    F-12

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 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