Company: VMCWF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023470
Chunk: 22

Company: Valuence Merger Corp. I
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 original maturity of three months or less when purchased to be cash equivalents. The Company had no cash equivalents
as of June 30, 2025 and December 31, 2024.

Cash
and Investments Held in Trust Account

At
June 30, 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 of 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. As the Company’s warrants meet the criteria for equity classification, the Company has accounted for the warrants as
equity classified.

Class
A Ordinary Shares Subject to Possible Redemption

The
Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing
Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured
at fair value