Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 804

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 6
Chunk 804
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011 into the Company’s
Trust Account.

On March 4, 2025, the Company received a notice from the staff of the Listing Qualifications Department of Nasdaq
stating that because the Company had not completed an IPO within 36 months of the effective date of its IPO registration statement, it
was not in compliance with Nasdaq listing rule IM 5101-2, and was therefore subject to delisting. Trading in the Company’s securities
on Nasdaq was suspended at the opening of business on March 11, 2025, and trading of the Company’s securities on the over-the-counter
market commenced shortly thereafter.

Liquidity
and Going Concern

As
of December 31, 2024, the Company had cash of $61,037, and a working capital deficit of $4,229,842.

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 filing. However, the Working Capital Loans (as defined below) and the June
2024 Note will provide additional flexibility to continue the identification and pursuit of potential Business Combination targets. Over
this time period, the Company will be using available funds, including those from the Working Capital Loans, for the purpose of paying
existing accounts payable, identifying and evaluating prospective Business Combination candidates, performing due diligence on prospective
target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating
and consummating the Business Combination.

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, if the Company, without shareholder approval,
elects to further extend such deadline and causes to be deposited the New Contributions in connection with each monthly extension of
the Combination Period, to consummate a Business Combination. 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 the end of the Combination Period, there will be a mandatory
liquidation of the