Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 1726

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 1726
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 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. Conditionally redeemable ordinary shares (including ordinary shares that feature
redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events
not solely within the Company’s control) are classified in temporary equity. At all other times, ordinary shares are
classified as shareholders’ equity (deficit). The Company’s Public Shares feature certain redemption rights that are considered
to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at December 31, 2024
and 2023, the Public Shares are presented at redemption value as temporary equity, outside of the shareholders’ deficit
section of the Company’s balance sheets.

In
connection with the May 2023 Meeting, shareholders holding 15,799,245 Class A ordinary shares exercised their right to redeem their shares
for a pro rata portion of the funds in the Trust Account. As a result, approximately $167.8 million (approximately $10.62 per ordinary
share) was removed from the Trust Account to pay such holders and approximately $65.7 million remained in the Trust Account. Following
redemptions, the Company had 6,210,718 Class A ordinary shares outstanding.

In
connection June 2024 Meeting, shareholders holding 4,343,316 Class A ordinary shares exercised their right to redeem their shares for
a pro rata portion of the funds in the Trust Account. As a result, approximately $49.9 million (approximately $11.49 per ordinary share)
was removed from the Trust Account to pay such holders. After the satisfaction of such redemptions, the balance in the Company’s
Trust Account was approximately $21.9 million as of December 31, 2024. Following redemptions, the Company had 1,867,402 Class A ordinary
shares subject to redemption outstanding.

The
Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Class A ordinary
shares to equal the redemption value at the end of each reporting period. This