Valuence Merger I(VMCA) - 2023 Q2 - Quarterly Report

Financial Performance - As of June 30, 2023, the company reported a net income of $1,585,040 for the three months ended, primarily from interest earned on marketable securities of $1,962,830, offset by general and administrative expenses of $377,790 [122]. - For the six months ended June 30, 2023, the company had a net income of $3,361,141, with interest income of $4,393,606 and general and administrative expenses totaling $1,032,465 [122]. IPO and Trust Account - The company generated gross proceeds of $220,099,630 from the sale of 20,000,000 units at $10.00 per unit during its IPO [125]. - Following the IPO, approximately $226,702,619 was placed in a trust account, which was invested in U.S. government securities [129]. - Shareholders redeemed 15,799,245 Class A Shares for approximately $167,831,206, leaving a balance of about $65.7 million in the trust account [130]. Cash and Working Capital - As of June 30, 2023, the company had cash of $118,424 and a working capital deficit of $2,868,673 [132]. - The company issued a promissory note to the Sponsor for up to $613,207.55 for working capital, with $172,714 outstanding as of June 30, 2023 [135]. - An unsecured convertible promissory note was issued to Valuence Partners LP for up to $1,650,943.40, with $465,000 borrowed against it as of June 30, 2023 [136]. Business Combination and Reporting - The company has until September 3, 2023, to consummate a Business Combination, with uncertainty regarding its ability to do so [132]. - The company has no off-balance sheet arrangements or long-term liabilities as of June 30, 2023 [138]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain financial reporting obligations for up to five years post-IPO [141]. - Management's estimates and assumptions significantly impact the reported amounts of assets, liabilities, revenues, and expenses in the unaudited condensed financial statements [142]. - There is a possibility that actual results could differ significantly from management's estimates due to future confirming events [143]. - The company qualifies as a smaller reporting company and is not required to provide certain market risk disclosures [145].