Financial Performance - As of June 30, 2023, the company reported a net income of $1,585,040 for the three months, primarily from interest earned on marketable securities of $1,962,830, with general and administrative expenses of $377,790[106] - For the six months ended June 30, 2023, the company achieved a net income of $3,361,141, with interest income of $4,393,606 and general and administrative expenses totaling $1,032,465[106] Cash and Working Capital - The company had cash of $118,424 and a working capital deficit of $2,868,673 as of June 30, 2023, raising concerns about its ability to continue as a going concern[115] Shareholder Activity - Following the Extraordinary General Meeting on May 25, 2023, shareholders redeemed 15,799,245 Class A Shares for approximately $167,831,206, resulting in a remaining trust account balance of about $65.7 million[117] IPO Details - The company raised gross proceeds of $220,099,630 from the IPO by selling 20,000,000 units at $10.00 per unit, with an additional 2,009,963 units sold through the over-allotment option[109] - Offering costs for the IPO and over-allotment amounted to $10,718,994, including $4,000,000 in underwriting fees and $8,105,480 in deferred underwriting fees contingent upon a Business Combination[111] Promissory Notes - The company issued a Sponsor Convertible Promissory Note for up to $613,207.55, with $172,714 outstanding as of June 30, 2023[118] - An unsecured VP Convertible Promissory Note was issued for up to $1,650,943.40, with $465,000 borrowed against it as of June 30, 2023[119] Business Combination Deadline - The company has until September 3, 2023, to complete a Business Combination, or it will face mandatory liquidation[115] Financial Reporting and Estimates - The company has no off-balance sheet arrangements or long-term liabilities as of June 30, 2023[121] - 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[124] - Management's estimates in the preparation of unaudited condensed financial statements are based on significant judgment, affecting reported amounts of assets, liabilities, revenues, and expenses[125] - Actual results may differ significantly from management's estimates due to future confirming events that could change the conditions considered in the estimates[126] - The company qualifies as a smaller reporting company and is not required to provide certain market risk disclosures[128]
Valuence Merger Corp. I(VMCAU) - 2023 Q2 - Quarterly Report