Valuence Merger Corp. I reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company experienced a drastic decline in cash and total assets, with cash decreasing to $15,539 from $684,816 as of December 31, 2023. Total current assets also fell sharply to $103,806 from $762,886, while total assets dropped to $22.0 million from $70.2 million. The Trust Account, which holds cash and investments, saw a reduction from $69.4 million to $21.9 million during the same period.

The company’s liabilities increased, with total current liabilities rising to $5.7 million from $4.7 million, and total liabilities growing to $13.8 million from $12.8 million. This resulted in a larger shareholders’ deficit of $(13.7 million) compared to $(11.9 million) at the end of the previous fiscal year.

In terms of profitability, Valuence reported a net income of $35,034 for the three months ended September 30, 2024, a significant decrease from $629,766 in the same period of 2023. For the nine-month period, net income fell to $792,407 from $3.99 million year-over-year. Other income also declined, with $238,177 reported for the three months ended September 30, 2024, down from $865,386 in the prior year, and $1.72 million for the nine months compared to $5.26 million previously.

The company withdrew $49.9 million from the Trust Account for redemptions during the nine months ended September 30, 2024, compared to $167.8 million in the same period of 2023. This reflects a significant reduction in cash available for future business combinations.

Valuence has not commenced any operations and continues to generate non-operating income from interest on IPO proceeds. The company’s operational status remains unchanged, with a focus on completing a business combination involving breakthrough technology in life sciences or sustainable technology in Asia, excluding China, Hong Kong, and Macau.

As of September 30, 2024, Valuence had outstanding convertible promissory notes totaling $2.26 million, with $613,207 owed to the Sponsor and $1.65 million to Valuence Partners LP. The company has expressed substantial doubt about its ability to continue as a going concern, given its liquidity challenges and the potential for mandatory liquidation if a business combination is not completed by the end of the Combination Period, which has been extended to March 3, 2026.