Company: EMCRF
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024827
Chunk: 27

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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1,837,499 deferred liability for the share settlement portion of
the Satisfaction and Discharge Agreement at the closing of the IPO. The fair value of Granted Shares in excess of the liability settled,
in the amount of $378,501, as a result of the Satisfaction and Discharge Agreement was recorded as loss on the modification of deferred
underwriting commission in the accompanying consolidated statements of operations.

In
addition, the Company paid the representative of the underwriters, at closing of the Initial Public Offering, 1.00% of the of the IPO
shares in the Company’s ordinary shares or 73,929 ordinary shares as the underwriters’ over-allotment was partially exercised.

Right
of First Refusal

For
a period beginning on the closing of the Company’s IPO and ending 6 months from the closing of a business combination, the Company
have granted D. Boral a right of first refusal to act as sole investment banker, sole book running manager and/or sole placement agent
for any and all future private or public equity, equity-linked, convertible and debt offerings during such period. In accordance with
FINRA Rule 5110(g)(6)(A), such right of first refusal shall not have a duration of more than three years from the commencement of sales
in the Company’s IPO.

NOTE
9. STOCKHOLDERS’ DEFICIT

Ordinary
Shares — The Company is authorized to issue 500,000,000 ordinary shares of with a par value of $0.0001 per share. Holders of
the Company’s Ordinary shares are entitled to one vote for each share.

As
of June 30, 2025 and December 31, 2024, there were 2,295,893 ordinary shares issued and outstanding, excluding 2,224,131 ordinary shares
subject to possible redemption.

Warrants
— Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of
the Warrants (as defined below). The Warrants will become exercisable 30 days after the completion of a Business Combination. No Warrants
will be exercisable for cash unless the Company has an effective and current registration statement covering the ordinary share issuable
upon exercise of the Warrants and a current prospectus relating to such ordinary share. Notwithstanding the foregoing, if a registration
statement covering the ordinary share issuable upon the exercise of the Warrants is not effective within 90 days from the consum