Company: EMCRF
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003812
Chunk: 18

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken
in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination
by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s major tax
jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax
expense. There were no
unrecognized tax benefits as of March 31, 2025 and December 31, 2024 and no
amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in
significant payments, accruals or material deviation from its position.

The Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero from inception to March 31, 2025.

    12

      Segment Reporting
       
      ASC Topic 280, “Segment Reporting,” establishes standards for companies to report
         in their financial statement information about operating segments, products, services,
         geographic areas, and major customers. Operating segments are defined as components
         of an enterprise for which separate financial information is available that is regularly
         evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources
         and assess performance.
       
      The Company’s chief operating decision maker has been identified as the Chief Executive Officer
         (“CODM”), who reviews the operating results for the Company as a whole to make decisions
         about allocating resources and assessing financial performance. Accordingly, management
         has determined that the Company only has one operating segment.
       
      When evaluating the Company’s performance
      and making key decisions regarding resource allocation, the CODM reviews key metrics, formation and operational costs and interest
      earned on cash and investments held in Trust Account which include the accompanying statements of operations.
       
      The key measures of segment profit or loss
      reviewed by the Company’s CODM are interest earned on cash and investments held in Trust Account and formation and operational costs. The CODM
      reviews interest earned on cash and investments held in Trust Account to measure and monitor stockholder value and determine the
      most effective strategy of investment with the Trust Account funds while