Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 65

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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, formation
and operational costs and interest earned on cash and investments held in Trust Account which are included in 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 maintaining
compliance with the trust agreement. Formation and operational costs are reviewed and monitored by the CODM to manage and forecast cash
to ensure enough capital is available to complete a business combination within the business combination period. The CODM also reviews
formation and operational costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements
and budget.

Recent
Accounting Pronouncements

Management
does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material
effect on the Company’s unaudited interim consolidated financial statements.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution
which, at times may exceed the Federal depository insurance coverage of $250,000. As of September 30, 2025, the Company had not experienced
losses on this account and management believes the Company is not exposed to significant risks on such account. As of September 30, 2025
and December 31, 2024, the Company had $5,431 and $66,985 cash, respectively, held in operating bank account.

Net
Income (Loss) Per Share

Net
income (loss) per share is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding for the
period. The calculation of diluted income (loss) per share does not consider the effect of the warrants issued in connection with the
Initial Public Offering (the “Public Warrants”) and warrants issued as components of the Private Placement Units (the “Private
Warrants”) since the exercise of the warrants are contingent upon the occurrence of future events. As a result, diluted income
(loss) per share is the same as basic income (loss) per share for the periods.

The
following table reflects the calculation of basic and diluted net income (loss) per ordinary share:

Schedule
of Basic and Diluted Net Income (Loss)