Company: EMCRF
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003812
Chunk: 60

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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520,024

    7,423,175

    Basic and diluted
    net income (loss) per ordinary share
     
    $
    (0.02
    )
     
    $
    0.04

Risks and Uncertainties

As a result of the military action commenced in
February 2022 by the Russian Federation and Belarus in the country of Ukraine and related economic sanctions, the Company’s
ability to consummate a Business Combination, or the operations of a target business with which the Company ultimately consummates a
Business Combination, may be materially and adversely affected. In addition, the Company’s ability to consummate a transaction
may be dependent on the ability to raise equity and debt financing which may be impacted by these events, including as a result of
increased market volatility, or decreased market liquidity in third-party financing being unavailable on terms acceptable to the
Company or at all. The impact of this action and related sanctions on the world economy and the specific impact on the
Company’s financial position, results of operations and/or ability to consummate a Business Combination are not yet
determinable. The unaudited interim consolidated financial statements do not include any adjustments that might result from the
outcome of this uncertainty.

NOTE 3. INITIAL PUBLIC OFFERING

On August 12, 2022, the Company consummated its Initial Public Offering of 7,392,855 Units (including the issuance of 892,855 Units as a result of the underwriter’s partial exercise of its over-allotment option), at $10.00 per Unit, generating gross proceeds of $73,928,550.

Each Unit consists of one ordinary share, one warrant and one right. Each whole warrant entitles the holder thereof to purchase one ordinary share at a price of $11.50 per share, subject to adjustment as described in the IPO prospectus. Each right entitles the holder thereof to acquire one-eighth of one ordinary share (see Note 7).

As of August 12, 2022, the Company incurred
offering costs of approximately $3,898,030,
of which $2,587,499
was for deferred underwriting commissions. For the year ended December 31, 2023, the Company recorded $210,873
in offering costs and charged it to accumulated deficit.

NOTE 4. PRIVATE PLACEMENT

Simultaneously with the closing of the IPO, the Company consummated the private placement (“Private Placement”)