Company: EMCRF
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024827
Chunk: 24

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 to finance transaction costs in connection with a Business Combination, the Company’s Sponsor or an affiliate of the Sponsor,
or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working
Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes would either be repaid upon consummation
of a Business Combination, without interest, or, at the lender’s discretion, up to $500,000 of notes may be converted upon consummation
of a Business Combination into additional Private Units at a price of $10.00 per Unit. In the event that a Business Combination does
not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds
held in the Trust Account would be used to repay the Working Capital Loans. As of June 30, 2025 and December 31, 2024, the Company borrowed
$241,112, which was included in convertible promissory note – related party in the consolidated balance sheet.

Office
Space Provided by Sponsor

The
Company currently maintain executive offices at 5186 Carroll Canyon Rd, San Diego, CA 92121. Such space was provided to the Company free
of charge by the Sponsor.

NOTE
6. DUE TO THIRD PARTY

From
July 2024 to June 30, 2025, the Company borrowed an aggregated amount of $1,175,000 from Tianji and its subsidiaries. These amounts are
unsecured, non-interest bearing and due on demand. As of June 30, 2025 and December 31, 2024, the amounts due to third party was $1,175,000
and $775,000, respectively.

NOTE
7. PROMISSORY NOTE - THIRD PARTY

On
August 5, 2024, the Company issued an unsecured promissory note, in an amount of $300,000 to an unrelated third party, which are used
as the extension fee and/or working capital. The unpaid principal balance of this note bears an annual interest rate of nine point one
two seven percent (9.127%) per annum. The note will be due two months after executed. On August 6, 2024, the Company received the $300,000
in full under such note. On September 10, 2024, and September 27, 2024, the Company repaid