Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 84

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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 combination.

For
the three months ended September 30, 2025, we had a net income of 18,447, which consists of investment income earned on cash and investments
held in trust account of $287,440, partially offset by operating costs of $267,843 and interest expense of $1,150. For the three months
ended September 30, 2024, we had a net income of $277,631 which consists of investment income earned on cash and investments held in
trust account of $581,984 partially offset by operating costs of $350,840 and interest expense of $3,513.

For
the nine months ended September 30, 2025, we had a net loss of $169,811, which consists of operating costs of $998,347 and interest expense
of $3,413, partially offset by investment income earned on cash and investments held in trust account of $831,949. For the nine months
ended September 30, 2024, we had a net income of $1,212,138 which consists of investment income earned on cash and investments held in
trust account of $2,072,719 partially offset by operating costs of $478,567, loss on modification of deferred underwriter commission
of $378,501 and interest expense of $3,513.

Liquidity
and Capital Resources

As
of September 30, 2025, we had cash of $5,431 on our balance sheet and a working capital deficit of $30,681,811.

22

We
intend to use the funds held outside of the Trust Account, proceeds from Convertible Promissory Notes (as described below) and loans
received from the unrelated third parties (as described below) for identifying and evaluating prospective acquisition candidates, performing
business due diligence on prospective target businesses, traveling to and from the offices, plants or similar locations of prospective
target businesses, reviewing corporate documents and material agreements of prospective target businesses, selecting the target business
to acquire and structuring, negotiating and consummating the Business Combination. The interest income earned on the investments held
in the Trust Account are unavailable to fund operating expenses.

In
order 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