Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 75

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 their Warrants, nor will they receive any distribution from the
Company’s assets held outside of the Trust Account with respect to such Warrants. Accordingly, the Warrants may expire worthless.

The
Company accounts for 7,766,605 Warrants issued in connection with the Initial Public Offering (comprised of 7,392,855 Public Warrants
and 373,750 Private Warrants) (the “Warrants”) in accordance with the guidance contained in ASC 815-40 Derivatives and Hedging
- Contracts in Entity’s Own Equity (“ASC 815”) under which the Warrants meet the criteria for equity treatment and
was recorded as a component of additional paid-in capital at the time of issuance.

Rights
— Each holder of a right will receive one-eighth (1/8) of one ordinary share upon consummation of a Business Combination, even
if the holder of such right redeemed all shares held by it in connection with a Business Combination. No fractional shares will be issued
upon exchange of the rights. No additional consideration will be required to be paid by a holder of rights in order to receive its additional
shares upon consummation of a Business Combination as the consideration related thereto has been included in the unit purchase price
paid for by investors in the IPO. If the Company enters into a definitive agreement for a Business Combination in which the Company will
not be the surviving entity, the definitive agreement will provide for the holders of rights to receive the same per share consideration
the holders of the ordinary share will receive in the transaction on an as- converted into ordinary share basis and each holder of a
right will be required to affirmatively convert its rights in order to receive 1/8 share underlying each right (without paying additional
consideration). The shares issuable upon exchange of the rights will be freely tradable (except to the extent held by affiliates of the
Company).

Additionally,
in no event will the Company be required to net cash settle the rights. If the Company is unable to complete a Business Combination within
the Combination Period and the Company liquidates the funds held in the Trust Account, holders of rights will not receive any of such
funds with respect to their rights, nor will they receive any distribution from the Company’s assets held outside of the Trust
Account with respect to such rights. Accordingly, the rights may expire worthless.

NOTE
10. SUBSEQUENT EVENTS

Subsequent
to September 30, 2025, the Company received an