Company: EMCRF
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024827
Chunk: 37

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 to date. Our only activities since inception have been organizational
activities, those necessary to prepare for our IPO, the IPO, and after our IPO, searching for and identifying a business combination
target, and prepare for a business combination. Following our IPO, we will not generate any operating revenues until after completion
of our Business Combination. We will generate non-operating income in the form of interest income on cash and cash equivalents after
our IPO. There has been no significant change in our financial or trading position and no material adverse change has occurred since
the date of our consolidated financial statements. We expect that we will incur increased expenses as a result of being a public company
(for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses in connection with completing
a business combination.

For
the three months ended June 30, 2025, we had a net loss of $98,634, which consists of operating costs of $374,642 and interest expense
of $1,138, partially offset by investment income earned on cash and investments held in trust account of $277,146. For the three months
ended June 30, 2024, we had a net income of $677,230 which consists of investment income earned on cash and investments held in trust
account of $755,157 partially offset by operating costs of $77,927.

For
the six months ended June 30, 2025, we had a net loss of $188,258, which consists of operating costs of $730,504 and interest expense
of $2,263, partially offset by investment income earned on cash and investments held in trust account of $544,509. For the six months
ended June 30, 2024, we had a net income of $984,507 which consists of investment income earned on cash and investments held in trust
account of $1,490,735 partially offset by operating costs of $127,727 and loss on modification of deferred underwriter commission of
$378,501.

Liquidity
and Capital Resources

As
of June 30, 2025, we had cash of $469 on our balance sheet and a working capital deficit of $3,740,690.

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,