Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 24

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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proceeds from the sale of the Private Units were added to the net proceeds from the Offering held in the Trust Account. The Private Units
are identical to the Units sold in the Initial Public Offering, except there will be no redemption rights or liquidating distributions
from the Company’s trust account with respect to the private shares, which will expire worthless if the Company does not consummate
a business combination. With respect to the Private Warrants, as described in Note 9, the warrant agent shall not register any transfer
of Private Warrants until after the consummation of an initial business. If the Company does not complete a Business Combination within
the Combination Period, the proceeds from the sale of the Private Units will be used to fund the redemption of the Public Shares (subject
to the requirements of applicable law) and the Private Warrants will expire worthless.

NOTE
5. RELATED PARTY TRANSACTIONS

Founder
Shares

During
the period ended December 31, 2021, the Company issued an aggregate of 2,156,250 shares of Ordinary shares to the Sponsor for an aggregate
purchase price of $25,000 in cash. On July 1, 2022, the sponsor surrendered an aggregate of 287,500 founder shares for no consideration,
which surrender was effective retroactively, resulting in 1,868,750 shares being outstanding. On August 12, 2022, as a result of the
partial exercise of the Representative’s Over-Allotment Option, an aggregate of 20,536 founder shares was further forfeited to
the Company, which surrender was effective retroactively and resulting in 1,848,214 shares being outstanding, so that the Sponsor will
collectively own 20% of the Company’s issued and outstanding shares after the IPO (assuming the initial shareholders do not purchase
any Public Shares in the IPO and excluding the Private Units and underlying securities).

    14

Subject
to certain limited exceptions, the initial shareholders have agreed not to transfer, assign or sell their founder shares until six months
after the date of the consummation of the Company’s Business Combination or earlier if, subsequent to Business Combination, the
Company consummate a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of the shareholders
having the right to exchange their ordinary shares for cash, securities or other property.

Due
to Related Party

As
of September 30, 2025 and December 31, 2024,