Company: EMCRF
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024827
Chunk: 13

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 third
party up to the date the unaudited consolidated financial statements were issued.

Going
Concern Consideration

The
Company expects to incur significant costs in pursuit of its financing and acquisition plans. In connection with the Company’s
assessment of going concern considerations in accordance with Accounting Standards Update (“ASU”) 2014-15, “Disclosures
of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined that if the Company
is unsuccessful in consummating an Initial Business Combination by August 12, 2026 (as of the date of these unaudited interim consolidated
financial statements are issued, $275,000
of the required extension payments has not been deposited into the Trust Account), the requirement that the Company
cease all operations, redeem the Public Shares and thereafter liquidate and dissolve raises substantial doubt about the Company’s
ability to continue as a going concern within one year after the date that the unaudited interim consolidated financial statements are
issued. The unaudited interim consolidated financial statements do not include any adjustments that might result from the outcome of
this uncertainty. The accompanying financial statement has been prepared in conformity with generally accepted accounting principles
in the United States of America (“GAAP”), which contemplate continuation of the Company as a going concern.

8

NOTE
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis
of Presentation

The
accompanying consolidated financial statements are presented in U.S. Dollars and conformity with accounting principles generally accepted
in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. Certain information and note
disclosures normally included in the annual financial statements prepared in accordance with generally accepted accounting principles
have been omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make
the information not misleading. The interim consolidated financial statements as of June 30, 2025 and for the three and six months ended
June 30, 2025 and 2024, respectively, are unaudited. In the opinion of management, the unaudited interim consolidated financial statements
include all adjustments, consisting only of normal recurring adjustments, necessary to provide a fair statement of the results for the
interim periods. The accompanying balance sheet as of December 31, 2024, is derived from the audited financial statements presented in
the Company’s Annual Report on Form 10-K for fiscal the year ended December 31,