Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 87

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 8
Chunk 87
---
 31, 2024, the total outstanding under the promissory note
- third party was $58,077 and $54,664, respectively.

23

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, $75,000 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 unaudited interim consolidated 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.

Off-Balance
Sheet Financing Arrangements

We
have no obligations, assets or liabilities, which would be considered off-balance sheet arrangements as of September 30, 2025. We do
not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as
variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We have
not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments
of other entities, or purchased any non-financial assets.

Contractual
Obligations

We
do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities. The underwriter is entitled
to a deferred fee of three point five percent (3.50%) of the gross proceeds of the Offering upon closing of the Business Combination,
or $2,587,499. On March 4, 2024, we and D. Boral, entered into a satisfaction and discharge of indebtedness pursuant to underwriting