Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 85

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 by promissory notes. The notes would either be repaid upon consummation
of a Business Combination, without interest, or, at the lender’s discretion, up to $500,000 of notes may be converted upon consummation
of a Business Combination into additional Private Units at a price of $10.00 per Unit. In the event that a Business Combination does
not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds
held in the Trust Account would be used to repay the Working Capital Loans. As of September 30, 2025 and December 31, 2024, the Company
borrowed $241,112 under Working Capital Loans, which was included in convertible promissory note - related party.

On
September 8, 2023, the Company borrowed $10,000 from the Sponsor. The loan bears no interest and is repayable in full upon the consummation
of the Company’s Business Combination. It is convertible at the Sponsor’s election upon the consummation of the Company’s
Business Combination. Upon such election, this loan will convert, at a price of $10.00 per unit, into units identical to the private
placement units issued in connection with the Company’s initial public offering.

From
October 2023 to December 2024, the Company borrowed $841,112 in total from our Chief Financial Officer, in form of convertible promissory
notes, for working capital and extension deposits purposes (as described in Note 5 of the Notes to the Financial Statements). These loans
bear no interest and are repayable in full upon the consummation of the Company’s Business Combination. They are convertible at
the CFO’s election upon the consummation of the Company’s Business Combination. Upon such election, these loans will convert,
at a price of $10.00 per unit, into units identical to the private placement units issued in connection with the Company’s initial
public offering. Up to the date the financial statements were available to be issued, the total amounts borrowed from the CFO under convertible
promissory notes were $841,112.

From
October 2023 to December 2024, the Company’s CFO also paid $144,060, on behalf of us, to the third-party vendors for working capital
purposes. These amounts are unsecured, non-interest bearing and due on demand. Up to the date the unaudited interim consolidated