Company: EMCRF
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003812
Chunk: 33

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 Company’s failure to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024. On September 16, 2024, the Company filed its Form 10-Q for the fiscal quarter ended June 30, 2024.

On October 30, 2024, the Company received a letter from Nasdaq which confirmed that the Company regained compliance on September 16, 2024 with the filing requirement in Listing Rule 5250(c), as required by the Nasdaq hearing panel’s decision dated August 14, 2024. The Company is subject to a mandatory panel monitor for a period of one year from September 16, 2024. Under the terms of the panel monitor, in the event the Company is again out of compliance with the periodic filing rule during the monitoring period, the Company will have an opportunity to request a new hearing before the panel in order to maintain its listing, rather than being granted additional time to regain compliance or being afforded an applicable cure or compliance period.

Satisfaction and Discharge Agreement

On March 4, 2024, the Company and D. Boral
Capital (“D. Boral”), formerly known as EF Hutton, division of Benchmark Investments, LLC, the underwriter of Company’s
IPO, entered into a Satisfaction and Discharge of Indebtedness Pursuant to Underwriting Agreement dated August 9, 2022 (the “Satisfaction
and Discharge Agreement”), pursuant to which, D. Boral agreed to revise the deferred underwriting fee of three point five percent
(3.50%) of the gross proceeds of the initial public offering, or $2,587,499, to (1) $750,000 in cash on the date of the closing of the
initial business combination (the “Closing”) and (2) 200,000 of registered and unrestricted shares of the Company, shall be
issued and delivered to D. Boral at the Closing.

21

Financing from Debt

From July 2024 to December 2024, the Company received $775,000 from a subsidiary of Tianji (as defined below). These amounts are unsecured, non-interest bearing and due on demand. From January 2025 to April 2025, the Company borrowed $300,000 from Tianji and its subsidiaries, these amounts are unsecured, non-interest bearing and due on demand.

On August 5, 2024, the Company borrowed $300,