Company: EMCRF
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003812
Chunk: 13

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 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.

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 March 31, 2025 and for the three months ended March 31, 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, 2024. The interim results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected through December 31, 2025 or for any future periods.

    9

Principles of consolidation

The unaudited interim consolidated financial statements
include the financial statements of the Company and its wholly owned subsidiaries. All transactions and balances among the Company and
its subsidiaries have been eliminated upon consolidation.

Use of Estimates

The preparation of unaudited interim consolidated financial statements in conformity
         with GAAP requires management to make estimates and assumptions that affect the reported
         amounts of assets and liabilities and disclosure of contingent assets and liabilities
         at the date of the unaudited interim consolidated financial statements and the reported
         amounts of expenses during the reporting period.

Making estimates requires management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the unaudited interim consolidated financial statements, which management considered