Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 26

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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. The Convertible Promissory Notes 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, the notes 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.

As
of September 30, 2025 and December 31, 2024, the Company has borrowed $851,112 under the Convertible Promissory Notes, of which $841,112
was issued to the Company’s CFO, and $10,000 was issued to the Sponsor.

Working
Capital Loans

In
order to finance transaction costs in connection with a Business Combination, the Company’s Sponsor or an affiliate of the Sponsor,
or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working
Capital Loans”). Such Working Capital Loans would be evidenced 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, which was included in convertible promissory note – related party in the consolidated balance sheet.

    15

Office
Space Provided by Sponsor

The
Company currently maintain executive offices at 5186 Carroll Canyon Rd, San Diego, CA 92121. Such space was provided to the Company free
of charge by the Sponsor.

NOTE
6. DUE TO THIRD PARTY

From
July 2024 to September 30, 2025, the Company borrowed an aggregated amount of $1,675,000
from Tianji and its subsidiaries. These amounts are unsecured, non-interest bearing and due on demand. As of September 30, 2025 and
December 31, 2024,