Company: EMCRF
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024827
Chunk: 40

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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50,000 was due and will be payable on demand. Up to the date the unaudited interim consolidated
financial statements were issued, the principal of $50,000 remained unpaid and past due.

For
the three months ended June 30, 2025 and 2024, the Company recorded $1,138 and $0 in interest expenses under the promissory note - third
party. For the six months ended June 30, 2025 and 2024, the Company recorded $2,263 and $0 in interest expenses under the promissory
note - third party. As of June 30, 2025 and December 31, 2024, the total outstanding under the promissory note - third party was $56,927
and $54,664, respectively.

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, 2025 (as of the date of these unaudited interim
consolidated financial statements are issued, $275,000 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.

22

Off-Balance
Sheet Financing Arrangements

We
have no obligations, assets or liabilities, which would be considered off-balance sheet arrangements as of June 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