Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 98

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 2
Chunk 98
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 aggregated of $1,950,000 due to third party up to the date the unaudited consolidated financial statements were
issued.

On
August 5, 2024, the Company borrowed $300,000 from another unrelated third party, by issuing a promissory note. The unpaid principal
balance of this note bears an annual interest rate of nine point one two seven percent (9.127%) per annum. The note will be due two months
after executed. On August 6, 2024, the Company received the $300,000 in full under such note. On September 10, 2024, and September 27,
2024, the Company repaid $100,000 and $150,000, respectively, to the payee, leaving $50,000 in principal unpaid as of September 30, 2025.
On October 5, 2024, the remaining principal of $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 September 30, 2025 and 2024, the Company recorded $1,150 and $3,513 in interest expenses under the promissory
note - third party. For the nine months ended September 30, 2025 and 2024, the Company recorded $3,413 and $3,513 in interest expenses
under the promissory note - third party. As of September 30, 2025 and December 31, 2024, the total outstanding under the promissory note-
third party was $58,077 and $54,664, respectively.

Business
Combination Agreement

On
January 26, 2025, the Company entered into a merger agreement (as it may be amended, supplemented, or otherwise modified from time to
time, the “Merger Agreement”), by and between the Company, EMC Merger Sub 1, a Cayman Islands exempted company and wholly
owned subsidiary of the Company (“Purchaser”), EMC Merger Sub 2, a Cayman Islands exempted company and wholly owned subsidiary
of Purchaser (“Merger Sub”), and Tianji Tire Global (Cayman) Limited, a Cayman Islands exempted company (“Tianji”),
pursuant to which (a) the Company will be merged with and into Purchaser (