Company: EMCRF
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024827
Chunk: 35

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 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.

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 June 2025, the Company borrowed $400,000 from Tianji and its subsidiaries,
these amounts are unsecured, non-interest bearing and due on demand.

On
August 5, 2024, the Company borrowed $300,000 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 June 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 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.

Business
Combination Agreement

On
January 26, 2025, the Company entered into a merger agreement (