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

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 report in their financial statement information about
operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise
for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker,
or group, in deciding how to allocate resources and assess performance.

The
Company’s chief operating decision maker has been identified as the Chief Executive Officer (“CODM”), who reviews the
operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly,
management has determined that the Company only has one operating segment.

When
evaluating the Company’s performance and making key decisions regarding resource allocation, the CODM reviews key metrics,
formation and operational costs and interest earned on cash and investments held in Trust Account which are included in the
accompanying statements of operations.

The
key measures of segment profit or loss reviewed by the Company’s CODM are interest earned on cash and investments held in Trust
Account and formation and operational costs. The CODM reviews interest earned on cash and investments held in Trust Account to measure
and monitor stockholder value and determine the most effective strategy of investment with the Trust Account funds while maintaining
compliance with the trust agreement. Formation and operational costs are reviewed and monitored by the CODM to manage and forecast cash
to ensure enough capital is available to complete a business combination within the business combination period. The CODM also reviews
formation and operational costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements
and budget.

Recent
Accounting Pronouncements

Management
does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material
effect on the Company’s unaudited interim consolidated financial statements.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution
which, at times may exceed the Federal depository insurance coverage of $250,000. As of June 30, 2025, the Company had not experienced
losses on this account and management believes the Company is not exposed to significant risks on such account. As of June 30, 2025 and
December 31, 2024, the Company had $469 and $66,985 cash, respectively, held in operating bank account.

    12

Net
Income (Loss) Per Share

Net
income (loss) per