Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 43

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 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.

23

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, 2026 (as of the date of these unaudited interim consolidated
financial statements are issued, $75,000 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