Company: EMCRF
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024827
Chunk: 15

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 the requirements
that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of
such extended transition period which means that when a standard is issued or revised and it has different application dates for public
or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of the Company’s unaudited interim consolidated financial statements
with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the
extended transition period difficult or impossible because of the potential differences in accounting standards used.

    9

Cash
and Cash Equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had $469 and $66,985, respectively, in cash outside of trust account as of June 30, 2025 and December 31, 2024. The Company
had no cash equivalents as of June 30, 2025 and December 31, 2024.

Cash
and Investments Held in Trust Account

As
of June 30, 2025 and December 31, 2024, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. All
of the Company’s investments held in the Trust Account are classified as trading securities. Trading securities are presented on
the balance sheet at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of investments
held in Trust Account are included in investment income earned on cash and investments held in Trust in the accompanying statements of
operations. The estimated fair values of investments held in Trust Account are determined using available market information. As of June
30, 2025 and December 31, 2024, the estimated fair values of cash and investments held in Trust Account was $26,781,718 and $26,087,209,
respectively.

Fair
Value of Financial Instruments

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value
Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheets, primarily due
to their short-term nature.

The
Fair value is defined as the price that would be received for sale of an asset