Company: EMCRF
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003812
Chunk: 78

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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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 March 31, 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 March 31, 2025 and 2024, the Company recorded $1,125 and $0 in interest expenses under the promissory note - third party. As of March 31, 2025 and December 31, 2024, the total outstanding under the promissory note - third party was $55,789 and $54,664, respectively.

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, 2025 (subject to the Amended Extension Payment is made as required for each monthly extension.   There
have been deposits of $150,000 for required extension payments to extend the Termination Date to October 12, 2024. The Company has the
right to further extend the Termination Date by depositing $75,000 per month, up to ten additional times, through August 12, 2025. As
of the date of these unaudited interim consolidated financial statements are issued, $600,000 of the required extension payments, to extend
the Termination Date to June 12, 2025, 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 the Company’s ability to continue
as a going concern within one year after the date that the unaudited interim consolidated financial statements are issued. The unaudited
interim consolidated financial statements do