Company: EMCRF
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003812
Chunk: 59

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 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 March 31, 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 March 31, 2025 and December 31, 2024, the Company had $17,229
and $66,985
cash, respectively, held in operating bank account.

Net
                                                                                                                                                    Income (Loss) Per Share

Net income (loss) per share is computed by
dividing net income (loss) by the weighted average number of ordinary shares outstanding for the period. The calculation of diluted
income (loss) per share does not consider the effect of the warrants issued in connection with the Initial Public Offering (the
“Public Warrants”) and warrants issued as components of the Private Placement Units (the “Private Warrants”)
since the exercise of the warrants are contingent upon the occurrence of future events. As a result, diluted income (loss) per share
is the same as basic income (loss) per share for the periods.

    13

The following table reflects the calculation of
basic and diluted net income (loss) per ordinary share:

Schedule of Basic and Diluted Net Income
(Loss) Per Share

    Summary of Basic and Diluted Net Loss Per Share

    For the three
        months ended
        March 31,
        2025

    For the three
        months ended
        March 31,
        2024

    Net
    income (loss)
     
    $
    (89,624
    )
     
    $
    307,277

    Denominator: weighted average number of ordinary shares

    4,