Financial Performance - The company reported a net income of $1,514,474 for the six months ended June 30, 2023, compared to $0 for the same period in 2022[6]. - Basic and diluted net income per ordinary share for the six months ended June 30, 2023, was $0.16, up from $0.00 in the prior year[6]. - The Company reported a net income of $820,420 for the three months ended June 30, 2023, resulting in a basic and diluted net income per ordinary share of $0.08[46]. - The Company had a net income of $1,514,474 for the six months ended June 30, 2023, compared to a net loss of $0 for the same period in 2022, driven by investment income of $1,763,533 and operating costs of $249,059[85]. Assets and Liabilities - Total assets as of June 30, 2023, were $78,627,171, an increase from $76,944,986 as of December 31, 2022, representing a growth of 2.2%[4]. - Cash and marketable securities held in trust account increased to $78,304,986 as of June 30, 2023, compared to $76,541,453 at the end of 2022, marking a rise of 2.3%[4]. - The company had total current liabilities of $324,762 as of June 30, 2023, compared to $157,051 at the end of 2022, indicating an increase of 106.7%[4]. - Accumulated deficit increased to $(2,590,306) as of June 30, 2023, from $(2,341,247) at the end of 2022, reflecting a deterioration of 10.6%[5]. - As of June 30, 2023, the Company had $287,183 in cash in its operating bank account[23]. - As of June 30, 2023, the Company had $287,183 cash held in its operating bank account as of June 30, 2023, with no significant risks identified related to concentration of credit risk[44]. - As of June 30, 2023, the Company had $287,183 in cash on its balance sheet and a working capital deficit of $2,577[89]. Initial Public Offering (IPO) - The Initial Public Offering (IPO) generated gross proceeds of $73,928,550 from the sale of 7,392,855 units at $10.00 per unit[12]. - The Company incurred offering costs of $3,898,030 related to the IPO, including $2,587,499 for deferred underwriting commissions[12]. - The Company incurred offering costs of approximately $3,898,030 related to the Initial Public Offering, which included $739,286 of up-front underwriting fees and a deferred discount of $2,587,499[36]. - The underwriters received a cash underwriting discount of 1.00% of the gross proceeds of the Offering, amounting to $739,286, with a deferred fee of 3.50% totaling $2,587,499 upon closing of the Business Combination[61]. - The Company completed its Initial Public Offering (IPO) on August 12, 2022, raising gross proceeds of $73,928,550 from the sale of 7,392,855 units at $10.00 per unit[86][100]. Business Combination and Future Plans - The Company has the right to extend the business combination period up to twelve times for an additional month each time, with an extension payment of the lesser of $100,000 or $0.045 per outstanding public share[19]. - On August 9, 2023, shareholders approved extending the Combination Period up to twelve times for an additional one month each time, with an Extension Payment of the lesser of $100,000 or $0.045 per outstanding public share[74]. - The Company made a deposit of $100,000 on August 10, 2023, to extend the Combination Period from August 12, 2023, to September 12, 2023[76]. - The Company expects to incur significant costs in pursuit of its financing and acquisition plans, raising concerns about its ability to continue as a going concern if it fails to complete a business combination[25]. - The Company plans to use funds held outside the Trust Account for identifying and evaluating prospective acquisition candidates and related expenses[89]. - The Company has not selected any specific business combination target and has not initiated substantive discussions with any potential targets[80]. Shareholder Information - As of August 9, 2023, 1,550,710 ordinary shares were tendered for redemption, leaving 8,138,038 ordinary shares outstanding[19]. - The Company has 2,295,893 ordinary shares issued and outstanding as of June 30, 2023, excluding 7,392,855 ordinary shares subject to possible redemption[66]. - The Company is authorized to issue 500,000,000 ordinary shares with a par value of $0.0001 per share, with each share entitled to one vote[63]. - The Company issued 1,437,500 ordinary shares to initial shareholders prior to the offering, which increased to 2,156,250 shares after a 0.50 share dividend[64]. Investment and Income - Investment income earned on investments held in the Trust Account for the six months ended June 30, 2023, was $1,763,533, compared to $0 for the same period in 2022[9]. - The Company has not recognized any unrecognized tax benefits as of June 30, 2023, and has a tax provision of zero from inception to the same date[41]. - The Company has not engaged in any operations or generated revenues to date, with future income expected only after completing a business combination[84]. Accounting and Compliance - The Company adopted ASU 2020-06 and ASU 2016-13 accounting standards, with no material impact on its financial statements or results of operations[42][43]. - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[27]. - The Company is classified as an emerging growth company and a smaller reporting company[2].
Embrace Change Acquisition Corp.(EMCGU) - 2023 Q2 - Quarterly Report