Financial Performance - For the three months ended June 30, 2024, the company reported a net income of $677,230, down from $820,420 in the same period of 2023, primarily due to a decrease in investment income [122]. - For the six months ended June 30, 2024, the company had a net income of $984,507, compared to $1,514,474 for the same period in 2023, reflecting a decline in investment income and an increase in operating costs [123]. - The company has not generated any operating revenues to date and expects increased expenses due to public company compliance requirements [120]. - As of June 30, 2024, the company had cash of $4,532 and a working capital deficit of $1,954,324 [128]. Initial Public Offering (IPO) - The company raised gross proceeds of $73,928,550 from its initial public offering of 7,392,855 units at $10.00 per unit on August 12, 2022 [124]. - The company generated total proceeds of $3,737,500 from a private placement of 373,750 units simultaneously with the IPO [125]. - Transaction costs of the Initial Public Offering amounted to $3,898,030, including $739,286 in up-front underwriting fees and a deferred discount of $2,587,499 [127]. - The underwriter is entitled to a deferred fee of 3.50% of the gross proceeds of the Offering, amounting to $2,587,499, upon closing of the Business Combination [135]. Business Combination and Extensions - The company extended the business combination period to August 12, 2024, by depositing $100,000 into the trust account for each one-month extension, totaling $800,000 for eight extensions [106]. - At the extraordinary general meeting on August 12, 2024, shareholders approved an amendment allowing the company to extend the combination period twelve times for an additional month each time, with a new payment of $75,000 per outstanding public share for each extension [118]. Share Redemption - The company redeemed 1,440,891 ordinary shares at a price of approximately $10.68 per share, totaling $15,385,924, leaving 5,951,964 shares subject to possible redemption after the August 2023 redemption [103]. - As of June 30, 2024, the company had 5,127,282 ordinary shares subject to possible redemption after redeeming 824,682 shares at approximately $10.81 per share for a total of $8,911,074 [105]. Debt and Borrowing - The company borrowed $241,112 and $90,112 in convertible promissory notes as of June 30, 2024, and December 31, 2023, respectively [129]. - On September 8, 2023, the company borrowed $10,000 from the Sponsor, which is repayable upon the consummation of the Business Combination [130]. - From October 2023 to the filing of this Quarterly Report, the company borrowed a total of $841,112 from the Chief Financial Officer for working capital purposes [132]. Financial Position and Liabilities - As of June 30, 2024, the company had no off-balance sheet arrangements or long-term liabilities [134]. - The company does not anticipate any material effect from recently issued accounting pronouncements on its financial statements [137]. - No unaudited quarterly operating data is included in the report as the company has conducted no operations to date [138].
Embrace Change Acquisition Corp.(EMCGU) - 2024 Q2 - Quarterly Report