Financial Performance - The company reported a net income of $694,054 for the three months ended March 31, 2023, compared to no income for the same period in 2022[11]. - Basic and diluted net income per ordinary share was $0.07 for the three months ended March 31, 2023, while there was no income per share in the prior year[11]. - For the three months ended March 31, 2023, the company reported a net income of $694,054, consisting of investment income of $822,317 and operating costs of $128,263[91]. Assets and Liabilities - As of March 31, 2023, total assets amounted to $77,762,253, an increase from $76,944,986 as of December 31, 2022, reflecting a growth of approximately 1.06%[8]. - Cash and marketable securities held in the trust account totaled $77,363,770 as of March 31, 2023, compared to $76,541,453 at the end of 2022, indicating a slight increase of 1.07%[8]. - Total current liabilities increased to $280,264 as of March 31, 2023, from $157,051 at the end of 2022, representing an increase of approximately 78.3%[8]. - The accumulated deficit grew to $(2,469,510) as of March 31, 2023, compared to $(2,341,247) at the end of 2022, reflecting an increase of about 5.5%[12]. Initial Public Offering (IPO) - The initial public offering generated gross proceeds of $73,928,550, with offering costs amounting to $3,898,030[23]. - 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 on August 12, 2022[59]. - Transaction costs for the IPO amounted to $3,898,030, including $739,286 in upfront underwriting fees and a deferred discount of $2,587,499[111]. - A total of $75,776,764 of net proceeds from the IPO and Private Placement was deposited in a trust account for public shareholders, including $72,039,264 from the IPO[110]. Shareholder Information - The company had 9,688,748 ordinary shares outstanding as of May 16, 2023, up from 1,848,214 shares in the same period last year[5]. - The Company will allow shareholders to redeem Public Shares at a pro rata amount of $10.25 per share, plus any interest earned, upon completion of a Business Combination[28]. - The Company had no amounts outstanding under any Working Capital Loan as of March 31, 2023[34]. - The Company is authorized to issue 500,000,000 ordinary shares with a par value of $0.0001 per share[74]. Business Operations and Future Plans - The company has not yet commenced any operations and will not generate operating revenues until after completing its initial business combination[22]. - The Company expects to incur significant costs in pursuing its financing and acquisition plans, raising concerns about its ability to continue as a going concern if a Business Combination is not completed within the specified timeframe[35]. - The Company has until 12 months from the IPO closing to complete a Business Combination, extendable to 18 months if necessary[30]. - The company expects to incur approximately $500,000 for legal, accounting, and due diligence expenses related to structuring and negotiating business combinations[97]. Risk Factors - The company is classified as an emerging growth company and is subject to risks associated with early-stage companies[22]. - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[38]. - There have been no material changes to the previously disclosed risk factors as of the date of this report[106].
Embrace Change Acquisition (EMCG) - 2023 Q1 - Quarterly Report