Financial Performance - The company reported a net income of $820,420 for the three months ended June 30, 2023, compared to a net income of $0 for the same period in 2022, indicating a significant improvement[10]. - Basic and diluted net income per ordinary share was $0.08 for the three months ended June 30, 2023, compared to $0.00 for the same period in 2022[10]. - For the six months ended June 30, 2023, the company reported a net income of $1,514,474, consisting of investment income of $1,763,533 and operating costs of $249,059[98]. Assets and Liabilities - As of June 30, 2023, total assets amounted to $78,627,171, an increase from $76,944,986 as of December 31, 2022, reflecting a growth of approximately 2%[8]. - Cash and marketable securities held in the trust account were $78,304,986 as of June 30, 2023, compared to $76,541,453 as of December 31, 2022, showing an increase of about 2.3%[8]. - The accumulated deficit increased to $(2,590,306) as of June 30, 2023, from $(2,341,247) as of December 31, 2022, representing a deterioration of approximately 11%[8]. - Total current liabilities increased to $324,762 as of June 30, 2023, from $157,051 as of December 31, 2022, indicating an increase of approximately 106%[8]. - The Company had $287,183 in cash in its operating bank account as of June 30, 2023, compared to $403,012 as of December 31, 2022[34][41]. Initial Public Offering (IPO) - The Initial Public Offering generated gross proceeds of $73,928,550, with offering costs amounting to $3,898,030[22]. - The Initial Public Offering (IPO) on August 12, 2022, generated gross proceeds of $73,928,550 from the sale of 7,392,855 Units, with offering costs amounting to $3,898,030[60][61]. - Following the IPO, $75,776,764 was placed in a trust account, which includes net proceeds from the IPO and a private placement[101]. - The Company incurred offering costs of approximately $3,898,030 related to the IPO, which included $2,587,499 for deferred underwriting commissions[61]. Business Combination and Operations - The company has not yet commenced any operations and will not generate operating revenues until after the completion of its initial Business Combination[21]. - The Company will redeem 100% of the outstanding Public Shares at a per-share price equal to the aggregate amount in the Trust Account if a Business Combination is not completed within the Combination Period[32]. - The Company will only proceed with a Business Combination if it has net tangible assets of at least $5,000,001 immediately prior to consummation[25]. - The Company expects to incur significant costs in pursuit of its financing and acquisition plans, raising substantial doubt about its ability to continue as a going concern if it fails to complete a Business Combination[36]. - The Company has not selected any specific business combination target and has not initiated substantive discussions with any potential targets[92]. - The company has not generated any operating revenues to date and will not do so until after completing its initial business combination[97]. Shareholder Information - The company had 8,138,038 ordinary shares issued and outstanding as of August 11, 2023[5]. - On August 9, 2023, 1,550,710 ordinary shares were tendered for redemption, leaving 8,138,038 ordinary shares outstanding[29]. - The weighted average number of ordinary shares outstanding for the six months ended June 30, 2023, was 9,688,748, compared to 1,848,214 for the same period in 2022[58]. - The Company issued an aggregate of 2,156,250 founder shares to the Sponsor for a total purchase price of $25,000, resulting in 1,848,214 shares outstanding post-IPO[65]. - A total of 1,550,710 ordinary shares were tendered for redemption during the extraordinary general meeting, leaving 8,138,038 ordinary shares[94]. Financial Obligations and Risks - The Company expects to incur approximately $500,000 in expenses for legal, accounting, and due diligence related to its initial business combination[104]. - The Company has the right to extend the Combination Period 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 for each extension[29][30]. - The Company has not borrowed any amounts under Working Capital Loans as of June 30, 2023, which could be up to $500,000 convertible into additional Private Units upon a Business Combination[69]. - There have been no material changes in risk factors since the last report, and no off-balance sheet arrangements exist[107][114]. - The Company expects to incur significant costs in pursuing its acquisition plans and cannot assure the success of completing a Business Combination[93].
Embrace Change Acquisition (EMCG) - 2023 Q2 - Quarterly Report