Embrace Change Acquisition Corp., classified as a shell company, reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company had 4,520,024 ordinary shares outstanding, with 2,224,131 shares subject to possible redemption. As of September 30, 2024, cash increased to $13,053 from $5,308 at the end of 2023, while total current assets surged to $33,303 from $5,308. However, total assets decreased to $25.8 million from $56.2 million, primarily due to a reduction in marketable securities held in the trust account, which fell to $25.8 million from $56.2 million.

Total current liabilities rose to $2.8 million from $1.5 million, contributing to an increase in total liabilities to $5.8 million from $4.1 million. Consequently, the total stockholders’ deficit widened to $(5.7 million) from $(4.1 million).

For the three months ended September 30, 2024, the company reported a net income of $227,631, down from $454,799 in the same period of 2023. Investment income decreased to $581,984 from $942,835, while operating costs were $350,840 compared to $488,036 a year earlier. For the nine months ended September 30, 2024, net income was $1.2 million, a decline from $2.0 million in the prior year, attributed to lower investment income and increased operating costs.

The company withdrew $33.3 million from the trust account for redemptions in the nine months ended September 30, 2024, compared to $15.4 million in the same period of 2023. Additionally, it reported a net cash increase of $7,745 for the nine months ended September 30, 2024, contrasting with a net cash decrease of $(393,804) in the previous year.

Strategically, the company has extended its Combination Period to August 12, 2025, allowing for up to twelve one-month extensions. This decision was made during a general meeting where shareholders approved amendments to the Articles of Association, including the removal of restrictions on business combinations with entities based in China. The company has also faced compliance challenges with Nasdaq, regaining compliance with filing requirements on September 16, 2024.

As of September 30, 2024, the company had outstanding convertible promissory notes totaling $851,112, reflecting its ongoing financing needs. The company continues to seek a business combination, with no specific target selected as of the reporting date.