Embrace Change Acquisition Corp., classified as a shell company, reported its financial performance for the six months ended June 30, 2024, revealing a net income of $984,507, a decrease from $1,514,474 in the same period of the previous year. The decline in net income is attributed to a reduction in investment income, which fell to $1,490,735 from $1,763,533, alongside increased operating costs of $127,727 compared to $249,059 in the prior year.

As of June 30, 2024, the company held cash of $4,532, down from $5,308 at the end of 2023. However, marketable securities in the trust account increased to $58.0 million from $56.2 million, contributing to total assets of $58.1 million, up from $56.2 million at the end of the previous fiscal year. Total liabilities also rose to $5.0 million from $4.1 million, with current liabilities increasing significantly to $2.1 million from $1.5 million.

The accumulated deficit expanded to $(4.9 million) as of June 30, 2024, compared to $(4.1 million) at the end of 2023. The total stockholders’ deficit similarly increased to $(4.9 million) from $(4.1 million).

In terms of financing activities, the company reported net cash provided of $540,525 for the six months ended June 30, 2024, compared to no financing activities in the same period of 2023. This included proceeds from convertible promissory notes amounting to $451,000, which were not present in the previous year.

The company has not yet commenced any operations and does not expect to generate operating revenues until a business combination is completed. As of June 30, 2024, the company had 4,520,024 ordinary shares outstanding, with 5,127,282 shares subject to possible redemption, down from 7,392,855 shares sold in the IPO.

Recent strategic developments include the extension of the Combination Period to August 12, 2025, allowing for additional time to identify and complete a business combination. Shareholders approved this extension during the Second Extraordinary General Meeting held on August 12, 2024, where 2,903,151 ordinary shares were tendered for redemption.

The company continues to face challenges, including compliance issues with Nasdaq regarding listing requirements and the need for a business combination to avoid liquidation. The management has indicated that the company’s ability to continue operations is contingent upon completing a business combination by the extended deadline.