QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
1 | ||||
1 | ||||
1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 | ||||
17 | ||||
19 | ||||
19 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
21 | ||||
22 |
September 30, 2023 |
December 31, 2022 |
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ASSETS |
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Cash |
$ | $ | ||||||
Other receivables |
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Prepaid expenses |
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Total Current Assets |
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Cash and marketable securities held in trust account |
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Total assets |
$ |
$ |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities |
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Accounts payable and accrued expenses |
$ | $ | ||||||
Convertible promissory note |
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Total current liabilities |
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Deferred underwriter fee payable |
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Total liabilities |
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Commitments and Contingencies (Note 6) |
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Ordinary shares subject to possible redemption, per share and $per share at September 30, 2023 and December 31, 2022, respectively |
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Stockholders’ Deficit |
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Ordinary Shares, par value $ |
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Additional paid-in capital |
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Accumulated deficit |
( |
) |
( |
) | ||||
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Total Stockholders’ Deficit |
( |
) |
( |
) | ||||
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Total Liabilities and Stockholders’ Deficit |
$ |
$ |
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For the three months ended September 30, 2023 |
For the three months ended September 30, 2022 |
For the nine months ended September 30, 2023 |
For the nine months ended September 30, 2022 |
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Formation and operating costs |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
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Loss from operations |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||
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Other income: |
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Investment income earned on investments held in Trust Account |
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Net income (loss) |
$ | $ | ( |
) | $ | $ |
( |
) | ||||||||
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Weighted average shares outstanding, basic and diluted |
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Basic and diluted net income (loss) per ordinary share |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
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Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
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Balance – December 31, 2022 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
Re-measurement of ordinary shares subject to redemption |
— | — | — | ( |
) | ( |
) | |||||||||||||
Net income |
— | — | — | |||||||||||||||||
Balance – March 31, 2023 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
Re-measurement of ordinary shares subject to redemption |
— | — | — | ( |
) | ( |
) | |||||||||||||
Net income |
— | — | — | |||||||||||||||||
Balance – June 30, 2023 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
Re-measurement of ordinary shares subject to redemption |
— | — | — |
( |
) |
( |
) | |||||||||||||
Accretion of offering costs to deficit |
( |
) |
( |
) | ||||||||||||||||
Amount deposited into trust account subject to redemption |
— | — | — | ( |
) | ( |
) | |||||||||||||
Net income |
— | — | — | |||||||||||||||||
Balance – September 30, 2023 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
Ordinary shares |
Additional Paid in Capital |
Accumulated Deficit |
Total Stockholders’ Equity (Deficit) |
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Shares |
Amount |
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Balance – December 31, 2021 |
$ |
$ |
$ |
( |
) |
$ |
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Net income |
— | — | ||||||||||||||||||
Balance – March 31, 2022 |
$ |
$ |
$ |
( |
) |
$ |
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Net income |
— | — | ||||||||||||||||||
Balance – June 30, 2022 |
$ |
$ |
$ |
( |
) |
$ |
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Sale of IPO Unit |
— | |||||||||||||||||||
Sale of Private Placement Units |
— | |||||||||||||||||||
Offering and Underwriting costs |
— | — | ( |
) | — | ( |
) | |||||||||||||
Ordinary shares subject to possible redemption |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
Issuance of representative share |
( |
) | — | — | ||||||||||||||||
Accretion APIC to deficit |
— | — | ( |
) | — | |||||||||||||||
Re-measurement of ordinary shares subject to redemption |
— | — | — | ( |
) | ( |
) | |||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
Balance – September 30, 2022 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
For the Nine Months Ended September 30, |
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2023 |
2022 |
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Cash Flows from Operating Activities: |
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Net income (loss) |
$ | $ | ( |
) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
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Investment income earned on investments held in Trust Account |
( |
) | ( |
) | ||||
Changes in operating assets and liabilities: |
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Other receivables |
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Prepaid expenses |
( |
) | ||||||
Accounts payable and accrued expenses |
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Net cash used in operating activities |
( |
) |
( |
) | ||||
Cash Flows from Investing Activities: |
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Investment of cash in Trust Account |
( |
) | — | |||||
Marketable securities held in Trust Account |
— | ( |
) | |||||
Cash withdrawn from Trust Account in connection with redemption |
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Net cash provided by (used in) investing activities |
( |
) | ||||||
Cash Flows from Financing Activities: |
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Proceeds from sale of units, net of underwriting discount paid |
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Proceeds from sale of private placement units |
— | |||||||
Proceeds from issuance of convertible promissory note |
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Redemption of ordinary shares |
( |
) | ||||||
Payment of promissory note - related party |
( |
) | ||||||
Payment of offering costs |
( |
) | ||||||
Net cash (used in) provided by financing activities |
( |
) |
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Net Change in Cash |
( |
) |
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Cash – Beginning of period |
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Cash – End of period |
$ |
$ |
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Supplemental Disclosures of Noncash Financing Activities |
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Deferred offering costs included in promissory note |
$ | $ | ( |
) | ||||
Accretion of offering costs to deficit |
$ | $ | ||||||
Deferred underwriting fee payable |
$ | $ | ||||||
Initial Valuation of ordinary shares subject to possible redemption |
$ | $ | ||||||
Re-measurement of ordinary shares subject to redemption (1) |
$ | $ | ||||||
Extension funds attributable to ordinary shares subject to redemption |
$ | $ | — | |||||
(1) | The value of ordinary share subject to redemption was re-measured with investment income earned on investments held in Trust Account. |
• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Description |
Quoted Prices in Active Markets (Level 1) |
Significant other Observable Inputs (Level 2) |
Significant other Unobservable Inputs (Level 3) |
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Assets |
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Marketable securities held in trust account |
$ | $ | $ | |||||||||
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Description |
Quoted Prices in Active Markets (Level 1) |
Significant other Observable Inputs (Level 2) |
Significant other Unobservable Inputs (Level 3) |
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Assets |
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Marketable securities held in trust account |
$ | $ | $ | |||||||||
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For the three months ended September 30, 2023 |
For the three months ended September 30, 2022 |
For the nine months ended September 30, 2023 |
For the nine months ended September 30, 2022 |
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Net income (loss) |
$ |
$ | ( |
) |
$ |
$ | ( |
) | ||||||||
Denominator: weighted average number of ordinary shares |
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Basic and diluted net income (loss) per ordinary share |
$ | $ | ( |
) |
$ | $ | ( |
) |
• | at any time while the Warrants are exercisable, |
• | upon not less than |
• | if, and only if, the reported last sale price of the ordinary share equals or exceeds $ |
• | if, and only if, there is a current registration statement in effect with respect to the ordinary share underlying such warrants at the time of redemption and for the entire |
* | These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
Dated: March 1, 2024 | EMBRACE CHANGE ACQUISITION CORP. | |||||
By: | /s/ Zheng Yuan | |||||
Name: | Zheng Yuan | |||||
Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |