Embrace Change Acquisition Corp. reported its financial results for the third quarter of 2025, revealing a net income of $18,447 for the three months ending September 30, 2025, compared to a net income of $227,631 for the same period in 2024. For the nine months ended September 30, 2025, the company experienced a net loss of $169,811, a significant decline from a net income of $1,212,138 in the prior year. The decrease in profitability is attributed to a rise in operating costs, which totaled $998,347 for the nine-month period, compared to $478,567 in 2024. Investment income from cash and investments held in the Trust Account also fell to $831,949 from $2,072,719 year-over-year.
The company's total assets as of September 30, 2025, amounted to $27.5 million, a slight increase from $26.2 million at the end of 2024. However, total liabilities surged to $33.7 million, up from $5.9 million, primarily due to an increase in accounts payable and accrued expenses, as well as a significant amount due to redeemed public shareholders totaling $26.3 million. The company’s stockholders’ deficit widened to $7.4 million from $5.8 million, reflecting the ongoing challenges in achieving a successful business combination.
Strategically, Embrace Change Acquisition Corp. is in the process of finalizing a merger agreement with Tianji Tire Global (Cayman) Limited, which was amended on October 16, 2025, to extend the deadline for completing the business combination to August 12, 2026. The merger is expected to involve the issuance of 45 million ordinary shares valued at $450 million to Tianji shareholders. The company has also been actively managing its liquidity, receiving $275,000 from Tianji for working capital and extension deposits, and has incurred additional debts totaling $1.9 million from various sources, including its Chief Financial Officer and third-party loans.
Operationally, the company has not yet commenced any revenue-generating activities, as it remains focused on identifying and evaluating potential acquisition targets. As of September 30, 2025, Embrace Change had a cash balance of $5,431 outside of its Trust Account, which is significantly lower than the $66,985 reported at the end of 2024. The company continues to face substantial uncertainty regarding its ability to complete a business combination by the extended deadline, raising concerns about its ability to continue as a going concern. The management has indicated that if the business combination is not completed by August 12, 2026, the company may be required to liquidate and redeem public shares, which could further impact its financial position.
About Embrace Change Acquisition Corp.
Embrace Change Acquisition Corp. is a blank check company focused on mergers, share exchanges, and acquisitions primarily targeting technology, internet, and consumer sectors. Based in the U.S. and incorporated in the Cayman Islands, it seeks to identify established, cash-flow-positive businesses with strong management and industry influence worldwide, excluding China. The company aims to create value through strategic business combinations and operates with a flexible, management-driven approach.
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