Company: CSTAF
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027555
Chunk: 554

Company: Constellation Acquisition Corp I
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1C
Chunk 554
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The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting
period. Accordingly, actual results could differ from those estimates.

Making estimates requires management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near
term due to one or more future confirming events. One of the more significant accounting estimates included in these financial statements
is the determination of the fair value of the warrant liability and convertible promissory notes. Such estimates may be subject to change
as more current information becomes available and, accordingly, the actual results could differ significantly from those estimates.

Cash and cash equivalents

The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents
as of December 31, 2024 and 2023.

Cash Held in Trust Account

At December 31, 2024 and 2023, the assets held
in the Trust Account were held in a bank deposit account. During the year ended December 31, 2024, the Company withdrew $23,671,533 from
the Trust Account in connection with the redemption.

F-13

Concentration of Credit Risk 

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of cash accounts and a Trust Account in a financial institution, which, at times,
may exceed the Federal Deposit Insurance Corporation coverage of $250,000. Any loss incurred or a lack of access to such funds could have
a significant adverse impact on the Company’s financial condition.

Warrant Liabilities

The Company evaluated the public warrants and
private placement warrants (collectively, “warrants,” which are discussed in Notes 3, 4, and 8) in accordance with Accounting
Standards Codification (“ASC”) 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity”
(“ASC 815-40”), and concluded that a provision in the warrant agreement, dated January 26, 2021, related to certain tender
or exchange offers precludes the warrants from being accounted for as components of equity. As the