Company: CHPG
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111468
Chunk: 75

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 8
Chunk 75
---
000 of its Class B insider shares, or 20,000 each to its three independent directors for their board service, for nominal
cash consideration, of $696. The fair value of these 60,000 shares transferred on the grant date was $156,600 or $2.61 per share per valuation
performed by a third-party specialist. The Company accounted for the transfer under ASC 718 stock compensation (See Note 2 for
details).

 The share price was calculated using a scenario-based
method, incorporating probabilities of both a business combination and an IPO, with the total Unit value reaching $10 and the Right valued
at one-eighth of the share price. Based on these probabilities, an indicated per share marketable value for the Founders Shares was determined,
and a discount for lack of marketability, derived from the Finnerty model, was applied to yield a minority non-marketable fair value.
The following criteria presents the quantitative information regarding market assumptions used in the founder share valuation performed
by a third-party specialist:

    May 29,  2025 
  
    Per Share Value of Class A Ordinary Shares 
    $8.89 
  
    Probability of Business Combination 
     30.0%
  
    Per Share Value of Class B Ordinary Shares (Marketable Basis) 
    $2.67 
  
    Discount of lack of marketability (DLOM) 
     2.0%

Promissory Note — Related Party

 On April 18, 2024, the Sponsor agreed to
loan the Company up to $500,000 (the “Promissory Note”) to be used for a portion of the expenses of the IPO. This Promissory
Note is non-interest bearing, unsecured and is due at the earlier of (1) August 31, 2025, or (2) the date on which the
Company consummates an initial public offering of its securities, unless accelerated upon the occurrence of an Event of Default. On July
7, 2025, the Company repaid $350,000 under the Promissory Note to Sponsor and transferred the remaining balance of $76,975 to the Working
Capital Loan (defined below). As of September 30, 2025 and December 31, 2024, the Company has an outstanding loan balance of $0 and $331,927,
respectively.

Working Capital Loans

In addition, in order to meet the Company’s
working capital