Company: CHPG
Filing Date: 2025-07-07
Form Type: 10-Q
Source: 0001213900-25-061810
Chunk: 52

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-07-07
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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 of the unaudited financial statements
in conformity with US 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 unaudited financial statements and the reported amounts of expenses
during the reporting period. Actual results could differ 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 had $2,532 and $3 cash in bank
as of March 31, 2025 and December 31, 2024, respectively.

8

Deferred Offering Costs

The Company complies with the requirements of
ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — Expenses of Offering.
Deferred offering costs consist of legal, and other costs (including underwriting discounts and commissions) incurred through the balance
sheet date that are directly related to the IPO and that will be charged to shareholders’ equity upon the completion of the IPO.

Net Loss Per Ordinary Share

Net loss per ordinary share is computed by dividing
net loss by the weighted average number of Class B ordinary shares outstanding during the period, excluding ordinary shares subject
to forfeiture by the Sponsor. Weighted average shares were reduced for the effect of an aggregate of 283,064 shares of ordinary share
that are subject to forfeiture if the over-allotment option is not exercised by the underwriters (see Note 5). As of March 31, 2025,
the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into ordinary
share and then share in the earnings of the Company. As a result, diluted loss per share is the same as basic loss per share for the period
presented.

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates
the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

The Company applies ASC 820, which establishes
a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an
exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or