Company: CSTAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044280
Chunk: 85

Company: Constellation Acquisition Corp I
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 85
---
fair value basis, compared to total proceeds received. Offering costs associated with warrant liabilities are expensed as incurred, presented
as non-operating expenses in the unaudited condensed statements of operations. Transaction costs amounted to $17,586,741, of which
$1,143,138 was allocated to expense associated with the warrant liability. Offering costs associated with the Class A ordinary shares
were charged to temporary equity upon the completion of the IPO. 

12

Class A Ordinary Shares Subject to Possible
Redemption

All of the 31,000,000 Class A ordinary
shares sold as part of the Units in the IPO contain a redemption feature which allows for the redemption of such Public Shares in connection
with the Company’s liquidation, if there is a shareholder vote or tender offer in connection with the Business Combination and in
connection with certain amendments to the Company’s amended and restated memorandum and articles of association. In accordance with
the SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions
not solely within the control of the Company require ordinary shares subject to redemption to be classified outside of permanent equity.
Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded
from the provisions of ASC 480. Accordingly, at March 31, 2025 and December 31, 2024, 64,302 and 4,493,843 Class A ordinary shares
subject to possible redemption were presented as temporary equity, outside of the shareholders’ deficit section of the Company’s
balance sheets, respectively.

The Company recognizes changes in redemption value
immediately as they occur and adjusts the carrying value of the Class A ordinary shares subject to possible redemption to equal the redemption
value at the end of each reporting period. Increases or decreases in the carrying amount of the Class A ordinary shares subject to possible
redemption are affected by charges against additional paid-in capital and accumulated deficit.

The Class A ordinary shares subject to possible redemption reflected
on the balance sheets as of March 31, 2025 and December 31, 2024 are reconciled in the following table:

    Class A ordinary shares subject to possible redemption as of December 31, 2023 
    $49,857,596 
  
    Plus: 

    Accretion of carrying value to redemption value 
     1,936,948 
  
    Less: