Company: CSTAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044280
Chunk: 20

Company: Constellation Acquisition Corp I
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 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.

11

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 March 31, 2025 and December 31, 2024.

Cash Held in Trust Account

At March 31, 2025 and December 31, 2024, the assets
held in the Trust Account were held in a bank deposit account. During the three months ended March 31, 2025, the Company withdrew $27,428,399
from the Trust Account in connection with the redemption.

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 warrants meet the definition of a derivative
as contemplated in ASC 815, the warrants are recorded as derivative liabilities on the balance sheets and measured at fair value at inception
(on the date of the IPO) and at each reporting date in accordance with ASC 820, “Fair Value Measurement” (“ASC 820”),
with changes in fair value recognized in the unaudited condensed statements of operations in the period of change.

Convertible Promissory Note

The Company analyzed the convertible promissory
notes to assess if the fair value option was appropriate, due to the substantial premium which results in an offsetting entry to additional
paid-in capital and under the