Company: CHPG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077011
Chunk: 71

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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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 De-SPAC 
     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. As of
June 30, 2025 and December 31, 2024, the Company has an outstanding loan balance of $426,975 and $331,927, respectively. This Promissory
Note was subsequently repaid on July 7, 2025 (see Note 9 for details).

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Working Capital Loans

In addition, in order to meet the Company’s
working capital needs following the consummation of the IPO if the funds not held in the trust account are insufficient, or to extend
its life, its insiders, officers and directors or their affiliates/designees may, but are not obligated to, loan the Company funds, from
time to time or at any time, in whatever amount they deem reasonable in their sole discretion. Each loan would be evidenced by a promissory
note. The notes would either be paid upon consummation of the Company’s initial Business Combination, without interest, or, at the
lender’s discretion, up to $1,500,000 of the notes (“Working Capital Loans”) may be converted upon consummation of the
Company’s