Company: CHPG
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111468
Chunk: 19

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 from the date that it becomes probable that the instrument will become
redeemable, if later) to the earliest redemption date of the instrument or (ii) recognize changes in the redemption value immediately
as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The
Company has elected to recognize the changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument
to equal the redemption value at the end of each reporting period.

As of September 30, 2025, the Class A ordinary shares subject to possible
redemption reflected in the balance sheet are reconciled in the following table:

    Gross Proceeds 
    $74,750,000 
  
    Less: 

    Proceeds allocated to Public Rights 
     (2,441,833)
  
    Class A ordinary shares issuance cost 
     (3,135,464)
  
    Plus: 

    Initial measurement of carrying value to redemption value 
     5,951,047 
  
    Remeasurement of carrying value to redemption value 
     1,043,808 
  
    Class A ordinary shares subject to possible redemption, September 30, 2025 
    $76,167,558 

Stock Compensation

The Company accounts for stock-based compensation
expense in accordance with ASC 718, “Compensation — Stock Compensation” (“ASC 718”).
Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon the grant date and
recognized over the requisite service period. To the extent a stock-based award is subject to a performance condition, the amount of expense
recorded in a given period, if any, reflects an assessment of the probability of achieving such performance condition, with compensation
recognized once the event is deemed probable to occur. Forfeitures are recognized as incurred. The Company has recognized stock-based
compensation expense in the amount of $0 for the three months ended September 30, 2025, $155,904 for the nine months ended September 30,
2025, $0 for the three months ended September 30, 2024, and $31,905 for the period from March 27, 2024 (inception) to September 30, 2024.

Income Taxes

The Company accounts for income taxes under ASC 740,
“Income Taxes” (“ASC 740”). ASC 740 requires the recognition of