Company: CHPG
Filing Date: 2025-07-07
Form Type: 10-Q
Source: 0001213900-25-061810
Chunk: 64

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-07-07
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 three independent directors for their board service, for nominal
cash consideration, of $696. The fair value of these 60,000 shares transferred on the grant date was $156,600 or $2.61 per share per valuation
performed by a third-party specialist. On May 29, 2025, the Company recognized a share-based compensation expense of $155,904, net of
the nominal cash consideration of $696 paid by the directors. The Company accounted for the transfer under ASC 718 stock compensation
(See Note 2 for details).

The share price was calculated using a scenario-based
method, incorporating probabilities of both a de-SPAC and an IPO, with the total Unit value reaching $10 and the Right valued at one-eighth
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%

On June 26, 2025, the Sponsor HoldCo agreed to
loan the Company up to $500,000 (the “Working Capital Loan”) to meet the Company’s working capital needs following the
consummation of the IPO. The loan was evidenced by a promissory note that was non-interest bearing and unsecured, and it was to be paid
upon the earlier of (1) the date on which the Company consummates a business combination or merger with a qualified target company, and
(2) the date of the liquidation of the Company. The Sponsor HoldCo has the right, but not the obligation, to convert this loan, in
whole or in part, into private units of the Company, each consisting of one Class A ordinary share, one right to receive one-eighth of
one Class A ordinary share. The number of private units to be received by the Sponsor HoldCo in connection with such