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

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 minimize the use of unobservable inputs when measuring
fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed
based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own
assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing
the asset or liability and are to be developed based on the best information available in the circumstances.

    ●
    Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities.

    ●
    Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.

    ●
    Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities.

The public Rights have been classified within
shareholders’ deficit and will not require remeasurement after issuance. The public Rights were classified within Level 3 of the
fair value hierarchy at the measurement dates due to the use of unobservable inputs inherent in assumptions related to the market adjustments
as noted below. The following table presents the quantitative information regarding market assumptions used in the valuation of the public
Rights:

    May 29, 2025 
  
    Unit value 
    $10.00 
  
    Share price 
    $9.67 
  
    Conversion ratio 
     12.5%
  
    Probability of Business Combination 
     30.0%
  
    Discount of lack of marketability (DLOM) 
     2.0%
  
    Fair value of each right 
    $0.33 

The following table presents information about
the Company’s assets that are measured at fair value on September 30, 2025 and December 31, 2024 and indicates the fair value hierarchy
of the valuation inputs the Company utilized to determine such fair value.

    September 30, 2025 
    Carrying Value  
    Quoted Prices in Active Markets (Level 1)  
    Significant Other Observable Inputs  (Level 2)  
    Significant  Other Unobservable Inputs