Company: CHPG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077011
Chunk: 32

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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001 for the issuance of the 2,170,161 insider shares less the consideration price of $2,551 to be received from directors and officers
in exchange for the transfer of certain insider shares) and up to $500,000 in loans from our sponsor under an unsecured promissory note.

Following the closing of the IPO and sale of the
Private Placement Units on May 29, 2025, a total of $75,123,750 was placed in the trust account, and we had $464,339 of cash held outside
of the trust account, after payment of costs related to the IPO, and available for working capital purposes. In connection with the IPO,
we incurred $3,259,220 in transaction costs, consisting of $745,500 of underwriting fees, $1,495,000 of deferred underwriting fees, $293,020
of the Representative Shares, and $723,700 of other offering costs.

In conjunction with the IPO, the Company issued
to the underwriter 112,125 Class A ordinary shares for no consideration (the “Representative Shares”). The fair value of the
Representative Shares accounted for as compensation under the Financial Accounting Standards Board’s Accounting Standards Codification
(“ASC”) 718, “Compensation – Stock Compensation” (“ASC 718”) is included in the offering costs.
The estimated fair value of the Representative Shares as of the IPO date totaled $293,020.

As of June 30, 2025, we had $383,204 in cash and
a working capital of $73,117 excluding deferred offering costs.

18

For the six months ended June 30, 2025, there was $400,679 of cash
used in operating activities resulting from net loss of $187,383, dividend earned on investments held in trust account of $248,334, the
increase in prepaid expenses of $106,832, the increase in prepaid expenses-related parties of $12,500, and the decrease in accounts payable
and accrued expenses of $55,735. The changes were partially offset by stock compensation expense of $155,904 and the increase in due to
related parties of $54,201.

For the period from March 27, 2024 (inception)
through June 30, 2024, there was $51,962 of cash used in operating activities resulting from net loss of $64,677 and the increase in prepaid
expenses of $25,907. The changes