Company: CSTAF
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110128
Chunk: 22

Company: Constellation Acquisition Corp I
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 22
---
 to one or more future confirming events. One of the more significant accounting estimates included in these
unaudited condensed financial statements is the determination of the fair value of the warrant liability. Such estimates may be subject
to change as more current information becomes available and, accordingly, the actual results could differ significantly from those estimates.

11

Cash and Cash Equivalents

The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents
as of September 30, 2025 and December 31, 2024.

Cash Held in Trust Account

At September 30, 2025 and December 31, 2024,
the assets held in the Trust Account were held in a bank deposit account. During the nine months ended September 30, 2025, the Company
withdrew $27,428,399 from the Trust Account in connection with the redemption on January 27, 2025.

Concentration of Credit Risk 

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of cash accounts and a Trust Account in a financial institution, which, at times,
may exceed the Federal Deposit Insurance Corporation coverage of $250,000. Any loss incurred or a lack of access to such funds could
have a significant adverse impact on the Company’s financial condition.

Warrant Liabilities

The Company evaluated the Public Warrants and
Private Placement Warrants (collectively, “warrants,” which are discussed in Notes 3, 4, and 8) in accordance with ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity”
(“ASC 815-40”), and concluded that a provision in the warrant agreement, dated January 26, 2021, related to certain tender
or exchange offers precludes the warrants from being accounted for as components of equity. As the warrants meet the definition of a
derivative as contemplated in ASC 815, the warrants are recorded as derivative liabilities on the balance sheets and measured at fair
value at inception (on the date of the IPO) and at each reporting date in accordance with ASC 820, “Fair Value Measurement”
(“ASC 820”), with changes in fair value recognized in the unaudited condensed statements of operations in the period of change.

Convertible Promissory Note

The Company analyzed the convertible promissory
notes to assess if the fair value option was appropriate, due