Company: CHPG
Filing Date: 2025-07-07
Form Type: 10-Q
Source: 0001213900-25-061810
Chunk: 15

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-07-07
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 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 15,  2024 
  
    Estimated Volatility 
     102.5%
  
    Risk-free rate 
     4.67%
  
    Spot price 
    $9.639 
  
    Discount of lack of marketability (DLOM) 
     27.02%

12

Promissory Note — Related Party

On
April 18, 2024, the Sponsor agreed to loan the Company up to $500,000 (the “Promissory Note”) to be used for a portion
of the expenses of the IPO. As of March 31, 2025 and December 31, 2024, the Company has an outstanding loan balance of $417,147
and $331,927, respectively. This Promissory Note is non-interest bearing, unsecured and is due at the earlier of (1) December 31,
2024, subsequently amended to August 31, 2025, or (2) the date on which the Company consummates an initial public offering
of its securities, unless accelerated upon the occurrence of an Event of Default.

Working Capital Loans

In addition, in order to meet the Company’s
working capital needs following the consummation of the IPO if the funds not held in the trust account are insufficient, or to extend
its life, its insiders, officers and directors or their affiliates/designees may, but are not obligated to, loan the Company funds, from
time to time or at any time, in whatever amount they deem reasonable in their sole discretion. Each loan would be evidenced by a promissory
note. The notes would either be paid upon consummation of the Company’s initial Business Combination, without interest, or, at the
lender’s discretion, up to $1,500,000