Company: CHPG
Filing Date: 2025-05-06
Form Type: S-1/A
Source: 0001213900-25-039846
Chunk: 296

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-05-06
Form: S-1/A
Chunk 296
---
option is not exercised in full or in part, so that its insiders will collectively own 22.5% of its issued and outstanding shares after this offering (without given effect to the sale of the private units and representative shares, and assuming its insiders do not purchase Units in this offering). None of the Company’s insiders has indicated any intention to purchase Units in this offering. On May 15, 2024, the Sponsor entered into a securities transfer agreement, pursuant to which the Sponsor transferred 100,000 insider shares, which equated to 4.6% of the 2,170,161 Class B ordinary shares, at the purchase price of $1,159.42 to Bala Padmakumar, the CEO, Chairman and Director of the Company and 60,000 insider shares at the purchase price of $695.65 to Evan M. Graj, the CFO and director of the Company, respectively. The fair value of these 160,000shares transferred on the grant date was $33,760 or $0.211 per share per valuation performed by a third -partyspecialist. Stock compensation expense was $31,905 for the period from March 27, 2024 (inception) through December 31, 2024. The Company accounted for the transfer under ASC 718 stock compensation (See Note 2 for details). The share price was calculated using a scenario -basedmethod, incorporating probabilities of both a de -SPACand an IPO, with the total unit value reaching $10 and the right valued at one -eighthof the share price. Based on these probabilities, an indicated per share marketable value for the Founders Shares was determined, and a discount for F-12

CHAMPIONSGATE ACQUISITION CORPORATION
NOTES TO FINANCIAL STATEMENTS Note 5 — Related Party Transactions (cont.) lack of marketability, derived from the Finnerty model, was applied to yield a minority non -marketablefair value. The following criteria presents the quantitative information regarding market assumptions used in the founder share valuation performed by a third -partyspecialist:

|                                          |     | May 15, 
 2024    |       |   |
|:-----------------------------------------|:----|:--------|------:|:--|
| Estimated Volatility                     |     |         | 102.5 | % |
| Risk-free rate                           |     |         |  4.67 | % |
| Spot price                               |     |