Company: CHPG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077011
Chunk: 70

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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000 Class A insider shares and 1,150,161 Class B insider shares.

12

On May 15, 2024, the Sponsor entered into
a securities transfer agreement, pursuant to which the Sponsor transferred 100,000 Class B insider shares at the purchase price of $1,159.42
to Bala Padmakumar, the CEO, Chairman and Director of the Company, and 60,000 Class B 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 160,000 shares transferred on the grant
date was $33,760 or $0.211 per share per valuation performed by a third-party specialist. The Company accounted for the transfer 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%

Concurrent with the offering, the Sponsor transferred
an aggregate of 60,000 of its Class B insider shares, or 20,000 each to its three independent directors for their board service, for nominal
cash consideration, of $696. The fair value of these 60,000 shares transferred on the grant date was $156,600 or $2.61 per share per valuation
performed by a third-party specialist. The Company accounted for the transfer 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