Company: CHPG
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111468
Chunk: 22

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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010,161 insider shares. On May 21,
2025, Sponsor HoldCo converted 800,000 Class B ordinary shares, par value $0.0001 per share, on a one-for-one basis to 800,000 Class A
ordinary shares of the Company, par value $0.0001 per share (the “Class A insider shares”, with the Class B insider shares,
the “insider shares”). As a result, the Sponsor HoldCo owns 800,000 Class A insider shares and 1,150,161 Class B insider shares.

On May 15, 2024, the Sponsor entered into
a securities transfer agreement, pursuant to which the Sponsor transferred 100,000 Class B insider shares, for a total purchase price
of $1,159 to Bala Padmakumar, the CEO, Chairman and Director of the Company, and 60,000 Class B insider shares for a total purchase price
of $695 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, based on valuation performed by a third-party specialist. The Company accounted for
the transfer under ASC 718 stock compensation (See Note 2 for details).

12

The share price was calculated using a scenario-based
method, incorporating probabilities of both a business combination 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, a valuation methodology, 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 IPO, 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