Company: CHPG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077011
Chunk: 64

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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,540) 
    $-  
    $(64,677)
  
    Denominators: 

    Basic and diluted weighted average shares outstanding 
     1,328,889  
     1,998,242  
     -  
     1,887,097(1)(2) 
  
    Basic and diluted net loss per ordinary share 
    $(0.06) 
    $(0.06) 
    $        -  
    $(0.03)

(1)Excludes up to 283,064 of the Class B ordinary shares that were subject to surrender by the Sponsor for
no consideration depending on the extent to which the underwriters’ over-allotment is exercised (see Note 5). On May 29, 2025, the
Company consummated the Initial Public Offering of 7,475,000 units at $10.00 per unit, which includes the full exercise of the underwriter’s
over-allotment option, therefore the 283,064 Class B ordinary shares are no longer subject to forfeiture.

(2)Gives retroactive effect to forfeiture of 4,507,258 shares issue to the Sponsor at par value on April
30, 2025. 

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures” (“ASC
820”), approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

9

The Company applies ASC 820, which establishes
a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an
exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or
most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established
in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring
fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed
based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own
assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing
the asset or liability and are