Company: KCHVR
Filing Date: 2025-07-09
Form Type: 10-Q
Source: 0001213900-25-062351
Chunk: 48

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-07-09
Form: 10-Q
Item: Part I, Item 8
Chunk 48
---
 average shares were reduced for the effect of an aggregate of 1,100,000 ordinary shares that would have been subject to forfeiture
had the over-allotment option not been exercised by the underwriters (see Note 5). At March 31, 2025, the Company did not have any
dilutive securities and other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the
earnings of the Company. As a result, diluted loss per ordinary share is the same as basic loss per ordinary share for the period presented.

Share-based Compensation

The Company records share-based compensation
in accordance with FASB ASC Topic 718, “Compensation-Share Compensation” (“ASC 718”), guidance to account for
its share-based compensation. It defines a fair value-based method of accounting for an employee share option or similar equity instrument.
The Company recognizes all forms of share-based payments at their fair value on the grant date, which are based on the estimated number
of awards that are ultimately expected to vest. Share-based payments are valued by multiplying the marketable value per Founder Share
(defined in Note 5) by the probability of successful closing of an initial business combination. Grants of share-based payment awards
issued to non-employees for services rendered have been recorded at the fair value of the share-based payment, which is the more readily
determinable value. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting
period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related
to the termination of service. Share-based compensation expenses are included in costs and operating expenses depending on the nature
of the services provided in the unaudited condensed statement of operations.

8

KOCHAV DEFENSE ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

(Unaudited) 

Share Rights

The Company accounted for the Public and Private
Placement Rights (as defined in Note 3 and 4) issued in connection with the Initial Public Offering and the private placement in accordance
with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company evaluated and classified
the Share Rights under equity treatment at their assigned values. There are no Public Rights or Private Placement Rights outstanding as
of March 31