Company: KCHVR
Filing Date: 2025-07-09
Form Type: 10-Q
Source: 0001213900-25-062351
Chunk: 16

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-07-09
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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the Sponsor if the holder of such membership interests is no longer serving the Company prior to the initial Business Combination. The
membership interest assignment of the Founder Shares to the holders of such interests are within the scope of FASB ASC Topic 718, “Compensation-Stock
Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured
at fair value upon the assignment date. The total fair value of the 70,000 Founder Shares represented by such membership interests assigned
to the holders of such interests on May 6, 2025 was $102,521, or $1.465 per share. The membership interests were assigned subject to a
performance condition (i.e., providing services through the Business Combination). Share-based compensation will be recognized at the
date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number
of membership interests that ultimately vest times the assignment date fair value per share (unless subsequently modified) less the amount
initially received for the assignment of the membership interests. The Company determined that the initial Business Combination is not
considered probable and therefore no compensation expense has been recognized.

The Founder Shares are designated as Class B
ordinary shares and, except as described below, are identical to the Class A ordinary shares included in the Units  sold in
the Initial Public Offering, and holders of Founder Shares have the same shareholder rights as public shareholders, except that (i) the
Founder Shares are subject to certain transfer restrictions, as described in more detail below, (ii) the Founder Shares are entitled
to registration rights; (iii) the Sponsor, officers and directors have entered into a letter agreement with the Company, pursuant to which
they have agreed to (A) waive their redemption rights with respect to their Founder Shares, private placement shares and public shares
in connection with the completion of the initial Business Combination, (B) waive their redemption rights with respect to their Founder
Shares, private placement shares and public shares in connection with a shareholder vote to approve an amendment to the amended and restated
memorandum and articles of association (A) to modify the substance or timing of the Company’s obligation to allow redemption
in connection with an initial Business Combination or to redeem 100% of the public shares if the Company has not consummated an initial
Business Combination within the Completion Window or (B) with