Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 13

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard
at the time private companies adopt the new or revised standard. This may make comparison of the accompanying unaudited condensed financial
statements with another public company that is neither an (i) emerging growth company nor (ii) emerging growth company that has opted
out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. 

Use
of Estimates

The
preparation of the accompanying unaudited condensed financial statements in conformity with GAAP requires Management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the accompanying unaudited condensed financial statements and the reported amounts of expenses during the reporting period. Actual
results could differ from those estimates.

8

KOCHAV
DEFENSE ACQUISITION CORP.

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

Making
estimates requires Management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the accompanying unaudited condensed financial statements,
which Management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly,
the actual results could differ significantly from those estimates. 

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access
to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.

Deferred
Offering Costs

The
Company complies with the requirements of FASB ASC Topic 340-10-S99, “Other Assets and Deferred Costs”, and SEC Staff Accounting
Bulletin Topic 5A — “Expenses of Offering.” Deferred offering costs consist principally of professional and registration
fees that are related to the Initial Public Offering. FASB ASC Topic 470-20, “Debt with Conversion and Other Options,” addresses
the allocation of proceeds from the issuance of convertible debt into its equity and debt components. The Company applied this guidance
to allocate Initial Public Offering proceeds from the Units