Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 79

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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267 of other offering costs.

For
the period from January 7, 2025 (inception) through September 30, 2025, cash used in operating activities was $368,474. Net income of
$3,200,487 was affected by dividends earned on investments held in Trust Account of $3,559,148 and payment of operation costs through
the IPO Promissory Note of $53,945. Changes in operating assets and liabilities used $63,758 of cash for operating activities.

As
of September 30, 2025, we had marketable securities held in the Trust Account of $256,559,148 (including approximately $3,556,148 of
interest income earned to date). We may withdraw interest from the Trust Account to pay taxes, if any. We intend to use substantially all of the
funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (which interest shall be
net of taxes payable, if any, and exclude the Deferred Fee), to complete our Business Combination. To the extent that our share
capital or debt is used, in whole or in part, as consideration to complete our Business Combination, the remaining proceeds held in
the Trust Account will be used as working capital to finance the operations of the target business or businesses, make other
acquisitions and pursue our growth strategies.

To
mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases
the longer that we hold investments in the Trust Account, we may, at any time, (based on our Management Team’s ongoing assessment
of all factors related to our potential status under the Investment Company Act) instruct the Continental to liquidate the investments
held in the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest-bearing demand deposit account
at a bank.

As
of September 30, 2025, we had cash held outside of the Trust Account of approximately $$831,515 and a working capital surplus of $823,938.
We use the funds held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence
on prospective target businesses, travel to and from the offices, plants, or similar locations of prospective target businesses or their
representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate
and complete a Business Combination.

Our
liquidity needs through September 30,