Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 15

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 prescribes a recognition threshold and a measurement attribute for the financial statements recognition and measurement of tax positions
taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be
sustained upon examination by taxing authorities. Management determined that the Cayman Islands is the Company’s major tax jurisdiction.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of September 30,
2025, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of
any issues under review that could result in significant payments, accruals or material deviation from its position.

The
Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently
not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s
tax provision was zero for the periods presented.

Netting
of Financial Instruments

The
Company’s policy is to offset financial assets and financial liabilities in accordance with FASB ASC Topic 210, “Balance
Sheet Offsetting”, which permits offsetting when the following condition exist: 1) each of two parties owes the other determinable
amounts, 2) the reporting party has the right to set off the amount owed with the amount owed by the other party, 3) the reporting party
intends to set off, and 4) the right of setoff is enforceable at law. As such, the Company reports amount Due to Sponsor and Due from
Sponsor as a net amount on the accompanying unaudited condensed balance sheet.

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 by the probability of successfully closing 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