Company: KCHVR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076631
Chunk: 17

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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s allocated to Rights 
        
     (5,313,000)
  
    Class A Ordinary Shares issuance costs 
        
     (10,779,819)
  
    Plus: 

    Accretion of Class A Ordinary Shares to redemption amount 
        
     17,012,182 
  
    Class A Ordinary Shares subject to possible redemption, June 30, 2025 
     25,300,000  
    $253,919,363 

Public Rights

The Company accounted for the Rights 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 Public Rights under equity treatment at their
assigned values. There are 25,300,000 Public Rights and 524,050 Private Placement Rights outstanding as of June 30, 2025.

10

KOCHAV DEFENSE ACQUISITION CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

Net Income Per Ordinary Share

The Company complies with accounting and disclosure
requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of Ordinary Shares, Class A Ordinary
Shares and Class B Ordinary Shares. Income and losses are shared pro rata between the two classes of Ordinary Shares. This presentation
assumes an initial Business Combination as the most likely outcome. Net income per Ordinary Share is calculated by dividing the net income
by the weighted average Ordinary Shares outstanding for the respective period.

At June 30, 2025, the calculation of diluted net
income does not consider the effect of the Rights in the calculation of diluted income per Ordinary Share because their exercise is contingent
upon future events. Accretion associated with the redeemable Class A Ordinary Shares is excluded from earnings per share as the redemption
value approximates fair value. At June 30, 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.

The following tables present a reconciliation
of the numerator and denominator used to compute basic and diluted net income per Ordinary Share for each class of Ordinary Share:

    For the Three Months Ended
 June 30, 2025  
    For the Period from January