Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 73

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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    ●
    “Level
    3”, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own
    assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers
    are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the
    fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based
    on the lowest level input that is significant to the fair value measurement.

At
September 30, 2025, investments held in the Trust Account were held in mutual funds that are invested primarily in money market funds.
Investments held in the Trust Account are classified as trading securities. Trading securities are presented on the accompanying unaudited
condensed balance sheet at fair value at the end of the reporting period. The estimated fair values of investments held in Trust Account
are determined using available market information. Fair values of these investments are determined by Level 1 inputs utilizing quoted
prices (unadjusted) in active markets for identical assets.

17

KOCHAV
DEFENSE ACQUISITION CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

The
following table presents information about the Company’s assets that are measured at fair value as of September 30, 2025, and indicates
the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

    Level  
    September 30, 2025 
  
    Investments held in Trust Account 
     1  
    $256,559,148 

At
May 29, 2025, the fair value of the Rights was $5,313,000 or $0.21 per Right. The Rights have been classified within shareholders’
deficit and will not require remeasurement after issuance. The Rights were classified within Level 3 of the fair value hierarchy at the
measurement date due to the use of unobservable inputs inherent in assumptions related to the market adjustments as noted below. The
following table presents the quantitative information regarding market assumptions used in the valuation of the Rights:

    May 29, 2025 
  
    Trade price of Unit 
    $9.99 
  
    Share price 
    $9.78 
  
    Market adjustment (1