Company: KCHVR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076631
Chunk: 33

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 Management Team’s ongoing assessment of all factors related to our potential status
under the Investment Company Act) instruct the trustee 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.

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.

In order to fund working capital deficiencies
or finance transaction costs in connection with a Business Combination, the Sponsor, or certain of our officers and directors or their
affiliates may, but are not obligated to, loan us Working Capital Loans as may be required. If we complete a Business Combination, we
would repay such Working Capital Loans. In the event that a Business Combination does not close, we may use a portion of the working capital
held outside the Trust Account to repay such Working Capital Loans, but no proceeds from our Trust Account would be used for such repayment.
Up to $1,500,000 of such Working Capital Loans may be converted into units of the post-Business Combination entity at a price of $10.00
per unit. The units would be identical to the Private Placement Units. As of June 30, 2025, we had no borrowings under any Working Capital
Loans.

19

As of June 30, 2025, the Company had $927,014
of cash and working capital surplus of $988,547. We do not believe we will need to raise additional funds in order to meet the expenditures
required for operating our business. However, if our estimate of the costs of identifying a target business, undertaking in-depth due
diligence and negotiating a Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available
to operate our business prior to our Business Combination. Moreover, we may need to obtain additional financing either to complete our
Business Combination or because we become obligated to redeem a significant number of our Public Shares upon consummation of our Business
Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination.

Off-Balance Sheet Arrangements

We have no obligations, assets or liabilities,
which would be considered off-balance