Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 14

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 between Public Shares and Public Rights, using the residual method by allocating
Initial Public Offering proceeds first to assigned value of the Public Rights and then to the Public Shares. Offering costs allocated
to the Public Shares were charged to temporary equity. Offering costs allocated to the Public Rights were charged to shareholders’
deficit. After Management’s evaluation, the Public Rights included in the Public Units were accounted for under equity treatment.

Fair
Value of Financial Instruments

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair
Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying unaudited condensed balance
sheet, primarily due to its short-term nature.

Cash
and Cash Equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had $831,515 in cash as of September 30, 2025. The Company did not have any cash equivalents as of September 30, 2025.

Investments
Held in Trust Account

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.

9

KOCHAV
DEFENSE ACQUISITION CORP.

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

Income
Taxes

The
Company accounts for income taxes under FASB ASC Topic 740, “Income Taxes” (“ASC 740”), which requires an asset
and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed
for differences between the financial statements and tax bases of assets and liabilities that will result in future taxable or deductible
amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.
Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC
740