Company: KCHVR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076631
Chunk: 15

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 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 period 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.

9

KOCHAV DEFENSE ACQUISITION CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

Net Income per Ordinary Share

Net income per Ordinary Share is computed by dividing
net loss by the weighted average number of Ordinary Shares outstanding during the period, excluding Ordinary Shares subject to forfeiture.
Weighted average shares were reduced for the effect of an aggregate of 1,100,000 of the Company’s Class B ordinary shares, par value
$0.0001 per share (the “Class B Ordinary Shares”, and together with the Class A Ordinary Shares, the “Ordinary
Shares”) that would have been subject to forfeiture had the Over-Allotment Option not been exercised. 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. As a result, diluted income per Ordinary Share is the same as basic income per Ordinary Share for
the period presented.

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