Company: KCHVR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076631
Chunk: 62

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 but vesting does not occur, any previously recognized compensation cost is reversed in the period related to the termination
of service. Share-based compensation expenses are included in costs and operating expenses depending on the nature of the services provided
in the accompanying unaudited condensed statements of operations.

Class A Ordinary Shares Subject to Possible Redemption

The Public Shares contain a redemption feature
that allows for the redemption of such Public Shares in connection with the Company’s liquidation, or if there is a shareholder
vote or tender offer in connection with the initial Business Combination. In accordance with FASB ASC Topic 480-10-S99, “Distinguishing
Liabilities from Equity,” the Company classifies Public Shares subject to possible redemption outside of permanent equity as the
redemption provisions are not solely within the control of the Company. The Company recognizes changes in redemption value immediately
as it occurs and will adjust the carrying value of redeemable shares to equal the redemption value at the end of each reporting period.
Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption
amount value. The change in the carrying value of redeemable shares will result in charges against additional paid-in capital (to the
extent available) and accumulated deficit. Accordingly, at June 30, 2025, Class A Ordinary Shares subject to possible redemption is presented
at redemption value as temporary equity, outside of the shareholders’ deficit section of the accompanying unaudited condensed balance
sheet. At June 30, 2025, the Class A Ordinary Shares subject to possible redemption reflected in the accompanying unaudited condensed
balance sheet is reconciled in the following table:

    Shares  
    Amount 
  
    Gross proceeds 
     25,300,000  
    $253,000,000 
  
    Less: 

    Proceeds 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