Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 28

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 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) 
     15%
  
    Fair value per Right 
    $0.21 

  (1) Market adjustment reflects additional factors not fully captured by low volatility selection, which may include likelihood of a Business Combination occurring, market perception of lack of available or suitable targets, or possible post-acquisition decline of share price prior to beginning of the exercise period. The adjustment is determined by comparing traded right prices to simulated model outputs. 

NOTE
9. SEGMENT INFORMATION

ASC
280 establishes standards for companies to report in their financial statement information about operating segments, products, services,
geographic areas, and major customers. “Operating segments” are defined as components of an enterprise that engage in business
activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that