Company: KCHVR
Filing Date: 2025-07-09
Form Type: 10-Q
Source: 0001213900-25-062351
Chunk: 51

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-07-09
Form: 10-Q
Item: Part I, Item 8
Chunk 51
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Founder Shares

On January 7, 2025, the Sponsor made a capital
contribution of $25,000, or approximately $0.007 per share, for which the Company issued 3,835,000 Class B ordinary shares, known as founder
shares (“Founder Shares”), to the Sponsor. On April 3, 2025, the Company issued an additional 4,598,333 Founder Shares to
the Sponsor in a share capitalization, resulting in the Sponsor holding an aggregate of 8,433,333 Founder Shares. As a result, the Sponsor
paid approximately $0.003 per Founder Share. Up to 1,100,000 of the Founder Shares were subject to surrender by the Sponsor for no consideration
depending on the extent to which the underwriters’ over-allotment was exercised. As a result of the full exercise of the over-allotment
option by the underwriter at the closing of the Initial Public Offering, the 1,100,000 Founder Shares are no longer subject to forfeiture.

On May 6, 2025, the Sponsor granted membership
interests equivalent to an aggregate of 60,000 Founder Shares (20,000 Founder Shares each) to the three independent directors of the Company
in exchange for their services as independent directors through the Company’s initial Business Combination. In addition, on May
6, 2025, the Sponsor granted membership interests equivalent to 10,000 Founder Shares to the Chief Financial Officer in exchange for services
through the Company’s initial Business Combination. The Founder Shares, represented by such membership interests, will remain with
the Sponsor if the holder of such membership interests is no longer serving the Company prior to the initial Business Combination. The
membership interest assignment of the Founder Shares to the holders of such interests are within the scope of FASB ASC Topic 718, “Compensation-Stock
Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured
at fair value upon the assignment date. The total fair value of the 70,000 Founder Shares represented by such membership interests assigned
to the holders of such interests on May 6, 2025 was $102,521, or $1.465 per share. The membership interests were assigned subject to a
performance condition (i.e., providing services through the Business Combination). Share-based compensation will be recognized at the
date a Business Combination is considered probable (i.e., upon consumm