Company: KCHVR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076631
Chunk: 20

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 the requirements of applicable law).

NOTE 5. RELATED PARTY TRANSACTIONS

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, to the Sponsor
(the “Founder Shares”). 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 Over-Allotment Option was exercised. As a result of the full exercise of the Over-Allotment Option by the underwriters
at the closing of the Initial Public Offering, such 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 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 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 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 consummation of a Business Combination) in