Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 59

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 $250,000. Any loss incurred or a lack of access
to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.

Deferred
Offering Costs

The
Company complies with the requirements of FASB ASC Topic 340-10-S99, “Other Assets and Deferred Costs”, and SEC Staff Accounting
Bulletin Topic 5A — “Expenses of Offering.” Deferred offering costs consist principally of professional and registration
fees that are related to the Initial Public Offering. FASB ASC Topic 470-20, “Debt with Conversion and Other Options,” addresses
the allocation of proceeds from the issuance of convertible debt into its equity and debt components. The Company applied this guidance
to allocate Initial Public Offering proceeds from the Units between Public Shares and Public Rights, using the residual method by allocating
Initial Public Offering proceeds first to assigned value of the Public Rights and then to the Public Shares. Offering costs allocated
to the Public Shares were charged to temporary equity. Offering costs allocated to the Public Rights were charged to shareholders’
deficit. After Management’s evaluation, the Public Rights included in the Public Units were accounted for under equity treatment.

Fair
Value of Financial Instruments

The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair
Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying unaudited condensed balance
sheet, primarily due to its short-term nature.

Cash
and Cash Equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had $831,515 in cash as of September 30, 2025. The Company did not have any cash equivalents as of September 30, 2025.

Investments
Held in Trust Account

At
September 30, 2025, investments held in the Trust Account were held in mutual funds that are invested primarily in money market funds.
Investments held in the Trust 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.

9

KOCHAV
DEF