Company: KCHVR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076631
Chunk: 27

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

●“Level
1”, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●“Level
2”, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted
prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active;
and

●“Level
3”, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy.
In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input
that is significant to the fair value measurement.

15

KOCHAV DEFENSE ACQUISITION CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

At June 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 sheets 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.

The following table presents information about the Company’s assets that are measured at fair value as of June 30, 2025, and indicates
the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

    Level
     
    June 30,  2025 
  
    Investments held in Trust Account 
    1
     
    $253,919,363 

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 rem