Company: KCHVR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076631
Chunk: 73

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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 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 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 
  
    Stock price 
    $9.78 
  
    Market adjustment (1) 
     15%
  
    Fair value per Right 
    $0.21 

(1)Market
adjustment reflects additional factors