Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 104

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 104
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 used, our unaudited condensed financial statements and notes thereto included in this Report under Item
1. “Financial Statements” could be materially affected. We believe that the following accounting policies involve a higher
degree of judgment and complexity. As of September 30, 2025, we did not have any critical accounting estimates to be disclosed.

Class
A Ordinary Shares Subject to Possible Redemption

We
account for the Class A Ordinary Shares subject to possible redemption in accordance with the guidance in FASB ASC Topic 480, “Distinguishing
Liabilities from Equity”. Class A Ordinary Shares subject to mandatory redemption (if any) are classified as liability instruments
and measured at fair value. Conditionally redeemable Class A Ordinary Shares (including Class A Ordinary Shares that feature redemption
rights that are either within the control of the holder or subject to possible redemption upon the occurrence of uncertain events not
solely within our control) are classified as temporary equity. At all other times, Class A Ordinary Shares are classified as shareholders’
equity. All of the Public Shares feature certain redemption rights that are considered to be outside of our control and subject to the
occurrence of uncertain future events. Accordingly, Class A Ordinary Shares subject to possible redemption are presented at redemption
value as temporary equity, outside of the shareholders’ equity section of our unaudited condensed balance sheet included in this
Report under Item 1. “Financial Statements”.

Net
Income Per Ordinary Share

We
comply with the accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net income per Ordinary
Share is computed by dividing net income applicable to shareholders by the weighted average number of Ordinary Shares outstanding for
the applicable periods. We apply the two-class method in calculating earnings per Ordinary Share and allocate net income pro rata to
Class A Ordinary Shares subject to possible redemption, nonredeemable Class A Ordinary Shares and Class B Ordinary Shares. Accretion
associated with the redeemable Class A Ordinary Shares is excluded from earnings per share as the redemption value is not in excess of
the fair value.

25

Recent
Accounting Standards

In
November 2023, the FASB issued ASU 2023-07. The amendments in ASU 2023-07 require disclosures, on an annual and interim basis, of significant
segment expenses that are regularly provided to the CODM as well as the aggregate amount of other segment items included in the reported
measure of segment profit or loss