Company: KCHVR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076631
Chunk: 21

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 an
amount equal to the number of membership interests that ultimately vest times the assignment date fair value per share (unless subsequently
modified) less the amount initially received for the assignment of the membership interests. The Company determined that the initial Business
Combination is not considered probable and therefore no compensation expense has been recognized.

12

KOCHAV DEFENSE ACQUISITION CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

The Founder Shares are designated as Class B
Ordinary Shares and, except as described below, are identical to the Class A Ordinary Shares included in the Public Units, and holders
of Founder Shares have the same shareholder rights as Public Shareholders, except that (i) the Founder Shares are subject to certain
transfer restrictions, as described in more detail below, (ii) the Founder Shares are entitled to registration rights; (iii) the
Sponsor, officers and directors have agreed to certain restrictions on any Founder Shares they hold pursuant to the Letter Agreement (see
Note 1), (iv) the Founder Shares are automatically convertible into Class A Ordinary Shares in connection with the consummation
of the initial Business Combination or earlier at the option of the holder on a one-for-one basis, subject to adjustment as described
herein and in the Amended and Restated Articles, and (v) prior to the closing of the initial Business Combination, only holders of
the Class B Ordinary Shares are entitled to vote on the appointment and removal of directors or continuing the company in a jurisdiction
outside the Cayman Islands (including any special resolution required to amend the constitutional documents or to adopt new constitutional
documents, in each case, as a result of the Company approving a transfer by way of continuation in a jurisdiction outside the Cayman Islands).

IPO Promissory Note — Related
Party

The Sponsor agreed to loan the Company an
aggregate of up to $300,000 to be used for a portion of the expenses of the Initial Public Offering pursuant to an unsecured
promissory note (the “IPO Promissory Note”). The loan was non-interest bearing, unsecured and due at the earlier of
December 31, 2025 or the closing of the Initial Public Offering. The Company borrowed $207,494 under the IPO Promissory Note
and repaid the full amount of $207,494 on June 2, 2025. As