Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 27

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 Ordinary Share underlying each Right upon consummation
of the Business Combination. The Company will not issue fractional shares in connection with an exchange of Rights. Fractional shares
will either be rounded down to the nearest whole share or otherwise addressed in accordance with the applicable provisions of Cayman
Islands law. As a result, holders of Rights must hold Rights in multiples of seven in order to receive shares for all of the Rights upon
closing of a Business Combination. If the Company is unable to complete an initial Business Combination within the required time period
and the Company redeems the Public Shares for the funds held in the Trust Account, holders of Rights will not receive any of such funds
for their Rights and the Rights will expire worthless.

NOTE
8 — FAIR VALUE MEASUREMENTS

“Fair
value” is defined as the price that would be received for sale of an asset or paid for transfer of a liability in an orderly transaction
between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring 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.

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