Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 72

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 72
---
 or,
where proxies are allowed, by proxy at the applicable general meeting of the Company.

16

KOCHAV
DEFENSE ACQUISITION CORP.

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
30, 2025

Rights

Except
in cases where the Company is not the surviving company in a Business Combination, each holder of a Right will automatically receive
one seventh (1/7) of one Class A Ordinary Share upon consummation of the initial Business Combination. In the event the Company
is not the surviving Company upon completion of the initial Business Combination, each holder of a Right will be required to affirmatively
convert its Rights in order to receive the one seventh (1/7) of one Class A 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