Company: KCHVR
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109292
Chunk: 21

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 holders of such interests
on May 6, 2025 was $102,521, or $1.465 per share. The membership interests were assigned subject to a performance condition (i.e., providing
services through the Business Combination). Share-based compensation will be recognized at the date a Business Combination is considered
probable (i.e., upon consummation of a Business Combination) in 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.

13

KOCHAV
DEFENSE ACQUISITION CORP.

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

SEPTEMBER
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 (x) the appointment and removal of directors
or (y) continuing the company in a jurisdiction outside the Cayman Islands (including any special resolution required to amend the Company’s
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