Company: KCHVR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076631
Chunk: 61

Company: Kochav Defense Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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 other determinable amounts, 2) the reporting party has the right to
set off the amount owed with the amount owed by the other party, 3) the reporting party intends to set off, and 4) the right of setoff
is enforceable at law. As such, the Company reports amount Due to Sponsor and Due from Sponsor as a net amount on the accompanying unaudited
condensed balance sheet.

9

KOCHAV DEFENSE ACQUISITION CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

Net Income per Ordinary Share

Net income per Ordinary Share is computed by dividing
net loss by the weighted average number of Ordinary Shares outstanding during the period, excluding Ordinary Shares subject to forfeiture.
Weighted average shares were reduced for the effect of an aggregate of 1,100,000 of the Company’s Class B ordinary shares, par value
$0.0001 per share (the “Class B Ordinary Shares”, and together with the Class A Ordinary Shares, the “Ordinary
Shares”) that would have been subject to forfeiture had the Over-Allotment Option not been exercised. At June 30, 2025, the Company
did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into Ordinary Shares and then
share in the earnings of the Company. As a result, diluted income per Ordinary Share is the same as basic income per Ordinary Share for
the period presented.

Share-Based Compensation

The Company records share-based compensation in
accordance with FASB ASC Topic 718, “Compensation-Share Compensation” (“ASC 718”), guidance to account for its
share-based compensation. It defines a fair value-based method of accounting for an employee share option or similar equity instrument.
The Company recognizes all forms of share-based payments at their fair value on the grant date, which are based on the estimated number
of awards that are ultimately expected to vest. Share-based payments are valued by multiplying the marketable value per Founder Share
by the probability of successfully closing an initial Business Combination. Grants of share-based payment awards issued to non-employees
for services rendered have been recorded at the fair value of the share-based payment, which is the more readily determinable value. The
grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is
granted,