IPO and Financial Proceeds - The company completed its Initial Public Offering (IPO) on May 29, 2025, raising gross proceeds of $253 million from the sale of 25,300,000 Public Units at a price of $10.00 per unit[109]. - The company incurred total costs of $11,024,267 related to the IPO, which included a cash underwriting fee of $3,415,500 and a deferred fee of $6,957,500[118]. Financial Performance - The company generated a net income of $2,424,046 for the three months ended September 30, 2025, primarily from interest and dividends earned, offset by general and administrative costs[116]. - The company has not generated any operating revenues to date and will not do so until after the completion of its initial Business Combination[114]. Assets and Liabilities - As of September 30, 2025, the company had marketable securities in the Trust Account totaling $256,559,148, including approximately $3,556,148 of interest income earned[120]. - As of September 30, 2025, the company had cash held outside the Trust Account of approximately $831,515 and a working capital surplus of $823,938[122]. Business Combination and Obligations - The company has until November 29, 2026, to complete its Business Combination, with the option to extend this period by an additional six months[112]. - The company has a contractual obligation to reimburse the Sponsor $22,900 per month for administrative services until the completion of the Business Combination[128]. - The company may seek Working Capital Loans from the Sponsor or affiliates to fund working capital deficiencies, with up to $1,500,000 convertible into units of the post-Business Combination entity[125]. Accounting Policies and Estimates - The company has identified critical accounting policies that impact the reported amounts of assets and liabilities, income and expenses[135]. - Management estimates and assumptions are based on historical experience and other reasonable assumptions, which could materially affect the financial statements if actual experience differs[136]. - Class A Ordinary Shares subject to possible redemption are classified as temporary equity and presented at redemption value outside of shareholders' equity[137]. - Net income per Ordinary Share is calculated using the two-class method, allocating net income pro rata to different classes of shares[138]. Regulatory and Reporting Standards - The FASB issued ASU 2023-07, effective for fiscal years beginning after December 15, 2023, requiring additional disclosures related to segment expenses and performance[139]. - The company does not believe that any recently issued accounting standards will have a material effect on the financial statements[140]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[141]. Future Expectations - The company expects to incur increased expenses due to being a public company, including legal and financial reporting costs[114].
Kochav Defense Acquisition Corp Unit(KCHVU) - 2025 Q3 - Quarterly Report