Kochav Defense Acquisition Corp. (KCHV) is a Cayman Islands SPAC that completed its IPO on May 29, 2025, raising $253,000,000 gross proceeds from 25,300,000 Public Units at $10.00 per unit. As of March 31, 2026, the balance sheet is structurally simple: total assets of $261,957,229 consist almost entirely of $261,316,533 held in a grantor trust account (money market funds, Level 1) and $640,696 in current assets ($458,393 cash, $50,000 due from Sponsor, $132,303 prepaid). No PP&E, no inventory, no goodwill, no intangibles exist. Under a liquidation lens, the asset haircut analysis is essentially moot for the trust balance itself — the trust is restricted and is redeemable by Public Shareholders at $10.32/share as of period end, meaning $261,316,533 of the $261,957,229 total asset base is a first-priority obligation to redeeming Public Shareholders, not free asset value available to other claimants or the equity layer. The liability stack on the books is $7,101,561: $144,061 current (accounts payable/accrued expenses $59,061 plus accrued offering costs $85,000) and $6,957,500 Deferred Fee payable to underwriters, contingent on closing a Business Combination. In a liquidation without a Business Combination, the Deferred Fee is extinguished by its own terms — it is only payable upon closing. However, under the strict liquidation-lens definition (face value), the $6,957,500 remains a claim. After settling all liabilities at face value ($7,101,561) and distributing the trust to Public Shareholders ($261,316,533), residual value attributable to non-redeemable equity (Sponsor's 524,050 private placement Class A shares plus 8,433,333 Class B founder shares) is approximately negative $6,460,865, consistent with the reported shareholders' deficit. The MFFAIS CLV/LLV/OLV of $1,258,170 likely reflects only the non-trust current assets net of current liabilities, excluding the trust (which belongs to Public Shareholders) and the contingent deferred fee. The going-concern disclosure is explicit: management acknowledges substantial doubt, with the Combination Period deadline of November 29, 2026 (extendable to May 29, 2027). No Business Combination target had been identified as of March 31, 2026. Cash outside the trust declined from $709,887 at December 31, 2025 to $458,393, burning $251,494 in Q1 2026 via operations. At the current burn rate of roughly $250,000/quarter, approximately 1.8 quarters of cash remain outside the trust without additional sponsor support or Working Capital Loans (up to $1,500,000 available but undrawn). The filing discusses the Administrative Services Agreement at $22,900/month and the going-concern as material uncertainties but does not separately XBRL-tag either the working capital surplus ($496,635 per MD&A) or the going-concern assessment. TAG_CONTEXT is empty — no XBRL tags were provided — so all analysis derives from the filing narrative and financial statements.
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