Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 16

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 16
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 management team lacks experience in managing
a U. S. public company and complying with laws applicable to such company, the failure of which may adversely affect our business,
financial condition and results of operations.

Our current management team lacks experience in managing a U. S. publicly
traded company, interacting with public company investors and complying with the increasingly complex laws pertaining to U. S. public
companies. Prior to the completion of the IPO, we were a private company mainly operating our businesses in Hong Kong. As a result
of the IPO, our Company becomes subject to significant regulatory oversight and reporting obligations under the federal securities laws
and the scrutiny of securities analysts and investors, and our management currently has no experience in complying with such laws, regulations
and obligations. Our management team may not successfully or efficiently manage our transition to becoming a U. S. public company.
These new obligations and constituents will require significant attention from our senior management and could divert their attention
away from the day-to-day management of our business, which could adversely affect our business, financial condition and results of
operations.

We may be subject to litigation, claims or
other disputes.

We may from time to time be
involved in disputes arising from contracts with customers, employees, or other third parties. Claims may also arise from disputes with
customers on matters relating to payment and/or contractual performance. Claims involving us could result in time-consuming and costly
litigations, arbitration, administrative proceedings or other legal procedures. Expenses we incur in legal proceedings or arising from
claims brought by or against us may materially and adversely affect our financial performance.

Actions brought against us
may result in settlements, awards, injunctions, fines, penalties and other results adverse to us. Moreover, liquidated damages, legal
proceedings resulting in unfavorable judgment may harm our reputation, cause financial losses and damage our prospects of being awarded
future contracts, thereby materially and adversely affecting our operations, financial performance and prospects.

We are dependent on external financing to support
our business growth.

We rely on bank loans to finance
our operations. Our total borrowings were US$1,039,193 and US$621,428 as at March 31, 2025 and 2024, respectively.

Our ability to obtain adequate
financing on terms which are acceptable to us depends on a number of factors such as our financial strength, our creditworthiness and
our prospects, and other factors that are beyond our control, including general economic, industry, liquidity and political conditions,