Company: KMRK
Filing Date: 2025-03-07
Form Type: DRS/A
Source: 0001213900-25-021451
Chunk: 103

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-03-07
Form: DRS/A
Chunk 103
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 from this offering in the following manner: •approximately 60% for potential investments and/or acquisition of a factory in Vietnam and/or other South East Asian countries; •approximately 15% for expansion and recruitment of product designers and engineers; •approximately 10% to obtain licensed rights from internationally renowned intellectual properties licensors for co -brandedproducts; and •remaining 15% for general administration and working capital. Cash Flows The following table sets forth a summary of our combined cash flows for the years ended March 31, 2024 and 2023, respectively:

|                                                      |     |       2024 |   |     |     2023 |   |
|                                                      |     |        US$ |   |     |      US$ |   |
| Net cash provided by (used in) operating activities  |     |  5,440,648 |   |     | (229,783 | ) |
| Net cash provided by (used in) investing activities  |     |     66,403 |   |     |  (89,799 | ) |
| Net cash used in financing activities                |     | (2,466,070 | ) |     | (520,085 | ) |
| Effect of foreign exchange rate on cash              |     |      7,477 |   |     |   (8,247 | ) |
| Net increase (decrease) in cash and cash equivalents |     |  3,048,458 |   |     | (847,914 | ) |

Cash provided by (used in) operating activities Our cash flow from operating activities was principally receipt of payments for our design, development, testing and sales of diverse portfolio of toy products, whereas our outflow from operating activities is principally for materials payable to suppliers, payment of salaries and employee benefits, rental expenses and general and administrative expenses. Net cash provided by (used in) operating activities reflects our net income adjusted for non -cashitems, including non -cashoperating lease expense, depreciation, deferred tax expenses, reversal of credit loss, and changes in working capital items including accounts receivable, prepayment and other deposits, accounts payable, accrued expenses and other payables, income taxes payable. For the year ended March31, 2024, net cash provided by operating activities was approximately US$5.44million, reflecting the company’s ability to generate positive cash flow despite working capital fluctuations. Operating cash flows benefited from net income of approximately US$0.93million, supported by