Company: KMRK
Filing Date: 2025-07-16
Form Type: 424B4
Source: 0001213900-25-064537
Chunk: 185

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-07-16
Form: 424B4
Chunk 185
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 when control of the goods is transferred to the customer, which occurs based on the applicable Incoterms. Depending on different Incoterms, at the point when the customer has legal ownership of the toy products, the risks and rewards of the goods are assumed, and the Company has no remaining performance obligations. ii)Sales for tooling (recognized at a point in time): The Company also provides custom production tools, such as molds and prototypes, designed specifically for customer use. These tools are created based on fixed -pricepurchase orders and tailored to customer specifications. Revenue from custom production tools is recognized at a point in time, specifically when the tools are completed and control is transferred to the customer. Control is deemed to transfer when the tools are: •completed and accepted by the customer •ready for their intended use in the customer’s production processes •stored at the Company’s designated location (if agreed) with the customer retaining ownership and disposal rights. Once the performance obligation is fulfilled, the Company has no further obligations regarding the tools. Cost of Revenues Cost of revenue consists primarily of materials. Selling and Distribution Expenses Selling and distribution expenses includes transportation, customs declaration expenses, advertising expenses and testing charges. General and Administrative Expenses General and administrative expenses include management and salaries and employee benefits of office staffs, depreciation for office facility and office equipment, travel and entertainment, legal and accounting, motor vehicle expenses, rental expenses and other office expenses. F-11 K-TECH SOLUTIONS COMPANY LIMITED AND SUBSIDIARYNOTES TO COMBINED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”) NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Income Tax The Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the combined financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provisions of ASC 740 -10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more -likely-than-notthreshold for combined financial statement recognition and measurement of a tax position taken (or