Company: KMRK
Filing Date: 2025-09-02
Form Type: DRS
Source: 0001213900-25-082986
Chunk: 37

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-02
Form: DRS
Chunk 37
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 requirements in the HFCA Act. Also, on December 16,
2021, pursuant to the HFCA Act, the PCAOB issued a Determination Report which determined that the PCAOB is unable to inspect or investigate
completely registered public accounting firms headquartered in mainland China and in Hong Kong, a Special Administrative Region
of PRC, because of positions taken by PRC authorities in those jurisdictions. In addition, the PCAOB’s report identified the specific
registered public accounting firms which are subject to these determinations.

On August 26,
2022, the CSRC, the Ministry of Finance of the PRC, and the PCAOB signed a Statement of Protocol, or the Protocol, governing inspections
and investigations of audit firms based in China and Hong Kong. Pursuant to the Protocol, the PCAOB shall have independent discretion
to select any issuer audits for inspection or investigation and has the unfettered ability to transfer information to the SEC.

On December 15,
2022, the PCAOB announced it was able to secure complete access to inspect and investigate PCAOB-registered public accounting firms headquartered
in mainland China and Hong Kong in 2022, and the PCAOB Board vacated its previous determinations that the PCAOB was unable to inspect
or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. However, whether the
PCAOB will continue to be able to satisfactorily conduct inspections of PCAOB-registered public accounting firms headquartered in mainland
China and Hong Kong is subject to uncertainty and depends on a number of factors out of our, and our auditor’s, control. The
PCAOB is continuing to demand complete access in mainland China and Hong Kong moving forward and is already making plans to resume
regular inspections in early 2023 and beyond, as well as to continue pursuing ongoing investigations and initiate new investigations as
needed. The PCAOB has indicated that it will act immediately to consider the need to issue new determinations with the HFCA Act if needed.

On December
23, 2022 the AHFCA Act was enacted, which amended the HFCA Act by requiring the SEC to prohibit an issuer’s securities from trading
on any U.S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead of three.
As a result, the time period before the Company’s securities may be prohibited from trading or delisted has been decreased accordingly.

On December 29,
2022, the “Consolidated Appropriations Act was signed into law