Company: KMRK
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087627
Chunk: 66

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-15
Form: F-1
Chunk 66
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 any increase in interest rates on facilities
extended to us may have a material and adverse impact on our financial performance.

We may default on our obligations under our credit facilities.

We entered into
banking facilities with a bank in Hong Kong which include an overdraft facility and revolving term loan. A failure to repay any
of the indebtedness under our banking facilities as they become due or to otherwise comply with the covenants contained in any of such
agreements could result in an event of default thereunder. If not cured or waived, an event of default under any of such agreements could
enable the lender thereunder to declare all borrowings outstanding on such debt, together with accrued and unpaid interest and fees, to
be due and payable. In such an event, we may not be able to pay dividends or have sufficient liquidity to meet operating and capital expenditure
requirements. Any such acceleration could cause us to lose a substantial portion of our assets and will substantially adversely affect
our ability to continue our operations.

We are exposed to risks of infringement of our intellectual property rights and the unauthorized use of our trademarks by third parties.

We have registered
our trademark to protect our intellectual property rights in Hong Kong. Should our trademark be violated or infringed, there may
be confusion by potential customers who have not previously worked with us.

Given our limited
resources, we may not be able to effectively prevent third parties from violating our Company’s intellectual property rights. There
is also no assurance that we will be able to obtain adequate remedies in the event of a violation of our intellectual property rights
by our competitors or other third parties. If we fail to protect our intellectual property rights adequately, there may be an adverse
impact on our Company’s reputation, goodwill and financial performance.

As at the date of
this prospectus, whilst we have not experienced any claims for intellectual property rights infringement, there is no assurance that the
products, services, technologies and advertising we use in our business do not or will not infringe valid intellectual property rights
held by third parties in the future. In the event of any claims or litigation by third parties involving infringement of their intellectual
property rights, whether with or without merit, our operations and financial performance may be adversely affected.

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Our lack of effective internal controls over financial reporting may affect our ability to accurately report our financial results or prevent fraud.

Before IPO, we were a private
company with limited accounting personnel and resources to address our ICFR. Our management has