Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 120

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 10
Chunk 120
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 taken into account as non-passive assets. Passive income generally includes, among other things,
dividends, interest, rents, royalties, and gains from the disposition of passive assets. We will be treated as owning a proportionate
share of the assets and earning a proportionate share of the income of any other corporation in which we own, directly or indirectly,
more than 25% (by value) of the stock.

No assurance can be given as
to whether we may be or may become a PFIC, as this is a factual determination made annually that will depend, in part, upon the composition
of our income and assets. Furthermore, the composition of our income and assets may also be affected by how, and how quickly, we use our
liquid assets and the cash raised in the IPO. Under circumstances where our revenue from activities that produce passive income significantly
increase relative to our revenue from activities that produce non-passive income, or where we determine not to deploy significant amounts
of cash for active purposes, our risk of becoming classified as a PFIC may substantially increase. In addition, because there are uncertainties
in the application of the relevant rules, it is possible that the Internal Revenue Service may challenge our classification of certain
income and assets as non-passive or our valuation of our tangible and intangible assets, each of which may result in our becoming a PFIC
for the current or subsequent taxable years. If we were classified as a PFIC for any year during which a U. S. Holder held our
Ordinary Share, we generally would continue to be treated as a PFIC for all succeeding years during which such U. S. Holder held
our Ordinary Share even if we cease to be a PFIC in subsequent years, unless certain elections are made. Our U. S. counsel expresses
no opinion with respect to our PFIC status for any taxable year.

If we are classified as a PFIC
for any taxable year during which a U. S. Holder holds our Ordinary Share, and unless the U. S. Holder makes a mark-to-market
election (as described below), the U. S. Holder will generally be subject to special tax rules that have a penalizing effect, regardless
of whether we remain a PFIC, on (i) any excess distribution that we make to the U. S. Holder (which generally means any distribution
paid during a taxable year to a U. S. Holder that is greater than 125 percent of the average annual distributions paid in the