Company: KMRK
Filing Date: 2025-04-07
Form Type: DRS/A
Source: 0001213900-25-029283
Chunk: 101

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-04-07
Form: DRS/A
Chunk 101
---
 to the restrictions contained in any future financing instruments. We intend to use the net proceeds 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. 62

Cash Flows The following table sets forth a summary of our combined cash flows for the six months ended September 30, 2024 and 2023, respectively:

|                                           |     |    2024 |     |      2023 |
|                                           |     |     US$ |     |       US$ |
| Net cash provided by operating activities |     |  37,755 |     | 3,457,359 |
| Net cash provided by investing activities |     |  53,285 |     |    15,720 |
| Net cash used in financing activities     |     | 144,580 |     |   327,290 |
| Effect of foreign exchange rate on cash   |     |  14,072 |     |     1,228 |
| Net increase in cash and cash equivalents |     | 249,692 |     | 3,801,597 |

Cash provided by operating activities Our cash inflow 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 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 six months ended September30, 2024, net cash provided by operating activities amounted to US$37,755. Cash provided by operations was primarily attributable to net income of US$585,975, adjusted by a decrease in accounts receivables of approximately US$2.0million, an increase in accounts payables of approximately US$0.7million, and an increase in amounts due to related parties of approximately US$