Company: KMRK
Filing Date: 2025-07-16
Form Type: 424B4
Source: 0001213900-25-064537
Chunk: 182

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-07-16
Form: 424B4
Chunk 182
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 expectations of future conditions. The Company writes off potentially uncollectible accounts receivable against the allowance for credit losses if it is determined that the amounts will not be collected or if a settlement with respect to a disputed receivable is reached for an amount that is less than the carrying value. Deferred listing costs Deferred listing costs consist principally of all direct offering costs incurred by the Company, such as underwriting, legal, accounting, consulting, printing, and other registration related costs in connection with the initial public Offering (“IPO”) of the Company’s ordinary shares. Such costs are deferred until the closing of the offering, at which time the deferred costs are offset against the offering proceeds. In the event the offering is unsuccessful or aborted, the costs will be expensed. Fair Value Measurements The Company applies the provisions of ASC 820, Fair Value Measurements and Disclosures, to the financial instruments that are required to be carried at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company uses a three -tierfair value hierarchy based upon observable and non -observableinputs that prioritizes the information used to develop our assumptions regarding fair value. Fair value measurements are separately disclosed by level within the fair value hierarchy.

| Level 1 — |     | defined as observable inputs such as quoted prices in active markets for identical assets or liabilities;                              |
| Level 2 — |     | defined as inputs other than quoted prices in active markets, that are either directly or indirectly observable; and                   |
| Level 3 — |     | defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |

The Company’s financial instruments include cash and cash equivalents, accounts receivable, contract assets, loan receivable — related party, due from related parties, accounts payables, accruals, due to related parties, bank loans and overdraft and lease liabilities. The carrying amounts of these financial instruments approximate their fair values due to the short -termnature of these instruments. For lease liabilities, fair value approximates their carrying value at the year end as the interest rates used to discount the host contracts approximate market rates. The carrying amount of the bank loan and overdraft approximates its fair value due to the fact that the related interest rate approximates the interest rates currently offered by financial institutions for similar debt instruments of