Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 142

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 19
Chunk 142
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 in these consolidated and combined
financial statements, the control of these entities has been demonstrated by Kwok Yiu Keung, Kwok Yiu Fai and Kwok Yiu, as joint owners,
as if the Reorganization had taken place at the beginning of the earlier date presented. Accordingly, the combination has been treated
as a corporate restructuring of entities under common control and thus the current capital structure has been retroactively presented
in prior periods as if such structure existed at that time and in accordance with ASC 805-50-45-5, the entities under common control
are presented on a consolidated basis for all periods to which such entities were under common control. The combination of the Company
and its subsidiaries has been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become
effective as of the beginning of the first period presented in the accompanying consolidated and combined financial statements.

F-7

K-TECH
SOLUTIONS COMPANY LIMITED AND SUBSIDIARYNOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS(Currency expressed in United States Dollars (“ US$”)

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These accompanying consolidated and combined financial statements reflect
the application of certain significant accounting policies as described in this note and elsewhere in the accompanying consolidated and
combined financial statements and notes.

Basis of Presentation and Principles of
Consolidation

The accompanying consolidated and combined financial statements have
been prepared in accordance with accounting principles generally accepted in the United States of America (“ U. S. GAAP”)
and pursuant to the rules and regulations of the Securities Exchange Commission (“ SEC”).

The consolidated and combined financial statements include the financial
statements of the Company and its wholly owned subsidiary. All intercompany transactions and balances among the Company and its subsidiary
have been eliminated upon consolidation.

Use of Estimates

The preparation of financial
statements and related disclosures in accordance with accounting principles generally accepted in the United States (“ GAAP”)
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to the determination of the useful
lives of property, plant and equipment, incremental borrowing rate applied in lease accounting, current expected credit loss of receivables,
impairment of long-lived