Company: KMRK
Filing Date: 2025-07-16
Form Type: 424B4
Source: 0001213900-25-064537
Chunk: 184

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-07-16
Form: 424B4
Chunk 184
---
, the Company has elected to not separate lease from non -leasecomponents. For leases in which the lease and non -leasecomponents have been combined, the non -leasecomponents include expenses such as common area maintenance, utilities, and repairs and maintenance. Contract Liabilities Contract liabilities consist of payment received from customers in excess of revenue recognized. Contract liabilities will be recognized as revenue when promised services are provided. Related parties The Company adopted ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation.

F-10 K-TECH SOLUTIONS COMPANY LIMITED AND SUBSIDIARYNOTES TO COMBINED FINANCIAL STATEMENTS
(Currency expressed in United States Dollars (“US$”) NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Revenue Recognition The Company applies the practical expedient in Topic 606 that permits the Company to not disclose the aggregate amount of transaction price allocated to performance obligations that are unsatisfied as of the end of the period as the Company’s contracts have an expected length of one year or less. The Company also applies the practical expedient in Topic 606 that permits the recognition of incremental costs of obtaining contracts as an expense when incurred if the amortization period of such costs is one year or less. These costs are included in cost of revenue. The Company uses independent contractors and third -partycarriers in the performance of its transportation services. To achieve that core principle, the Company applies the five steps defined under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company deals in the wholesale business of finished products along with tooling services: i)Sales of finished goods (recognized at a point in time): The Company sells toy products, to customers through fixed -pricepurchase orders. The sales are governed by Incoterms, which specify the transfer of control and ownership. Revenue is recognized at a point in time