Company: KMRK
Filing Date: 2025-09-24
Form Type: 424B3
Source: 0001213900-25-091102
Chunk: 64

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-24
Form: 424B3
Chunk 64
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 our flexibility in utilizing working capital to react to changes in the business environment.
Additionally, our business requires significant amount of working capital to fund the payroll of workers before the corresponding progress
payments from clients, and inability to finance the payroll payment and temporary cash flow imbalance arising therefrom can adversely
affect our operation and curtail our business growth. If all or a substantial portion of our bank facilities are withdrawn, or we cannot
access additional banking facilities, our operations and financial performance will be adversely and materially affected.

In addition, our finance costs
were US$76,564 and US$55,550, or approximately 14.16% and 5.18% of our profit before income tax for the years ended March 31,
2025 and 2024, respectively. Since we rely on these facilities to finance our operations, any increase in interest rates on facilities
extended to us may have a material and adverse impact on our financial performance.

We may default on our obligations under our credit facilities.

We entered into
banking facilities with a bank in Hong Kong which include an overdraft facility and revolving term loan. A failure to repay any
of the indebtedness under our banking facilities as they become due or to otherwise comply with the covenants contained in any of such
agreements could result in an event of default thereunder. If not cured or waived, an event of default under any of such agreements could
enable the lender thereunder to declare all borrowings outstanding on such debt, together with accrued and unpaid interest and fees, to
be due and payable. In such an event, we may not be able to pay dividends or have sufficient liquidity to meet operating and capital expenditure
requirements. Any such acceleration could cause us to lose a substantial portion of our assets and will substantially adversely affect
our ability to continue our operations.

We are exposed to risks of infringement of our intellectual property rights and the unauthorized use of our trademarks by third parties.

We have registered
our trademark to protect our intellectual property rights in Hong Kong. Should our trademark be violated or infringed, there may
be confusion by potential customers who have not previously worked with us.

Given our limited
resources, we may not be able to effectively prevent third parties from violating our Company’s intellectual property rights. There
is also no assurance that we will be able to obtain adequate remedies in the event of a violation of our intellectual property rights
by our competitors or other third parties. If we fail to protect our intellectual property rights adequately, there may be