Company: KMRK
Filing Date: 2025-03-07
Form Type: DRS/A
Source: 0001213900-25-021451
Chunk: 179

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-03-07
Form: DRS/A
Chunk 179
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 prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying combined financial statements. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These accompanying combined financial statements reflect the application of certain significant accounting policies as described in this note and elsewhere in the accompanying combined financial statements and notes. Basis of Presentation and Principles of Consolidation The accompanying 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”).

F-7

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.) The 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, ordinary shares. These estimates and assumptions are based on the Company’s historical results and management’s future expectations. Actual results could differ from those estimates. Changes in facts and circumstances may cause the Company to revise its estimates. Measurement of credit losses on financial instruments Effective October 1, 2020, the Company adopted ASU 2016 -13, “Financial Instruments — Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments,” using the modified retrospective approach for accounts receivable. This guidance replaced the “incurred loss” impairment methodology with an approach based on “expected losses” to estimate credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance requires financial assets to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account