Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 35

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 35
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 investment company, or PFIC, for U. S. federal income tax purposes for any taxable year, which could subject U. S.
investors in the Class A Shares to significant adverse U. S. income tax consequences.

In general, we are treated
as a PFIC for any taxable year in which either (1) at least 75% of our gross income (looking through certain 25% or more-owned subsidiary)
is passive income or (2) at least 50% of the average value of our assets (looking through certain 25% or more-owned subsidiary) is attributable
to assets that produce, or are held for the production of, passive income. Passive income generally includes, without limitation, dividends,
interest, rents, royalties, and gains from the disposition of passive assets. If we are determined to be a PFIC for any taxable year (or
portion thereof) that is included in the holding period of a U. S. Holder (as defined in the Section of this Annual Report captioned “ Material
United States Federal Income Tax Considerations”) of our securities, the U. S. Holder may be subject to increased U. S. federal
income tax liability and may be subject to additional reporting requirements. The determination of whether we are a PFIC is a fact-intensive
determination made on an annual basis applying principles and methodologies that in some circumstances are unclear and subject to varying
interpretation. Our actual PFIC status for any taxable year will not be determinable until after the end of such taxable year. Accordingly,
there can be no assurance with respect to our status as a PFIC for our current taxable year or any subsequent taxable year. We urge U. S.
Holders to consult their own tax advisors regarding the possible application of the PFIC rules in light of their individual circumstances.

Our Company intends to grant employee share
options and other share-based awards in the future. Our Company will recognize any share-based compensation expenses in our statements
of comprehensive loss. Any additional grant of employee share options and other share-based awards in the future may have a material adverse
effect on our results of operation.

Our Company adopted an employee
share incentive plan in 2025, for the purpose of granting share-based compensation awards, in an aggregate amount of up to 10% of our
issued and outstanding Class A Shares following the IPO, to our employees, directors and consultants to incentivize their performance
and align their interests with ours. Under the said plan, we expect to be permitted to