Company: KII
Filing Date: 2025-12-09
Form Type: S-1/A
Source: 0001213900-25-119587
Chunk: 157

Company: K2 Capital Acquisition Corp
Filing Date: 2025-12-09
Form: S-1/A
Chunk 157
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 of internal controls. A target business may not be in compliance with the provisions of the Sarbanes -OxleyAct regarding the adequacy of internal controls. Many small and mid -sizedtarget businesses we may consider for our initial business combination may have internal controls that need improvement in areas such as: •staffing for financial, accounting and external reporting areas, including segregation of duties; •reconciliation of accounts; •proper recording of expenses and liabilities in the period to which they relate; •evidence of internal review and approval of accounting transactions; •documentation of processes, assumptions and conclusions underlying significant estimates; and •documentation of accounting policies and procedures. Because it will take time, management involvement and potentially outside resources to determine what internal control improvements are necessary for us to meet regulatory requirements and market expectations for our operation of a target business, we may incur significant expenses in meeting our public reporting responsibilities, particularly in the areas of designing, enhancing, or remediating internal and disclosure controls. Doing so effectively may also take longer than we expect, thus increasing our exposure to financial fraud or erroneous financing reporting. Once our management’s report on internal controls is complete, we will retain our independent public accounting firm to audit and render an opinion on such report when required by Section 404 of the Sarbanes -OxleyAct. The independent public accounting firm may identify additional issues concerning a target business’s internal controls while performing their audit of internal control over financial reporting. 100 Quantitative and Qualitative Disclosures about Market Risk The net proceeds of this offering and the sale of the private placement units held in the trust account will be (i) invested in U.S. government treasury bills with a maturity of 185 days or less or in money market funds that meet certain conditions under Rule 2a -7under the Investment Company Act of 1940 and that invest only in direct U.S. government obligations and/or (ii) deposited in an interest bearing demand deposit account at a U.S. — chartered commercial bank with consolidated assets of $100 billion or more. Due to the short -termnature of these investments, we believe there will be no associated material exposure to interest rate risk. Off-Balance Sheet Arrangements; Commitments and Contractual Obligations As of December 8, 2025, we did not have any off -balancesheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S -Kand did not have any commitments or contractual obligations. Related Party Transactions For additional information,