Company: KMRK
Filing Date: 2025-09-24
Form Type: 424B3
Source: 0001213900-25-091102
Chunk: 56

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-24
Form: 424B3
Chunk 56
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 adverse effect on our business, financial condition and results of operations. There is
a risk in relying on third-party supplier in that we are dependent on the supplier’s ability to produce a product which meets our
quality standards and delivery requirements as well as being dependent upon the supplier’s production priorities. We do not presently
have any plans to engage another supplier since Fully Starise is familiar with our products, and we are devoting our efforts to establishing
our own production facilities with no assurance that we can successfully establish manufacturing facilities.

Additionally, we
rely on the ability and efficiency of Fully Starise to supply products to us. As we have no ownership or managerial control over Fully
Starise, we cannot assure you that Fully Starise will constantly provide us products with desired quality and in sufficient quantities
as required in a timely manner or at all time strictly adhere to the terms and conditions under the Service Agreement.

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We rely on a limited number of third- party suppliers to manufacture our toy products, and we have limited control over them and may not be able to obtain quality products on a timely basis or in sufficient quantity.

We do not manufacture our products and rely instead on third-party
contract manufacturers. Our products are mostly manufactured and supplied by Fully Starise which represents approximately 85.34% of our
cost of revenue. Despite that we have entered into long term supply agreement with Fully Starise to secure stable supply of quality products
and provide product warranty to our customers, our reliance on a limited number of third-party contract manufacturers increases the risk
of supply disruption. If we experience significant increased demand, or need to replace an existing manufacturer, there can be no assurance
that additional manufacturing capacity will be available when required on terms that are acceptable to us, or at all, or that any supplier
or manufacturer would allocate sufficient capacity to us in order to meet our requirements or fill our orders in a timely manner. We allocate
production orders among our suppliers based on the manufacturers’ capability, capacity and cost, but there is no assurance that
we will be able to utilize capable manufacturers that have capacity at reasonable costs. Even if we are able to diversify our suppliers,
we may encounter delays in production and added costs as a result of the time it takes to train our suppliers and manufacturers in our
methods, products and quality control standards. Delays related to supplier changes could also arise due to an increase in shipping times
if new suppliers are located farther away from our markets or from other