Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 42

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 3
Chunk 42
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. auditors who are not inspected by the PCAOB.

The AHFCA Act was enacted on
December 29, 2022. On December 29, 2022, the “ Consolidated Appropriations Act was signed into law, which contained, among
other things, an identical provision to the AHFCA Act and amended the HFCA Act by requiring the SEC to prohibit an issuer’s securities
from trading on any U. S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead
of three years. The AHFCA Act states that if the SEC determines that an issuer has filed audit reports issued by a registered public
accounting firm that has not been subject to inspection by the PCAOB for two consecutive years, the SEC shall prohibit the securities
of the issuer from being traded on a national securities exchange or in the over-the-counter trading market in the U. S. (the applicable
period under the HFCA Act prior to the enactment of the AHFCA Act had been two years).

On March 24, 2021, the
SEC adopted interim final rules relating to the implementation of certain disclosure and documentation requirements of the HFCA Act. A
company will be required to comply with these rules if the SEC identifies it as having a “non-inspection” year under a process
to be subsequently established by the SEC. The SEC is assessing how to implement other requirements of the HFCA Act, including the
listing and trading prohibition requirements described above. On December 2, 2021, the SEC adopted final amendments implementing
the disclosure and submission requirements of the HFCA Act.

On June 22, 2021, the
U. S. Senate passed a bill which, if passed by the U. S. House of Representatives and signed into law, would reduce the number
of consecutive non-inspection years required for triggering the prohibitions under the HFCA Act from three years to two years.

On November 5, 2021, the
PCAOB approved a new rule, PCAOB Rule 6100, Board Determinations Under the HFCA Act to provide a framework for its determinations
under the HFCA Act that the PCAOB is unable to inspect or investigate completely registered public accounting firms located in a foreign
jurisdiction because of a position taken by one or more authorities in that jurisdiction. The rule establishes the manner of the PCAOB’s
determinations; the factors the PCAOB will evaluate and the documents and