Company: KMRK
Filing Date: 2025-03-25
Form Type: DRS/A
Source: 0001013762-25-001825
Chunk: 195

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-03-25
Form: DRS/A
Chunk 195
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 Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company uses a three -tierfair value hierarchy based upon observable and non -observableinputs that prioritizes the information used to develop our assumptions regarding fair value. Fair value measurements are separately disclosed by level within the fair value hierarchy.

| Level 1 — |     | defined as observable inputs such as quoted prices in active markets for identical assets or liabilities;                              |
| Level 2 — |     | defined as inputs other than quoted prices in active markets, that are either directly or indirectly observable; and                   |
| Level 3 — |     | defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |

The Company’s financial instruments include cash and cash equivalents, accounts receivable, contract assets, loan receivable — related party, due from related parties, accounts payables, accruals, due to related parties, bank loans and overdraft and lease liabilities. The carrying amounts of these financial instruments approximate their fair values due to the short -termnature of these instruments. For lease liabilities, fair value approximates their carrying value at the year end as the interest rates used to discount the host contracts approximate market rates. The carrying amount of the bank loan and overdraft approximates its fair value due to the fact that the related interest rate approximates the interest rates currently offered by financial institutions for similar debt instruments of comparable maturities. The Company noted no transfers between levels during any of the periods presented. The Company did not have any instruments that were measured at fair value on a recurring nor non -recurringbasis as of September 30, 2024 and 2023.

F-29

K-TECH SOLUTIONS COMPANY LIMITED Notes to the unaudited INTERIM CONDENSED combined financial statements NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Property, Plant and Equipment Property, plant and equipment is stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Major modifications or refurbishments which extend the useful life of the assets are capitalized and depreciated over the adjusted remaining useful life of the assets. The Property, plant and equipment is calculated using the straight -linemethod over their estimated useful lives, as