Company: KMRK
Filing Date: 2025-08-15
Form Type: 20-F
Source: 0001213900-25-077494
Chunk: 146

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-08-15
Form: 20-F
Item: Item 19
Chunk 146
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 5 years                                      
  Computer and equipment      5 years                                      
  Motor vehicles              5 years                                      

The useful lives of the assets
are reviewed, and adjusted if appropriate, at the end of each reporting period.

Upon retirement or disposition of property, plant and equipment, the
cost and related accumulated depreciation are removed any resulting gain or loss is recognized in consolidated and combined statements
of income and comprehensive income. The cost of maintenance and repairs is charged to expenses as incurred.

Finance Lease

The Company determines whether
an arrangement is a lease at contract inception in accordance with ASC 842, Leases. A lease is classified as a finance lease if
it meets any of the criteria set forth in ASC 842-10-25-2, including transfer of ownership, a purchase option that is reasonably certain
to be exercised, lease term constituting a major part of the asset’s economic life, present value of lease payments substantially
equal to the asset’s fair value or if the asset is specialized in nature.

For leases classified as finance
leases, the Company recognizes a right-of-use ("ROU") asset and a corresponding lease liability at the lease commencement date.
The ROU asset represents the Company’s right to use an underlying asset for the lease term and the lease liability represents the
Company’s obligation to make lease payments.

The lease liability is initially
measured at the present value of the future lease payments, discounted using the rate implicit in the lease or if not readily determinable,
the Company’s incremental borrowing rate. The ROU asset is initially measured at the amount of the lease liability, adjusted for
any initial direct costs incurred, prepaid lease payments made and lease incentives received.

The ROU asset is amortized on a straight-line basis over the shorter
of the lease term or the estimated useful life of the underlying asset. Interest on the lease liability is recognized using the effective
interest method and is presented as interest expense in the consolidated and combined statement of operations. The principal portion of
the lease payment reduces the lease liability.

Lease payments are allocated
between the finance charge and a reduction of the lease liability so as to produce a constant periodic rate of interest on the remaining
balance of the liability.

The Company does not separate
lease and non-lease components for finance leases and accounts for them as a single lease component as permitted under ASC 842. Non-lease
components typically include costs such as maintenance, insurance and taxes.

Short-term leases (with terms
of 12 months or less