Company: KMRK
Filing Date: 2025-09-02
Form Type: DRS
Source: 0001213900-25-082986
Chunk: 84

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-09-02
Form: DRS
Chunk 84
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 be a PFIC for any taxable year (or portion thereof) that is
included in the holding period of a U.S. Holder (as defined in the Section of this prospectus captioned “Material United States
Federal Income Tax Considerations”) of our securities, the U.S. Holder may be subject to increased U.S. federal income tax liability
and may be subject to additional reporting requirements. The determination of whether we are a PFIC is a fact- intensive determination
made on an annual basis applying principles and methodologies that in some circumstances are unclear and subject to varying interpretation.
Our actual PFIC status for any taxable year will not be determinable until after the end of such taxable year. Accordingly, there can
be no assurance with respect to our status as a PFIC for our current taxable year or any subsequent taxable year. We urge U.S. Holders
to consult their own tax advisors regarding the possible application of the PFIC rules in light of their individual circumstances.

Our Company intends to grant employee share options and other share- based awards in the future. Our Company will recognize any share- based compensation expenses in our statements of comprehensive loss. Any additional grant of employee share options and other share- based awards in the future may have a material adverse effect on our results of operation.

Our Company adopted an employee share incentive plan in 2025, for the
purpose of granting share-based compensation awards, in an aggregate amount of up to 10% of our issued and outstanding Class A Shares
following our IPO, to our employees, directors and consultants to incentivize their performance and align their interests with ours. Under
the said plan, we expect to be permitted to issue options to purchase or share awards of up to 1,500,000 Class A Shares. As of the date
of this prospectus, we have not awarded any shares and no options to purchase Class A Shares have been exercised and no Class A Shares
have been issued upon exercised vested options, in each case under the said plan. As a result of these grants and potential future grants,
we expect to continue to incur significant share-based compensation expenses in the future. The amount of these expenses is based on the
fair value of the share-based awards. We account for compensation costs for all share options using a fair-value based method and recognize
expenses in our statements of profit or loss and other comprehensive income. The expenses associated with share-based compensation will
decrease our profitability, perhaps materially, and the additional securities issued under share- based compensation plans