This is an issue where NTP, on first boot, has no active network connection during the boot process and ends up terminating, thereby never sync'ing the K1000 appliance with NTP.
To resolve this issue, do the following:
1. Set time, date and timezone manually.
2. Allow K1000 to autoreboot.
3. Set time via sync via Network Server.
4. Allow K1000 to autoreboot again.
5. Wait for an overnight server maintenance.
From that point forward, your K1000 appliance should sync correctly with NTP servers.