Nerga attacks the last kobald on the level, hitting and killing it. The remaining dwarves flow up onto the level, wary of the ledge above them ... and with that, there is no counterattack by the kobalds.
At this point in the combat, initiative determination has been lost. When the next attack occurs - which may be the very next round - who attacks first will need to be re-determined.
Removing Lukas' view, and opening up all that the dwarves can see as well as the party, here's how things look: