Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 146

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 146
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-ended           Average           
                   spot rate             rate                  spot rate             rate                  spot rate             rate              
  US$              US$1=RMB 6.8972       US$1=RMB 6.7290       US$1=RMB 7.0978       US$1=RMB 7.0803       US$1=RMB 7.2993       US$1=RMB 7.1957   
  against RMB                                                                                                                                      
  US$              US$1=NT$ 30.7300      US$1=NT$ 29.7963      US$1=NT$ 30.6200      US$1=NT$ 31.1525      US$1=NT$ 32.7900      US$1=NT$ 32.1064  
  against NT$                                                                                                                                      
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

(e) Cash and cash equivalents

Cash
and cash equivalents consist of cash on hand and cash held in banks, which are highly liquid and are unrestricted as to withdrawal or
use.

(f) Restricted cash

Restricted
cash balances include funds that have been frozen due to the Company’s involvement in legal litigation. The balances were released
in January 2025 as a result of the Company’s settlement with the counterparty.

(g) Accounts and note receivable, net

On
January 1, 2023, the Company adopted ASC 326 Financial Instruments - Credit Losses (“ ASC 326”) using the modified retrospective
approach through a cumulative-effect adjustment to accumulated deficit. Upon adoption, the Company changed its impairment model to utilize
a current expected credit losses model in place of the incurred loss methodology for financial instruments measured at amortized cost.
The Company had not recorded an adjustment to the opening accumulated deficit as of January 1, 2023 due to immaterial cumulative impact
of adopting ASC 326.

Account
receivables are stated net of provision of credit losses. The Company has developed a current expected credit loss (“ CECL”)
model based on historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic
conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect
from customers. The Company considers historical collection rates, current financial status, macroeconomic factors, and other industry-specific
factors when evaluating for current expected credit