Company: MKDWW
Filing Date: 2025-01-23
Form Type: F-1
Source: 0001493152-25-003296
Chunk: 237

Company: MKDWELL Tech Inc.
Filing Date: 2025-01-23
Form: F-1
Chunk 237
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 of the potential differences in accounting standards used.

(c) Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

(d) Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company had cash of $ 181,795as of June 30, 2024 and $ 320,971as of December 31, 2023. The Company did not have any cash equivalents as of June 30, 2024 and December 31, 2023.

(e) Cash Held in Trust Account

As of June 30, 2024 and December 31, 2023, $ 22,127,715and $ 60,158,872of the assets in the Trust Account were held in cash, respectively.

(f) Offering Costs Associated with the IPO

Offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the IPO. As of February 3, 2023, offering costs totaled $ 3,752,350. This amount consisted of $ 862,500of underwriting commissions, $ 1,725,000of deferred underwriting commissions (payable only upon completion of a Business Combination), and $ 759,350of other offering costs (which includes $ 137,448of representative shares, as described in Note 7). The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A – “Expenses of Offering”. Offering costs were charged to shareholders’ equity upon the completion of the IPO. The Company allocates offering costs between public shares, public warrants and public rights based on the estimated fair values of them at the date of issuance. Accordingly, $ 3,200,091was allocated to public shares