Company: MKDWW
Filing Date: 2025-06-10
Form Type: CORRESP
Source: 0001641172-25-014500
Chunk: 2

Company: MKDWELL Tech Inc.
Filing Date: 2025-06-10
Form: CORRESP
Chunk 2
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 was not able to be quantified, and          
 no related liability was accrued. Please tell us whether any of the other amounts have been accrued as of the reported periods and        
 how you complied with the disclosure requirements of ASC 450-20-50 related to the three matters. Additionally, tell us your consideration 
 for disclosure on page 63 pursuant to the requirements for Item 8.A.7 of Form 20-F.                                                       |

Response:

During the reporting period ended December 31, 2024, the Company has evaluated all three legal matters disclosed in its annual report on Form 20-F in accordance with ASC 450-20:

(a) Accrual Status of Legal Matters

(1) Financial Leasing Contract Dispute

We have accrued RMB1.3 million ($0.18 million)
under “Accrued expenses and other current liabilities” (constituting a portion of the item “Long-term
payments of leaseback, current” of $1,242,154 as at December 31, 2024), and RMB1.5 million ($0.21 million) under “Other
non-current liabilities” on our balance sheet (constituting a portion of the item “Long-term payments of leaseback”
of $270,412 as at December 31, 2024). The amount represents the present value of future cash outflows as of December 31, 2024, calculated
using the original contract’s discount rate of 9.4%. While the plaintiff may demand the return of the remaining rent and payment
of liquidated damages which is less than the amount the Company has already accrued, the Company maintains that its accrual is reasonable
based on facts and legal assessments as of December 31, 2024.

(2) Amended Satisfaction and Discharge Agreement

The full amount of $662,500 has been accrued under “Accrued expenses and other liabilities” as disclosed on the item “Deferred underwriter commission payable” in Note 12 of our financial statements. This obligation is fixed and uncontested.

(3) Litigation with Former U.S. Legal Advisor

An action was commenced against us in December 2024 in the Supreme Court of the State of New York by the previous U.S. legal advisor of Cetus Capital, which became our subsidiary after the closing of the Business Combination, relating to certain legal fees owed. Such action sought relief for a sum of $478,715, interest thereon at 10 percent. per annum