Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 152

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 152
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 at the measurement date. When determining the fair value measurements for assets and liabilities required
or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact
and it considers assumptions that market participants would use when pricing the asset or liability.

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except share and per share data)

  SUMMARY                                         
  OF SIGNIFICANT ACCOUNTING POLICIES - Continued  
 ──────────────────────────────────────────────────

  (o)      Fair                           
           value measurement – Continued  
 ──────────────────────────────────────────

Accounting
guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of
unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based
upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are:

  Level                                                                                                                
  Level                                                                                                                
  Level                                                                                                                

Accounting
guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income
approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving
identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present
value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach
is based on the amount that would currently be required to replace an asset.

Financial
assets and liabilities of the Company primarily consist of cash and cash equivalents, restricted cash, accounts receivable, net, other
receivables included in prepaid expenses and other current assets, short-term and long-term bank borrowings, lease liabilities, accounts
payable, amounts due to/due from related parties, long-term borrowings, other payables included in accrued expenses and other current
liabilities. As of December 31, 2022 and 2023, the carrying values of these financial instruments, except for other non-current assets,
non-current portion of long-term banks borrowings, and non-current portion of lease liabilities, approximated their respective fair values
due to the short-term maturity of these instruments.

The
Company’s non-financial assets, such as property, plant and equipment, real estate property