Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 155

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 155
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  Sales of manufactured electronic products      $                       1,543,397      $         2,329,491      $         1,318,521  
  Commissioned processing service                                          866,993                  942,626                  382,146  
  Rental income                                                            357,338                  267,591                  177,593  
  Others                                                                   385,758                  131,014                  120,711  
  Total                                          $                       3,153,486      $         3,670,722      $         1,998,971  

Advance
from customers consists of payments received related to unsatisfied performance obligations at the end of the period. The advance from
customers amounted to US$ 189,193 304,489 262,216 91,467 44,169 46,813

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

(r) Cost of revenues

Cost of revenues consists primarily of (i) direct
materials, labor costs and manufacturing overheads associated with manufactured electronic products, (ii) direct labor costs and manufacturing
overheads associated with commissioned processing service, (iii) depreciation of leased property, (iv) inventories write-down and (v)
other cost related to the business operation.

(s) Selling expenses

Selling
expenses primarily consist of: (i) salaries and benefits for sales personnel, (ii) freight expenses, (iii) rental and depreciation allocated
to selling department, (iv) certain other expenses.

(t) General and administrative expenses

General
and administrative expenses primarily consist of: (i) professional service fees, (ii) salaries and benefits for general and administrative
personnel, (iii) rental and depreciation allocated to general and administrative department, (iv) idle capacity, and (v) other corporate
expenses.

(u) Research and development expenses

Research and development expenses primarily include
(i) salaries and benefits for research and development personnel, (ii) material and supplies expenses in relation to research and development
activities, (iii) rental and depreciation allocated to the research and development department, (iv) certain other expense.

(v) Other income, net

Other income primarily consists of government