Company: MKDWW
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001641172-25-002610
Chunk: 182

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: F-1
Chunk 182
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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, US$ 304,489 and US$ 262,216 as of December 31, 2022, 2023 and 2024, respectively, which was included in the caption “Accrued expenses and other current liabilities”. The amount of revenue recognized during the years ended December 31, 2022, 2023 and 2024 that was previously included in the contract liabilities balance as of December 31, 2021, 2022 and 2023 were US$ 91,467, US$ 44,169 and US$ 46,813, respectively.

| F-17 |

MKDWELL TECH INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

| 3. | 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