Company: MKDWW
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001641172-25-002610
Chunk: 206

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: F-1
Chunk 206
---
                                                                            
 loan balance as                                                                                                                     
 non-controlling interests contribution in exchange of 42%                                                                           
 share interest of MKD Jiaxing, with the remaining balance being paid off.                                                           |
|     | In                                                                                                                                  
 July 2023, Ming-Chao Huang and MKD BVI entered into a share transfer agreement to transfer the 42%                                  
 share interest of MKD Jiaxing to MKD BVI with a total consideration of US$1,627,729,                                                
 which was offset by the consideration of shares issued to Ming-Chao Huang by MKD BVI.                                               |
| (2) | In                                                                                                                                  
 November 2020, MKD Taiwan entered into loan arrangement with Chih-Hsiang Tang and obtained loans to MKD Taiwan with annual interest 
 rate at 3.5%.                                                                                                                       
 In May 2022, Chih-Hsiang Tang converted US$33,602                                                                                   
 loan balance in                                                                                                                     
 exchange for 100,000                                                                                                                
 ordinary shares                                                                                                                     
 of MKD Taiwan, with the remaining balance being paid off.                                                                           |

| F-33 |

MKDWELL TECH INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

20. CONCENTRATION OF CREDIT RISK

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of accounts receivable. The Company conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Company evaluates its collection experience and long outstanding balances to determine the need for an allowance for credit loss. The Company conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.

The following table sets forth a summary of single customers who represent 10% or more of the Company’s total revenue.

SCHEDULE OF CONCENTRATION OF CREDIT RISK

|                                           |     | For the years ended December 31, |      |   |     |      |      |   |     |      |      |   |
|                                           |     |                             2022 |      |   |     | 2023 |      |   |     | 2024 |      |   |
| Percentage of the Company’s total revenue |     |                                  |      |   |     |      |      |   |     |      |      |   |
| Customer A                                |     |                                  |   -* |   |     |      |