Company: MKDWW
Filing Date: 2025-04-15
Form Type: 424B3
Source: 0001641172-25-004780
Chunk: 122

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-15
Form: 424B3
Chunk 122
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0.24 million for the year ended December 31, 2023 to US$0.23 million for the year ended December 31, 2024, which was relatively stable. Selling expenses did not decreased in line with revenue because our selling expenses is composed of fixed expenses, such as salaries.

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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) other corporate expenses.

Our general and administrative expenses increased by US$0.56 million, or 37.50% from US$1.49 million for the year ended December 31, 2023 to US$2.05 million for the year ended December 31, 2024, which was primarily attributable to (i) an increase of US$0.36 million in professional service fees for the purpose of effecting our business combination with Cetus Capital, (ii) an increase of US$0.18 million in credit loss due to accrued credit loss of US$0.01 million for the year ended December 31, 2024 compared to the reversal of credit loss of US$0.17 million with the recovery of accounts receivables for the year ended December 31, 2023, (iii) an increase of US$0.13 million in depreciation as a result of the decrease in the utilization rate of our production line triggered by the reduction in orders, partially offset by (iv) a decrease of US$0.07 million in salaries and benefits for general and administrative personnel mainly attributable to the reduction in the amount of the annual bonus.

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.

Our research and development expenses decreased by US$0.07 million, or 9.5% from US$0.78 million for the year ended December 31, 2023 to US$0.71 million for the year ended December 31, 2024, which was primarily attributable to the decrease in material consumable due to lower-cost consumables in 2024 and reduced demand for projects modification and testing.

Interest expenses, net

Interest expenses, net consists of interest