Company: MKDWW
Filing Date: 2025-02-21
Form Type: F-1/A
Source: 0001493152-25-007784
Chunk: 223

Company: MKDWELL Tech Inc.
Filing Date: 2025-02-21
Form: F-1/A
Chunk 223
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D 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-43 |

MKDWELL TECH INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

19. 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 |      |   |
| Percentage of the Company’s total revenue |     |                                  |      |   |     |      |      |   |
| Customer A                                |     |                                  | 19.5 | % |     |      | 52.1 | % |
| Customer B                                |     |                                  |   -* |   |     |      | 13.2 | % |
| Customer C                                |     |                                  | 23.3 | % |     |      | 11.4 | % |
| Customer D                                |     |                                  | 13.9 | % |     |      |   -* |   |

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

|                                                 |     | As of December 31, |      |   |     |      |      |   |
|                                                 |     |               2022 |      |   |     |