Company: MKDWW
Filing Date: 2025-03-13
Form Type: 424B4
Source: 0001493152-25-010187
Chunk: 187

Company: MKDWELL Tech Inc.
Filing Date: 2025-03-13
Form: 424B4
Chunk 187
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 respective currencies New Taiwan dollar (“NT$”) and Renminbi (“RMB”) as their functional currencies.

The financial statements of MKD BVI and its subsidiaries, other than subsidiaries with functional currency of US$, are translated into US$ using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution.

Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the condensed consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to Period are included as a separate component of accumulated other comprehensive income included in consolidated statements of changes in shareholders’ equity. Gains and losses from foreign currency transactions are included in the Company’s consolidated statements of operations and comprehensive loss.

The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements:

SCHEDULE OF CURRENCY EXCHANGE RATES

|                 |     | December 31, 2022  |     |                 |     | December 31, 2023  |     |                 |
|:----------------|:----|:-------------------|:----|:----------------|:----|:-------------------|:----|:----------------|
|                 |     | Year-end spot rate |     | Average rate    |     | Year-end spot rate |     | Average rate    |
| US$ against RMB |     | US$1=RMB6.8972     |     | US$1=RMB6.7290  |     | US$1=RMB7.0978     |     | US$1=RMB7.0803  |
| US$ against NT$ |     | US$1=NT$30.7300    |     | US$1=NT$29.7963 |     | US$1=NT$30.6200    |     | US$1=NT$31.1525 |

(e) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and cash held in banks, which are highly liquid and are unrestricted as to withdrawal or use.

(f) Accounts Receivable, net

On January