Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 36

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 36
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 business, financial condition and results
of operations. Furthermore, it is expected that these rules and regulations will make it more difficult and more expensive to obtain
director and officer liability insurance for the Company, and consequently the Company may be required to incur substantial costs to
maintain the same or similar coverage. These additional obligations could have a material adverse effect on the Company’s business,
financial condition, results of operations and prospects. These factors could also make it more difficult to attract and retain qualified
members of the Company’s Board, particularly to serve on the Company’s audit committee, compensation committee and nominating
committee, and qualified executive officers.

As
a result of disclosure in filings required of a public company, the Company’s business and financial condition will become more
visible, which may result in threatened or actual litigation, including by competitors and other third parties. If such claims are successful,
the Company’s business and operating results could be adversely affected, and, even if the claims do not result in litigation or
are resolved in the Company’s favor, these claims, and the time and resources necessary to resolve them, could cause an adverse
effect on the Company’s business, financial condition, results of operations, prospects and reputation.

Recent
market volatility could impact the share price and trading volume of the Company’s securities.

The
trading market for the Company’s securities could be impacted by recent market volatility. Recent stock run-ups, divergences in
valuation ratios relative to those seen during traditional markets, high short interest or short squeezes, and strong and atypical retail
investor interest in the markets may impact the demand for the Company’s Ordinary Shares.

A
possible “short squeeze” due to a sudden increase in demand of the Company’s Ordinary Shares that largely exceeds supply
may lead to price volatility in the Company’s Ordinary Shares. Investors may purchase the Company’s Ordinary Shares to hedge
existing exposure or to speculate on the price of the Company’s Ordinary Shares. Speculation on the price of the Company’s
Ordinary Shares may involve both long and short exposures. To the extent aggregate short exposure exceeds the number of the Company’s
Ordinary Shares available for purchase (for example, in the event that large redemption requests dramatically affect liquidity), investors
with short exposure may have to pay a premium to repurchase the Company’s Ordinary Shares for delivery to lenders. Those repurchases
may in turn, dramatically increase the price of the Company’s Ordinary Shares. This is often referred to as a “short squeeze.”
A short squeeze