Company: MKDWW
Filing Date: 2025-01-23
Form Type: F-1
Source: 0001493152-25-003296
Chunk: 199

Company: MKDWELL Tech Inc.
Filing Date: 2025-01-23
Form: F-1
Chunk 199
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ust the Company to the production and processing according to the agreed-costed BOM. Specific orders for commissioned processing shall be placed to the Company, terms in commissioned processing contracts and orders are similar with product sales contracts. The Company recognizes revenue at a point in time upon the customer’s acceptance of products with the amount of the determined processing charges on the orders.

Rental income

The Company owns a building and partially leases it out. The Company adopted ASC Topic 842, Leases, and the real estate property rental income falls within the scope of ASC Topic 842, which is excluded from the scope of ASC Topic 606. The leases are classified as operating leases and the rental income is recognized over the leased terms on a straight-line basis.

| F-30 |

MKDWELL TECH INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

| 3. | SUMMARY                                        
 OF SIGNIFICANT ACCOUNTING POLICIES – Continued |

| (o) | Revenue                 
 recognition - continued |

Others

Other revenue represents the revenue generated from various types of services, mainly consists of electricity supply service, technical support services and other revenues.

The following table disaggregates the Company’s revenue for the years ended December 31, 2022 and 2023:

SCHEDULE OF DISAGGREGATION OF REVENUE

| By revenue type                           |     | 2022                
 For the years ended 
 December 31,        
 2022                |           |     | 2023 
 2023 |           |
|:------------------------------------------|:----|:--------------------|----------:|:----|:-----|----------:|
| Sales of manufactured electronic products |     | $                   | 1,543,397 |     | $    | 2,340,440 |
| Commissioned processing service           |     |                     |   866,993 |     |      |   942,626 |
| Rental income                             |     |                     |   357,338 |     |      |   256,642 |
| Others                                    |     |                     |   385,758 |     |      |   131,014 |
| Total                                     |     | $                   | 3,153,486 |     | $    | 3,670,722 |

Contract Balances

When either party to a revenue contract has performed, the Company presents the contract in the consolidated balance sheet as a contract asset or a contract