Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 83

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 5
Chunk 83
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$0.61 million, partially offset by net amount of repayment
of US$0.37 million to related parties and repayments of financing sale and leaseback of US$0.16 million.

Capital
expenditures

Our
capital expenditures are primarily incurred for the purchase of property, equipment and software. Our capital expenditures were US$0.43
million and US$0.75 million and US$0.03 million for the years ended December 31, 2022, 2023 and 2024, respectively. We intend to fund
our future capital expenditures with our existing cash balance and proceeds from this offering. We will continue to incur capital expenditures
as needed to meet the expected growth of our business.

Tabular
Disclosure of Contractual Obligations

The
following table sets forth our contractual obligations as of December 31, 2024. The amounts are gross and undiscounted and include contractual
interest payments.

                                       Payment                                                     
                                       Total                                                       
  Bank                                 $                  5,586,360      2,771,498      2,814,862  
  Payments                                                1,512,566      1,242,154      270,412    
  Operating                                                  61,147         61,147      -          
  Related                                                 2,162,876      2,162,876      -          
  Loans from third parties                                  121,375        121,375                 
  Total                                $                  9,444,324      6,359,050      3,085,274  

  51  

We are currently involved in a litigation matter with the previous U. S.
legal advisor of Cetus Capital, which is one of our subsidiaries, and may be required to pay related reasonable attorneys’ fees. The amount
was not able to be quantified at this stage, and hence no related liability was accrued in the financial statements. Other than those
shown above, we did not have any significant capital and other commitments, long-term obligations and guarantees as of December 31, 2024.

Off-Balance
Sheet Arrangements

We
have not entered into any off-balance sheet financial guarantees or other off-balance sheet commitments to guarantee the payment obligations
of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s
equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained