Company: MKDWW
Filing Date: 2025-01-23
Form Type: F-1
Source: 0001493152-25-003296
Chunk: 277

Company: MKDWELL Tech Inc.
Filing Date: 2025-01-23
Form: F-1
Chunk 277
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 Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheet.

The Company has made a policy election in accordance with ASC 480-10-S99-3A and recognizes changes in redemption value in additional paid-in capital (or accumulated deficit in the absence of additional paid-in capital) over an expected 9-month period leading up to a Business Combination. As of December 31, 2023, the Company had recorded accretion of $ 7,739,022.

For issued warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations.

At December 31, 2023, the amount of common stock subject to possible redemption reflected in the balance sheet are reconciled in the following table:

SCHEDULE OF COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION

| Gross proceeds                                          |     | $ | 57,500,000 |   |
| Less:                                                   |     |   |            |   |
| Proceeds allocated to public                            
 warrants                                                |     |   |   (230,575 | ) |
| Proceeds allocated to public                            
 rights                                                  |     |   | (2,290,800 | ) |
| Allocation of offering                                  
 costs related to redeemable shares                      |     |   | (3,208,090 | ) |
| Plus:                                                   |     |   |            |   |
| Accretion of initial carrying                           
 value to redemption value                               |     | $ |  7,739,022 |   |
| Remeasurement of subsequent                             
 measurement of common stock subject to redemption value |     |   |    214,342 |   |
| Common stock subject to                                 
 possible redemption                                     |     | $ | 59,723,899 |   |

| F-76