Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 79

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 5
Chunk 79
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2023.

Interest
expenses, net

Interest
expenses, net consists of interest expenses for borrowings from banks and related parties, financing leases, and interest income earned
on cash deposits in banks.

Our
interest expenses, net decreased by US$0.15 million, or 37.3% from US$0.39 million for the year ended December 31, 2022 to US$0.24 million
for the year ended December 31, 2023, which was primarily attributable to the decrease of interest expense, which is a result of lower
average loan amounts due to repayment of loans from related parties.

Other
income, net

Other
income, net consists of government subsidies, litigation gain, foreign currency exchange gain or loss, and others.

Other
income, net decreased by US$0.05 million, or 77.8% from US$0.07 million for the year ended December 31, 2022 to US$0.02 million for the
year ended December 31, 2023, which was primarily attributable to a decrease of US$0.05 million in government subsidies with respect
to salary and working capital subsidies from Taiwan government in 2023.

Net
loss

As
a result of the foregoing, our net loss increased by US$0.85 million, or 69.9% from US$1.22 million for the year ended December 31, 2022
to US$2.07 million for the year ended December 31, 2023.

Going
concern and Capital Resources

Our
consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation
of liabilities during the normal course of operations. We incurred net losses of US$1.22 million, US$2.07 million and US$3.16 million
for the years ended December 31, 2022, 2023 and 2024, respectively. Net cash used in operating activities were US$0.13 million, US$1.32
million and US$3.11 million for the years ended December 31, 2022, 2023 and 2024, respectively. As of December 31, 2024, our accumulated
deficits were US$13.73 million, with a working capital deficit of US$7.83 million. Our operating results for future periods are subject
to numerous uncertainties and it is