Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 124

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 15
Chunk 124
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 related regulations for a U. S. listed
group. Additionally, the Company lacked sufficient financial reporting and accounting personnel with appropriate knowledge of GAAP and
SEC reporting requirements to properly address complex GAAP technical accounting issues and to prepare and review financial statements
and related disclosures in accordance with GAAP and reporting requirements set forth by the SEC.

A comprehensive assessment of our internal control, aimed at identifying and
reporting material weaknesses and other deficiencies, was not conducted by our independent registered public accounting firm.
Performing such an assessment or having an audit of our internal control over financial reporting might have revealed additional
deficiencies.

To
address the identified material weaknesses stemming from the audit of our combined and consolidated financial statements for the year ended
December 31, 2024, we intend to implement various measures, including the hiring of additional accounting personnel to enhance the financial
reporting function and the establishment of a financial and system control framework. We also intend to initiate regular U. S. GAAP and
SEC financial reporting training programs for our accounting and financial personnel. Moreover, we are in the process of developing and
implementing a set of policies and procedures for period-end financial reporting. However, we cannot provide assurance that these measures
will be entirely effective in remediating the material weaknesses in a timely manner or at all.

Being
a company with less than US$1.235 billion in revenue for the fiscal year ended December 31, 2023, we qualify as an “emerging
growth company” under the JOBS Act. An emerging growth company is entitled to certain reduced reporting and other requirements
that are typically applicable to public companies. These provisions include exemption from the auditor attestation requirement under
Section 404 of the Sarbanes-Oxley Act of 2002 concerning the assessment of the emerging growth company’s internal control over
financial reporting.

Changes
in Internal Control over Financial Reporting

Other
than those disclosed above, there were no changes in our internal controls over financial reporting that occurred during the period covered
by this Annual Report on Form 20-F that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

ITEM
16. [RESERVED]