Company: MKDWW
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001641172-25-002610
Chunk: 131

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: F-1
Chunk 131
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| Net change in cash and cash equivalents          |     |                                  |  (76,430 | ) |     |      |    507,420 |   |     |      |   (330,698 | ) |
| Cash and cash equivalents, beginning of the year |     |                                  |  493,438 |   |     |      |    417,008 |   |     |      |    924,428 |   |
| Cash and cash equivalents, end of the year       |     | $                                |  417,008 |   |     | $    |    924,428 |   |     | $    |    593,730 |   |

Operating activities

For the year ended December 31, 2024, our net cash used in operating activities was US$3.11 million, which was primarily attributable to (i) our net loss of US$3.16 million, (ii) an adjustment of added non-cash items of a net amount of US$0.67 million, inclusive of depreciation and amortization and other non-cash items, (iii) changes in working capital that negatively affected the cash flow from operating activities, primarily including a decrease of US$0.61 million in accrued expenses and other current liabilities mainly due to the increase of service fee payment that related to the business combination.

For the year ended December 31, 2023, our net cash used in operating activities was US$1.32 million, which was primarily attributable to (i) our net loss of US$2.07 million, (ii) an adjustment of added non-cash items of a net amount of US$0.53 million, inclusive of depreciation and amortization and other non-cash items, (iii) changes in working capital that negatively affected the cash flow from operating activities, primarily including (a) a net amount of US$0.19 million increase in inventories and accounts payables due to the expansion of our sales scale and we increase our stock level, as well as the fact that the credit period of accounts payable is lower than the realization period of inventory, (b) an increase of US$0.14 million in prepaid expenses due to the increase of prepayment to the suppliers and the deposit for customs duties, and partially offset by (iv) changes in working capital that positively affected the cash flow from operating activities, primarily including (a) a decrease of US$0.44 million in accounts receivables primarily