Company: MKDWW
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001641172-25-002610
Chunk: 203

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: F-1
Chunk 203
---
871 |   |
| Impairment loss                                 |     |                    |    305,219 |   |     |      |    312,677 |   |
| Impact of foreign exchange                      |     |                    |      6,425 |   |     |      |     10,363 |   |
| Lease liability                                 |     |                    |     46,998 |   |     |      |     33,285 |   |
| Total deferred tax assets                       |     |                    |  3,185,179 |   |     |      |  3,385,196 |   |
| Valuation allowance                             |     |                    | (3,140,578 | ) |     |      | (3,354,499 | ) |
| Deferred tax assets, net of valuation allowance |     |                    |     44,601 |   |     |      |     30,697 |   |
| Deferred tax liabilities:                       |     |                    |            |   |     |      |            |   |
| Right of use asset                              |     |                    |    (44,601 | ) |     |      |    (30,697 | ) |
| Total deferred tax liabilities                  |     |                    |    (44,601 | ) |     |      |    (30,697 | ) |
| Total deferred tax assets, net                  |     | $                  |          - |   |     | $    |          - |   |

As of December 31, 2024, the Company had
net operating loss carryforwards of approximately US$14.2million, which arose from the Company’s subsidiaries, established in Taiwan, China, Samoa, and Mainland China. As
of December 31, 2023 and 2024, deferred tax assets from the net operating loss carryforwards amounted to US$2,826,537and US$3,028,871,
respectively, and the Company has provided a valuation allowance of US$3,140,578and US$3,354,499,
respectively as it has concluded that it is more likely than not that these deferred tax assets would not be utilized in the future.

| F-30 |

MKDWELL TECH INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except share and per share data)

| 18. | TAXATION    
 - Continued |

The movement of valuation allowance provision for