Company: MKDWW
Filing Date: 2025-02-21
Form Type: F-1/A
Source: 0001493152-25-007784
Chunk: 134

Company: MKDWELL Tech Inc.
Filing Date: 2025-02-21
Form: F-1/A
Chunk 134
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3, Cetus Capital had net income of $413,341, which consisted of interest income on the Trust Account in the amount of $1,106,041, partially offset by formation and operating costs of $379,403, franchise tax expense of $102,567 and income tax expense of $210,730.

For the fiscal year ended December 31, 2023, Cetus Capital had net income of $52,056, which consisted of interest income on the Trust Account in the amount of $1,394,622, partially offset by formation and operating costs of $907,593, franchise tax expense of $179,876, and income tax expense of $255,097. For the period from June 7, 2022 (inception) through December 31, 2022, Cetus Capital had net loss of $5,652, which consisted of formation and operating costs of $5,652.

Cetus Capital’s Liquidity and Capital Resources

As of June 30, 2024, Cetus Capital had $181,795 in cash and working capital deficit of $2,300,048. Cetus Capital’s liquidity needs prior to the consummation of its IPO had been satisfied through a payment from Cetus Capital’s sponsor Cetus Sponsor LLC (“Sponsor”) of $25,000 for the Founder Shares and through up to $300,000 in loans available from our sponsor under an unsecured promissory note. On February 3, 2023, the total principal amount of $216,837 was converted into part of the subscription of $2,868,750 private placement at a price of $10.00 per unit. The promissory note was cancelled and no amounts were then owed under the note. Cetus Capital has incurred significant professional costs to remain a publicly traded company and to incur significant transaction costs in pursuit of the consummation of a Business Combination. In connection with Cetus Capital’s assessment of going concern considerations in accordance with Financial Accounting Standard Board’s Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined that these conditions raise substantial doubt about Cetus Capital’s ability to continue as a going concern. In addition, if Cetus Capital is unable to complete a Business Combination within the Combination Period, Cetus Capital’s board of directors would proceed to commence a voluntary liquidation and thereby a formal dissolution of Cetus Capital.