Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 154

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 154
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 performance obligation of transferring the agreed-upon products. Shipping and handling
activities are considered to be fulfillment activities rather than promised services and are not, therefore, considered to be separate
performance obligations. The Company’s sales terms provide no right of return outside of a standard quality policy and returns
are generally not significant. There was no variable consideration nor financing component. The revenue from sales of manufactured electronic
products is recognized at a point in time upon the customer’s acceptance of products at the amount of the determined purchase price
on the orders.

Commissioned
processing service

The
Company provides commissioned processing services to customers and enters into framework contracts with them usually for one year. Customers
provide the material and entrust the Company to the production and processing according to the agreed-costed BOM. Specific orders for
commissioned processing shall be placed to the Company, terms in commissioned processing contracts and orders are similar with product
sales contracts. The Company recognizes revenue at a point in time upon the customer’s acceptance of products with the amount of
the determined processing charges on the orders.

Rental
income

The
Company owns a building and partially leases it out. The Company adopted ASC Topic 842, Leases, and the real estate property rental income
falls within the scope of ASC Topic 842, which is excluded from the scope of ASC Topic 606. The leases are classified as operating leases
and the rental income is recognized over the leased terms on a straight-line basis.

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

  SUMMARY                                         
  OF SIGNIFICANT ACCOUNTING POLICIES - Continued  
 ──────────────────────────────────────────────────

  (q)      Revenue                 
           recognition– Continued  
 ───────────────────────────────────

Others

Other
revenue represents the revenue generated from various types of services, mainly consists of electricity supply service, technical support
services and other revenues.

The
following table disaggregates the Company’s revenue for the years ended December 31, 2022, 2023 and 2024:

SCHEDULE OF DISAGGREGATION OF REVENUE

                                                 2022                                   2023                     2024                 
                                                 As of December 31,                                                                   
                                                 2022                                   2023                     2024                 
  By revenue type                                                                                                                     
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