Company: MKDWW
Filing Date: 2025-01-23
Form Type: F-1
Source: 0001493152-25-003296
Chunk: 191

Company: MKDWELL Tech Inc.
Filing Date: 2025-01-23
Form: F-1
Chunk 191
---
 RATES

|                 |     | December 31, 2022  |     |                 |     | December 31, 2023  |     |                 |
|:----------------|:----|:-------------------|:----|:----------------|:----|:-------------------|:----|:----------------|
|                 |     | Year-end spot rate |     | Average rate    |     | Year-end spot rate |     | Average rate    |
| US$ against RMB |     | US$1=RMB6.8972     |     | US$1=RMB6.7290  |     | US$1=RMB7.0978     |     | US$1=RMB7.0803  |
| US$ against NT$ |     | US$1=NT$30.7300    |     | US$1=NT$29.7963 |     | US$1=NT$30.6200    |     | US$1=NT$31.1525 |

(e) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and cash held in banks, which are highly liquid and are unrestricted as to withdrawal or use.

(f) Accounts Receivable, net

On January 1, 2023, the Company adopted FASB ASC Topic 326 -”Financial Instruments - Credit losses” (“ASC 326”) using the modified retrospective approach through a cumulative-effect adjustment to accumulated deficit. Upon adoption, the Company changed its impairment model to utilize a current expected credit losses model in place of the incurred loss methodology for financial instruments measured at amortized cost. The Company had not recorded an adjustment to the opening accumulated deficit as of January 1, 2023 due to immaterial cumulative impact of adopting ASC 326.

Account receivables are stated net of provision of credit losses. The Company has developed a current expected credit loss (“CECL”) model based on historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The Company considers historical collection rates, current financial status, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses.

| F-25 |

MKDWELL TECH INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

| 3.