Company: MKDWW
Filing Date: 2025-03-13
Form Type: 424B4
Source: 0001493152-25-010187
Chunk: 138

Company: MKDWELL Tech Inc.
Filing Date: 2025-03-13
Form: 424B4
Chunk 138
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DENSED COMBINED FINANCIAL INFORMATION</div>

NOTE 1 — BASIS OF PRESENTATION

The Business Combination will be accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded, in accordance with U.S. GAAP. Under this method of accounting, Cetus Capital will be treated as the “accounting acquiree” and MKD BVI as the “accounting acquirer” for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination will be treated as the equivalent of MKD BVI issuing shares for the net assets of Cetus Capital, followed by a recapitalization. The net assets of Cetus Capital will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination will be those of MKD BVI.

The unaudited pro forma condensed combined balance sheet as of June 30, 2024 assumes that the Business Combination and related transactions occurred on June 30, 2024.

The unaudited pro forma condensed combined statement of operations for six month ended June 30, 2024 and the year ended December 31, 2023, combines the unaudited statement of operations of Cetus Capital for six month ended June 30, 2024 with the unaudited consolidated statements of comprehensive loss for six month ended June 30, 2024 of MKD BVI, and the audited statement of operations of Cetus Capital for the year ended December 31, 2023 with the audited consolidated statements of comprehensive loss for the year ended December 31, 2023 of MKD BVI, giving effect to the Business Combination as if it had been consummated on January 1, 2023, the beginning of the earliest period presented. These periods are presented on the basis that MKD BVI is the acquirer for accounting purposes.

The unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X. Cetus Capital has elected not to present any reasonably estimable synergies and other transaction effects that have occurred or reasonably expected to occur (“Management’s Adjustments”) and will only be presenting Transaction Accounting Adjustments in the unaudited pro forma condensed combined financial information. MKD BVI and Cetus Capital did not have any historical relationship prior to the Business Combination. Accordingly, no pro forma adjustments were required to eliminate activities between the companies.

NOTE 2 — ACCOUNTING POLICIES