Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 174

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 174
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 (1)                                                                        -              573,032      -        

  (1)      During                                                                                                                                                                                                
           the year ended December 31, 2021 and 2022, the Company continuously entered into certain loan arrangements with Ming-Chao Huang and                                                                   
           obtain loans to the Company with annual interest rate ranging from 6% to 6.5%. In December 2022, Ming-Chao Huang converted US$ 1,627,729 loan balance as non-controlling interests contribution i...  
           being paid off.                                                                                                                                                                                       
           In                                                                                                                                                                                                    
           July 2023, Ming-Chao Huang and MKD BVI entered into a share transfer agreement to transfer the 42% share interest of MKD Jiaxing                                                                      
           to MKD BVI with a total consideration of US$ 1,627,729, which was offset by the consideration of shares issued to Ming-Chao Huang                                                                     
           by MKD BVI.                                                                                                                                                                                           
  (2)      In                                                                                                                                                                                                    
           November 2020, MKD Taiwan entered into loan arrangement with Chih-Hsiang Tang and obtained loans to MKD Taiwan with annual interest                                                                   
           rate at 3.5%. In May 2022, Chih-Hsiang Tang converted US$ 33,602 loan balance in exchange for 100,000 ordinary shares of MKD Taiwan,                                                                  
           with the remaining balance being paid off.                                                                                                                                                            
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MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

20. CONCENTRATION OF CREDIT RISK

Financial
instruments that potentially expose the Company to concentrations of credit risk consist primarily of accounts receivable. The Company
conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Company evaluates
its collection experience and long outstanding balances to determine the need for an allowance for credit loss. The Company conducts
periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable.

The
following table sets forth a summary of single customers who represent 10% or more of the Company’s total revenue.

SCHEDULE
OF CONCENTRATION OF CREDIT RISK

                                                 For the years ended December 31