Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 66

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 4
Chunk 66
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 based in Mainland China who fabricate such components within Mainland
China. Taking into consideration the scale of our operations and the availability of such raw materials in Mainland China, we did not
and do not expect to experience significant supply chain disruptions or disruptions to the supply of raw materials for our production.

Our
strong and stable relationship with our suppliers is crucial to our reliable production capabilities. We have entered into strategic
cooperation agreements with our key suppliers.

The
material terms of our key supply agreements are as follows:

  Scope           Supply                                                         
  Payment         Monthly                                                        
  Warranties      One                                                            
  Supply          Production                                                     

  38  

Research
and Development

We
have a dedicated research and development team responsible for the design and development of our products. For the years ended December
31, 2024 and 2023, our research and development expenses were mainly incurred for the salaries of R& D personnel, as well as direct
materials and expenditure used for product research and development, particularly for new product development.

Intellectual
Property

MKD
seeks to protect its intellectual properties through a combination of patents, copyrights, trademarks, trade secrets and confidentiality
agreements. We intend to protect our intellectual properties vigorously, but there can be no assurance that our efforts will be successful.
Even if our efforts are successful, we may incur significant costs in defending our rights. From time to time, third parties may initiate
litigation against us alleging infringement of their proprietary rights or declaring their non-infringement of our intellectual property
rights. See “ Risk Factors - MKD may be subject to claims of infringement of third-party intellectual property rights or
demands that MKD license third-party technology, which could result in significant expense and reduction in the MKD’s intellectual
property rights.

Licenses,
Permits and Approvals

As
of the date hereof, MKD has obtained all requisite licenses, permits and approvals from relevant authorities that are material to its
operations.

Insurance
and Social Security Matters

In
the PRC, MKD participates in various employee social security plans that are organized by governments for their full-time employees,
including pension, unemployment insurance, maternity insurance, work-related injury insurance, medical insurance, and housing fund. MKD
is required under the PRC law to make contributions from time to time to employee benefit plans for their full-time employees at specified
percentages of the salaries, bonuses, and certain allowances of such employees, up to a maximum