Company: MKDWW
Filing Date: 2025-02-21
Form Type: F-1/A
Source: 0001493152-25-007784
Chunk: 135

Company: MKDWELL Tech Inc.
Filing Date: 2025-02-21
Form: F-1/A
Chunk 135
---
 As a result, management has determined that such additional condition also raise substantial doubt about Cetus Capital’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Cetus Capital’s Critical Accounting Policies and Estimates

This management’s discussion and analysis of Cetus Capital’s financial condition and results of operations is based on Cetus Capital’s unaudited financial statements included in this prospectus, which have been prepared in accordance with United States generally accepted accounting principles. The preparation of these financial statements required Cetus Capital to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in its financial statements. On an ongoing basis, Cetus Capital evaluates its estimates and judgments, including those related to fair value of financial instruments and accrued expenses. Cetus Capital bases its estimates on historical experience, known trends and events and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Cetus Capital’s Common Stock Subject to Redemption

Cetus Capital accounts for its common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that feature redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within Cetus Capital’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. Cetus Capital’s common stock features certain redemption rights that are considered to be outside of its control and subject to occurrence of uncertain future events. Accordingly, common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of Cetus Capital’s balance sheet.

Cetus Capital has made a policy election in accordance with ASC 480-10-S99-3A and recognizes changes in redemption value in additional paid-in capital (or accumulated deficit in the absence of additional paid-in capital) over an expected 9-month period leading up to a Business Combination.

Cetus Capital’s Off-Balance Sheet Financing Arrangements

Cetus Capital has no obligations, assets or