Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 35

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 35
---
 the market price of the Company’s Ordinary Shares may
decline.

The
requirements of being a public company may strain the Company’s resources, divert the Company management’s attention and
affect the Company’s ability to attract and retain qualified board members.

The
Company is subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, Nasdaq listing requirements
and other applicable securities rules and regulations. As such, the Company will incur relevant legal, accounting and other expenses,
and these expenses may increase even more if the Company no longer qualifies as an “emerging growth company,” as defined
in Section 2(a) of the Securities Act. The Exchange Act requires, among other things, that the Company files annual and current reports
with respect to the Company’s business and operating results. The Sarbanes-Oxley Act requires, among other things, that the Company
maintain effective disclosure controls and procedures and internal control over financial reporting. the Company may need to hire more
employees or engage outside consultants to comply with these requirements, which will increase the Company’s costs and expenses.

  20  

Changing
laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies,
increasing legal and financial compliance costs and making some activities more time-consuming. These laws, regulations and standards
are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice
may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding
compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. It is expected that these
laws and regulations will increase the Company’s legal and financial compliance costs and will render some activities more time-consuming
and costly, although these costs cannot currently be estimated with any degree of certainty.

Many
members of the Company’s management team have limited experience managing a publicly traded company, interacting with public company
investors and complying with the increasingly complex laws pertaining to public companies. the Company’s management team may not
successfully or efficiently manage the transition to being a public company subject to significant regulatory oversight and reporting
obligations under the federal securities laws and regulations and the continuous scrutiny of securities analysts and investors. The need
to establish the corporate infrastructure demanded of a public company may divert the management’s attention from implementing
the Company’s growth strategy, which could prevent the improvement of the Company’s