Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 177

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 177
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 any registration statement filed by the Company with the SEC in connection with
any future fundraising transaction is declared effective (the “ Standstill Period”). In consideration for the standstill,
the Company will pay Streeterville a standstill fee equal to 2% of the outstanding balance of the convertible note (the
“ Standstill Fee”). As of March 3, 2025, the outstanding balance of the convertible note, inclusive of the Standstill
Fee, is US$1,916,288. The Company estimates that the increase in the outstanding balance resulting from the standstill fee will increase
the payable amount of Convertible Note and thus increases the Company’s current liabilities.

Short-term
Bank Borrowings

In
February 2025, the Company obtained two short-term loans from Bank of Jiaxing, each amounting to US$ 0.27 4.5

Amendment
to Memorandum and Articles of Association to Increase Authorized Share Capital

On
March 5, 2025, the Board of Directors of the Company approved an amendment (the “ Amendment”) to the Amended and Restated
Memorandum and Articles of Association of the Company (the “ Memorandum and Articles”) to increase the authorized share capital
to an unlimited amount. The Company estimates that amending the Memorandum and Articles has no financial effect as the Company has not issued
new shares as of the date of issuance of the consolidated financial statements.

Entry into Debt Transfer Agreements

On March 13, 2025, Cetus Sponsor LLC, AWinner Limited,
and MKD BVI entered into a debt transfer agreement, pursuant to which the debt of US$875,000owed to MKD BVI by Cetus Sponsor LLC was
transferred to AWinner Limited. Meanwhile, on March 13, 2025, AWinner Limited issued an interest-free promissory note with an amount of
US$875,000to MKD BVI, with the maturity date being December 31, 2026.

On March 13, 2025, Cetus Sponsor LLC, AWinner Limited,
and MKD entered into a debt transfer agreement, pursuant to which Cetus Sponsor LLC transferred its claim of US$875,000against the Company
to AWinner Limited.

The Company estimates that the execution of debt transfer agreements has
no financial impact on the Company’s consolidated financial statements.

Entry
into Debt Conversion Agreements

On
March 19, 2025, the Company, entered into