Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 48

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 3
Chunk 48
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 resources and management
attention, which may divert from the business operations of MKD Technology.

The
Company is subject to the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act. The Exchange Act requires that the Company
file annual and current reports with respect to its business, financial condition and results of operations. The Sarbanes-Oxley Act requires,
among other things, that the Company establish and maintain effective internal control over financial reporting. As a result, the Company
will incur significant legal, accounting and other expenses that it did not previously incur. The Company’s entire management team
and many of its other employees will need to devote substantial time to compliance and may not effectively or efficiently manage its
transition into a public company.

In
addition, the need to establish the corporate infrastructure demanded of a public company may also divert management’s attention
from implementing the Company’s business strategy, which could prevent it from improving its business, financial condition, cash
flows and results of operations. The Company has made, and will continue to make, changes to its internal control over financial reporting,
including information technology controls, and procedures for financial reporting and accounting systems to meet its reporting obligations
as a public company. However, the measures the Company takes may not be sufficient to satisfy its obligations as a public company. If
the Company does not continue to develop and implement the right processes and tools to manage its changing enterprise and maintain its
culture, its ability to compete successfully and achieve its business objectives could be impaired, which could negatively impact its
business, financial condition, cash flows and results of operations. In addition, the Company cannot predict or estimate the amount of
additional costs it may incur to comply with these requirements. The Company anticipates that these costs will materially increase its
general and administrative expenses.

These
rules and regulations result in the Company’s incurring legal and financial compliance costs and will make some activities more
time-consuming and costly. For example, the Company expects these rules and regulations to make it more difficult and more expensive
for it to obtain director and officer liability insurance, and the Company may be required to accept reduced policy limits and coverage
or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for the Company to
attract and retain qualified people to serve on the Company’s board of directors, or committees thereof, or as executive officers
of the Company.

As
a public reporting company, the Company is subject to rules and regulations