Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 74

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 5
Chunk 74
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 for general and administrative
personnel, (iii) rental and depreciation allocated to general and administrative department, (iv) other corporate expenses.

Our
general and administrative expenses increased by US$0.56 million, or 37.50% from US$1.49 million for the year ended December 31,
2023 to US$2.05 million for the year ended December 31, 2024, which was primarily attributable to (i) an increase of US$0.36 million
in professional service fees for the purpose of effecting our business combination with Cetus Capital, (ii) an increase of US$0.18
million in credit loss due to accrued credit loss of US$0.01 million for the year ended December 31, 2024 compared to the reversal
of credit loss of US$0.17 million with the recovery of accounts receivables for the year ended December 31, 2023, (iii) an increase of US$0.13 million in
depreciation as a result of the decrease in the utilization rate of our production line triggered by the reduction in orders,
partially offset by (iv) a decrease of US$0.07 million in salaries and benefits for general and administrative personnel mainly
attributable to the reduction in the amount of the annual bonus.

Research
and development expenses

Research
and development expenses primarily include (i) salaries and benefits for research and development personnel, (ii) material and supplies
expenses in relation to research and development activities, (iii) rental and depreciation allocated to the research and development
department, (iv) certain other expense.

  45  

Our
research and development expenses decreased by US$0.07 million, or 9.5% from US$0.78 million for the year ended December 31, 2023 to
US$0.71 million for the year ended December 31, 2024, which was primarily attributable to the decrease in material consumable due to lower-cost
consumables in 2024 and reduced demand for projects modification and testing.

Interest
expenses, net

Interest
expenses, net consists of interest expenses for bank borrowings and financing leases, and interest income earned on cash deposits in
banks.

Our
interest expenses, net increased by US$0.16 million, or 62.8% from US$0.24 million for the year ended December 31, 2023 to US$0.40 million
for