Company: MKDWW
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001641172-25-002610
Chunk: 173

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: F-1
Chunk 173
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|:----|:----------------|:----|:----------------|:----|:----------------|:----|:----------------|:----|:----------------|:----|:----------------|
|             |     | Year-end        
 spot rate       |     | Average         
 rate            |     | Years-ended     
 spot rate       |     | Average         
 rate            |     | Years-ended     
 spot rate       |     | Average         
 rate            |
| US$         
 against RMB |     | US$1=RMB6.8972  |     | US$1=RMB6.7290  |     | US$1=RMB7.0978  |     | US$1=RMB7.0803  |     | US$1=RMB7.2993  |     | US$1=RMB7.1957  |
| US$         
 against NT$ |     | US$1=NT$30.7300 |     | US$1=NT$29.7963 |     | US$1=NT$30.6200 |     | US$1=NT$31.1525 |     | US$1=NT$32.7900 |     | US$1=NT$32.1064 |

(e) Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and cash held in banks, which are highly liquid and are unrestricted as to withdrawal or use.

(f) Restricted cash

Restricted cash balances include funds that have been frozen due to the Company’s involvement in legal litigation. The balances were released in January 2025 as a result of the Company’s settlement with the counterparty.

(g) Accounts and note receivable, net

On January 1, 2023, the Company adopted ASC 326 Financial Instruments – Credit Losses (“ASC 326”) using the modified retrospective approach through a cumulative-effect adjustment to accumulated deficit. Upon adoption, the Company changed its impairment model to utilize a current expected credit losses model in place of the incurred loss methodology for financial instruments measured at amortized cost. The Company had not recorded an adjustment to the opening accumulated deficit as of January 1, 2023 due to immaterial cumulative impact of adopting ASC 326.

Account receivables are stated net of provision of credit losses. The Company has developed a current expected credit loss (“CECL”) model based on historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable