Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 147

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 147
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 losses.

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except share and per share data)

  SUMMARY                                         
  OF SIGNIFICANT ACCOUNTING POLICIES - Continued  
 ──────────────────────────────────────────────────

(h) Inventories, net

Inventories,
primarily consisting of raw materials, work-in-process and finished goods, are stated at the lower of cost or net realizable value, with
net realized value represented by estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal
and transportation. Cost of inventory is determined using the monthly weighted average cost method. Adjustments are recorded to write
down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged products, which is dependent
upon factors such as historical and forecasted consumer demand.

Idle
capacity consists of production-related costs of depreciation of machinery and equipment in excess of charges allocated to the Company’s
finished goods in production. Costs in excess of production allocations are expensed in the period incurred rather than added to the
cost of finished goods produced. Idle capacity expenses amounted to nil nil 128,353

(i) Intangible assets, net

Intangible
assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets are amortized using the straight-line
approach over the estimated economic useful lives of the assets as follows:

SCHEDULE OF ESTIMATED ECONOMIC USEFUL LIVES OF THE ASSETS

  Category       Estimated     
                 useful lives  
 ───────────────────────────────
  Land           50 years      
  Software       3 years       

(j) Property, plant and equipment, net

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT ESTIMATED USEFUL LIVES

Property,
plant and equipment are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis
over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the
asset into its intended use. Estimated useful lives are as follows:

  Category           Estimated     
                     useful lives  
 ───────────────────────────────────
  Electronic         3 years       
  Machinery          3 - 10 years  
  Vehicle            4 years       
  Office             3 - 5 years   
  Building           20 years      

Repair
and maintenance costs are charged to expenses as incurred