Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 78

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 5
Chunk 78
---
i) salaries and benefits for sales personnel, (ii) freight expenses, (iii) office expenses, (iv) rental
and depreciation allocated to selling department, and (v) certain other expenses.

Our
selling expenses remained relatively stable from US$0.24 million for the year ended December 31, 2022 to US$0.24 million for the year
ended December 31, 2023, which was primarily attributable to an increase of US$0.03 million in salaries and benefits for sales personnel
and offset by a decrease of US$0.03 in quality inspection fee as the reduction of customer’s special requirements of quality inspections
on our products in 2023.

General
and administrative expenses

General
and administrative expenses primarily consist of: (i) professional service fees, (ii) salaries and benefits for general and administrative
personnel, (iii) rental and depreciation allocated to general and administrative department; and (iv) other corporate expenses.

  48  

Our
general and administrative expenses increased by US$0.53 million, or 55.6% from US$0.96 million for the year ended December 31, 2022
to US$1.49 million for the year ended December 31, 2023, which was primarily attributable to the increase of US$0.78 million in professional
service fees mainly including audit fees and counsel fees related to listing, partially offset by the reversal of US$0.36 million in
credit loss due to the recovery of accounts receivables.

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) technological development service fee, and (v) certain other expense.

Our
research and development expenses increased by US$0.06 million, or 8.2% from US$0.72 million for the year ended December 31, 2022 to
US$0.78 million for the year ended December 31, 2023, which was primarily attributable to an increase of US$0.10 million in material
consumable due to the increase in demand for modification and testing of projects, partially offset by a reduction of US$0.03 million
in technology service fee due to a product development project completed in the first half of