Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 172

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 172
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, respectively, and the Company has provided a valuation allowance of US$3,140,578and US$3,354,499, respectively
as it has concluded that it is more likely than not that these deferred tax assets would not be utilized in the future.

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

  18.      TAXATION     
           - Continued  
 ────────────────────────

The
movement of valuation allowance provision for deferred tax assets was as follows:

SCHEDULE OF MOVEMENT OF VALUATION ALLOWANCE PROVISION FOR DEFERRED TAX ASSETS

  Balance as of December 31, 2021      3,093,005  
 ──────────────────────────────────────────────────
  Current year addition                  311,190  
  Expire of net operation loss         ( 152,259  
  Exchange rate effect                 ( 288,345  
  Balance as of December 31, 2022      2,963,591  
  Current year addition                  363,597  
  Expire of net operation loss         ( 168,776  
  Exchange rate effect                  ( 17,834  
  Balance as of December 31, 2023      3,140,578  
  Current year addition                  672,263  
  Expire of net operation loss         ( 286,411  
  Exchange rate effect                 ( 171,931  
  Balance as of December 31, 2024      3,354,499  

For
entities incorporated in Taiwan, net loss can be carried forward for ten years; for entities incorporated in Samoa, net loss can be carried
forward indefinitely; for entities incorporated in Mainland China, net loss can be carried forward for five years, while for HNTEs net
loss can be carried forward for ten years. As of December 31, 2024, the Company had net operating loss carryforwards of approximately
US$ 9.38 4.83

SCHEDULE
OF OPERATING LOSS CARRYFORWARDS

  For the fiscal years ending December 31,      Amount                  
 ────────────────────────────────────────────────────────────────────────
                                      2025      $            1,142,774  
                                      2026                   1,185,384  
                                      2027                   1,209,