Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 121

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 13
Chunk 121
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ITEM
13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Our subsidiary MKD Jiaxing and
a third-party First Bank International Leasing Co., Ltd. are involved in a financial leasing contract dispute, which has not yet been
concluded, and the amount involved is approximately RMB2,773,606.

An action was commenced against
us in December 2024 in the Supreme Court of the State of New York by the previous U. S. legal advisor of Cetus Capital, which became our
subsidiary after the closing of the Business Combination, relating to certain legal fees owed. Such action sought relief for a sum of
$478,715, interest thereon at 10 percent. per annum, costs and expenses, including reasonable attorneys’ fees, and such other and
further relief as deemed just and proper.

We were also notified by the counterparty
to that certain amended satisfaction and discharge agreement dated July 24, 2024, appended to this annual report as exhibit 4.16, that
a sum of $662,500 remained outstanding and in default.

ITEM
14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS