Company: MKDWW
Filing Date: 2025-06-10
Form Type: CORRESP
Source: 0001641172-25-014500
Chunk: 3

Company: MKDWELL Tech Inc.
Filing Date: 2025-06-10
Form: CORRESP
Chunk 3
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, costs and expenses, including reasonable attorneys’ fees, and such other and further relief as deemed just and proper. We have accrued $478,715 and 10% interest amount of $19,411 under “Accrued expenses and other liabilities”. Regarding related reasonable attorneys’ fees, as we have not received a claim on the specific amount of attorney’s fee, we are unable to quantify this amount and therefore no accrual has been recorded as the loss contingency does not meet the “probable and estimable” threshold under ASC 450-20. We have disclosed on page F-35 of our annual report.

(b) ASC 450-20-50 Compliance

(1) The guidelines are as follows:

Disclosure of the nature of an accrual made pursuant to the provisions of paragraph 450-20-25-2, and in some circumstances the amount accrued, may be necessary for the financial statements not to be misleading. If no accrual is made for a loss contingency because one or both of the conditions in paragraph 450-20-25-2 are not met, disclosure of the contingency shall be made when there is at least a reasonable possibility that a loss or an additional loss may have been incurred. The disclosure shall indicate: (A) The nature of the contingency, and (B) An estimate of the possible loss or range of loss (or state that such an estimate cannot be made).

(2) Our consideration:

Regarding the above matter, we have fully accrued all liabilities on our accounting records except for related reasonable attorneys’ fees. Pursuant to ASC 450-20-50 requirements, no additional disclosure in Note 21 of our financial statements is required. As for related reasonable attorneys’ fees that were not able to be quantified as at December 31, 2024, we have state that such an estimate cannot be made in Note 21 of our financial statements.

(c) Item 8.A.7 of Form 20-F

In addition, with respect to Item 8.A.7 of Form 20-F, the Company has evaluated all legal proceedings that could materially impact our financial position. The Company respectfully confirms that future filings of its annual report on Form 20-F will include the required disclosures in the format as follows:

Legal proceedings

From time to time, we may be subject to various legal proceedings and claims that arise in the ordinary course of business, including such as disclosed in “Item 13. Defaults, Dividend Arrearages and Delinquencies”. We have evaluated all