Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 158

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 158
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 computed by dividing net loss attributable to ordinary shareholders
by the weighted average number of ordinary shares outstanding during the period. For the calculation of diluted net loss per share, the
weighted average number of ordinary shares is adjusted by the effect of dilutive potential ordinary shares, including unvested restricted
shares, ordinary shares issuable upon the exercise of outstanding share options using the treasury stock method. The effect mentioned
above is not included in the calculation of the diluted income per share when inclusion of such effect would be anti-dilutive. The Pre-Delivery Shares related to the issuance of Convertible Note were
anti-dilutive and thus excluded from the calculation of diluted loss per share for the years ended 2024. For the
years ended December 31, 2022, 2023 and 2024, there were no dilution impact.

(bb) Segment reporting

The
Company adopted ASU 2023-07 in the fourth quarter of 2024, in accordance with the required adoption timeline for public entities. The
adoption of this ASU did not materially impact its financial statement disclosures, as the Company’s existing segment reporting
practices were already in alignment with the new requirements. The Company uses the management approach in determining its operating
segments. The Company’s chief operating decision maker (“ CODM”) identified as the Company’s Chief Executive Officer,
relies upon the consolidated results of operations as a whole when making decisions about allocating resources and assessing the performance
of the Company. As a result of the assessment made by CODM, the Company has only one reportable segment. The Company does not distinguish
between markets or segments for the purpose of internal reporting. As the Company’s long-lived assets are substantially located
in the PRC, no geographical segments are presented.

(cc) Recent accounting pronouncements

The
Company is an “emerging growth company” (“ EGC”) as defined in the Jumpstart Our Business Startups Act of 2012
(the “ JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the
enactment of the JOBS Act until such time as those standards apply to private companies.

In
December 2023, the FASB issued ASU 2023-09, Income taxes (Topic 740), Improvements to Income Tax Disclosures, which provides guidance
on the requirements such as the requirement that public business entities on an annual basis (1) disclose specific categories in the
rate reconciliation