Company: MKDWW
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001641172-25-002610
Chunk: 123

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: F-1
Chunk 123
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 credit loss due to accrued credit loss of US$0.01 million for the year ended December 31, 2024 compared to the reversal of credit loss of US$0.17 million with the recovery of accounts receivables for the year ended December 31, 2023, (iii) an increase of US$0.13 million in depreciation as a result of the decrease in the utilization rate of our production line triggered by the reduction in orders, partially offset by (iv) a decrease of US$0.07 million in salaries and benefits for general and administrative personnel mainly attributable to the reduction in the amount of the annual bonus.

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) certain other expense.

Our research and development expenses decreased by US$0.07 million, or 9.5% from US$0.78 million for the year ended December 31, 2023 to US$0.71 million for the year ended December 31, 2024, which was primarily attributable to the decrease in material consumable due to lower-cost consumables in 2024 and reduced demand for projects modification and testing.

Interest expenses, net

Interest expenses, net consists of interest expenses for bank borrowings and financing leases, and interest income earned on cash deposits in banks.

Our interest expenses, net increased by US$0.16 million, or 62.8% from US$0.24 million for the year ended December 31, 2023 to US$0.40 million for the year ended December 31, 2024, which was primarily attributable to the increase of US$0.23 million in interest expense due to the newly borrowed loans from related parties, and offset by the increase of US$0.07 in interest income due to the newly lent loans to Cetus Sponsor LLC.

Other income, net

Other income, net consists of government subsidies, building repair income, foreign currency exchange gain or loss, and others.

Other income, net increased by US$0.05 million, or 301.5% from US$0.02 million for the year ended December 31, 2023 to US$0.07 million for the year ended December 31, 2024, which was primarily attributable to an increase of US$