Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 81

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 5
Chunk 81
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 in working capital that negatively affected the cash flow from operating activities,
primarily including a decrease of US$0.61 million in accrued expenses and other current liabilities mainly due to the increase of service
fee payment that related to the business combination.

For
the year ended December 31, 2023, our net cash used in operating activities was US$1.32 million, which was primarily attributable to
(i) our net loss of US$2.07 million, (ii) an adjustment of added non-cash items of a net amount of US$0.53 million, inclusive of depreciation
and amortization and other non-cash items, (iii) changes in working capital that negatively affected the cash flow from operating activities,
primarily including (a) a net amount of US$0.19 million increase in inventories and accounts payables due to the expansion of our sales
scale and we increase our stock level, as well as the fact that the credit period of accounts payable is lower than the realization period
of inventory, (b) an increase of US$0.14 million in prepaid expenses due to the increase of prepayment to the suppliers and the deposit
for customs duties, and partially offset by (iv) changes in working capital that positively affected the cash flow from operating activities,
primarily including (a) a decrease of US$0.44 million in accounts receivables primarily due to the measures of strengthening accounts
receivables collection management and enhanced debt collection efforts, (b) an increase of US$0.17 million in accrued expenses and other
current liabilities mainly due to a longer period of product acceptance of a customer, resulting in an increase in advance from customers.

For
the year ended December 31, 2022, our net cash used in operating activities was US$0.13 million, which was primarily attributable to
(i) our net loss of US$1.22 million, (ii) an adjustment of added non-cash items of a net amount of US$1.01 million, inclusive of depreciation
and amortization and other non-cash items, (iii) a decrease of US$0.39 million in prepaid expenses and other current assets due to our
effort in reducing prepayments in 2022, and (vi) an increase in the amount of US$0.26 million in accounts receivables associated with
a customer who is in default payment and foreign exchange impact in 2022.

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Investing