Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 123

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 15
Chunk 123
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ITEM
15. CONTROLS AND PROCEDURES

Disclosure
Controls and Procedures Evaluation

Under
the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we carried
out an evaluation of the effectiveness of our disclosure controls and procedures, which is defined in Rules 13a-15(e) of the Exchange
Act, as of December 31, 2024. Based on that evaluation, our chief executive officer and chief financial officer concluded that our disclosure
controls and procedures as of December 31, 2024, were not effective.

Management’s
Annual Report on Internal Control over Financial Reporting

Our
management, including our chief executive officer and chief financial officer, is responsible for establishing and maintaining adequate
internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our internal control over financial
reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with U. S. Generally Accepted Accounting Principles (“ U. S. GAAP”).
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions or because the degree of compliance with policies or procedures may deteriorate. Under the supervision and with the participation
of our management, including our chief executive officer and chief financial officer, we conducted an assessment of the effectiveness
of our internal control over financial reporting as of December 31, 2024. The assessment was based on criteria established in the framework
Internal Control - Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission.

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In
relation to the examination of our combined and consolidated financial statements presented in this Annual Report, we have
identified significant weaknesses in our internal control over financial reporting and as such as stated above our disclosure controls and procedures as of December 31, 2024 were not effective. The Company did not have a formal risk assessment process and internal control framework over financial reporting,
which included the lack of a formal group-wide risk assessment process to identify, assess, address or mitigate the risks identified,
and sufficient internal control over financial reporting framework to maintain effective internal controls within the organization, and
which may increase risk of error, fraud, misstatement of financial reporting, or non-compliance with