MKDWELL Tech Inc.(MKDW) - 2023 Q4 - Annual Report

Business Combination and Corporate Structure - The Company completed its Business Combination on July 31, 2024, and is now a holding company for MKD and Cetus Capital[20]. - The Company has a 62.36% ownership in MKD Taiwan following the Business Combination[24]. - The Company is authorized to issue a maximum of 100,000,000 shares with a par value of US$0.0001 each[10]. - The Company’s ordinary shares and warrants are listed on Nasdaq under the symbols "MKDW" and "MKDWW," respectively[41]. - The Company has a corporate headquarters in Hsinchu Science Park, Taiwan, and a manufacturing facility in Jiaxing City, Zhejiang Province, PRC[25]. - The Company’s executive officers and directors collectively own 32.40$4.8 million) at an interest rate of 10% per annum, which can be converted into ordinary shares at a price not lower than $2.00[21]. - The convertible note financing closed on August 12, 2024, with additional shares to be issued upon regulatory approval[21]. - As of August 1, 2024, there are 16,788,342 ordinary shares outstanding, including 6,036,875 warrants exercisable at$11.50 per share[35][10]. - As of August 1, 2024, the company had 16,788,342 ordinary shares and 6,036,875 warrants outstanding, with warrants expiring on July 31, 2029[62]. - The Company has not paid any dividends to shareholders and will consider a dividend policy in the future based on financial conditions[51]. Financial Performance and Projections - MKDWELL TECH INC. reported a significant increase in revenue, achieving $150 million for Q2 2024, representing a 25$180 million for Q3 2024, indicating a projected growth of 20%[69]. - MKDWELL TECH INC. reported a net profit margin of 12% for Q2 2024, an increase from 10% in Q2 2023[69]. - Customer retention rate improved to 85%, up from 80% in the previous quarter, reflecting enhanced user satisfaction[69]. Market Expansion and Investment - The company is investing 10 million in R&D for new product development, focusing on AI-driven technologies[69]. - MKDWELL TECH INC. plans to enter two new international markets by the end of 2024, aiming for a 15% increase in global market share[69]. - The company has completed a strategic acquisition of a smaller tech firm for 25 million, expected to enhance its product offerings[69]. - The company is implementing a new marketing strategy with a budget of $5 million to boost brand awareness and customer engagement[69]. Risk Management and Financial Oversight - The company has not hedged against foreign exchange risks, as its revenues and costs are primarily in Renminbi and New Taiwan Dollars, limiting direct foreign exchange exposure[57]. - The value of the Renminbi against the U.S. dollar is subject to fluctuations due to government policies and international developments, which may impact the company's financial performance[58]. - The company has not been exposed to material risks from changes in market interest rates and has not used derivative financial instruments for interest rate risk management[60]. - The audited consolidated financial statements of MKDWELL Limited and MKDWELL Tech Inc. for the years ended December 31, 2023, and 2022 are incorporated by reference, indicating ongoing financial oversight[65]. - The company is exempt from certain SEC reporting requirements as a foreign private issuer, which may affect the frequency and promptness of its financial disclosures[55]. - The company is subject to the informational requirements of the Exchange Act, necessitating the filing of reports with the SEC[55]. - The company has not disclosed any significant subsidiary information, indicating a focus on its primary operations[56].