Financial Performance - Total revenues for the first half of 2024 were US$0.81 million, a decrease of 61.3% from US$2.10 million in the same period of 2023 [2][9] - Gross profit decreased to US$0.07 million with a gross profit margin of 8.2%, down from US$0.32 million and 15.2% respectively in the first half of 2023 [2][16] - Loss from operations increased to US$1.54 million, an increase of 83.4% from US$0.84 million in the same period of 2023 [2][29] - Net loss for the first half of 2024 was US$1.73 million, representing a 77.8% increase from US$0.97 million in the same period of 2023 [2][29] Revenue Breakdown - Sales of manufactured electronic products decreased by US$0.55 million, or 48.1%, from US$1.14 million in the first half of 2023 to US$0.59 million in 2024 [9][10] - Revenues from commissioned processing services fell by US$0.67 million, or 90.3%, from US$0.74 million in 2023 to US$0.07 million in 2024 [10] - Rental income decreased by US$0.05 million, or 27.9%, from US$0.16 million in 2023 to US$0.11 million in 2024 [11] - Other revenues decreased by US$0.03 million, or 44.0%, from US$0.06 million in 2023 to US$0.03 million in 2024 [12] Cost and Expenses - Cost of revenues decreased by US$1.04 million, or 58.2%, from US$1.78 million in the first half of 2023 to US$0.74 million in 2024 [14] - General and administrative expenses increased by US$0.48 million, or 71.7%, from US$0.67 million in 2023 to US$1.15 million in 2024, primarily due to increased professional service fees related to the business combination with Cetus Capital [19] - Research and development expenses slightly decreased by US$0.03 million, or 8.3%, from US$0.38 million in 2023 to US$0.35 million in 2024 [21] Business Developments - The company terminated a key customer relationship in 2024 due to a mismatch in price expectations, leading to a decrease in sales revenue [3] - Following the completion of the business combination with Cetus Capital in July 2024, the management team plans to focus on business and customer development [4][5] - The company is actively seeking new customers and has established cooperation with new clients in the second half of 2024 [10] Financial Position - As of June 30, 2024, the company had accumulated deficits of US$12.62 million and a working capital deficit of US$4.84 million [30] - Total assets decreased from US$9.17 million as of December 31, 2023, to US$8.17 million as of June 30, 2024 [36][37] - Total liabilities increased from US$8.84 million as of December 31, 2023, to US$9.49 million as of June 30, 2024 [37]
MKDWELL Tech Inc. Reports First Half of Fiscal Year 2024 Unaudited Financial Results