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MKDWELL Tech Inc. Reports First Half of Fiscal Year 2024 Unaudited Financial Results
MKDWMKDWELL Tech Inc.(MKDW) GlobeNewswire·2024-12-31 21:10

Financial Performance - Total revenues for the first half of 2024 were US0.81million,adecreaseof61.30.81 million, a decrease of 61.3% from US2.10 million in the same period of 2023 [2][9] - Gross profit decreased to US0.07millionwithagrossprofitmarginof8.20.07 million with a gross profit margin of 8.2%, down from US0.32 million and 15.2% respectively in the first half of 2023 [2][16] - Loss from operations increased to US1.54million,anincreaseof83.41.54 million, an increase of 83.4% from US0.84 million in the same period of 2023 [2][29] - Net loss for the first half of 2024 was US1.73million,representinga77.81.73 million, representing a 77.8% increase from US0.97 million in the same period of 2023 [2][29] Revenue Breakdown - Sales of manufactured electronic products decreased by US0.55million,or48.10.55 million, or 48.1%, from US1.14 million in the first half of 2023 to US0.59millionin2024[9][10]−RevenuesfromcommissionedprocessingservicesfellbyUS0.59 million in 2024 [9][10] - Revenues from commissioned processing services fell by US0.67 million, or 90.3%, from US0.74millionin2023toUS0.74 million in 2023 to US0.07 million in 2024 [10] - Rental income decreased by US0.05million,or27.90.05 million, or 27.9%, from US0.16 million in 2023 to US0.11millionin2024[11]−OtherrevenuesdecreasedbyUS0.11 million in 2024 [11] - Other revenues decreased by US0.03 million, or 44.0%, from US0.06millionin2023toUS0.06 million in 2023 to US0.03 million in 2024 [12] Cost and Expenses - Cost of revenues decreased by US1.04million,or58.21.04 million, or 58.2%, from US1.78 million in the first half of 2023 to US0.74millionin2024[14]−GeneralandadministrativeexpensesincreasedbyUS0.74 million in 2024 [14] - General and administrative expenses increased by US0.48 million, or 71.7%, from US0.67millionin2023toUS0.67 million in 2023 to US1.15 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 US0.03million,or8.30.03 million, or 8.3%, from US0.38 million in 2023 to US0.35millionin2024[21]BusinessDevelopments−Thecompanyterminatedakeycustomerrelationshipin2024duetoamismatchinpriceexpectations,leadingtoadecreaseinsalesrevenue[3]−FollowingthecompletionofthebusinesscombinationwithCetusCapitalinJuly2024,themanagementteamplanstofocusonbusinessandcustomerdevelopment[4][5]−Thecompanyisactivelyseekingnewcustomersandhasestablishedcooperationwithnewclientsinthesecondhalfof2024[10]FinancialPosition−AsofJune30,2024,thecompanyhadaccumulateddeficitsofUS0.35 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 US12.62 million and a working capital deficit of US4.84million[30]−TotalassetsdecreasedfromUS4.84 million [30] - Total assets decreased from US9.17 million as of December 31, 2023, to US8.17millionasofJune30,2024[36][37]−TotalliabilitiesincreasedfromUS8.17 million as of June 30, 2024 [36][37] - Total liabilities increased from US8.84 million as of December 31, 2023, to US$9.49 million as of June 30, 2024 [37]