| RELATED PARTY TRANSACTIONS |
12.
RELATED PARTY TRANSACTIONS
The
following is a list of related parties which the Company has transactions with:
SCHEDULE OF RELATED PARTIES
| No. |
|
Name
of Related Parties |
|
Relationship |
| 1 |
|
Ming-Chia
Huang |
|
Chief
Executive Officer, Chairman of the Board of Directors and shareholder of the Company |
| 2 |
|
Ming-Chao
Huang |
|
Director
and shareholder of the Company |
| 3 |
|
Cetus
Sponsor LLC |
|
|
| 4 |
|
AWinner
Limited |
|
Shareholder
of the Company since March 24, 2025 and Affiliates of Cetus Sponsor LLC |
| 5 |
|
Ms.
Ya-Hui |
|
Spouse
of Ming-Chia Huang |
| 6 |
|
Lu
Huang |
|
Shareholder
of the Company since July, 2025 |
MKDWELL
TECH INC.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
U.S. dollars, except share and per share data)
12.
RELATED PARTY TRANSACTIONS-continued
(b)
Amounts from related parties
Amounts
due from related parties consisted of the following for the periods indicated:
| | |
| |
As of | |
| | |
| |
December 31,2025 | | |
June 30,2026 | |
| | |
| |
| | |
(Unaudited) | |
| Related parties | |
Nature | |
| | |
| |
| Cetus Sponsor LLC | |
Loan to a related party | |
$ | | |
$ | |
| AWinner Limited | |
Loan to a related party | |
| 875,000 | | |
| 875,000 | |
| Total | |
| |
$ | 947,487 | | |
$ | 947,605 | |
On
March 13, 2025, Cetus Sponsor LLC, AWinner Limited, and MKD BVI entered into a debt transfer agreement, pursuant to which the debt of
US$875,000 owed to MKD BVI by Cetus Sponsor LLC was transferred to and will be borne by AWinner Limited. Meanwhile, on March 13, 2025,
AWinner Limited issued an interest-free promissory note with an amount of US$875,000 to MKD BVI, with the maturity date being December
31, 2026.
(c)
Amounts due to related parties
Amount
due to related parties consisted of the following for the periods indicated:
| | |
| |
As of | |
| | |
| |
December 31,2025 | | |
June 30,2026 | |
| | |
| |
| | |
(Unaudited) | |
| Related parties | |
Nature | |
| | | |
| | |
| Ming-Chia Huang (1) | |
Loan from related parties | |
$ | 1,354,052 | | |
$ | 2,965,637 | |
| Cetus Sponsor LLC | |
Loan from related parties | |
| | |
| |
| AWinner Limited | |
Loan from related parties | |
| 737 | | |
| 737 | |
| Ming-Chao Huang (2) | |
Loan from related parties | |
| 504,182 | | |
| 669,672 | |
| Lu Huang(4) | |
Loan from related parties | |
| 154,816 | | |
| 159,457 | |
| Ming-Chia Huang | |
Expense paid on behalf the Company | |
| 9,311 | | |
| - | |
| Ming-Chao Huang | |
Expense paid on behalf the Company | |
| 4,651 | | |
| - | |
| Ms. Ya-Hui | |
Expense paid on behalf the Company | |
| 429 | | |
| 580 | |
| Total | |
| |
$ | 2,067,178 | | |
$ | 3,835,083 | |
MKDWELL
TECH INC.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
U.S. dollars, except share and per share data)
12.
RELATED PARTY TRANSACTIONS-continued
(c)
Amounts due to related parties-continued
| (1) | The
Company continuously entered into certain loan arrangements with Ming-Chia Huang and obtained
loans from him with annual interest rates ranging from 3.5% to 7.0%. During the six months
ended June 30, 2026, the Company obtained additional loans from Ming-Chia Huang in the aggregate
amount of approximately US$1,649,904, and repaid approximately US$38,319. The balance due
to Ming-Chia Huang increased by approximately US$1,611,585, from US$1,354,052 as of December
31, 2025 to US$2,965,637 as of June 30, 2026. |
| (2) | The
Company continuously entered into certain loan arrangements with Ming-Chao Huang and obtained
loans from him with an annual interest rate of 6.0%. During the six months ended June 30,
2026, the Company obtained additional loans from Ming-Chao Huang in the aggregate amount
of approximately US$206,216, and repaid approximately US$40,726. The balance due to Ming-Chao
Huang increased by approximately US$165,490, from US$504,182 as of December 31, 2025 to US$669,672
as of June 30, 2026. |
(d)
Related party transactions
| | |
For the six months ended June 30, | |
| | |
2025 | | |
2026 | |
| | |
(Unaudited) | |
| Interest expenses of loans from related parties | |
| | |
| |
| Ming-Chia Huang | |
$ | 7,480 | | |
$ | 36,096 | |
| Ming-Chao Huang | |
| - | | |
| 5,579 | |
| Lu Huang | |
| - | | |
| 2,976 | |
| Proceeds of loans from related parties | |
| | | |
| | |
| Ming-Chao Huang | |
| (395,287 | ) | |
| (179,511 | ) |
| Ming-Chia Huang | |
| (678,000 | ) | |
| (976,831 | ) |
| Debt to equity conversion | |
| | | |
| | |
| AWinner Limited | |
| 1,110,000 | | |
| - | |
| Ming-Chia Huang | |
| 823,100 | | |
| - | |
| Ms. Ya-Hui | |
| 550,000 | | |
| - | |
| Repay of loans from related parties | |
| | | |
| | |
| Ming-Chia Huang | |
| - | | |
| 38,319 | |
| Ming-Chao Huang | |
| - | | |
| 29,476 | |
| Repayment of the Convertible Note | |
| | | |
| | |
| Ming-Chia Huang | |
| - | | |
| 651,716 | |
| Repurchase of Pre-Delivery Shares of Convertible Note | |
| | | |
| | |
| Ming-Chia Huang | |
| - | | |
| 180 | |
MKDWELL
TECH INC.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In
U.S. dollars, except share and per share data)
|