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<p id="xdx_802_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_zqh7jJtOBEfh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">1. ORGANIZATION AND PRINCIPAL ACTIVITIES MKDWELL Tech Inc. (“MKD”) was incorporated under the laws of the British Virgin Islands (“BVI”) on July 25, 2023. MKDWELL Limited (“MKD BVI”) was incorporated in the BVI on March 30, 2023 as a nonoperating shell company. MKD Technology Inc. (“MKD Taiwan”) was incorporated in Taiwan on September 26, 2006. MKD, through its subsidiary MKD Taiwan and MKD Taiwan’s subsidiaries (collectively, the “Company”), primarily engages in designing and manufacturing industrial embedded system and automotive electronics in Taiwan and mainland China. <p id="xdx_892_ecustom--ScheduleOfCompaniesSubsidiariesAndVariableInterestEntitiesTableTextBlock_zA7qJjNbudad" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; text-indent: 0; margin-bottom: 0pt; margin-left: 0">As of June 30, 2026, the Company and its major subsidiaries were as follows: SCHEDULE OF COMPANY AND ITS MAJOR SUBSIDIARIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Subsidiaries</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Date of incorporation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Place of incorporation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Percentage of ownership</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Principal activities</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKD</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">July 25, 2023</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">British Virgin Islands</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Nonoperating shell company</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 20%; text-align: left; text-indent: 0pt; padding-left: 0pt">MKD BVI</td><td style="width: 2%"> </td> <td style="width: 14%; text-align: left; text-indent: 0pt; padding-left: 0pt">March 30, 2023</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: left; text-indent: 0pt; padding-left: 0pt">British Virgin Islands</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_909_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDBritishVirginIslandsMember_z9DCJydLs71g" title="Percentage of ownership">100.00</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: left; text-indent: 0pt; padding-left: 0pt">Investment holding</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKD Taiwan</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">September 26, 2006</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Taiwan, PRC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDTaiwanMember_zF5y0Qqp6yEd" title="Percentage of ownership">62.36</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Trading, designing and manufacturing industrial embedded system and automotive electronics</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKDWELL (Samoa) Technology Inc. (“MKD Samoa”)</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">March 19, 2010</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Samoa</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDSamoaMember_z7LfEt6ZvUZ6" title="Percentage of ownership">62.36</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Investment holding</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKDWELL (Shanghai) Technology Ltd. (“MKD Shanghai”)</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">August 1, 2011</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Shanghai, PRC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDShanghaiMember_zAdzWFzvvbKh" title="Percentage of ownership">62.36</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Trading industrial embedded system and automotive electronics</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKD Jiaxing</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">January 30, 2018</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Zhejiang, PRC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDJiaxingMember_zUAaorcwShzf" title="Percentage of ownership">77.85</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Trading, designing and manufacturing industrial embedded system and automotive electronics</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Cetus Capital</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt"><span id="xdx_903_ecustom--SubsidiariesAndEntitiesDateOfIncorporation_dd_c20260101__20260630__srt--ConsolidatedEntitiesAxis__custom--CetusCapitalAcquisitionCorpMember_zUByXofuXCE9" title="Date of incorporation">June 7, 2022</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt"><span id="xdx_900_ecustom--SubsidiariesAndEntitiesPlaceOfIncorporation_c20260101__20260630__srt--ConsolidatedEntitiesAxis__custom--CetusCapitalAcquisitionCorpMember_zQhXXvQN47f" title="Place of incorporation">Delaware</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CetusCapitalAcquisitionCorpMember_zfNhlEodSulg" title="Percentage of ownership">100.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Blank check company</td></tr> </table> MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 1. ORGANIZATION AND PRINCIPAL ACTIVITIES-Continued Share Combination On January 9, 2026, the Company approved a 30-for-1 reverse stock split (the “Share Combination”) of its ordinary and Class A preferred shares, effective at 9:00 a.m. Eastern Time on January 26, 2026. On the effective date, every 30 issued and outstanding ordinary shares were automatically combined into one new no-par value ordinary share, with the issued ordinary shares retrospectively restated from 141,039,933 to approximately 4,701,369 as of December 31, 2025. Share Repurchase In January 2026, the Company repurchased 1,152,667 ordinary shares (after the Share Combination; <span id="xdx_907_eus-gaap--CommonStockSharesIssued_iI_pn4n6_c20260131__us-gaap--BusinessAcquisitionAxis__custom--UtahLimitedMember__us-gaap--TypeOfArrangementAxis__custom--ReverseRecapitalizationMember_zRmwWptTQu45" title="Common stock, shares issued">34.58 million shares before) from certain existing shareholders for an aggregate purchase price of approximately US$7.0 million (US$0.203 per share before the Share Combination). In March 2026, the Company fully repaid the Convertible Note with funds advanced by a related party on behalf of the Company and, in connection therewith, repurchased <span id="xdx_90D_eus-gaap--StockRepurchasedAndRetiredDuringPeriodShares_c20260301__20260331__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--UtahLimitedMember_zKgP53vVUtz2" title="Share repurchased">60,000 Pre-Delivery Shares for $<span id="xdx_90C_eus-gaap--StockRepurchasedAndRetiredDuringPeriodValue_c20260301__20260331__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--UtahLimitedMember_z44YhRZ9PgGf" title="Share repurchased value">180 pursuant to the Securities Purchase Agreement. All repurchased shares were accounted for as treasury stock under the cost method. The repurchased shares have been repurchased and not yet cancelled and are held as treasury stock. Share-Based Compensation On April 22, 2026, the Company issued 709,740 ordinary shares to four consultants under the 2026 Equity Incentive Plan (see Note 9 — Share-Based Compensation). For the aforementioned transactions, as of June 30, 2026, the Company’s total issued ordinary shares were 5,411,109, and the Company had 4,198,442 ordinary shares with no par value(the “Ordinary Shares”) outstanding, and the Company held 1,212,667 treasury shares with an aggregate cost of US$7,019,920. For the aforementioned Share Combination, the weighted average number of ordinary shares outstanding used in calculating basic and diluted net loss per ordinary share was retrospectively restated to 3,124,352 and 3,838,370 for the six months ended June 30, 2025 and 2026, respectively. <p id="xdx_897_eus-gaap--ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsTextBlock_zmHeRgL0vEH5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">The loss per share before and after the retrospective adjustments are as follows： SCHEDULE OF LOSS PER SHARE BEFORE AND AFTER THE RETROSPECTIVE ADJUSTMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="font-weight: bold; text-align: center">Before</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">After</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="14" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Net loss per share attributable to ordinary shareholders</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">　</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">　</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">　</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">　</td><td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 40%; text-align: left; text-indent: 0pt; padding-left: 0pt">- Basic and diluted</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><span id="xdx_907_eus-gaap--EarningsPerShareBasic_c20250101__20250630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zH8j6QR1FEGc" title="Net loss per share attributable to ordinary shareholders- basic"><span id="xdx_909_eus-gaap--EarningsPerShareDiluted_c20250101__20250630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zsmOLuXrY6Z3" title="Net loss per share attributable to ordinary shareholders - diluted">(0.02</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 6%; text-align: right">(0.45</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 6%; text-align: right"></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 6%; text-align: right">(1.63</td><td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Weighted average shares used in calculating net loss per share</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">- Basic and diluted (Restate)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_c20250101__20250630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zLexAMCtv9rl" title="Weighted average shares used in calculating net loss per share - basic"><span id="xdx_900_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20250101__20250630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zrb7VvJ2JZc6" title="Weighted average shares used in calculating net loss per share - diluted">93,730,569</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,124,352</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,838,370</td><td style="text-align: left"> </td> </tr> </table> MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data)

<p id="xdx_892_ecustom--ScheduleOfCompaniesSubsidiariesAndVariableInterestEntitiesTableTextBlock_zA7qJjNbudad" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; text-indent: 0; margin-bottom: 0pt; margin-left: 0">As of June 30, 2026, the Company and its major subsidiaries were as follows: SCHEDULE OF COMPANY AND ITS MAJOR SUBSIDIARIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Subsidiaries</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Date of incorporation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Place of incorporation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Percentage of ownership</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Principal activities</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKD</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">July 25, 2023</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">British Virgin Islands</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Nonoperating shell company</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 20%; text-align: left; text-indent: 0pt; padding-left: 0pt">MKD BVI</td><td style="width: 2%"> </td> <td style="width: 14%; text-align: left; text-indent: 0pt; padding-left: 0pt">March 30, 2023</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: left; text-indent: 0pt; padding-left: 0pt">British Virgin Islands</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right"><span id="xdx_909_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDBritishVirginIslandsMember_z9DCJydLs71g" title="Percentage of ownership">100.00</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: left; text-indent: 0pt; padding-left: 0pt">Investment holding</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKD Taiwan</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">September 26, 2006</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Taiwan, PRC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDTaiwanMember_zF5y0Qqp6yEd" title="Percentage of ownership">62.36</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Trading, designing and manufacturing industrial embedded system and automotive electronics</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKDWELL (Samoa) Technology Inc. (“MKD Samoa”)</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">March 19, 2010</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Samoa</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDSamoaMember_z7LfEt6ZvUZ6" title="Percentage of ownership">62.36</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Investment holding</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKDWELL (Shanghai) Technology Ltd. (“MKD Shanghai”)</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">August 1, 2011</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Shanghai, PRC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDShanghaiMember_zAdzWFzvvbKh" title="Percentage of ownership">62.36</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Trading industrial embedded system and automotive electronics</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">MKD Jiaxing</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">January 30, 2018</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Zhejiang, PRC</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--MKDJiaxingMember_zUAaorcwShzf" title="Percentage of ownership">77.85</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Trading, designing and manufacturing industrial embedded system and automotive electronics</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Cetus Capital</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt"><span id="xdx_903_ecustom--SubsidiariesAndEntitiesDateOfIncorporation_dd_c20260101__20260630__srt--ConsolidatedEntitiesAxis__custom--CetusCapitalAcquisitionCorpMember_zUByXofuXCE9" title="Date of incorporation">June 7, 2022</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt"><span id="xdx_900_ecustom--SubsidiariesAndEntitiesPlaceOfIncorporation_c20260101__20260630__srt--ConsolidatedEntitiesAxis__custom--CetusCapitalAcquisitionCorpMember_zQhXXvQN47f" title="Place of incorporation">Delaware</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20260630__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CetusCapitalAcquisitionCorpMember_zfNhlEodSulg" title="Percentage of ownership">100.00</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Blank check company</td></tr> </table> 2023-07-25 British Virgin Islands Nonoperating shell company 2023-03-30 British Virgin Islands

1.0000

Investment holding 2006-09-26 Taiwan, PRC

0.6236

Trading, designing and manufacturing industrial embedded system and automotive electronics 2010-03-19 Samoa

0.6236

Investment holding 2011-08-01 Shanghai, PRC

0.6236

Trading industrial embedded system and automotive electronics 2018-01-30 Zhejiang, PRC

0.7785

Trading, designing and manufacturing industrial embedded system and automotive electronics 2022-06-07 Delaware

1.0000

Blank check company

141039933

4701369

1152667

34580000

7000000.0

0.203

60000

180

709740

5411109

4198442

1212667

7019920

3124352

3838370

<p id="xdx_897_eus-gaap--ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsTextBlock_zmHeRgL0vEH5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">The loss per share before and after the retrospective adjustments are as follows： SCHEDULE OF LOSS PER SHARE BEFORE AND AFTER THE RETROSPECTIVE ADJUSTMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="font-weight: bold; text-align: center">Before</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">After</td><td style="font-weight: bold"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="14" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Net loss per share attributable to ordinary shareholders</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">　</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">　</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">　</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">　</td><td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 40%; text-align: left; text-indent: 0pt; padding-left: 0pt">- Basic and diluted</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 6%; text-align: right"><span id="xdx_907_eus-gaap--EarningsPerShareBasic_c20250101__20250630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zH8j6QR1FEGc" title="Net loss per share attributable to ordinary shareholders- basic"><span id="xdx_909_eus-gaap--EarningsPerShareDiluted_c20250101__20250630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zsmOLuXrY6Z3" title="Net loss per share attributable to ordinary shareholders - diluted">(0.02</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 6%; text-align: right">(0.45</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 6%; text-align: right"></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 6%; text-align: right">(1.63</td><td style="width: 1%; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Weighted average shares used in calculating net loss per share</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">- Basic and diluted (Restate)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_c20250101__20250630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zLexAMCtv9rl" title="Weighted average shares used in calculating net loss per share - basic"><span id="xdx_900_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_c20250101__20250630__srt--RestatementAxis__srt--ScenarioPreviouslyReportedMember_zrb7VvJ2JZc6" title="Weighted average shares used in calculating net loss per share - diluted">93,730,569</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,124,352</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,838,370</td><td style="text-align: left"> </td> </tr> </table>

-0.02

-0.45

-1.63

93730569

3124352

3838370

<p id="xdx_802_eus-gaap--SubstantialDoubtAboutGoingConcernTextBlock_zxJWA9pjGWgg" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">2. GOING CONCERN The Company’s unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations. The Company incurred net losses of US$1.70 million and US$6.52 million for the six months ended June 30, 2025 and 2026, respectively. As of June 30, 2026, our accumulated deficits were US$22.58 million, with a working capital deficit of US$5.97 million. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to reduce or eliminate its net losses for the foreseeable future. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company has historically depended on financing from bank, related parties and third-party investors to support its operations. The Company’s future operations are dependent upon equity or debt financing and its ability to generate profits through operations at an indeterminate time in the future. The Company cannot assure that it will be successful in completing an equity or debt financing or in achieving or maintaining profitability in the near term. The Company’s financial statements do not give effect to any adjustments relating to the carrying values and classification of assets and liabilities that would be necessary should the Company be unable to continue as a going concern.

-1700000

-6520000

-22580000

-5970000

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in conformity with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2025. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2025. The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results for the full year. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued (b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for credit loss, lower of cost or net realizable value of inventory, useful lives of long-lived assets, impairment of long-lived assets and valuation allowance on deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. <p id="xdx_84C_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zgGZBfA6lHu8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">(c) Functional currency and foreign currency translation The functional and reporting currency of the Company is the United States Dollar (“US$”). The Company’s operating subsidiaries in Taiwan, China and mainland China use their respective currencies New Taiwan dollar (“NT$”) and Renminbi (“RMB”) as their functional currencies. The financial statements of MKD BVI and its subsidiaries, other than subsidiaries with functional currency of US$, are translated into US$ using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the period for income and expense items. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the condensed consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income included in consolidated statements of changes in shareholders’ equity (deficit). Gains and losses from foreign currency transactions are included in the Company’s consolidated statements of operations and comprehensive loss. <p id="xdx_89D_eus-gaap--ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock_z2lqcOkWiZjd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements: SCHEDULE OF CURRENCY EXCHANGE RATES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">June 30, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">June 30, 2026</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Period-end spot rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Average rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Period-ended spot rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Average rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Period-ended spot rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Average rate</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">(Unaudited)</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">(Unaudited)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 20%; text-align: left; padding-left: 0pt">US$ against RMB</td> <td style="text-align: center; width: 2%"> </td> <td style="width: 12%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_906_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20250630__us-gaap--AwardTypeAxis__custom--PeriodEndSpotRateMember__srt--CurrencyAxis__currency--CNY_z9EcaDSI7MF9" title="Foreign exchange rate">7.1636</td><td style="text-align: center; width: 2%"> </td> <td style="width: 12%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_903_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20250630__us-gaap--AwardTypeAxis__custom--AverageRateMember__srt--CurrencyAxis__currency--CNY_zQv5qT6E4e0j" title="Foreign exchange rate">7.2526</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_90A_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20251231__us-gaap--AwardTypeAxis__custom--PeriodEndSpotRateMember__srt--CurrencyAxis__currency--CNY_zCQsaPqfZDH1" title="Foreign exchange rate">6.9931</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_900_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20251231__us-gaap--AwardTypeAxis__custom--AverageRateMember__srt--CurrencyAxis__currency--CNY_zxn4B1RuLSe" title="Foreign exchange rate">7.1875</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_90C_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20260630__us-gaap--AwardTypeAxis__custom--PeriodEndSpotRateMember__srt--CurrencyAxis__currency--CNY_zDeUhNkrCly5" title="Foreign exchange rate">6.7851</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_90D_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20260630__us-gaap--AwardTypeAxis__custom--AverageRateMember__srt--CurrencyAxis__currency--CNY_zsTP7BY0pqUf" title="Foreign exchange rate">6.8624</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">US$ against NT$</td> <td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 29.1800</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.8683</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.3700</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.1663</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.8500</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.6164</td></tr> </table> MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued <p id="xdx_845_eus-gaap--CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy_zG6vt3z6zWye" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">(d) Restricted cash As at December 31, 2025, the restricted cash balances include funds that have been frozen due to the Company’s involvement in legal litigation and the balances were released in January 2026 as a result of the Company’s settlement with the counterparty. (e) Time deposit Time deposits represent interest-bearing financial assets with fixed maturities and pre-determined fixed or floating interest rates, held with banks or other eligible financial institutions. Their accounting treatment under US GAAP is governed by ASC 305, ASC 320 and ASC 835, and is prescribed as follows: time deposits with an original maturity of three months or less are classified as cash and cash equivalents by virtue of their high liquidity. For time deposits with an original maturity exceeding three months, if the Company has both the positive intent and the ability to hold such deposits to maturity, they are classified as held-to-maturity debt securities. On the balance sheet, such deposits are presented as short-term assets or other current assets if their remaining maturity is 12 months or less as of the reporting date, and as non-current investments or other non-current assets if their remaining maturity exceeds 12 months. All time deposits are measured at amortized cost. Any premium or discount arising from the difference between the deposit amount and the face value is amortized over the deposit term using the effective interest method in accordance with ASC 835-20. Interest income is accrued ratably over the deposit term, which includes the amortization of any related premium or discount, and is presented as interest income or investment income in the income statement. The Company assesses the impairment of held-to-maturity time deposits in accordance with ASC 320-10-35 and ASC 326 (the current expected credit loss model). A credit loss allowance is recognized when the present value of the expected cash flows from the deposit (discounted at the effective interest rate) is lower than its carrying amount. No credit loss allowance is recognized if the depository institution has minimal credit risk and there is no objective evidence of credit deterioration. Upon maturity redemption or early withdrawal of time deposits, the difference between the carrying amount of the deposit and the actual consideration received (including accrued but unpaid interest) is recognized as a gain or loss on the derecognition of financial assets in the income statement, presented within interest income or other income and expenses. Any penalties incurred on early withdrawal are either offset against interest income or recognized as a separate expense line item in the income statement. As of December 31, 2025, the Company’s time deposits represented funds placed with commercial banks in the PRC from August 25, 2025 to February 25, 2026. The Company has pledged the relevant deposit certificates as a pledge guarantee for a third party for this period. The aforementioned pledge was fully released upon maturity on February 25, 2026. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued (f) Fair value measurement Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: ● Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2—Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3—Unobservable inputs which are supported by little or no market activity Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued (f) Fair value measurement-continued Financial assets and liabilities of the Company primarily consist of cash and cash equivalents, time deposit, restricted cash, accounts receivable, net, other receivables included in prepaid expenses and other current assets, short-term and long-term bank borrowings, lease liabilities, accounts payable, amounts due to/due from related parties, long-term borrowings, other payables included in accrued expenses and other current liabilities. As of December 31, 2025 and June 30, 2026, the carrying values of these financial instruments, except for other non-current assets, non-current portion of long-term banks borrowings, and non-current portion of lease liabilities, approximated their respective fair values due to the short-term maturity of these instruments. The Company’s non-financial assets, such as property, plant and equipment, real estate property for lease and ROU assets would be measured at fair value only if they were determined to be impaired. <p id="xdx_846_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_z8VbtI4KgOd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">(g) Revenue recognition The Company’s revenues are generated through (i) sales of manufactured electronic products, (ii) commissioned processing service, (iii) technical service, (iv) rental income and (v)others, among which technical service is a new revenue type added by the Company in 2026. Technical service The Company provides technical services to customers, mainly including technical support services in connection with its products, and enters into contracts with them specifying the scope of services, deliverables and service fees. Under each contract, the Company identifies only one performance obligation of providing the agreed technical services. The Company recognizes revenue at a point in time upon the customer’s acceptance of the agreed deliverables, with the amount of the determined service charges on the contracts. There was no variable consideration nor financing component. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued The following table disaggregates the Company’s revenue for the six months ended June 30, 2025 and 2026: SCHEDULE OF DISAGGREGATION OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250101__20250630_zkqBweZFyKwk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20260101__20260630_zzkaGaxiTG63" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">By revenue type</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--ManufacturedProductOtherMember_zO5IVvjPuzgj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Sales of manufactured electronic products</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,195,012</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,182,670</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--CommissionProcessingServiceMember_z5jxqjB6QUDd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Commissioned processing service</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">164,838</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">204,226</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--TechnologyServiceMember_zItwCxIrnTtj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Technical service</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">115,715</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--RentalIncomeMember_zNvSF3osmVNa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Rental income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,024</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37,093</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OthersMember_zRN7BU7255Xj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,410</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,205</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zudyQOXxWUO2" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,365,284</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,541,909</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Advance from customers consists of payments received related to unsatisfied performance obligations at the end of the period. The advance from customers amounted to US$281,556 and US$216,221 as of December 31, 2025 and June 30, 2026, respectively. (h) Segment reporting The Company adopted ASU 2023-07 in the fourth quarter of 2024, in accordance with the required adoption timeline for public entities. The adoption of this ASU did not materially impact its financial statement disclosures, as the Company’s existing segment reporting practices were already in alignment with the new requirements. The Company uses the management approach in determining its operating segments. The Company’s chief operating decision maker (“CODM”) identified as the Company’s Chief Executive Officer, relies upon the consolidated results of operations as a whole when making decisions about allocating resources and assessing the performance of the Company. As a result of the assessment made by CODM, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. As the Company’s long-lived assets are substantially located in the PRC, no geographical segments are presented. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data)

(a) Basis of presentation The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial reporting. Certain information and footnote disclosures normally included in financial statements prepared in conformity with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2025. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are necessary for a fair presentation of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements have been prepared using the same accounting policies as used in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2025. The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the results for the full year. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued

(b) Use of estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods in the consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for credit loss, lower of cost or net realizable value of inventory, useful lives of long-lived assets, impairment of long-lived assets and valuation allowance on deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements.

<p id="xdx_84C_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zgGZBfA6lHu8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">(c) Functional currency and foreign currency translation The functional and reporting currency of the Company is the United States Dollar (“US$”). The Company’s operating subsidiaries in Taiwan, China and mainland China use their respective currencies New Taiwan dollar (“NT$”) and Renminbi (“RMB”) as their functional currencies. The financial statements of MKD BVI and its subsidiaries, other than subsidiaries with functional currency of US$, are translated into US$ using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the period for income and expense items. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the condensed consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income included in consolidated statements of changes in shareholders’ equity (deficit). Gains and losses from foreign currency transactions are included in the Company’s consolidated statements of operations and comprehensive loss. <p id="xdx_89D_eus-gaap--ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock_z2lqcOkWiZjd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements: SCHEDULE OF CURRENCY EXCHANGE RATES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">June 30, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">June 30, 2026</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Period-end spot rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Average rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Period-ended spot rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Average rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Period-ended spot rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Average rate</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">(Unaudited)</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">(Unaudited)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 20%; text-align: left; padding-left: 0pt">US$ against RMB</td> <td style="text-align: center; width: 2%"> </td> <td style="width: 12%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_906_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20250630__us-gaap--AwardTypeAxis__custom--PeriodEndSpotRateMember__srt--CurrencyAxis__currency--CNY_z9EcaDSI7MF9" title="Foreign exchange rate">7.1636</td><td style="text-align: center; width: 2%"> </td> <td style="width: 12%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_903_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20250630__us-gaap--AwardTypeAxis__custom--AverageRateMember__srt--CurrencyAxis__currency--CNY_zQv5qT6E4e0j" title="Foreign exchange rate">7.2526</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_90A_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20251231__us-gaap--AwardTypeAxis__custom--PeriodEndSpotRateMember__srt--CurrencyAxis__currency--CNY_zCQsaPqfZDH1" title="Foreign exchange rate">6.9931</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_900_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20251231__us-gaap--AwardTypeAxis__custom--AverageRateMember__srt--CurrencyAxis__currency--CNY_zxn4B1RuLSe" title="Foreign exchange rate">7.1875</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_90C_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20260630__us-gaap--AwardTypeAxis__custom--PeriodEndSpotRateMember__srt--CurrencyAxis__currency--CNY_zDeUhNkrCly5" title="Foreign exchange rate">6.7851</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_90D_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20260630__us-gaap--AwardTypeAxis__custom--AverageRateMember__srt--CurrencyAxis__currency--CNY_zsTP7BY0pqUf" title="Foreign exchange rate">6.8624</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">US$ against NT$</td> <td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 29.1800</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.8683</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.3700</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.1663</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.8500</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.6164</td></tr> </table> MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued

<p id="xdx_89D_eus-gaap--ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock_z2lqcOkWiZjd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">The following table outlines the currency exchange rates that were used in preparing the consolidated financial statements: SCHEDULE OF CURRENCY EXCHANGE RATES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">June 30, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">December 31, 2025</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">June 30, 2026</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Period-end spot rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Average rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Period-ended spot rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Average rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Period-ended spot rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; padding-left: 0pt">Average rate</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td> <td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">(Unaudited)</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center; text-indent: 0pt; padding-left: 0pt">(Unaudited)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 20%; text-align: left; padding-left: 0pt">US$ against RMB</td> <td style="text-align: center; width: 2%"> </td> <td style="width: 12%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_906_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20250630__us-gaap--AwardTypeAxis__custom--PeriodEndSpotRateMember__srt--CurrencyAxis__currency--CNY_z9EcaDSI7MF9" title="Foreign exchange rate">7.1636</td><td style="text-align: center; width: 2%"> </td> <td style="width: 12%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_903_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20250630__us-gaap--AwardTypeAxis__custom--AverageRateMember__srt--CurrencyAxis__currency--CNY_zQv5qT6E4e0j" title="Foreign exchange rate">7.2526</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_90A_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20251231__us-gaap--AwardTypeAxis__custom--PeriodEndSpotRateMember__srt--CurrencyAxis__currency--CNY_zCQsaPqfZDH1" title="Foreign exchange rate">6.9931</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_900_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20251231__us-gaap--AwardTypeAxis__custom--AverageRateMember__srt--CurrencyAxis__currency--CNY_zxn4B1RuLSe" title="Foreign exchange rate">7.1875</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_90C_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20260630__us-gaap--AwardTypeAxis__custom--PeriodEndSpotRateMember__srt--CurrencyAxis__currency--CNY_zDeUhNkrCly5" title="Foreign exchange rate">6.7851</td><td style="text-align: center; width: 2%"> </td> <td style="width: 11%; text-align: center; padding-left: 0pt">US$1=RMB <span id="xdx_90D_eus-gaap--ForeignCurrencyExchangeRateTranslation1_iI_pid_uPure_c20260630__us-gaap--AwardTypeAxis__custom--AverageRateMember__srt--CurrencyAxis__currency--CNY_zsTP7BY0pqUf" title="Foreign exchange rate">6.8624</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 0pt">US$ against NT$</td> <td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 29.1800</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.8683</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.3700</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.1663</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.8500</td><td style="text-align: center"> </td> <td style="text-align: center; padding-left: 0pt">US$1=NT$ 31.6164</td></tr> </table>

7.1636

7.2526

6.9931

7.1875

6.7851

6.8624

29.1800

31.8683

31.3700

31.1663

31.8500

31.6164

<p id="xdx_845_eus-gaap--CashAndCashEquivalentsRestrictedCashAndCashEquivalentsPolicy_zG6vt3z6zWye" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">(d) Restricted cash As at December 31, 2025, the restricted cash balances include funds that have been frozen due to the Company’s involvement in legal litigation and the balances were released in January 2026 as a result of the Company’s settlement with the counterparty.

(e) Time deposit Time deposits represent interest-bearing financial assets with fixed maturities and pre-determined fixed or floating interest rates, held with banks or other eligible financial institutions. Their accounting treatment under US GAAP is governed by ASC 305, ASC 320 and ASC 835, and is prescribed as follows: time deposits with an original maturity of three months or less are classified as cash and cash equivalents by virtue of their high liquidity. For time deposits with an original maturity exceeding three months, if the Company has both the positive intent and the ability to hold such deposits to maturity, they are classified as held-to-maturity debt securities. On the balance sheet, such deposits are presented as short-term assets or other current assets if their remaining maturity is 12 months or less as of the reporting date, and as non-current investments or other non-current assets if their remaining maturity exceeds 12 months. All time deposits are measured at amortized cost. Any premium or discount arising from the difference between the deposit amount and the face value is amortized over the deposit term using the effective interest method in accordance with ASC 835-20. Interest income is accrued ratably over the deposit term, which includes the amortization of any related premium or discount, and is presented as interest income or investment income in the income statement. The Company assesses the impairment of held-to-maturity time deposits in accordance with ASC 320-10-35 and ASC 326 (the current expected credit loss model). A credit loss allowance is recognized when the present value of the expected cash flows from the deposit (discounted at the effective interest rate) is lower than its carrying amount. No credit loss allowance is recognized if the depository institution has minimal credit risk and there is no objective evidence of credit deterioration. Upon maturity redemption or early withdrawal of time deposits, the difference between the carrying amount of the deposit and the actual consideration received (including accrued but unpaid interest) is recognized as a gain or loss on the derecognition of financial assets in the income statement, presented within interest income or other income and expenses. Any penalties incurred on early withdrawal are either offset against interest income or recognized as a separate expense line item in the income statement. As of December 31, 2025, the Company’s time deposits represented funds placed with commercial banks in the PRC from August 25, 2025 to February 25, 2026. The Company has pledged the relevant deposit certificates as a pledge guarantee for a third party for this period. The aforementioned pledge was fully released upon maturity on February 25, 2026. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued

the Company’s time deposits represented funds placed with commercial banks in the PRC from August 25, 2025 to February 25, 2026. The Company has pledged the relevant deposit certificates as a pledge guarantee for a third party for this period. The aforementioned pledge was fully released upon maturity on February 25, 2026.

(f) Fair value measurement Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are: ● Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2—Include other inputs that are directly or indirectly observable in the marketplace. ● Level 3—Unobservable inputs which are supported by little or no market activity Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued (f) Fair value measurement-continued Financial assets and liabilities of the Company primarily consist of cash and cash equivalents, time deposit, restricted cash, accounts receivable, net, other receivables included in prepaid expenses and other current assets, short-term and long-term bank borrowings, lease liabilities, accounts payable, amounts due to/due from related parties, long-term borrowings, other payables included in accrued expenses and other current liabilities. As of December 31, 2025 and June 30, 2026, the carrying values of these financial instruments, except for other non-current assets, non-current portion of long-term banks borrowings, and non-current portion of lease liabilities, approximated their respective fair values due to the short-term maturity of these instruments. The Company’s non-financial assets, such as property, plant and equipment, real estate property for lease and ROU assets would be measured at fair value only if they were determined to be impaired.

<p id="xdx_846_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_z8VbtI4KgOd" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">(g) Revenue recognition The Company’s revenues are generated through (i) sales of manufactured electronic products, (ii) commissioned processing service, (iii) technical service, (iv) rental income and (v)others, among which technical service is a new revenue type added by the Company in 2026. Technical service The Company provides technical services to customers, mainly including technical support services in connection with its products, and enters into contracts with them specifying the scope of services, deliverables and service fees. Under each contract, the Company identifies only one performance obligation of providing the agreed technical services. The Company recognizes revenue at a point in time upon the customer’s acceptance of the agreed deliverables, with the amount of the determined service charges on the contracts. There was no variable consideration nor financing component. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Continued The following table disaggregates the Company’s revenue for the six months ended June 30, 2025 and 2026: SCHEDULE OF DISAGGREGATION OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250101__20250630_zkqBweZFyKwk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20260101__20260630_zzkaGaxiTG63" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">By revenue type</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--ManufacturedProductOtherMember_zO5IVvjPuzgj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Sales of manufactured electronic products</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,195,012</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,182,670</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--CommissionProcessingServiceMember_z5jxqjB6QUDd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Commissioned processing service</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">164,838</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">204,226</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--TechnologyServiceMember_zItwCxIrnTtj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Technical service</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">115,715</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--RentalIncomeMember_zNvSF3osmVNa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Rental income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,024</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37,093</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OthersMember_zRN7BU7255Xj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,410</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,205</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zudyQOXxWUO2" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,365,284</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,541,909</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Advance from customers consists of payments received related to unsatisfied performance obligations at the end of the period. The advance from customers amounted to US$281,556 and US$216,221 as of December 31, 2025 and June 30, 2026, respectively.

The following table disaggregates the Company’s revenue for the six months ended June 30, 2025 and 2026: SCHEDULE OF DISAGGREGATION OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250101__20250630_zkqBweZFyKwk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20260101__20260630_zzkaGaxiTG63" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">By revenue type</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--ManufacturedProductOtherMember_zO5IVvjPuzgj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Sales of manufactured electronic products</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,195,012</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,182,670</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--CommissionProcessingServiceMember_z5jxqjB6QUDd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Commissioned processing service</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">164,838</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">204,226</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__us-gaap--TechnologyServiceMember_zItwCxIrnTtj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Technical service</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">115,715</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--RentalIncomeMember_zNvSF3osmVNa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Rental income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,024</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">37,093</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--OthersMember_zRN7BU7255Xj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,410</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,205</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zudyQOXxWUO2" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,365,284</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">1,541,909</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

1195012

1182670

164838

204226

115715

2024

37093

3410

2205

1365284

1541909

281556

216221

(h) Segment reporting The Company adopted ASU 2023-07 in the fourth quarter of 2024, in accordance with the required adoption timeline for public entities. The adoption of this ASU did not materially impact its financial statement disclosures, as the Company’s existing segment reporting practices were already in alignment with the new requirements. The Company uses the management approach in determining its operating segments. The Company’s chief operating decision maker (“CODM”) identified as the Company’s Chief Executive Officer, relies upon the consolidated results of operations as a whole when making decisions about allocating resources and assessing the performance of the Company. As a result of the assessment made by CODM, the Company has only one reportable segment. The Company does not distinguish between markets or segments for the purpose of internal reporting. As the Company’s long-lived assets are substantially located in the PRC, no geographical segments are presented.

<p id="xdx_809_ecustom--PrepaymentsAndOtherCurrentAssetsDisclosureTextBlock_zXnolj6iPVm4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; text-indent: 0; margin-bottom: 0pt; margin-left: 0">4. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET <p id="xdx_897_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_znUpSLjD2PDb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-indent: 0; margin-bottom: 0pt; margin-left: 0">Prepayments and other current assets, net consisted of the following: SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231_zZT2pX69H5Nk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20260630_znzM3KuQtXOl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_ecustom--LoansToThirdParty_iI_maPEAOAzVaa_zb8W656hcDDd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 0pt">Loan to a third party (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,309,881</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PrepaidTaxes_iI_maPEAOAzVaa_zk94zZCmFQze" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Deductible input VAT</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">72,719</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">73,388</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PrepaidExpenseCurrent_iI_maPEAOAzVaa_zkDkjMO7H8Hk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Prepaid expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,394</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">32,983</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--Supplies_iI_maPEAOAzVaa_z48B92RuAol8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Advance to suppliers</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,020</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">35,253</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OtherAssets_iI_maPEAOAzVaa_zpd5TC4KmYwa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">210</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,633</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_mtPEAOAzVaa_zhnnHs9L6Wkk" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">87,343</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,454,138</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">(1)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: justify; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">The balance as of June 30, 2026 primarily represented a loan in the principal amount of US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBSRVBBWU1FTlQgQU5EIE9USEVSIENVUlJFTlQgQVNTRVRTIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_902_ecustom--LoansToThirdParty_iI_c20260630_zhPBjGDzL0Fa" title="Principal amount">3,309,881 that the Company lent to Suzhou Chaoyuhua Precision Technology Co., Ltd. (the “Borrower”), a third party, pursuant to a loan agreement dated February 25, 2026. The loan matures on July 31, 2026, on which date the principal and accrued interest are repayable in a lump sum. The loan is unsecured. As of the date of this report, the loan has not been collected..</td></tr></table>

<p id="xdx_897_eus-gaap--DeferredCostsCapitalizedPrepaidAndOtherAssetsDisclosureTextBlock_znUpSLjD2PDb" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-indent: 0; margin-bottom: 0pt; margin-left: 0">Prepayments and other current assets, net consisted of the following: SCHEDULE OF PREPAYMENT AND OTHER CURRENT ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231_zZT2pX69H5Nk" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20260630_znzM3KuQtXOl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_406_ecustom--LoansToThirdParty_iI_maPEAOAzVaa_zb8W656hcDDd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 0pt">Loan to a third party (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">3,309,881</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PrepaidTaxes_iI_maPEAOAzVaa_zk94zZCmFQze" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Deductible input VAT</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">72,719</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">73,388</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--PrepaidExpenseCurrent_iI_maPEAOAzVaa_zkDkjMO7H8Hk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Prepaid expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,394</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">32,983</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--Supplies_iI_maPEAOAzVaa_z48B92RuAol8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Advance to suppliers</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,020</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">35,253</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OtherAssets_iI_maPEAOAzVaa_zpd5TC4KmYwa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Others</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">210</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,633</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PrepaidExpenseAndOtherAssetsCurrent_iTI_mtPEAOAzVaa_zhnnHs9L6Wkk" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">87,343</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">3,454,138</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">(1)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: justify; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">The balance as of June 30, 2026 primarily represented a loan in the principal amount of US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFBSRVBBWU1FTlQgQU5EIE9USEVSIENVUlJFTlQgQVNTRVRTIChEZXRhaWxzKSAoUGFyZW50aGV0aWNhbCkA" id="xdx_902_ecustom--LoansToThirdParty_iI_c20260630_zhPBjGDzL0Fa" title="Principal amount">3,309,881 that the Company lent to Suzhou Chaoyuhua Precision Technology Co., Ltd. (the “Borrower”), a third party, pursuant to a loan agreement dated February 25, 2026. The loan matures on July 31, 2026, on which date the principal and accrued interest are repayable in a lump sum. The loan is unsecured. As of the date of this report, the loan has not been collected..</td></tr></table>

3309881

72719

73388

11394

32983

3020

35253

210

2633

87343

3454138

3309881

5. LEASES The Company had entered into an operating lease agreement for factories located in Taiwan. SCHEDULE OF OPERATING AND FINANCE LEASE RIGHT-OF-USE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231_zkVaTiOxtHnl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20260630_zQBwzuENoL7c" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zeU6R6X8JAx1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Operating lease right-of-use assets, net</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">279,627</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">251,079</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zoS87VRlikAi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Operating lease liabilities, current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,084</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,672</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zU0qAdyqobo2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Operating lease liabilities, non-current</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">229,543</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">200,408</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseLiability_iTI_zYYiuoRBKcvc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total operating lease liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">279,627</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">251,080</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 5. LEASES-continued The components of lease expense were as follows within the consolidated statements of comprehensive loss: SCHEDULE OF LEASE EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250101__20250630_z67lp7MI94Ok" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260101__20260630_zrSuJCbpql4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Operating lease:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseCost_maOLEzgw1_zGRCzsydW1j3" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Operating lease expense</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">31,458</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">31,708</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--ShortTermLeaseCost_maOLEzgw1_zHdJIVr6uSwf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Short-term lease expense</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">737</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,893</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseExpense_iT_mtOLEzgw1_maLCzO7J_zPzVqbI48mT6" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Total operating lease expenses</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">32,195</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">34,601</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LeaseCost_iT_mtLCzO7J_zP9jF4LSm4Hj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total lease expenses</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">32,195</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">34,601</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> For the six months ended June 30, 2025 and 2026, cash paid for operating leases were US$26,791 and US$31,708. <p id="xdx_89A_ecustom--LesseeOperatingLeaseSupplementalBalanceSheetInformationTableTextBlock_zDN3YhZ8dxdi" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">Supplemental balance sheet information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Weighted average discount rate:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Operating lease</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5.38</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5.38</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Weighted average remaining lease term:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">60 months</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">54 months</td><td style="text-align: left"> </td></tr> </table> <p id="xdx_898_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_z4481Raur1o5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; text-indent: 0; margin-bottom: 0pt; margin-left: 0">As of June 30, 2026, the future minimum rent payable under non-cancelable operating and financing leases were: SCHEDULE OF FUTURE MINIMUM RENT PAYABLE UNDER NON-CANCELABLE OPERATING AND FINANCING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">For the six months ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20260630_zH9UvN0ZzxE3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPzwoH_zO1AeVGt6NHk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left; text-indent: 0pt; padding-left: 10pt">The remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">31,476</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextRollingTwelveMonths_iI_maLOLLPzwoH_zryZN44RJIig" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">62,952</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueInRollingYearTwo_iI_maLOLLPzwoH_zlGyh4k9N8d4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">62,952</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueNextRollingYearThreeAndThereafter_iI_maLOLLPzwoH_zcghRlHeYI9i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">2029 and thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">125,903</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzwoH_zyTdd3LGBQSj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Total lease payments</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">283,282</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zioXYGeL2cZg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Less: imputed interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(32,202</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiability_iI_zFdFRx3mXR5j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Total operating lease liabilities, net of interest</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">251,080</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table> MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data)

The Company had entered into an operating lease agreement for factories located in Taiwan. SCHEDULE OF OPERATING AND FINANCE LEASE RIGHT-OF-USE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231_zkVaTiOxtHnl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20260630_zQBwzuENoL7c" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zeU6R6X8JAx1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Operating lease right-of-use assets, net</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">279,627</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">251,079</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zoS87VRlikAi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt">Operating lease liabilities, current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,084</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">50,672</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zU0qAdyqobo2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Operating lease liabilities, non-current</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">229,543</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">200,408</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseLiability_iTI_zYYiuoRBKcvc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total operating lease liabilities</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">279,627</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">251,080</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

279627

251079

50084

50672

229543

200408

279627

251080

The components of lease expense were as follows within the consolidated statements of comprehensive loss: SCHEDULE OF LEASE EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250101__20250630_z67lp7MI94Ok" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260101__20260630_zrSuJCbpql4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Operating lease:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--OperatingLeaseCost_maOLEzgw1_zGRCzsydW1j3" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Operating lease expense</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">31,458</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">31,708</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--ShortTermLeaseCost_maOLEzgw1_zHdJIVr6uSwf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Short-term lease expense</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">737</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,893</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeaseExpense_iT_mtOLEzgw1_maLCzO7J_zPzVqbI48mT6" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Total operating lease expenses</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">32,195</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">34,601</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--LeaseCost_iT_mtLCzO7J_zP9jF4LSm4Hj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total lease expenses</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">32,195</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">34,601</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table>

31458

31708

737

2893

32195

34601

32195

34601

26791

31708

<p id="xdx_89A_ecustom--LesseeOperatingLeaseSupplementalBalanceSheetInformationTableTextBlock_zDN3YhZ8dxdi" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">Supplemental balance sheet information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Weighted average discount rate:</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Operating lease</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5.38</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">5.38</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Weighted average remaining lease term:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">60 months</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">54 months</td><td style="text-align: left"> </td></tr> </table>

0.0538

P60M

P54M

<p id="xdx_898_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_z4481Raur1o5" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; text-indent: 0; margin-bottom: 0pt; margin-left: 0">As of June 30, 2026, the future minimum rent payable under non-cancelable operating and financing leases were: SCHEDULE OF FUTURE MINIMUM RENT PAYABLE UNDER NON-CANCELABLE OPERATING AND FINANCING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">For the six months ended June 30,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20260630_zH9UvN0ZzxE3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPzwoH_zO1AeVGt6NHk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left; text-indent: 0pt; padding-left: 10pt">The remainder of 2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">31,476</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextRollingTwelveMonths_iI_maLOLLPzwoH_zryZN44RJIig" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">62,952</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueInRollingYearTwo_iI_maLOLLPzwoH_zlGyh4k9N8d4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">62,952</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueNextRollingYearThreeAndThereafter_iI_maLOLLPzwoH_zcghRlHeYI9i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">2029 and thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">125,903</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzwoH_zyTdd3LGBQSj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Total lease payments</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">283,282</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zioXYGeL2cZg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Less: imputed interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(32,202</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiability_iI_zFdFRx3mXR5j" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Total operating lease liabilities, net of interest</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">251,080</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

31476

62952

125903

283282

32202

251080

6. BORROWINGS As of December 31, 2025 and June 30, 2026 the bank borrowings were for working capital and capital expenditure purposes. SCHEDULE OF BANK BORROWINGS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231__us-gaap--FairValueByLiabilityClassAxis__us-gaap--BorrowingsMember_zRibgxQ6OBeg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20260630__us-gaap--FairValueByLiabilityClassAxis__us-gaap--BorrowingsMember_zwMGhi1YjgT8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Current portion:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Short-term bank borrowings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ShortTermBorrowings_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zUGZzcNGW4Db" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Bank of Jiaxing (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,692,654</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,775,199</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Long-term bank borrowings, current portion</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zBS3OJJURlJc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Bank of Jiaxing (1)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">56,381</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">87,163</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LongTermDebtCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zsiqSdEXrtEf" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Long-term bank borrowings, current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">56,381</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">87,163</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DebtCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zN4CIHZV5kdh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Subtotal</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,749,035</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,862,362</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Non-current portion:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Long-term bank borrowings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LongTermNotesAndLoans_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zyt60UGbjkOb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Bank of Jiaxing (1)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,938,338</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,984,832</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermNotesAndLoans_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_z6MFS302SQU" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Long-term borrowings non-current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,938,338</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,984,832</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtNoncurrent_iI_zdJxgu4ANzV2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Subtotal</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,938,338</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,984,832</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebt_iI_zn4oyjZVVg89" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,687,373</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,847,194</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"></td><td id="xdx_F05_zddEdu8azJR1" style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">(1)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: justify; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">During the year ended December 31, 2025 and the six months ended June 30, 2026, the Company continuously entered into certain bank borrowings for the purpose of obtaining financing. The bank borrowings were joint secured by Mr. Ming-Chao Huang and Mr. Ming-Chia Huang, the shareholders of the Company, and pledged by the Company’s property, plant and equipment amounting to US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBTksgQk9SUk9XSU5HUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_900_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrMingChaoHuangMember_z9qenwvWGgLi" title="Property plant and equipment">3,820,949 and US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBTksgQk9SUk9XSU5HUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrMingChaoHuangMember_zvgpIuzyvDwe" title="Property plant and equipment">3,812,196 as of December 31, 2025 and June 30, 2026, respectively.</td></tr></table> MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 6. BORROWINGS-continued The interest expenses were US$147,605 and US$120,931 for the six months ended June 30, 2025 and 2026, respectively. The weighted average interest rates of bank borrowings outstanding were 4.34% and 4.34% per annum as of December 31, 2025 and June 30, 2026, respectively. The maturity dates of the bank borrowings were from December 2026 to December 2035. <p id="xdx_890_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zsM1EgWkFix8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0pt">As of June 30，2026 the Company’s long-term bank borrowings will be due according to the following schedule: SCHEDULE OF LONG TERM BORROWINGS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">For the fiscal years ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20260630_zWi2QzK7iWIi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_maLTDzDLu_zrBe1R0ody4k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 77%; text-align: justify; text-indent: 0pt; padding-left: 0pt">2026 remainder</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 19%; text-align: right">87,163</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLTDzDLu_zM27cVaSvf39" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">72,636</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLTDzDLu_znDH3pGBH3G3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">2028</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">145,272</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearAfterThree_iI_maLTDzDLu_zWvZoTKwMHIf" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">2029 and thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,766,924</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebt_iTI_mtLTDzDLu_zlOED14zQSv3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Total long-term bank borrowings</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,071,995</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

As of December 31, 2025 and June 30, 2026 the bank borrowings were for working capital and capital expenditure purposes. SCHEDULE OF BANK BORROWINGS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231__us-gaap--FairValueByLiabilityClassAxis__us-gaap--BorrowingsMember_zRibgxQ6OBeg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20260630__us-gaap--FairValueByLiabilityClassAxis__us-gaap--BorrowingsMember_zwMGhi1YjgT8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31，2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30，2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Current portion:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Short-term bank borrowings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--ShortTermBorrowings_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zUGZzcNGW4Db" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Bank of Jiaxing (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,692,654</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,775,199</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Long-term bank borrowings, current portion</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zBS3OJJURlJc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Bank of Jiaxing (1)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">56,381</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">87,163</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LongTermDebtCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zsiqSdEXrtEf" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Long-term bank borrowings, current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">56,381</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">87,163</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--DebtCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zN4CIHZV5kdh" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Subtotal</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,749,035</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,862,362</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 0pt"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Non-current portion:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Long-term bank borrowings</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LongTermNotesAndLoans_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_zyt60UGbjkOb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Bank of Jiaxing (1)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,938,338</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,984,832</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermNotesAndLoans_iI_hus-gaap--DebtInstrumentAxis__custom--BankOfJiaxingMember_z6MFS302SQU" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Long-term borrowings non-current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,938,338</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">2,984,832</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtNoncurrent_iI_zdJxgu4ANzV2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Subtotal</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,938,338</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">2,984,832</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebt_iI_zn4oyjZVVg89" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,687,373</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">5,847,194</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"></td><td id="xdx_F05_zddEdu8azJR1" style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">(1)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: justify; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">During the year ended December 31, 2025 and the six months ended June 30, 2026, the Company continuously entered into certain bank borrowings for the purpose of obtaining financing. The bank borrowings were joint secured by Mr. Ming-Chao Huang and Mr. Ming-Chia Huang, the shareholders of the Company, and pledged by the Company’s property, plant and equipment amounting to US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBTksgQk9SUk9XSU5HUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_900_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrMingChaoHuangMember_z9qenwvWGgLi" title="Property plant and equipment">3,820,949 and US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIEJBTksgQk9SUk9XSU5HUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentNet_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MrMingChaoHuangMember_zvgpIuzyvDwe" title="Property plant and equipment">3,812,196 as of December 31, 2025 and June 30, 2026, respectively.</td></tr></table>

2692654

2775199

56381

87163

56381

87163

2749035

2862362

2938338

2984832

2938338

2984832

2938338

2984832

5687373

5847194

3820949

3812196

147605

120931

0.0434

<p id="xdx_890_eus-gaap--ScheduleOfMaturitiesOfLongTermDebtTableTextBlock_zsM1EgWkFix8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0pt">As of June 30，2026 the Company’s long-term bank borrowings will be due according to the following schedule: SCHEDULE OF LONG TERM BORROWINGS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">For the fiscal years ending December 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20260630_zWi2QzK7iWIi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear_iI_maLTDzDLu_zrBe1R0ody4k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 77%; text-align: justify; text-indent: 0pt; padding-left: 0pt">2026 remainder</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 19%; text-align: right">87,163</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLTDzDLu_zM27cVaSvf39" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">2027</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">72,636</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLTDzDLu_znDH3pGBH3G3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">2028</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">145,272</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearAfterThree_iI_maLTDzDLu_zWvZoTKwMHIf" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">2029 and thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,766,924</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LongTermDebt_iTI_mtLTDzDLu_zlOED14zQSv3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 10pt">Total long-term bank borrowings</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right">3,071,995</td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> </td></tr> </table>

87163

72636

145272

2766924

3071995

7. CONVERTIBLE NOTE On July 24, 2024, the Company entered into a securities purchase agreement with an investor, pursuant to which the investor agreed to purchase from the Company a convertible promissory note in the aggregate principal amount of RMB<span id="xdx_90B_eus-gaap--ConvertibleDebt_iI_uRMB_c20240724__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__us-gaap--InvestorMember_z7zPoucIhWjd" title="Convertible debt">35,000,000 (approximately $<span id="xdx_90F_eus-gaap--ConvertibleDebt_iI_pn5n6_c20240724__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__us-gaap--InvestorMember_zSrFPGtzpMNc" title="Convertible debt">4.8 million). The Company received the aggregate principal amount of RMB<span id="xdx_909_eus-gaap--ConvertibleDebt_iI_uRMB_c20240724__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__us-gaap--InvestorMember_zBXKwNX0quu" title="Convertible debt">35,000,000 in July 2024 and the convertible note financing closed on August 12, 2024. On January 14, 2025, the parties to the securities purchase agreement executed a termination agreement and agreed to terminate the securities purchase agreement and the convertible note and release each other party from all other claims and liabilities. The note proceeds of RMB<span id="xdx_90A_eus-gaap--RepaymentsOfDebt_uRMB_c20241001__20241031__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__srt--TitleOfIndividualAxis__us-gaap--InvestorMember_zitc8D6shcH8" title="Repayment from debt">35,000,000 have been repaid to the investor in October 2024. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 7. CONVERTIBLE NOTE-continued On November 26, 2024, the Company entered into a securities purchase agreement (the “November 2024 SPA”) with Streeterville Capital, LLC, a Utah limited liability company (the “Investor”), pursuant to which the Company issued to the Investor (i) an unsecured convertible note (“Convertible Note”), in the principal amount of $<span id="xdx_907_eus-gaap--DebtInstrumentFaceAmount_iI_c20241126__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--DebtInstrumentAxis__custom--ConvertibleNoteMember_zBQLbiicwtfi" title="Principal amount">1,851,000, bearing interest at a rate of <span id="xdx_90C_eus-gaap--DebtInstrumentInterestRateDuringPeriod_dp_uPure_c20241126__20241126__us-gaap--DebtInstrumentAxis__custom--ConvertibleNoteMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zkMrguuVw9f7" title="Interest rate">7% per annum and having a term of one year after the purchase price of the Convertible Note is delivered by the Investor to the Company with an aggregate original issue discount of US$<span id="xdx_906_eus-gaap--DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet_iI_c20241126__us-gaap--DebtInstrumentAxis__custom--ConvertibleNoteMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zsLsI4uiips3" title="Original issue discount">151,000, and (ii) <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_c20241126__20241126__us-gaap--StatementEquityComponentsAxis__custom--PreDeliverySharesMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_z7ndGwCVlYq" title="Issuance of shares">1,800,000(after the Share Combination: <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_c20241126__20241126__us-gaap--StatementEquityComponentsAxis__custom--PreDeliverySharesMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--UtahLimitedMember_z4bf1T1zdmrb" title="Issuance of shares">60,000) ordinary shares (“Pre-Delivery Shares”) of the Company in aggregate with no par value, which is for pre-delivery and subject to the Company’s repurchase right upon repayment of the notes. The Investor has the right at any time beginning on the earlier of (a) the date that is six months after the purchase price of the Convertible Note is delivered by the Investor to the Company, and (b) the effective date of the registration statement on Form F-1 to register the Investor’s resale of conversion shares and Pre-Delivery Shares, until the Outstanding Balance (the principal amount plus accrued but unpaid interest, collection and enforcements costs incurred by Lender, transfer, stamp, issuance and similar taxes and fees related to Conversions, and any other fees or charges incurred under this Convertible Note as of any date of determination) has been paid in full, at its election, to convert all or any portion of the Outstanding Balance into ordinary shares at a conversion price equal to 80% of the lowest volume weighted average price measured during the period of ten (10) trading days prior to the conversion, subject to the restriction of the floor price. The Convertible Note contains a floor price of $<span id="xdx_903_ecustom--DebtInstrumentOfFloorPrice_iI_c20241126__us-gaap--DebtInstrumentAxis__custom--ConvertibleNoteMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_z3OdUmP9PhSk" title="Floor price">0.178 for the possible future conversions into ordinary shares. In addition, the Company may prepay all or a portion of the Convertible Note at any time by paying 110% of the Outstanding Balance elected for pre-payment. From the date of the issuance and sale of the Convertible Note and the Pre-Delivery Shares to the maturity date, the Company can extend the maturity date up to twice, for six months each time, and each exercise of this right will increase the Outstanding Balance by 5%. However, the Company can only exercise the right if: (i) for the first exercise, the Outstanding Balance is $850,000 or less, and for the second, it is $425,000 or less; (ii) no Trigger Event has occurred before the exercise date; (iii) the company has not received a non-qualification letter regarding any Nasdaq listing rule. The Company has identified and evaluated the embedded features of the Convertible Note, and concluded that (i) the Company call option, the Company extension right and contingent interest features for event of default are clearly and closely related to the debt host instrument and, therefore, are not required to be bifurcated under ASC 815, (ii) the conversion right is eligible for a scope exception from derivative accounting and is not required to be bifurcated under ASC 815. Consequently, the Company accounts for the convertible notes as a liability following the respective guidance of ASC 815 and ASC 470. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 7. CONVERTIBLE NOTE-continued As Pre-delivery shares can be separately exercised, i.e. each can continue to exist unchanged when the other is exercised, the Company concluded that they were freestanding. The Pre-delivery Shares are considered a form of stock borrowing facility and are accounted for as own-share lending arrangement. The Company did not receive any proceeds or pay any consideration related to the Pre-delivery Shares, except that the Company received a one-time nominal fee of US$<span id="xdx_907_ecustom--NominalFee_c20241126__20241126__us-gaap--StatementEquityComponentsAxis__custom--PreDeliverySharesMember__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_z4alavmPCIgg" title="Nominal fee">180 upon the issuance of the Pre-delivery Shares and will pay the same amount to the investors upon the return of Pre-delivery Shares, respectively. The Company accounted for the share lending arrangement as an issuance cost and recorded at fair value upon issuance date against additional paid-in capital. Although legally issued, the Pre-delivery Shares were not considered outstanding and therefore excluded from basic and diluted loss per share unless default of the share lending arrangement occurs, at which time the Pre-delivery Shares would be included in the basic and diluted loss per share calculation. On May 13, 2025, the Company and the Investor entered into an amendment to the Convertible Note (the “Amendment”). The Amendment revised the definition of the “Conversion Price” under the Note, which now means 80% multiplied by the lower of: (a) the closing trade price of the Ordinary Shares on the prior trading day, and (b) the average closing trade price of the Ordinary Shares for the prior 10 trading days. Pursuant to ASC 470-50 and ASC 815, the Amendment only modifies the conversion price and does not create a substantial difference between the original and modified debt instruments, and thus extinguishment accounting and debt restructuring treatment are not applicable. No gain or loss is recognized, nor is remeasurement of the Convertible Note required, on the amendment date. The Company has accounted for the Amendment in accordance with the relevant provisions of the aforementioned standards. During the year ended December 31, 2025, the Company issued an aggregate of <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_c20250101__20251231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zHOYNT21ZaAb" title="Issuance of shares">5,651,591 (after the Share Combination: <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities_c20250101__20251231__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--BusinessAcquisitionAxis__custom--UtahLimitedMember_zcZanq2OPush" title="Issuance of shares">188,387) ordinary shares in connection with the conversion of the Convertible Note, with the conversion price determined in accordance with the terms and conditions set forth above. Accordingly, the carrying value of the Convertible Note was derecognized to the extent of conversion, and ordinary share capital and additional paid-in capital were increased correspondingly. In March 2026, the Company fully repaid the outstanding balance of the Convertible Note, including principal, accrued and unpaid interest and all other contractual obligations thereunder, with funds of US$651,716 advanced by the Chief Executive Officer on behalf of the Company. In connection with such repayment, the Company repurchased the 60,000 Pre-Delivery Shares (after giving effect to the Share Combination) previously issued to the investor for the contractual repurchase price of US$180. During the six months ended June 30, 2026, the Company recognized finance costs of US$47,052 in connection with the Convertible Note. As of June 30, 2026, the outstanding balance of the Convertible Note was nil. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data)

35000000

4800000

35000000

1851000

0.07

151000

1800000

60000

0.178

the Company may prepay all or a portion of the Convertible Note at any time by paying 110% of the Outstanding Balance elected for pre-payment. From the date of the issuance and sale of the Convertible Note and the Pre-Delivery Shares to the maturity date, the Company can extend the maturity date up to twice, for six months each time, and each exercise of this right will increase the Outstanding Balance by 5%. However, the Company can only exercise the right if: (i) for the first exercise, the Outstanding Balance is $850,000 or less, and for the second, it is $425,000 or less; (ii) no Trigger Event has occurred before the exercise date; (iii) the company has not received a non-qualification letter regarding any Nasdaq listing rule.

180

5651591

188387

651716

60000

180

47052

8. ORDINARY SHARES As of December 31, 2025, the Company’s total issued ordinary shares were 4,701,369 (after the Share Combination), and the Company had 4,641,369 (after the Share Combination) ordinary shares with no par value(the “Ordinary Shares”) outstanding. In January 2026, the Company repurchased 1,152,667 ordinary shares (after the Share Combination; 34.58 million shares before) from certain existing shareholders for an aggregate purchase price of approximately US$7.0 million (US$0.203 per share before the Share Combination). In March 2026, the Company fully repaid the Convertible Note with funds advanced by a related party on behalf of the Company and, in connection therewith, repurchased 60,000 Pre-Delivery Shares for $180 pursuant to the Securities Purchase Agreement. All repurchased shares were accounted for as treasury stock under the cost method. The repurchased shares have been repurchased and not yet cancelled and are held as treasury stock. As of June 30, 2026, the Company held 1,212,667 treasury shares with an aggregate cost of US$<span id="xdx_90F_eus-gaap--StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest_iNI_di_c20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--TreasuryStockCommonMember_zUqapuFaPtjd" title="Number of:treasury shares, value">7,019,920. On April 22, 2026, the Company issued <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20260422__20260422__us-gaap--PlanNameAxis__custom--TwoThousandTwentySixEquityIncentivePlanMember_zr6pZQXlL7wb" title="Number of common shares issued">709,740 ordinary shares to four consultants under the 2026 Equity Incentive Plan (see Note 9 — Share-Based Compensation). For the aforementioned transactions, as of June 30, 2026, the Company’s total issued ordinary shares were 5,411,109, and the Company had 4,198,442 ordinary shares with no par value(the “Ordinary Shares”) outstanding. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data)

4701369

4641369

1152667

34580000

7000000.0

0.203

60000

180

-1212667

-7019920

709740

5411109

4198442

<p id="xdx_800_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zr8YNIyIPrhh" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">9. Share-Based Compensation The Company accounts for share-based payments in accordance with ASC 718, as amended by ASU 2018-07, which extends the guidance to share-based transactions with non-employees. Awards are measured at grant-date fair value and recognized as expense when the related services are received. 2026 Equity Incentive Plan In March 2026, the Board of Directors adopted the MKDWELL Tech Inc. 2026 Equity Incentive Plan (the “2026 Plan”), administered by the Compensation Committee of the Board. On April 22, 2026, the Company issued an aggregate of <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20260422__20260422__us-gaap--PlanNameAxis__custom--TwoThousandTwentySixEquityIncentivePlanMember_zl22QowOW6I" title="Number of common shares issued">709,740 shares of common stock to four consultants (<span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20260422__20260422__us-gaap--PlanNameAxis__custom--TwoThousandTwentySixEquityIncentivePlanMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--FourConsultantsMember_zN5eaa4O6EQg" title="Number common shares issued">177,435 shares each) under the 2026 Plan as the sole consideration for M&A advisory, business consulting, and internal control and corporate governance services. The shares were fully vested upon issuance and are not subject to cash compensation, performance conditions, forfeiture provisions, or repurchase rights. The grant date was determined to be April 22, 2026, being the date on which the Company and the consultants agreed on the terms of the awards. Accordingly, the Company recognized share-based compensation expense of $5,223,686 (<span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentySixEquityIncentivePlanMember_zo78NqK0gvG3" title="Number of common shares issued">709,740 shares times $7.36, the closing market price on the grant date) in full in general and administrative expenses during the six months ended June 30, 2026. The <span id="xdx_90F_eus-gaap--WeightedAverageNumberDilutedSharesOutstandingAdjustment_c20260101__20260630__us-gaap--PlanNameAxis__custom--TwoThousandTwentySixEquityIncentivePlanMember_zvNrOrCVBJJ4" title="Weighted average number of shares outstanding">709,740 shares were included in the weighted-average number of common shares outstanding used in computing basic and diluted earnings per share from the issuance date.

709740

177435

5223686

709740

7.36

709740

10. RESTRICTED NET ASSETS A significant portion of the Company’s operations are conducted through its mainland China subsidiaries, the Company’s ability to pay dividends is primarily dependent on receiving distributions of funds from subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations, and after it has met the PRC requirements for appropriation to statutory reserves. The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the surplus reserve are made at the discretion of the Board of Directors. Paid-in capital of subsidiaries included in the Company’s consolidated net assets are also non-distributable for dividend purposes. As a result of these PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. As of December 31, 2025 and June 30, 2026, the aggregate restricted net assets included in the Company’s consolidated net assets, comprising the paid-in capital and additional paid-in capital of its subsidiaries, were nil. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data)

0.10

<p id="xdx_802_eus-gaap--IncomeTaxDisclosureTextBlock_zSI7KxAHrF0a" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; text-indent: 0; margin-bottom: 0pt; margin-left: 0">11. TAXATION British Virgin Islands (“BVI”) The Company is incorporated in the BVI. Under the current laws of the BVI, the Company is not subject to income or capital gains taxes. Additionally, dividend payments are not subject to withholdings tax in the BVI. Taiwan MKD Taiwan, a subsidiary incorporated in Taiwan, is subject to a tax rate of 20% for entities under R.O.C. Income Tax Law. Samoa MKD Samoa was incorporated in Samoa and, under the current laws of Samoa, is not subject to tax on its income or capital gains. Additionally, dividend payments are not subject to withholdings tax in Samoa. Mainland China Under the Law of the People’s Republic of China on Enterprise Income Tax (“New EIT Law”), which was effective from January 1, 2008, both domestically-owned enterprises and foreign-invested enterprises are subject to a uniform tax rate of 25% while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises (“HNTEs”) at a rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. The Company’s subsidiary, MKD Jiaxing, was approved as HNTE and is entitled to a reduced income tax rate of 15% from 2021 to 2023. In December 2024, the HNTE certification was renewed, extending the reduced tax rate of <span id="xdx_902_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_dp_uPure_c20240101__20261231__srt--StatementGeographicalAxis__country--CN__srt--StatementScenarioAxis__srt--ScenarioForecastMember_zm2P8ZGtTzy" title="Income tax rate">15% from 2024 to 2026. The Company’s subsidiary, MKD Shanghai have applicable EIT rate of 25%. The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2025 and June 30, 2026, the Group did not have any unrecognized uncertain tax positions and the Group does not believe that its unrecognized tax benefits will change over the next twelve months. For the six months ended June 30, 2025 and 2026, the Company did not incur any interest and penalties related to potential underpaid income tax expenses. As of June 30, 2026, the tax years ended December 31, 2019 through 2025 for the Group’s subsidiaries in the PRC are generally subject to examination by the PRC tax authorities. As of June 30, 2026, the tax years ended December 31, 2019 through 2025 for the Group’s subsidiary in the Taiwan is generally subject to examination by the Taiwan tax authorities. MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data) 11. TAXATION-continued Deferred income taxes are recognized for the tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the financial statements and their respective tax bases, and operating loss carry-forwards. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company assesses the realizability of deferred tax assets by evaluating whether it is more likely than not that some or all of the deferred tax assets will be realized. Based upon the weight of available evidence, including the Company’s history of operating losses, accumulated deficit and the expectation of continuing losses in the foreseeable future, the Company determined that it is more likely than not that its deferred tax assets will not be realized. Accordingly, the Company has recorded a full valuation allowance against its net deferred tax assets as of June 30, 2026 and December 31, 2025. For the six months ended June 30, 2026 and 2025, the Company did not record any income tax expense as it continued to incur operating losses and no current income tax liability was expected.

0.20

0.25

0.15

0.25

<p id="xdx_809_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zFppKjaHYLUj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; text-indent: 0; margin-bottom: 0pt; margin-left: 0">12. RELATED PARTY TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">(a)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: justify; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Related parties</td></tr></table> <p id="xdx_896_eus-gaap--ScheduleOfRelatedPartyTransactionsTableTextBlock_gL3SORPTTTB-MLTCSDLLO_zztgkRCUOg2b" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">The following is a list of related parties which the Company has transactions with: SCHEDULE OF RELATED PARTIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="border-bottom: black 1pt solid; padding-right: 0pt; font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 5%; text-align: center; text-indent: 0pt; padding-bottom: 0pt; padding-left: 0pt">No.</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 2%; padding-bottom: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt"> </td> <td style="border-bottom: black 1pt solid; padding-right: 0pt; font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 30%; text-align: center; text-indent: 0pt; padding-bottom: 0pt; padding-left: 0pt">Name of Related Parties</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 2%; padding-bottom: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt"> </td> <td style="border-bottom: black 1pt solid; padding-right: 0pt; font: 10pt Times New Roman, Times, Serif; width: 61%; text-align: center; text-indent: 0pt; padding-bottom: 0pt; padding-left: 0pt">Relationship</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">1</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Ming-Chia Huang</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_90C_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zno4CB7mEjUc" title="Related party transaction relationship">Chief Executive Officer, Chairman of the Board of Directors and shareholder of the Company</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">2</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Ming-Chao Huang</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_900_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zccOli7y0Qf" title="Related party transaction relationship">Director and shareholder of the Company</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">3</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Cetus Sponsor LLC</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_900_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_zGcUTwicDZ16" title="Related party transaction relationship">Shareholder of the Company since July 31, 2024</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">4</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">AWinner Limited</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_904_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zU5sDWo0YCr" title="Related party transaction relationship">Shareholder of the Company since March 24, 2025 and Affiliates of Cetus Sponsor LLC</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">5</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Ms. Ya-Hui</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_908_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zFznSZDZVzBk" title="Related party transaction relationship">Spouse of Ming-Chia Huang</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">6</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Lu Huang</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_903_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_z2RMRCIh15g8" title="Related party transaction relationship">Shareholder of the Company since July, 2025</td></tr> </table> 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 <div id="xdx_C0E_gL3SORPTTTB-MLTCSDLLO_zaS8c4oFIZDk">Amounts due from related parties consisted of the following for the periods indicated: <table cellpadding="0" cellspacing="0" id="xdx_307_134_zoaKh6vUnIL3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF RELATED PARTIES (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Related parties</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">Nature</td><td> </td> <td colspan="2" style="text-align: left"> </td><td> </td><td> </td> <td colspan="2" style="text-align: left"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 25%; text-align: justify; text-indent: 0pt; padding-left: 0pt">Cetus Sponsor LLC</td><td style="width: 2%"> </td> <td style="width: 33%; text-align: left; text-indent: 0pt; padding-left: 0pt">Loan to a related party</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--OtherReceivables_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_zeRydeQdPnp8" style="width: 16%; text-align: right" title="Amount due from related party">72,487</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--OtherReceivables_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_zB74UQtcGmBl" style="width: 16%; text-align: right" title="Amount due from related party">72,605</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">AWinner Limited</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Loan to a related party</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--OtherReceivables_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zcruJ40JHQUd" style="border-bottom: Black 1pt solid; text-align: right" title="Amount due from related party">875,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--OtherReceivables_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zzwUngmbf5v5" style="border-bottom: Black 1pt solid; text-align: right" title="Amount due from related party">875,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--OtherReceivables_iI_c20251231_zOVnDkJD4Ax" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Amount fue from related party">947,487</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98D_eus-gaap--OtherReceivables_iI_c20260630_zefHyVGyo8Sh" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Amount fue from related party">947,605</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> </div> 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 <div id="xdx_C00_gL3SORPTTTB-MLTCSDLLO_zyu3eSmXXHEl">Amount due to related parties consisted of the following for the periods indicated: <table cellpadding="0" cellspacing="0" id="xdx_307_134_zzZOJm5xYrT2" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF RELATED PARTIES (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Related parties</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Nature</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 25%; text-align: justify; text-indent: 0pt; padding-left: 0pt">Ming-Chia Huang (1)</td><td style="width: 2%"> </td> <td style="width: 33%; text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_fKDEp_zqt0pvLeNTg" style="width: 16%; text-align: right">1,354,052</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_fKDEp_zDGtg6jOLFz9" style="width: 16%; text-align: right">2,965,637</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Cetus Sponsor LLC</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_z1n8Txa5psjc" style="text-align: right">39,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_zmymAof2ZFyh" style="text-align: right">39,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">AWinner Limited</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zu1gRqYHb3e" style="text-align: right">737</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zukNfx7KRCzk" style="text-align: right">737</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Ming-Chao Huang (2)</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_fKDIp_zvq3euq7Ao0a" style="text-align: right">504,182</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_fKDIp_zkm4GxIGmgBe" style="text-align: right">669,672</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Lu Huang(4)</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_zCHvCbDswGil" style="text-align: right">154,816</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_zyr4Ty5dYjF8" style="text-align: right">159,457</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Ming-Chia Huang</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Expense paid on behalf the Company</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangOneMember_zWW7yzy9sQe8" style="text-align: right">9,311</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangOneMember_zcN88zRIIhfk" style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Ming-Chao Huang</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Expense paid on behalf the Company</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangOneMember_zXT7LJpGd1Li" style="border-bottom: Black 1pt solid; text-align: right">4,651</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangOneMember_zsABpAU5Qyi6" style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Ms. Ya-Hui</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Expense paid on behalf the Company</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zU9obCgnk7Mf" style="border-bottom: Black 2.5pt double; text-align: right">429</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zgk9ec5KIxwb" style="border-bottom: Black 2.5pt double; text-align: right">580</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98D_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231_z1yxwbub9PWi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Amounts due to related parties">2,067,178</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630_zfff6YsJSoFc" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Amounts due to related parties">3,835,083</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> </div> 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 <div id="xdx_C09_gL3SORPTTTB-MLTCSDLLO_zvupKm51rgNf"><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">(1)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: justify; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">The Company continuously entered into certain loan arrangements with Ming-Chia Huang and obtained loans from him with annual interest rates ranging from <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_906_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember__srt--RangeAxis__srt--MinimumMember_zhhSgHVGhnfg" title="Annual interest rate">3.5% to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_909_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember__srt--RangeAxis__srt--MaximumMember_zaW9lStu6wN" title="Annual interest rate">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$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_90F_eus-gaap--DebtInstrumentFaceAmount_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zhEJ3wsxWg6g" title="Debt face amount">1,649,904, and repaid approximately US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_90F_eus-gaap--RepaymentsOfDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zAx9TkK5Vcyf" title="Repayment of loan">38,319. The balance due to Ming-Chia Huang increased by approximately US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_909_eus-gaap--IncreaseDecreaseInOtherCurrentLiabilities_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zbrCvxCSDq03" title="Balance due amount increase">1,611,585, from US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_909_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zgMomJkox50b" title="Other liabilities current">1,354,052 as of December 31, 2025 to US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_907_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zzxICJEMeoL" title="Other liabilities current">2,965,637 as of June 30, 2026.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">(2)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: justify; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">The Company continuously entered into certain loan arrangements with Ming-Chao Huang and obtained loans from him with an annual interest rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zsCO39Q87Dec" title="Annual interest rate">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$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_901_eus-gaap--DebtInstrumentFaceAmount_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zhgUuUMo9Rb2" title="Debt face amount">206,216, and repaid approximately US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_903_eus-gaap--RepaymentsOfDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zuIOsOM8efHh" title="Repayment of loan">40,726. The balance due to Ming-Chao Huang increased by approximately US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_905_eus-gaap--IncreaseDecreaseInOtherCurrentLiabilities_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zTg9VIPy3EXc" title="Balance due amount increase">165,490, from US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_901_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zM4imk8mjvqj" title="Other liabilities current">504,182 as of December 31, 2025 to US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_908_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zdP1SsqBqiKh" title="Other liabilities current">669,672 as of June 30, 2026.</td></tr></table> </div> <div id="xdx_C01_gL3SORPTTTB-MLTCSDLLO_zt77vphZqjS8">(d) Related party transactions <table cellpadding="0" cellspacing="0" id="xdx_300_134_zl07ACcPP2pk" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF RELATED PARTIES (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Interest expenses of loans from related parties</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_ecustom--InterestExpensesOfLoansFromRelatedParties_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zOcuSo7UBr4l" style="width: 16%; text-align: right" title="Interest expenses of loans from related parties">7,480</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_ecustom--InterestExpensesOfLoansFromRelatedParties_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zNPSR9uXUHvj" style="width: 16%; text-align: right" title="Interest expenses of loans from related parties">36,096</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chao Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--InterestExpensesOfLoansFromRelatedParties_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zhA7OBj9hc19" style="text-align: right" title="Interest expenses of loans from related parties">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--InterestExpensesOfLoansFromRelatedParties_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zN2CVC7HLMXe" style="text-align: right" title="Interest expenses of loans from related parties">5,579</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Lu Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--InterestExpensesOfLoansFromRelatedParties_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_zktygYYbU6dc" style="text-align: right" title="Interest expenses of loans from related parties">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--InterestExpensesOfLoansFromRelatedParties_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_zQZOUFXpH7F7" style="text-align: right" title="Interest expenses of loans from related parties">2,976</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Proceeds of loans from related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chao Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ProceedsFromRelatedPartyDebt_iN_di_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zBWbVKcxUOdc" style="text-align: right" title="Proceeds of loans from related parties">(395,287</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ProceedsFromRelatedPartyDebt_iN_di_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_z4QeldrSv2nd" style="text-align: right" title="Proceeds of loans from related parties">(179,511</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ProceedsFromRelatedPartyDebt_iN_di_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zlNCAKlEIADa" style="text-align: right" title="Proceeds of loans from related parties">(678,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ProceedsFromRelatedPartyDebt_iN_di_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_z67CYXpkjP4j" style="text-align: right" title="Proceeds of loans from related parties">(976,831</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Debt to equity conversion</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">AWinner Limited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--DebtConversionOriginalDebtAmount1_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zl6W06IG8RSc" style="text-align: right" title="Debt to equity conversion">1,110,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--DebtConversionOriginalDebtAmount1_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zjXd3io1Y6sb" style="text-align: right" title="Debt to equity conversion">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--DebtConversionOriginalDebtAmount1_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_z3ipN1sF4uw" style="text-align: right" title="Debt to equity conversion">823,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--DebtConversionOriginalDebtAmount1_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zWRrOl09vMG5" style="text-align: right" title="Debt to equity conversion">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ms. Ya-Hui</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--DebtConversionOriginalDebtAmount1_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zkGFKXx0gYw1" style="text-align: right" title="Debt to equity conversion">550,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--DebtConversionOriginalDebtAmount1_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zUOpCCICZfUg" style="text-align: right" title="Debt to equity conversion">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Repay of loans from related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--RepaymentsOfRelatedPartyDebt_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zJFZ4jbKDvB1" style="text-align: right" title="Repay of loans from related parties">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--RepaymentsOfRelatedPartyDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_z1RrNz0qP6s9" style="text-align: right" title="Repay of loans from related parties">38,319</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chao Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--RepaymentsOfRelatedPartyDebt_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zqQqpzHrIYp4" style="text-align: right" title="Repay of loans from related parties">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--RepaymentsOfRelatedPartyDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_z7lbDhcM1Rm6" style="text-align: right" title="Repay of loans from related parties">29,476</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Repayment of the Convertible Note</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--RepaymentsOfConvertibleDebt_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zTa5UhInFtTc" style="text-align: right" title="Repayment of the Convertible Note">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--RepaymentsOfConvertibleDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_znK2vsxHemq5" style="text-align: right" title="Repayment of the Convertible Note">651,716</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Repurchase of Pre-Delivery Shares of Convertible Note</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--PaymentsForRepurchaseOfOtherEquity_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zzGF9SXGBHRd" style="text-align: right" title="Repurchase of Pre-Delivery Shares of Convertible Note">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--PaymentsForRepurchaseOfOtherEquity_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zUoZjrhhDdWf" style="text-align: right" title="Repurchase of Pre-Delivery Shares of Convertible Note">180</td><td style="text-align: left"> </td></tr> </table> </div> MKDWELL TECH INC. NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In U.S. dollars, except share and per share data)

<p id="xdx_896_eus-gaap--ScheduleOfRelatedPartyTransactionsTableTextBlock_gL3SORPTTTB-MLTCSDLLO_zztgkRCUOg2b" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: justify; margin-bottom: 0pt; margin-left: 0">The following is a list of related parties which the Company has transactions with: SCHEDULE OF RELATED PARTIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="border-bottom: black 1pt solid; padding-right: 0pt; font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 5%; text-align: center; text-indent: 0pt; padding-bottom: 0pt; padding-left: 0pt">No.</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 2%; padding-bottom: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt"> </td> <td style="border-bottom: black 1pt solid; padding-right: 0pt; font: 10pt Times New Roman, Times, Serif; white-space: nowrap; width: 30%; text-align: center; text-indent: 0pt; padding-bottom: 0pt; padding-left: 0pt">Name of Related Parties</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 2%; padding-bottom: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt"> </td> <td style="border-bottom: black 1pt solid; padding-right: 0pt; font: 10pt Times New Roman, Times, Serif; width: 61%; text-align: center; text-indent: 0pt; padding-bottom: 0pt; padding-left: 0pt">Relationship</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">1</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Ming-Chia Huang</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_90C_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zno4CB7mEjUc" title="Related party transaction relationship">Chief Executive Officer, Chairman of the Board of Directors and shareholder of the Company</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">2</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Ming-Chao Huang</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_900_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zccOli7y0Qf" title="Related party transaction relationship">Director and shareholder of the Company</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">3</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Cetus Sponsor LLC</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_900_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_zGcUTwicDZ16" title="Related party transaction relationship">Shareholder of the Company since July 31, 2024</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">4</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">AWinner Limited</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_904_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zU5sDWo0YCr" title="Related party transaction relationship">Shareholder of the Company since March 24, 2025 and Affiliates of Cetus Sponsor LLC</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">5</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Ms. Ya-Hui</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_908_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zFznSZDZVzBk" title="Related party transaction relationship">Spouse of Ming-Chia Huang</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; white-space: nowrap; padding-left: 0pt; text-align: center; text-indent: 0pt; padding-bottom: 0pt">6</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; text-indent: 0pt; padding-bottom: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">Lu Huang</td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; padding-left: 0pt; text-align: left; padding-bottom: 0pt; text-indent: 0pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: left; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt"><span id="xdx_903_ecustom--RelatedPartyTransactionRelationship_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_z2RMRCIh15g8" title="Related party transaction relationship">Shareholder of the Company since July, 2025</td></tr> </table> Amounts due from related parties consisted of the following for the periods indicated: <table cellpadding="0" cellspacing="0" id="xdx_307_134_zoaKh6vUnIL3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF RELATED PARTIES (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Related parties</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">Nature</td><td> </td> <td colspan="2" style="text-align: left"> </td><td> </td><td> </td> <td colspan="2" style="text-align: left"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 25%; text-align: justify; text-indent: 0pt; padding-left: 0pt">Cetus Sponsor LLC</td><td style="width: 2%"> </td> <td style="width: 33%; text-align: left; text-indent: 0pt; padding-left: 0pt">Loan to a related party</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--OtherReceivables_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_zeRydeQdPnp8" style="width: 16%; text-align: right" title="Amount due from related party">72,487</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--OtherReceivables_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_zB74UQtcGmBl" style="width: 16%; text-align: right" title="Amount due from related party">72,605</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">AWinner Limited</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Loan to a related party</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--OtherReceivables_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zcruJ40JHQUd" style="border-bottom: Black 1pt solid; text-align: right" title="Amount due from related party">875,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--OtherReceivables_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zzwUngmbf5v5" style="border-bottom: Black 1pt solid; text-align: right" title="Amount due from related party">875,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98F_eus-gaap--OtherReceivables_iI_c20251231_zOVnDkJD4Ax" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Amount fue from related party">947,487</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98D_eus-gaap--OtherReceivables_iI_c20260630_zefHyVGyo8Sh" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Amount fue from related party">947,605</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> Amount due to related parties consisted of the following for the periods indicated: <table cellpadding="0" cellspacing="0" id="xdx_307_134_zzZOJm5xYrT2" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF RELATED PARTIES (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">As of</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31,2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Related parties</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Nature</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 25%; text-align: justify; text-indent: 0pt; padding-left: 0pt">Ming-Chia Huang (1)</td><td style="width: 2%"> </td> <td style="width: 33%; text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_fKDEp_zqt0pvLeNTg" style="width: 16%; text-align: right">1,354,052</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_fKDEp_zDGtg6jOLFz9" style="width: 16%; text-align: right">2,965,637</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Cetus Sponsor LLC</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_z1n8Txa5psjc" style="text-align: right">39,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--CetusSponsorLLCMember_zmymAof2ZFyh" style="text-align: right">39,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">AWinner Limited</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zu1gRqYHb3e" style="text-align: right">737</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zukNfx7KRCzk" style="text-align: right">737</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Ming-Chao Huang (2)</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_fKDIp_zvq3euq7Ao0a" style="text-align: right">504,182</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_fKDIp_zkm4GxIGmgBe" style="text-align: right">669,672</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Lu Huang(4)</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Loan from related parties</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_zCHvCbDswGil" style="text-align: right">154,816</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_zyr4Ty5dYjF8" style="text-align: right">159,457</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Ming-Chia Huang</td><td> </td> <td style="text-align: justify; text-indent: 0pt; padding-left: 0pt">Expense paid on behalf the Company</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangOneMember_zWW7yzy9sQe8" style="text-align: right">9,311</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangOneMember_zcN88zRIIhfk" style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Ming-Chao Huang</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0pt; padding-left: 0pt">Expense paid on behalf the Company</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangOneMember_zXT7LJpGd1Li" style="border-bottom: Black 1pt solid; text-align: right">4,651</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangOneMember_zsABpAU5Qyi6" style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Ms. Ya-Hui</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Expense paid on behalf the Company</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zU9obCgnk7Mf" style="border-bottom: Black 2.5pt double; text-align: right">429</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zgk9ec5KIxwb" style="border-bottom: Black 2.5pt double; text-align: right">580</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: 0pt; padding-left: 0pt"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98D_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231_z1yxwbub9PWi" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Amounts due to related parties">2,067,178</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td id="xdx_98E_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630_zfff6YsJSoFc" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right" title="Amounts due to related parties">3,835,083</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">(1)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: justify; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">The Company continuously entered into certain loan arrangements with Ming-Chia Huang and obtained loans from him with annual interest rates ranging from <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_906_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember__srt--RangeAxis__srt--MinimumMember_zhhSgHVGhnfg" title="Annual interest rate">3.5% to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_909_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember__srt--RangeAxis__srt--MaximumMember_zaW9lStu6wN" title="Annual interest rate">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$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_90F_eus-gaap--DebtInstrumentFaceAmount_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zhEJ3wsxWg6g" title="Debt face amount">1,649,904, and repaid approximately US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_90F_eus-gaap--RepaymentsOfDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zAx9TkK5Vcyf" title="Repayment of loan">38,319. The balance due to Ming-Chia Huang increased by approximately US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_909_eus-gaap--IncreaseDecreaseInOtherCurrentLiabilities_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zbrCvxCSDq03" title="Balance due amount increase">1,611,585, from US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_909_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zgMomJkox50b" title="Other liabilities current">1,354,052 as of December 31, 2025 to US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_907_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zzxICJEMeoL" title="Other liabilities current">2,965,637 as of June 30, 2026.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; width: 0.25in; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">(2)</td><td style="font: 10pt Times New Roman, Times, Serif; padding-right: 0pt; text-align: justify; padding-bottom: 0pt; padding-left: 0pt; text-indent: 0pt">The Company continuously entered into certain loan arrangements with Ming-Chao Huang and obtained loans from him with an annual interest rate of <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zsCO39Q87Dec" title="Annual interest rate">6.0%. During the six months ended June 30, 2026, the Company obtained additional loans from Ming-Chao Huang in the aggregate amount of approximately US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_901_eus-gaap--DebtInstrumentFaceAmount_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zhgUuUMo9Rb2" title="Debt face amount">206,216, and repaid approximately US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_903_eus-gaap--RepaymentsOfDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zuIOsOM8efHh" title="Repayment of loan">40,726. The balance due to Ming-Chao Huang increased by approximately US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_905_eus-gaap--IncreaseDecreaseInOtherCurrentLiabilities_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zTg9VIPy3EXc" title="Balance due amount increase">165,490, from US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_901_eus-gaap--OtherLiabilitiesCurrent_iI_c20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zM4imk8mjvqj" title="Other liabilities current">504,182 as of December 31, 2025 to US$<span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIFJFTEFURUQgUEFSVElFUyAoRGV0YWlscykgKFBhcmVudGhldGljYWwpAA__" id="xdx_908_eus-gaap--OtherLiabilitiesCurrent_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zdP1SsqBqiKh" title="Other liabilities current">669,672 as of June 30, 2026.</td></tr></table> (d) Related party transactions <table cellpadding="0" cellspacing="0" id="xdx_300_134_zl07ACcPP2pk" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF RELATED PARTIES (Details)"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ended June 30,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">(Unaudited)</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Interest expenses of loans from related parties</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_ecustom--InterestExpensesOfLoansFromRelatedParties_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zOcuSo7UBr4l" style="width: 16%; text-align: right" title="Interest expenses of loans from related parties">7,480</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_ecustom--InterestExpensesOfLoansFromRelatedParties_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zNPSR9uXUHvj" style="width: 16%; text-align: right" title="Interest expenses of loans from related parties">36,096</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chao Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--InterestExpensesOfLoansFromRelatedParties_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zhA7OBj9hc19" style="text-align: right" title="Interest expenses of loans from related parties">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--InterestExpensesOfLoansFromRelatedParties_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zN2CVC7HLMXe" style="text-align: right" title="Interest expenses of loans from related parties">5,579</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Lu Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--InterestExpensesOfLoansFromRelatedParties_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_zktygYYbU6dc" style="text-align: right" title="Interest expenses of loans from related parties">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--InterestExpensesOfLoansFromRelatedParties_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--LuHuangMember_zQZOUFXpH7F7" style="text-align: right" title="Interest expenses of loans from related parties">2,976</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Proceeds of loans from related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chao Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ProceedsFromRelatedPartyDebt_iN_di_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zBWbVKcxUOdc" style="text-align: right" title="Proceeds of loans from related parties">(395,287</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--ProceedsFromRelatedPartyDebt_iN_di_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_z4QeldrSv2nd" style="text-align: right" title="Proceeds of loans from related parties">(179,511</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ProceedsFromRelatedPartyDebt_iN_di_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zlNCAKlEIADa" style="text-align: right" title="Proceeds of loans from related parties">(678,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ProceedsFromRelatedPartyDebt_iN_di_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_z67CYXpkjP4j" style="text-align: right" title="Proceeds of loans from related parties">(976,831</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Debt to equity conversion</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">AWinner Limited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--DebtConversionOriginalDebtAmount1_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zl6W06IG8RSc" style="text-align: right" title="Debt to equity conversion">1,110,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--DebtConversionOriginalDebtAmount1_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AwinnerLimitedMember_zjXd3io1Y6sb" style="text-align: right" title="Debt to equity conversion">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--DebtConversionOriginalDebtAmount1_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_z3ipN1sF4uw" style="text-align: right" title="Debt to equity conversion">823,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--DebtConversionOriginalDebtAmount1_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zWRrOl09vMG5" style="text-align: right" title="Debt to equity conversion">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ms. Ya-Hui</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--DebtConversionOriginalDebtAmount1_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zkGFKXx0gYw1" style="text-align: right" title="Debt to equity conversion">550,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--DebtConversionOriginalDebtAmount1_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MsYaHuiMember_zUOpCCICZfUg" style="text-align: right" title="Debt to equity conversion">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Repay of loans from related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--RepaymentsOfRelatedPartyDebt_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zJFZ4jbKDvB1" style="text-align: right" title="Repay of loans from related parties">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--RepaymentsOfRelatedPartyDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_z1RrNz0qP6s9" style="text-align: right" title="Repay of loans from related parties">38,319</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chao Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--RepaymentsOfRelatedPartyDebt_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_zqQqpzHrIYp4" style="text-align: right" title="Repay of loans from related parties">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--RepaymentsOfRelatedPartyDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChaoHuangMember_z7lbDhcM1Rm6" style="text-align: right" title="Repay of loans from related parties">29,476</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Repayment of the Convertible Note</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--RepaymentsOfConvertibleDebt_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zTa5UhInFtTc" style="text-align: right" title="Repayment of the Convertible Note">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--RepaymentsOfConvertibleDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_znK2vsxHemq5" style="text-align: right" title="Repayment of the Convertible Note">651,716</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; text-indent: 0pt; padding-left: 0pt">Repurchase of Pre-Delivery Shares of Convertible Note</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: 0pt; padding-left: 10pt">Ming-Chia Huang</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--PaymentsForRepurchaseOfOtherEquity_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zzGF9SXGBHRd" style="text-align: right" title="Repurchase of Pre-Delivery Shares of Convertible Note">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--PaymentsForRepurchaseOfOtherEquity_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--MingChiaHuangMember_zUoZjrhhDdWf" style="text-align: right" title="Repurchase of Pre-Delivery Shares of Convertible Note">180</td><td style="text-align: left"> </td></tr> </table>

Chief Executive Officer, Chairman of the Board of Directors and shareholder of the Company Director and shareholder of the Company Shareholder of the Company since July 31, 2024 Shareholder of the Company since March 24, 2025 and Affiliates of Cetus Sponsor LLC Spouse of Ming-Chia Huang Shareholder of the Company since July, 2025

72487

72605

875000

947487

947605

875000

1354052

2965637

39000

737

504182

669672

154816

159457

9311

4651

429

580

2067178

3835083

0.035

0.070

1649904

38319

1611585

1354052

2965637

0.060

206216

40726

165490

504182

669672

7480 36096 5579 2976

395287

179511

678000

976831

1110000

823100

550000

38319

29476

651716

180

13. SUBSEQUENT EVENTS On July 17, 2026, the Company entered into a share purchase agreement (the “SPA”) to acquire <span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260717__srt--OwnershipAxis__custom--LandvisionTechnologyLimitedMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember_zVRwxSxZ7eT6" title="Ownership percentage">100% of the issued share capital of Landvision Inc. (“Landvision BVI”), a British Virgin Islands holding company that owns <span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260717__srt--OwnershipAxis__custom--BritishVirginIslandsHoldingMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember_zlYsAGbqOzFg" title="Ownership percentage">100% of Landvision Technology Limited (“Landvision HK”), a Hong Kong-based developer and supplier of AI-enabled smart-home and IoT products. The consideration was satisfied entirely through the issuance of <span id="xdx_902_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20260717__20260717__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember_zoXxOBilHv25" title="Number of shares issued in transaction">30,000,000 new ordinary shares at an issue price of US$<span id="xdx_90A_eus-gaap--SaleOfStockPricePerShare_iI_c20260717__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember_z5hZceuQXJj6" title="Sales price per share">8.00 per share, representing aggregate consideration of US$<span id="xdx_90E_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20260717__20260717__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember_z4qaPXv8XTr4" title="Consideration received on transaction">240,000,000. The acquisition was completed in August 2026, and the consideration shares represent approximately <span id="xdx_906_eus-gaap--SaleOfStockPercentageOfOwnershipAfterTransaction_pid_dp_uPure_c20260717__20260717__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--SharePurchaseAgreementMember_zwKEuBIQWqXa" title="Consideration of shares percentage">87.72% of the Company’s enlarged issued ordinary shares. Accordingly, the acquisition is not reflected in the accompanying financial statements as of June 30, 2026. The Company will account for the acquisition in accordance with ASC 805, Business Combinations, using the acquisition method. Because the acquisition was completed subsequent to the balance sheet date, it constitutes a non-recognized subsequent event and is not reflected in the accompanying condensed consolidated financial statements as of and for the six months ended June 30, 2026. The Company is in the process of evaluating the financial effect of the acquisition and finalizing the purchase accounting.

30000000

8.00

240000000

0.8772

The shares and per share data are presented on a retroactive basis to reflect the Share Combination (Note 1). The shares and per share data are presented on a retroactive basis to reflect the Share Combination(Note 1). The shares are presented on a retroactive basis to reflect the Share Combination(Note 1). The balance as of June 30, 2026 primarily represented a loan in the principal amount of US$3,309,881 that the Company lent to Suzhou Chaoyuhua Precision Technology Co., Ltd. (the “Borrower”), a third party, pursuant to a loan agreement dated February 25, 2026. The loan matures on July 31, 2026, on which date the principal and accrued interest are repayable in a lump sum. The loan is unsecured. As of the date of this report, the loan has not been collected.. During the year ended December 31, 2025 and the six months ended June 30, 2026, the Company continuously entered into certain bank borrowings for the purpose of obtaining financing. The bank borrowings were joint secured by Mr. Ming-Chao Huang and Mr. Ming-Chia Huang, the shareholders of the Company, and pledged by the Company’s property, plant and equipment amounting to US$3,820,949 and US$3,812,196 as of December 31, 2025 and June 30, 2026, respectively. 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. 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.