EX-99.1 2 ex99-1.htm

 

Exhibit 99.1

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

The unaudited pro forma combined financial information has been prepared as follows:

 

  ● On an actual basis.
     
  ● On a pro forma as adjusted basis to reflect (i) the issuance of 24,831,000 ordinary shares through a debt-to-equity conversion at a price of US$0.10 per share on March 19, 2025, and (ii) the issuance and sale of 100,000,000 ordinary shares at a price of US$0.1 per share on March 14, 2025.

 

PRO FORMA COMBINED BALANCE SHEET

AS OF DECEMBER 31, 2024

(UNAUDITED)

 

   As of December 31, 2024 
       Pro Forma   Pro Forma 
   Actual   Adjustment   Balance Sheet 
Assets            
Current assets:               
Cash and cash equivalents  $542,591   $10,000,000(2)  $10,542,591 
Restricted cash   51,139    -    51,139 
Accounts and note receivable, net   640,778    -    640,778 
Amounts due from related parties   932,640    -    932,640 
Inventories, net   291,029    -    291,029 
Prepaid expenses and other current assets, net   662,877    -    662,877 
Total current assets   3,121,054    10,000,000    13,121,054 
                
Non-current assets:               
Intangible assets, net   523,846    -    523,846 
Property, plant and equipment, net   5,094,545    -    5,094,545 
Real estate properties for lease, net   60,908    -    60,908 
Operating lease right-of-use assets, net   59,680    -    59,680 
Other non-current assets   34,624    -    34,624 
Total non-current assets   5,773,603    -    5,773,603 
TOTAL ASSETS  $8,894,657   $10,000,000   $18,894,657 
                
Liabilities               
Current liabilities:               
Short-term bank borrowings  $2,648,199   $-   $2,648,199 
Accounts payable   409,124    -    409,124 
Amounts due to related parties   2,162,876    (2,010,000)(1)   152,876 
Accrued expenses and other current liabilities   4,674,876    (473,100)(1)   4,201,776 
Long-term bank borrowings, current portion   123,299    -    123,299 
Convertible Note   868,925    -    868,925 
Operating lease liabilities, current   59,680    -    59,680 
Total current liabilities   10,946,979    (2,483,100)   8,463,879 
                
Non-current liabilities:               
Long-term bank borrowings   2,814,862    -    2,814,862 
Operating lease liabilities, non-current   -    -    - 
Other non-current liabilities   306,766    -    306,766 
Total non-current liabilities   3,121,628    -    3,121,628 
TOTAL LIABILITIES   14,068,607    (2,483,100)   11,585,507 
                
Equity               
Ordinary shares   1,859    2,483(1)   14,342 
         10,000(2)   - 
Additional paid-in capital   8,962,753    2,480,617(1)   21,433,370 
         9,990,000(2)   - 
Accumulated deficit   (13,731,023)   -    (13,731,023)
Accumulated other comprehensive income   557,094    -    557,094 
MKDWELL Tech Inc. shareholders’ equity (deficit)   (4,209,317)   12,483,100    8,273,783 
Non-controlling interests   (964,633)   -    (964,633)
Total equity (deficit)   (5,173,950)   12,483,100    7,309,150 
TOTAL LIABILITIES AND EQUITY (DEFICIT)  $8,894,657   $10,000,000   $18,894,657 

 

Unaudited Pro Forma Combined Balance Sheet Adjustments

 

The pro forma adjustment to the unaudited combined pro forma balance sheet consists of the following:

 

(1) Reflects the issuance of 24,831,000 ordinary shares through a debt-to-equity conversion at a price of US$0.1 per share on March 19, 2025. As a result, a total of US$2,483,100 in amounts due to shareholders, as well as accrued expenses and other liabilities was settled, which includes US$360,709 from a shareholder loan received after the reporting period.
   
(2) Reflects the issuance and sale of 100,000,000 ordinary shares at a price of US$0.10 per share on March 14, 2025, generating total proceeds of US$10,000,000.

 

   

 

 

PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2024
(UNAUDITED)

 

   For the year ended December 31, 2024 
       Pro Forma   Pro Forma 
   Actual   Adjustment   Balance Sheet 
Revenues  $1,998,971   $-   $1,998,971 
Cost of revenues   (1,833,300)   -    (1,833,300)
Gross profit   165,671    -    165,671 
                
Operating expenses:               
Selling expenses   (232,122)   -    (232,122)
General and administrative expenses   (2,051,999)   -    (2,051,999)
Research and development expenses   (705,680)   -    (705,680)
Total operating expenses   (2,989,801)   -    (2,989,801)
                
Loss from operations   (2,824,130)   -    (2,824,130)
                
Other loss:               
Interest expenses, net   (398,036)   -    (398,036)
Other income, net   65,171    -    65,171 
Total other loss   (332,865)   -    (332,865)
                
Loss before income tax expense   (3,156,995)   -    (3,156,995)
Income tax expense   -    -    - 
Net loss   (3,156,995)   -    (3,156,995)
Net loss attributable to non-controlling interest   (639,055)   -    (639,055)
Net loss attributable to ordinary shareholders  $(2,517,940)  $-   $(2,517,940)
                
Weighted average shares outstanding used in calculating basic and diluted loss per share - basic and diluted   16,788,342    124,831,000(1)   141,619,342 
Loss per share - basic and diluted  $(0.15)  $-   $(0.02)

 

Unaudited Pro Forma Combined Condensed Statement of Operations Adjustments

 

(1) To reflect the issuance of 124,831,000 ordinary shares related to the subsequent debt-to-equity conversion and the subsequent equity financing in March 2025, as if it had occurred on January 1, 2023, the beginning of the earliest period presented.