6-K
MKDWELL Tech Inc. (MKDW)
UNITED STATES
SECURITIES ANDEXCHANGE COMMISSION
Washington, D.C.20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2025
Commission File Number 001-42197
MKDWELL Tech Inc.
1F, No. 6-2, Duxing Road,
Hsinchu Science Park,
Hsinchu City 300, Taiwan
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Closing of the Private Placement
As previously disclosed in the Form 6-K furnished on March 12, 2025, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with 10 non-U.S. investors (the “Purchasers”), pursuant to which the Company agreed to issue and sell in a private placement offering (the “Private Placement”) an aggregate of 100,000,000 ordinary shares (the “Shares”), par value $0.0001 per share, at a purchase price per share of $0.10, for gross proceeds of approximately $10,000,000, of which proceeds will be used for working capital and other general corporate purposes. The Private Placement closed on March 21, 2025.
Unaudited Pro Form Condensed Combined FinancialInformation
As previously disclosed in a Form 6-K furnished on March 20, 2025, the Company entered into three separate debt conversion agreements (the “Debt Conversion Agreements”) with three creditors of the Company, being Mr. Ming-Chia Huang, a director and the chief executive officer of the Company, Ms. Ya-Hui Wu, the spouse of Mr. Huang, and AWinner Limited, which is controlled by Mr. Chung-Yi Sun, a director of the Company, to convert such debts owed into equity of the Company. Among these, (i) an amount of $823,100 owed to Mr. Ming-Chia Huang will be converted into 8,231,000 new ordinary shares of the Company, which will be redesignated into 8,231,000 new Class A preferred shares subject to approval by shareholders of the Company by an ordinary resolution; (ii) an amount of $550,000 owed to Ms. Ya-Hui Wu will be converted into 5,500,000 new ordinary shares of the Company; and (iii) an amount of $1,110,000 owed to AWinner Limited will be converted into 11,100,000 new ordinary shares of the Company.
In connection with the Private Placement and the Debt Conversion Agreements, the Company is furnishing with this Form 6-K the unaudited pro forma combined balance sheet and statement of operations as of and for the six months ended June 30, 2024 to reflect the effects of (i) the business combination with Cetus Capital Acquisition Corp. which was closed on July 31, 2024, (ii) the issuance of 24,831,000 ordinary shares pursuant to the Debt Conversion Agreements and (iii) the issuance of 100,000,000 ordinary shares in the Private Placement, as applicable, as Exhibit 99.1.
EXHIBIT INDEX
| Exhibit No. | Description |
|---|---|
| 99.1 | Unaudited Pro Forma Combined Balance Sheet and Statement of Operations as of and for the six months ended June 30, 2024 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| MKDWELL Tech Inc. | |
|---|---|
| By: | /s/ Ming-Chia Huang |
| Name: | Ming-Chia Huang |
| Title: | Chief Executive Officer and Director |
| Date: | March 25, 2025 |
| By: | /s/ Min-jie Cui |
| --- | --- |
| Name: | Min-jie Cui |
| Title: | Chief Financial Officer |
| Date: | March 25, 2025 |
Exhibit99.1
UNAUDITEDPRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The unaudited pro forma combined financial information has been prepared as follows:
| ● | On<br> an actual redemption basis to reflect the Business Combination which was closed on July 31, 2024. |
|---|---|
| ● | On<br> 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<br> 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<br> per share on March 14, 2025. |
PROFORMA COMBINED BALANCE SHEET
ASOF JUNE 30, 2024
(UNAUDITED)
| Actual | Pro Forma | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Redemptions into Cash | As Adjusted | ||||||||||||||||
| (B) | Pro Forma | Subsequent | Pro Forma | ||||||||||||||
| MKD | Pro Forma | Balance | Financing | Balance | |||||||||||||
| BVI | Adjustments | Sheet | Adjustments | Sheet | |||||||||||||
| ASSETS | |||||||||||||||||
| Current assets: | |||||||||||||||||
| Cash and cash equivalents | 181,795 | $ | 271,609 | $ | 22,127,715 | (1) | $ | 552,403 | $ | 360,709 | (6) | $ | 10,913,112 | ||||
| - | - | (88,812 | )(3) | 10,000,000 | (7) | - | |||||||||||
| - | - | (21,939,904 | )(4) | - | - | ||||||||||||
| Accounts receivable, net | - | 390,617 | - | 390,617 | - | 390,617 | |||||||||||
| Amounts due from related parties | - | 14,905 | - | 14,905 | - | 14,905 | |||||||||||
| Prepaid expenses and other current assets, net | 209 | 1,108,305 | - | 1,108,514 | - | 1,108,514 | |||||||||||
| Inventories, net | - | 326,860 | - | 326,860 | - | 326,860 | |||||||||||
| Total current assets | 182,004 | 2,112,296 | 98,999 | 2,393,299 | 10,360,709 | 12,754,008 | |||||||||||
| Non-current assets: | |||||||||||||||||
| Cash and marketable securities held in the trust | 22,127,715 | - | (22,127,715 | )(1) | - | - | - | ||||||||||
| Intangible assets, net | - | 409,692 | - | 409,692 | - | 409,692 | |||||||||||
| Property, plant and equipment, net | - | 4,424,895 | - | 4,424,895 | - | 4,424,895 | |||||||||||
| Real estate properties for lease, net | - | 1,099,876 | - | 1,099,876 | - | 1,099,876 | |||||||||||
| Other non-current assets | - | 27,235 | - | 27,235 | - | 27,235 | |||||||||||
| Operating lease right-of-use assets, net | - | 89,456 | - | 89,456 | - | 89,456 | |||||||||||
| Financing lease right-of-use assets, net | - | 3,330 | - | 3,330 | - | 3,330 | |||||||||||
| Total non-current assets | 22,127,715 | 6,054,484 | (22,127,715 | ) | 6,054,484 | - | 6,054,484 | ||||||||||
| TOTAL ASSETS | 22,309,719 | $ | 8,166,780 | $ | (22,028,716 | ) | $ | 8,447,783 | $ | 10,360,709 | $ | 18,808,492 | |||||
| LIABILITIES | |||||||||||||||||
| Current liabilities: | |||||||||||||||||
| Short-term bank borrowings | - | $ | 2,662,649 | $ | - | $ | 2,662,649 | $ | - | $ | 2,662,649 | ||||||
| Accrued expenses and other current liabilities | 1,382,315 | 2,311,377 | (88,812 | )(3) | 3,604,880 | (473,100 | )(6) | 3,131,780 | |||||||||
| Accounts payable | - | 197,244 | - | 197,244 | - | 197,244 | |||||||||||
| Amounts due to related parties, current | 1,099,737 | 800,007 | - | 1,899,744 | (1,649,291 | )(6) | 250,453 | ||||||||||
| Long-term bank borrowings, current portion | - | 925,070 | - | 925,070 | - | 925,070 | |||||||||||
| Operating lease liabilities, current | - | 58,964 | - | 58,964 | - | 58,964 | |||||||||||
| Short-term promissory note | - | - | 862,500 | (2) | 862,500 | - | 862,500 | ||||||||||
| Total current liabilities | 2,482,052 | 6,955,311 | 773,688 | 10,211,051 | (2,122,391 | ) | 8,088,660 | ||||||||||
| Non-current liabilities: | |||||||||||||||||
| Long-term bank borrowings | - | 2,028,822 | - | 2,028,822 | - | 2,028,822 | |||||||||||
| Other non-current liabilities | - | 478,473 | - | 478,473 | - | 478,473 | |||||||||||
| Deferred underwriting commission | 2,130,500 | - | (2,130,500 | )(2) | - | - | - | ||||||||||
| Operating lease liabilities, non-current | - | 30,492 | - | 30,492 | - | 30,492 | |||||||||||
| Total non-current liabilities | 2,130,500 | 2,537,787 | (2,130,500 | ) | 2,537,787 | - | 2,537,787 | ||||||||||
| TOTAL LIABILITIES | 4,612,552 | 9,493,098 | (1,356,812 | ) | 12,748,838 | (2,122,391 | ) | 10,626,447 | |||||||||
| Commitments and contingencies | |||||||||||||||||
| Class A Common stock subject to possible redemption, 0.0001 par value; 5,750,000 shares issued and outstanding at redemption value | 22,055,715 | - | (22,055,715 | )(4) | - | - | - | ||||||||||
| EQUITY | |||||||||||||||||
| Ordinary shares | - | - | 12 | (2) | 1,679 | 2,483 | (6) | 14,162 | |||||||||
| - | - | 1,667 | (5) | - | 10,000 | (7) | - | ||||||||||
| Class A common stock | 179 | - | (179 | )(5) | - | - | - | ||||||||||
| Additional paid in capital | - | 11,464,055 | 1,267,988 | (2) | 8,487,639 | 2,480,617 | (6) | 20,958,256 | |||||||||
| 115,811 | (4) | 9,990,000 | (7) | - | |||||||||||||
| - | - | (4,360,215 | )(5) | - | - | - | |||||||||||
| Accumulated deficit | (4,358,727 | ) | (12,621,494 | ) | 4,358,727 | (5) | (12,621,494 | ) | - | (12,621,494 | ) | ||||||
| Accumulated other comprehensive income | - | 511,949 | - | 511,949 | - | 511,949 | |||||||||||
| TOTAL SHAREHOLDER’S EQUITY (DEFICIT) | (4,358,548 | ) | (645,490 | ) | 1,383,811 | (3,620,227 | ) | 12,483,100 | 8,862,873 | ||||||||
| Non-controlling interests | - | (680,828 | ) | - | (680,828 | ) | - | (680,828 | ) | ||||||||
| TOTAL EQUITY (DEFICIT) | (4,358,548 | ) | (1,326,318 | ) | 1,383,811 | (4,301,055 | ) | 12,483,100 | 8,182,045 | ||||||||
| TOTAL LIABILITIES AND EQUITY (DEFICIT) | 22,309,719 | $ | 8,166,780 | $ | (22,028,716 | ) | $ | 8,447,783 | $ | 10,360,709 | $ | 18,808,492 |
All values are in US Dollars.
UnauditedPro Forma Combined Balance Sheet Adjustments
The pro forma adjustment to the unaudited combined pro forma balance sheet consists of the following:
| (A) | Derived<br> from the unaudited balance sheet of Cetus Capital as of June 30, 2024. |
|---|---|
| (B) | Derived<br> from the unaudited balance sheet of MKD BVI as of June 30, 2024. |
| (1) | Reflects<br> the release of cash from cash and marketable securities held in the trust account. |
| (2) | Reflects<br> the settlement of deferred underwriting commission through the issuance of (i) a promissory note in the amount of $862,500 which<br> bears a 10% interest rate per annum and (ii) 115,000 Ordinary Shares of the Company to D. Boral Capital LLC upon completion of the<br> Business Combination. |
| (3) | Reflects<br> the cash payment for accrued expenses of $88,812 for Cetus Capital upon completion of the Business Combination. |
| (4) | Reflects<br> the actual shares redeemed. Upon closing of the Business Combination on July 31, 2024, 5,719,947 of Cetus Capital’s shares<br> were redeemed and $60.73 million were paid out of the Trust Account balance. |
| (5) | Reflects<br> (i) recapitalization of MKD BVI through the issuance of 13,855,239 Ordinary Shares of the Company and eliminate Cetus Capital’s<br> historical accumulated deficit; (ii) the contribution of all the share capital in MKD BVI to the Company. In addition to the issuance<br> of 115,000 Ordinary Shares issued to D. Boral Capital LLC, there were 16,673,342 Ordinary Shares issued and outstanding upon completion<br> of the Business Combination, at the par value of $0.0001 per share, with total par value amounting to $1,667, after the redemption<br> of 5,719,947 shares. The total issued and outstanding Ordinary Shares in relation to Business Combination were 16,788,342 with total<br> par value amounting to $1,679. |
| (6) | Reflects<br> 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.<br> 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,<br> which includes US$360,709 from a shareholder loan received after the reporting period. |
| (7) | Reflects<br> 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<br> of US$10,000,000. |
PROFORMA COMBINED CONDENSED STATEMENT OF OPERATIONSFOR SIX MONTH ENDED JUNE 30, 2024(UNAUDITED)
| Actual | Pro Forma | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Redemptions into Cash | As Adjusted | |||||||||||||||||
| (A) | (B) | Pro Forma | Subsequent | Pro Forma | ||||||||||||||
| CETUS | MKD | Pro Forma | Income | Financing | Balance | |||||||||||||
| Capital | BVI | Adjustments | Statement | Adjustments | Sheet | |||||||||||||
| Net revenue | $ | - | $ | 811,041 | $ | - | $ | 811,041 | $ | - | $ | 811,041 | ||||||
| Cost of revenues | - | (744,282 | ) | - | (744,282 | ) | - | (744,282 | ) | |||||||||
| Gross profit | - | 66,759 | - | 66,759 | - | 66,759 | ||||||||||||
| Operating expenses | ||||||||||||||||||
| Selling expenses | - | (110,054 | ) | - | (110,054 | ) | - | (110,054 | ) | |||||||||
| General and administrative expenses | (600,578 | ) | (1,153,323 | ) | - | (1,753,901 | ) | - | (1,753,901 | ) | ||||||||
| Research and development expenses | - | (345,332 | ) | - | (345,332 | ) | - | (345,332 | ) | |||||||||
| Franchise tax | (32,625 | ) | - | - | (32,625 | ) | - | (32,625 | ) | |||||||||
| Total operating expenses | (633,203 | ) | (1,608,709 | ) | - | (2,241,912 | ) | - | (2,241,912 | ) | ||||||||
| Loss from operations | (633,203 | ) | (1,541,950 | ) | - | (2,175,153 | ) | - | (2,175,153 | ) | ||||||||
| Other income/(expenses) | ||||||||||||||||||
| Unrealized gain on marketable securities hold in the trust account | 869,184 | - | (869,184 | )(2) | - | - | - | |||||||||||
| Loss of extinguishment of debt | (405,500 | ) | - | - | (405,500 | ) | - | (405,500 | ) | |||||||||
| Interest expenses, net | - | (164,912 | ) | - | (164,912 | ) | - | (164,912 | ) | |||||||||
| Other expense, net | - | (18,348 | ) | - | (18,348 | ) | - | (18,348 | ) | |||||||||
| Total other income/(expenses), net | 463,684 | (183,260 | ) | (869,184 | ) | (588,760 | ) | - | (588,760 | ) | ||||||||
| Loss before income tax expense | (169,519 | ) | (1,725,210 | ) | (869,184 | ) | (2,763,913 | ) | - | (2,763,913 | ) | |||||||
| Income tax expense | (175,677 | ) | - | - | (175,677 | ) | - | (175,677 | ) | |||||||||
| Net Loss | (345,196 | ) | (1,725,210 | ) | (869,184 | ) | (2,939,590 | ) | - | (2,939,590 | ) | |||||||
| Net loss attributable to non-controlling interest | - | (316,799 | ) | - | (316,799 | ) | - | (316,799 | ) | |||||||||
| Net loss attributable to parent company | $ | (345,196 | ) | $ | (1,408,411 | ) | $ | (869,184 | ) | $ | (2,622,791 | ) | $ | - | $ | (2,622,791 | ) | |
| Weighted average ordinary shares outstanding - basic and diluted | - | 24,443,989 | (7,655,647 | )(1) | 16,788,342 | 124,831,000 | (3) | 141,619,342 | ||||||||||
| Weighted average redeemable ordinary shares outstanding - basic and diluted | 6,980,877 | - | (6,980,877 | )(1) | - | - | - | |||||||||||
| Loss per share - basic and diluted | $ | (0.05 | ) | $ | (0.06 | ) | $ | - | $ | (0.16 | ) | $ | - | $ | (0.02 | ) |
PROFORMA COMBINED CONDENSED STATEMENT OF OPERATIONSFOR THE YEAR ENDED DECEMBER 31, 2023(UNAUDITED)
| Actual | Pro Forma | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Redemptions into Cash | As Adjusted | |||||||||||||||||
| (A) | (B) | Pro Forma | Subsequent | Pro Forma | ||||||||||||||
| Cetus | MKD | Pro Forma | Income | Financing | Balance | |||||||||||||
| Capital | BVI | Adjustments | Statement | Adjustments | Sheet | |||||||||||||
| Net revenue | $ | - | $ | 3,670,722 | $ | - | $ | 3,670,722 | $ | - | $ | 3,670,722 | ||||||
| Cost of revenues | - | (2,996,990 | ) | - | (2,996,990 | ) | - | (2,996,990 | ) | |||||||||
| Gross profit | - | 673,732 | - | 673,732 | - | 673,732 | ||||||||||||
| Operating expenses | ||||||||||||||||||
| Selling expenses | - | (241,573 | ) | - | (241,573 | ) | - | (241,573 | ) | |||||||||
| General and administrative expenses | (907,593 | ) | (1,491,966 | ) | - | (2,399,559 | ) | - | (2,399,559 | ) | ||||||||
| Research and development expenses | - | (780,050 | ) | - | (780,050 | ) | - | (780,050 | ) | |||||||||
| Franchise tax | (179,876 | ) | - | - | (179,876 | ) | - | (179,876 | ) | |||||||||
| Total operating expenses | (1,087,469 | ) | (2,513,589 | ) | - | (3,601,058 | ) | - | (3,601,058 | ) | ||||||||
| Loss from operations | (1,087,469 | ) | (1,839,857 | ) | - | (2,927,326 | ) | - | (2,927,326 | ) | ||||||||
| Other income/(expenses) | ||||||||||||||||||
| Unrealized gain on marketable securities hold in the trust account | 1,394,622 | - | (1,394,622 | )(2) | - | - | - | |||||||||||
| Interest expenses, net | - | (244,433 | ) | - | (244,433 | ) | - | (244,433 | ) | |||||||||
| Other income, net | - | 16,230 | - | 16,230 | - | 16,230 | ||||||||||||
| Total other income/(expenses), net | 1,394,622 | (228,203 | ) | (1,394,622 | ) | (228,203 | ) | - | (228,203 | ) | ||||||||
| Income/(Loss) before income tax expense | 307,153 | (2,068,060 | ) | 1,394,622 | (3,155,529 | ) | - | (3,155,529 | ) | |||||||||
| Income tax expense | (255,097 | ) | - | - | (255,097 | ) | - | (255,097 | ) | |||||||||
| Net income/(loss) | 52,056 | (2,068,060 | ) | 1,394,622 | (3,410,626 | ) | - | (3,410,626 | ) | |||||||||
| Net loss attributable to non-controlling interest | - | (478,433 | ) | - | (478,433 | ) | - | (478,433 | ) | |||||||||
| Net income/(loss) attributable to parent company | $ | 52,056 | $ | (1,589,627 | ) | $ | 1,394,622 | $ | (2,932,193 | ) | $ | - | $ | (2,932,193 | ) | |||
| Weighted average ordinary shares outstanding - basic and diluted | - | 25,280,472 | (8,492,130 | )(1) | 16,788,342 | 124,831,000 | (3) | 141,619,342 | ||||||||||
| Weighted average redeemable ordinary shares outstanding - basic and diluted | 6,980,877 | - | (6,980,877 | )(1) | - | - | - | |||||||||||
| Income/(loss) per share - basic and diluted | $ | 0.01 | $ | (0.06 | ) | $ | - | $ | (0.17 | ) | $ | - | $ | (0.02 | ) |
UnauditedPro Forma Combined Condensed Statement of Operations Adjustments
| (A) | Derived<br> from Cetus Capital’s unaudited statement of operations for six months ended June 30, 2024 and audited statement of operations<br> for the year ended December 31, 2023. |
|---|---|
| (B) | Derived<br> from the MKD BVI’s unaudited condensed consolidated statement of operations for six months ended June 30, 2024 and audited<br> consolidated statement of operations for the year ended December 31, 2023. |
| (1) | The<br> calculation of weighted average shares outstanding for basic and diluted net loss per share assumes that the IPO occurred as of the<br> earliest period presented. In addition, as the Business Combination is being reflected as if it had occurred on this date, the calculation<br> of weighted average shares outstanding for basic and diluted net loss per share assumes that the shares have been outstanding for<br> the entire period presented. This calculation is retroactively adjusted to eliminate the number of shares redeemed in the Business<br> Combinations for the entire period. |
| (2) | To<br> reflect the elimination of the unrealized gain on marketable securities held in the trust account as if the marketable securities<br> held in the trust account were released, if any, on January 1, 2023, the beginning of the earliest period presented. |
| (3) | To<br> reflect the issuance of 124,831,000 ordinary shares related to the subsequent debt-to-equity conversion and the subsequent equity<br> financing in March 2025, as if it had occurred on January 1, 2023, the beginning of the earliest period presented. |