Despite 51.6% revenue growth, the company remains deeply unprofitable with a going concern warning and only $48,888 in unrestricted cash. The $10M private placement was placed in restricted time deposits, not used for operations. Monitor for further dilution or restructuring events; the stock is a high-risk micro-cap with deteriorating fundamentals.
Price Chart
Executive Summary
MKDWELL Tech Inc. filed its annual report on Form 20-F for the fiscal year ended December 31, 2025, reporting a net loss of $3.15 million, essentially flat vs. the $3.16 million loss in 2024. Revenue grew 51.6% to $3.03 million, driven by a 101% increase in manufactured electronic product sales, but gross margin contracted from 8.3% to 6.2% due to reduced profitability on major customer orders. The company raised $10 million via a private placement in March 2025, which was placed in restricted time deposits, and the auditor's report includes a going concern qualification citing accumulated deficits of $16.3 million and recurring operating losses.
Key Facts
- Revenue increased 51.6% to $3.03 million in FY2025 from $2.00 million in FY2024
- Net loss was $3.15 million in FY2025, nearly unchanged from $3.16 million in FY2024
- Gross profit margin declined from 8.3% in FY2024 to 6.2% in FY2025
- Accumulated deficit reached $16.30 million as of December 31, 2025
- Cash and cash equivalents were only $48,888 as of December 31, 2025
- Company received $10.0 million in shareholder capital contribution, invested in restricted time deposits
- Auditor's report includes a going concern qualification
- Material weaknesses in internal control over financial reporting were identified
- Company completed a 1-for-30 reverse stock split on January 26, 2026
- Convertible note with Streeterville Capital was fully repaid on March 27, 2026
Financial Impact
Net loss of $3.15 million on revenue of $3.03 million; gross margin compressed to 6.2%; accumulated deficit of $16.3 million
Risk Factors
- Going concern risk with only $48,888 in cash and recurring operating losses
- Gross margin compression from 8.3% to 6.2% despite revenue growth
- Material weaknesses in internal controls over financial reporting
- Dual-class voting structure concentrates 86.9% voting power with CEO
- Dependence on a single customer for 54.9% of revenue
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 10 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001493152-26-019701 |
| Exhibit: ex2-5.htm | 0001493152-26-019701 |
| Exhibit: ex12-1.htm | 0001493152-26-019701 |
| Exhibit: ex12-2.htm | 0001493152-26-019701 |
| Exhibit: ex13-2.htm | 0001493152-26-019701 |
| Exhibit: ex13-1.htm | 0001493152-26-019701 |
| Exhibit: ex15-1.htm | 0001493152-26-019701 |
| Document: 0001493152-26-019701-index-headers.html | 0001493152-26-019701 |
| Document: 0001493152-26-019701-index.html | 0001493152-26-019701 |
| Document: 0001493152-26-019701.txt | 0001493152-26-019701 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 18, 2026 23w ago | 144 | $0.0102 $0.0100 | ▲ +1.96% | ▲ +3.54% | — |
May 12, 2026 24w ago | 3 | $0.0102 $0.0102 | · 0.00% | ▲ +1.73% | — |
Apr 29, 2026 25w ago | 20-F | $0.0102 $0.0102 | · 0.00% | ▲ +5.23% | — |
Mar 30, 2026 30w ago | 6-K | $0.0102 $0.0102 | · 0.00% | ▼ −12.60% | — |
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