The company reported zero revenue in 2024Q1 while incurring $181.5K in SG&A expenses, indicating a structural inability to align administrative costs with commercial output.
| Sales/Revenue | 0 | 2M | 3.67M | 3.15M | 3.27M |
| Revenue Growth % | - | -45.54% | 16.4% | -3.63% | - |
| Cost of Goods Sold | 0 | 1.83M | 3M | 2.13M | 2.75M |
| COGS % of Revenue | - | 91.71% | 81.65% | 67.68% | 83.95% |
| Gross Profit | 0 | 165.67K | 673.73K | 1.02M | 525.29K |
| Gross Margin % | - | 8.29% | 18.35% | 32.32% | 16.05% |
| Gross Profit Growth % | - | -75.41% | -33.89% | 94.01% | - |
| Operating Expenses | 649.69K | 2.99M | 2.51M | 1.92M | 1.87M |
| OpEx % of Revenue | - | 149.57% | 68.48% | 60.87% | 57.29% |
| Selling, General & Admin | 606.37K | 2.28M | 1.73M | 1.2M | 985.49K |
| SG&A % of Revenue | - | 114.26% | 47.23% | 38% | 30.12% |
| Research & Development | 0 | 705.68K | 780.05K | 721.25K | 889.21K |
| R&D % of Revenue | - | 35.3% | 21.25% | 22.87% | 27.18% |
| Other Operating Expenses | 43.32K | 0 | 0 | 0 | 0 |
| Operating Income | -649.69K | -2.82M | -1.84M | -900.31K | -1.35M |
| Operating Margin % | - | -141.28% | -50.12% | -28.55% | -41.24% |
| Operating Income Growth % | - | -53.5% | -104.36% | 33.28% | - |
| EBITDA | -38.16K | -2.28M | -1.28M | -372.2K | -748.78K |
| EBITDA Margin % | - | -114.12% | -34.78% | -11.8% | -22.88% |
| EBITDA Growth % | - | -78.66% | -243.05% | 50.29% | - |
| D&A (Non-Cash Add-back) | 0 | 542.97K | 563.04K | 528.11K | 600.63K |
| EBIT | -38.16K | -2.76M | -1.82M | -827.05K | -985.82K |
| Net Interest Income | 0 | -398.04K | -244.43K | -390.03K | -304.13K |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 398.04K | 244.43K | 390.03K | 304.13K |
| Other Income/Expense | 611.54K | -332.87K | -228.2K | -316.77K | 59.46K |
| Pretax Income | -38.16K | -3.16M | -2.07M | -1.22M | -1.29M |
| Pretax Margin % | - | -157.93% | -56.34% | -38.59% | -39.42% |
| Income Tax | 119.33K | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -312.73% | 0% | 0% | 0% | 0% |
| Net Income | -157.48K | -2.52M | -1.59M | -1.26M | -1.29M |
| Net Margin % | - | -125.96% | -43.31% | -39.84% | -39.42% |
| Net Income Growth % | - | -58.4% | -26.53% | 2.61% | - |
| Net Income (Continuing) | -157.48K | -3.16M | -2.07M | -1.22M | -1.29M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | -964.63K | -261.25K | 781.8K | 0 |
| EPS (Diluted) | - | -0.15 | -0.09 | -0.07 | -0.07 |
| EPS Growth % | - | -62.69% | -26.65% | 2.67% | - |
| EPS (Basic) | - | -0.15 | -0.09 | -0.07 | -0.07 |
| Diluted Shares Outstanding | 6.11M | 17.25M | 17.25M | 17.25M | 17.25M |
| Basic Shares Outstanding | 6.11M | 17.25M | 17.25M | 17.25M | 17.25M |
| Dividend Payout Ratio | - | - | - | - | - |
Liquidity and going concern
As reported in recent financial filings, MKDW has failed to generate any recognizable revenue in the two most recent quarters, representing a total cessation of top-line activity that stands in stark contrast to the company's stated objective of providing electronic equipment for the automotive sector.
The absence of revenue suggests that the company may have lost its primary OEM contracts or is currently undergoing a significant pivot that has halted all commercial operations. Investors should monitor whether this lack of activity is a temporary byproduct of the 2023 restructuring or a permanent loss of market relevance.
Based on the company's latest income statement, MKDW incurred $181.5K in SG&A expenses during 2024Q1 alone, despite reporting zero revenue, which highlights a structural inability to align administrative costs with the current lack of productive commercial activity or meaningful manufacturing output.
The persistence of administrative spending in the absence of revenue indicates a high fixed-cost burden that is rapidly depleting the company's limited cash reserves. This cost structure appears unsustainable and suggests that management has yet to implement the necessary austerity measures to preserve capital in a non-revenue environment.
According to the 2024Q1 income statement, MKDW reported a net income of $268.7K despite zero revenue, a figure that appears to be driven by non-operating items rather than core business performance, warranting significant skepticism regarding the underlying quality of the company's reported profitability.
The disconnect between the reported net income and the absence of operational revenue suggests that one-time accounting adjustments or financial maneuvers are masking the true state of the business. Analysts should investigate the source of these gains to determine if they represent sustainable value or merely temporary accounting artifacts.
With a cash balance of only $542,591 and ongoing quarterly operating losses, the company's financial position appears highly precarious, as noted in the most recent disclosures, suggesting that MKDW may face an imminent need for external financing to avoid a total depletion of its remaining capital.
The combination of a negligible cash runway and the lack of a clear revenue-generating engine implies that the company is at high risk of insolvency. Any further delay in securing new OEM design wins or additional capital will likely force management to consider dilutive financing or asset liquidation.
Quick answers to the most common questions about buying MKDW stock.
For fiscal year 2024, MKDWELL Tech Inc. (MKDW) reported total revenue of $2.0M. This represents a 38.9% decline compared to $3.3M in 2021.
MKDWELL Tech Inc. (MKDW) reported a net loss of $2.5M for the fiscal year ending 2024.
MKDWELL Tech Inc. (MKDW) reported an operating income of $-2.8M, resulting in an operating profit margin of -141.3%. This margin reflects the operational efficiency of the business before interest and taxes.
MKDWELL Tech Inc. (MKDW) generated $0.2M in gross profit for the year, representing a gross profit margin of 8.3%. This demonstrates the company's core pricing power and production efficiency.