Madison Technologies Q2 10-Q: Going Concern, Material Weaknesses, and Debt Default
Summary
Madison Technologies reported a $1.27 million net loss for the first half of 2026, reiterated going concern doubts, disclosed material weaknesses in financial controls, and confirmed its senior secured notes are in default.
Key Events · Earnings and Guidance · MDEX
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Going Concern Warning
Management states substantial doubt about the company's ability to continue as a going concern. No revenues were generated, and the working capital deficit widened to $24.6 million.
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Material Weaknesses in Controls
The company disclosed four material weaknesses in internal control over financial reporting, including no functioning audit committee and inadequate segregation of duties.
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Senior Secured Notes in Default
The remaining principal balance of $7,340,093 on senior secured notes, plus accrued interest, is in default.
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Debt-for-Equity Conversion
On May 4, 2026, the company issued 83,333,333 shares of common stock to repay $56,250 of debt, further diluting existing shareholders.
Analysis · MDEX · Trade & Services
With no revenue, a $24.6 million working capital deficit, and a going concern warning, the company faces severe challenges. It also disclosed material weaknesses in internal controls and that its senior secured notes are in default. These are severe red flags for a micro-cap stock trading at $0.0001.
How filings like this one have moved
In the 30 days to Sep 15, 2026, 40.7% of the 388 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.42%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, MDEX was trading at $0.00 on OTC in the Trade & Services sector, with a market capitalization of approximately $176.1K. The 52-week trading range was $0.00 to $0.25. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.