MDWerks Q2 10-Q: Going Concern Warning, Cash Down to $13K, Losses Mount

summarizeSummary

MDWerks' Q2 2026 10-Q reveals a going concern warning, critically low cash, and continued losses, with insider convertible debt at 20% interest.

check_boxKey Events · Earnings and Guidance · MDWK

• Going Concern Warning

  Management expresses substantial doubt about the company's ability to continue as a going concern, with cash of only $13,258 at June 30, 2026 and a working capital deficit of $2,082,091.

• Net Loss Widens

  Net loss for the six months ended June 30, 2026 was $1,376,904, compared to $1,966,246 in the prior year period. Accumulated deficit reached $7,535,399.

• Insider Convertible Debt

  The company entered into $145,000 of convertible notes with directors and a director's family member at 20% interest, convertible at $0.10 per share. A subsequent $75,000 note at 20% interest is convertible at $0.07 per share.

• Ineffective Disclosure Controls

  The company's principal executive and financial officers concluded that disclosure controls and procedures were not effective as of June 30, 2026.

auto_awesomeAnalysis · MDWK · Manufacturing

MDWerks ended Q2 2026 with just $13,258 in cash and a working capital deficit of $2.08 million. Management states substantial doubt about the company's ability to continue as a going concern. The company lost $1.38 million in the first half of 2026 and has an accumulated deficit of $7.54 million. To stay afloat, it has been issuing high-interest convertible notes to insiders at 20% interest, convertible at $0.10 per share, and a subsequent note at $0.07 per share. The company also disclosed that its disclosure controls and procedures were not effective. This is a critical liquidity and survival situation for a micro-cap company.