MDWerks Reports Worsening Financials, Gross Loss in Both Segments, Raises High-Interest Insider Debt
MDWK has more than doubled off its 52-week low of $0.007.
Summary
MDWerks reported a significant financial decline, with both business segments now unprofitable at the gross level, critically low cash, and a high-interest insider debt raise to address liquidity issues.
Key Events · Earnings and Guidance · MDWK
-
Worsening Financial Performance
For the three months ended March 31, 2026, MDWerks reported a gross loss of $(136,263), a sharp decline from a gross profit of $132,532 in the prior year. Net loss increased to $(847,032) from $(629,354).
-
Both Segments Now Gross Unprofitable
Both Two Trees Distilling and RF Specialties segments shifted from gross profits in the prior year to gross losses of $(57,312) and $(78,951), respectively, indicating fundamental operational challenges.
-
Critical Liquidity Issues
Cash reserves plummeted to $95,754 as of March 31, 2026, down from $211,948 at year-end 2025. The company used $464,418 in cash from operating activities during the quarter, indicating a very short cash runway.
-
High-Interest Insider Convertible Debt
Subsequent to the quarter, on April 15, 2026, the company secured $145,000 through convertible notes from two Board members and a family member of a Director. These notes bear a high 20% annual interest rate and are convertible at $0.10 per share, a premium to the current market price of $0.0712.
Analysis · MDWK · Manufacturing
MDWerks' latest quarterly report reveals a significant deterioration in its financial health, with both operating segments now reporting gross losses. The company's cash reserves have dwindled to just $95,754, while its net loss and cash burn from operations have increased. This dire liquidity position, coupled with a reiterated 'going concern' warning and ineffective internal controls, highlights severe operational and financial challenges. The recent $145,000 convertible note financing from insiders at a 20% interest rate, despite a conversion price above the current market, underscores the company's struggle to secure capital under favorable terms.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 41.6% of the 317 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.47%. 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, MDWK was trading at $0.07 on OTC in the Manufacturing sector, with a market capitalization of approximately $16.8M. The 52-week trading range was $0.01 to $0.48. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.