Tue, May 13, 9:24 PM (36 days ago)
**MDwerks, Inc. (MDWK) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $513,930 (down 25% from $684,660 in Q1 2024) due to decreased liquor sales, partially offset by increased RF Specialties revenues. - **Gross Profit:** $132,532 (down 55% from $294,819 in Q1 2024) due to lower sales volumes and increased costs. - **Operating Expenses:** $750,321 (up 25% from $599,966 in Q1 2024) due to increased professional fees, payroll, and stock-based compensation. - **Net Loss:** $629,354 (up 108% from $302,389 in Q1 2024) due to increased operating expenses and lower gross profit. - **Cash Flow:** Net cash used in operating activities was $421,316 (up 50% from $280,931 in Q1 2024). Net cash provided by financing activities was $1,607,709 (up 376% from $337,534 in Q1 2024). **Profit Margins:** - **Gross Margin:** 26% (down from 43% in Q1 2024). - **Operating Margin:** -122% (down from -45% in Q1 2024). **Segment Performance:** - **Two Trees Distilling:** Revenue down 51% to $252,837, gross profit down 63% to $84,122. - **RF Specialties:** Revenue up 54% to $261,093, gross profit down 28% to $48,410. **Trends and Uncertainties:** - MDWK faces substantial doubt about its ability to continue as a going concern due to operating losses and the need for additional funding. - The company expects significant growth in revenue and gross profit from new SRAS contracts in the second half of 2025. - MDWK plans to raise additional capital to meet liquidity requirements and fund business plans. **Future Operations Impact:** - MDWK's ability to continue operations depends on raising capital to fund its business plan and achieve profitable operations. - The company may need to reduce the scope of its business development activities if additional funding is not secured. **Management's Discussion:** - MDWK completed acquisitions of RF Specialties and Two Trees Beverage Co. in 2023. - The company appointed a new Chief Financial Officer in March 2025. - MDWK entered into new contracts for SRAS deployment and an asset purchase agreement for whiskey barrels. - MDWK's liquidity and capital resources are insufficient to meet its requirements for the next 12 months.