MDwerks Reports 25% Revenue Decline and Increased Net Loss in Q1 2025

MDwerks, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $513,930, a decrease of approximately 25% from $684,660 in the same period of 2024. The company's gross profit also fell to $132,532, down from $294,819 year-over-year. Operating expenses surged to $750,321, compared to $599,966 in the prior year, primarily driven by increased selling, general, and administrative expenses, which rose to $583,905 from $505,888. As a result, MDwerks experienced a net loss of $629,354 for the quarter, significantly higher than the net loss of $302,389 reported in the first quarter of 2024.

The company's balance sheet showed substantial changes, with total assets increasing to $4,975,551 as of March 31, 2025, compared to $2,916,434 at the end of 2024. This growth was largely attributed to a significant rise in inventory, which jumped to $1,104,400 from $236,863, and an increase in cash reserves to $593,175 from $11,159. Stockholders' equity also improved markedly, reaching $2,241,996, up from $371,028, reflecting the issuance of additional common stock and capital raised through financing activities.

Strategically, MDwerks has made notable acquisitions, including the merger with Two Trees Beverage Co., which closed on December 8, 2023. This acquisition allows MDwerks to expand its product offerings in the alcoholic beverage sector, leveraging Two Trees' innovative rapid-aging technology for spirits. Additionally, the company acquired RF Specialties, LLC, enhancing its capabilities in sustainable Radio Frequency applications. These acquisitions are expected to drive future growth and diversify revenue streams.

Operationally, MDwerks reported a weighted average of 210,632,031 common shares outstanding for the quarter, an increase from 199,032,927 in the previous year. The company noted that one customer accounted for 29% of total revenue in the first quarter of 2025, compared to 11% from a different customer in the same period last year. The company also reported a deferred revenue of $309,282, indicating unsatisfied performance obligations primarily related to liquor sales.

Looking ahead, MDwerks expressed optimism about its growth trajectory, citing plans to enhance its product lines and expand market reach. However, the company acknowledged the inherent risks and uncertainties associated with its forward-looking statements, including economic conditions and competition. Management remains focused on executing its business plans, which include securing third-party financing to support future operations and capital needs.