MDWerks, Inc. (MDWK) presents a deeply negative liquidation posture as of March 31, 2026. The MFFAIS-derived cash liquidation value of negative $3.35M and operating liquidation value of negative $2.49M are consistent with what the balance sheet discloses: total assets of $4.17M against a liability stack that extinguishes equity on a liquidation basis. The asset base is dominated by right-of-use assets ($976K at ASC 842 carrying value, zero recovery under liquidation lens), intangible assets ($488K net book value, zero recovery), and PP&E (partially pledged against asset-purchase-agreement notes). Cash as of March 31, 2026 was $95,754, down from $211,948 at December 31, 2025, representing the company's primary recoverable liquid asset. Working capital deficit is disclosed at $1.78M. On the liability side, total notes payable increased to $476,841 (all current) from $367,736 at December 31, 2025, driven by addition of a $147,792 insurance financing note originated in February 2026. Operating lease liability stands at $1.01M with undiscounted future payments of $1.19M through 2030, all of which survive liquidation at face value. Accrued unpaid royalties to Shine Time LLC of $149,495 and related-party advances of $167,500 (unsecured, demand, 10-12%) add to the current liability stack. Post-period, the company issued $145,000 in convertible notes (20% per annum, maturing October 2026) to board members and affiliates, further compressing any hypothetical equity recovery. Gross loss of $136,263 in Q1 2026 versus gross profit of $132,532 in Q1 2025 signals operating deterioration: Two Trees cost of sales ($371K) exceeded revenue ($314K) by $57K, and RF Specialties ran a $79K gross loss, both segments burning cash at the gross profit line before any G&A. Management has expressed substantial doubt about going-concern status. Accumulated deficit from inception is $7.01M as of March 31, 2026. The filing does not separately tag goodwill in XBRL; the narrative references goodwill accounting policy and two reporting units but does not disclose a goodwill balance or impairment test result in the Q1 2026 10-Q footnotes. No inventory line appears separately tagged in XBRL. The company's liquidation recovery to equity is unambiguously negative; creditor recovery is also uncertain given the unsecured nature of related-party advances and the subordination of lease obligations.
▼ Community Notes