MDJM LTD Annual Report - How They Did This Year

I have been reviewing the latest filings for MDJM LTD, and the story has taken a dramatic turn. If you follow this company, you know they are trying to reinvent themselves. The latest update confirms that the "old" MDJM is gone, and the company is navigating a very difficult transition.

1. The Big Shift: From China to the UK

MDJM has completely exited its Chinese real estate roots, which previously provided all of its revenue. Their former Chinese subsidiaries are now dissolved or liquidated. The company has pivoted to focus on hospitality and creative projects in the UK. Their main asset is now the Fernie Castle Hotel in Scotland. This is a total shift from a commission-based real estate model to an asset-heavy hospitality and film production business.

2. Financial Health: A Major Red Flag

This section should give any investor pause. The company is in a fragile state, with significant losses and no steady income from its new ventures.

• Nasdaq Delisting: As of March 20, 2026, shares were suspended from the Nasdaq. They now trade on the "OTC" (Over-the-Counter) market, specifically the Pink Sheets. This happened because the company failed to keep its share price above $1.00 and failed to meet the $2.5 million minimum equity requirement.
• The "Reverse Split": In March 2026, the company performed a 35-for-1 reverse stock split. This was a desperate attempt to consolidate shares and artificially boost the price above $1.00 to stay on the Nasdaq. The attempt failed.
• Cash Flow: The company lost about $4.2 million last year. With less than $500,000 in cash remaining, they are burning through capital to fund renovations and film projects. They have no proven track record of profit in these new sectors.

3. Key Risks

• Survival Risk: Moving from real estate to hospitality and film is a massive leap. The company lacks the specialized management expertise for these industries, creating a high chance of failure.
• Dilution: To keep the lights on, the company has frequently sold new shares. Over the last 18 months, they issued millions of additional shares. This reduces your ownership percentage and lowers the value of your existing shares.
• Market Status: Trading on the OTC market makes the stock harder to buy and sell because there are fewer buyers and sellers. Furthermore, OTC stocks face less strict reporting rules than Nasdaq companies, which increases the risk for retail investors.

4. Future Outlook

The company is betting everything on UK hospitality and creative projects. The management team is now based in the UK, showing they are fully committed to this path. However, the real question is whether they have enough cash to survive until these projects become profitable. The company has warned that there is significant doubt about its ability to stay in business without raising more money soon.

Bottom Line: MDJM is essentially a startup again, but with the baggage of a public company. The transition is complete, but the move to the OTC market and the failed reverse split are major warning signs. Before considering an investment, ask yourself if you are comfortable with a high-risk gamble that carries a very real possibility of further share dilution or bankruptcy.