MDWerks, Inc. Annual Report: A Plain-English Summary

I am writing this guide to help you understand how MDWerks performed this year. My goal is to turn complex financial filings into clear information to help you decide if this company fits your investment goals.

1. What does this company do?

MDWerks uses radio waves to speed up industrial processes. Their flagship product is the "Spirits Rapid Aging System" (SRAS). This technology uses precise energy waves to age whiskey in a fraction of the time it takes in a traditional barrel.

The company has two main parts: RF Specialties, which builds the machines, and Two Trees Beverage Co., which uses that technology to make award-winning spirits. The company holds about $2.1 million in assets and is currently focused on selling its SRAS hardware.

2. The big shift: "Whiskey-as-a-Service"

The company is moving toward a "Whiskey-as-a-Service" model. Think of this like a software company switching to a subscription model, such as Netflix. Instead of just selling bottles, they are licensing their SRAS machines to other distilleries.

This is a strategic win because it creates predictable, recurring income. They have signed contracts to install these units at major U.S. distilleries starting in 2026. They also have deals to expand into Europe and Asia. These agreements include an upfront installation fee plus a royalty for every gallon processed, which helps stabilize their cash flow.

3. Financial performance and health

The company is currently in a "heavy lifting" phase. They are spending heavily to build and install machines, so they are not focused on immediate profit. They are prioritizing growth.

Key highlights:

• Production Boost: They installed a larger machine at their facility, increasing their output by 40% to meet demand.
• Funding the Growth: The company lost about $1.8 million this year due to high research and equipment costs. They are burning about $150,000 per month to build their infrastructure. To fund this, they rely on $1.2 million in loans from insiders and convertible debt—which means they may issue more shares later, reducing your ownership percentage.

4. Major wins and risks

• Wins: The new business model validates their technology. If major distilleries pay to use these machines, it proves the tech works. Additionally, their Two Trees brand has won awards for three years, proving the quality of their spirits.
• Risks: This is a "show me" stock. They rely on a few key customers and the 2026 rollout. If installations are delayed or machines underperform, their revenue plans will struggle. Because they rely on insider loans, they need to raise more money within the next year to keep operating.

5. The bottom line

MDWerks is transitioning from a spirit producer to a tech-licensing company. If their machines become the industry standard, the recurring income could be significant. For now, it is a high-stakes bet on their technology scaling up.

Investor Checklist:

• Watch the 2026 timeline: The success of the business model hinges on the scheduled installations at major distilleries.
• Monitor the cash burn: Keep an eye on how they plan to fund operations beyond their current insider loans.
• Track the licensing deals: Look for updates on whether they are successfully signing new distilleries to the "Whiskey-as-a-Service" model.