8-K: MDWerks Announces Shareholder Update: Whiskey-as-a-Service Gains Traction, New CFO Appointed

MDWerks, Inc. announces a shareholder update highlighting the launch of its Whiskey-as-a-Service model, a whiskey inventory acquisition, a new product line from its Two Trees subsidiary, and the appointment of a new CFO.

Summary

• MDWerks, Inc. released a shareholder update on May 13, 2025, outlining recent company and subsidiary developments.
• The company successfully launched its Whiskey-as-a-Service (WaaS) business model, securing contracts with two companies for its Spirits Rapid Aging Systems (SRAS).
• These contracts are expected to generate recurring revenue through licensing and servicing fees.
• Construction of the SRAS units commenced in March and is on track for completion in the third quarter of 2025.
• MDWerks also signed an agreement granting an international spirits investment fund limited exclusivity for SRAS unit deployment in three countries, contingent on deploying at least one unit annually in each country.
• The company acquired 680 barrels of aged whiskey from Brown Water Bourbon Xchange, LLC in exchange for restricted shares, increasing its raw material inventory.
• Two Trees Beverage Company launched Uplifting Spirits, a new product line supporting community and charitable causes, starting with a limited-edition bourbon benefiting Hurricane Helene relief efforts, donating 10% of sales.
• RF Specialties is nearing completion of a sawdust drying machine for a lumber mill customer, with deployment anticipated in the third quarter of 2025.
• David Stephens was appointed as Chief Financial Officer in March 2025, bringing nearly two decades of financial experience.
• MDWerks anticipates revenue to trend upward in the second quarter and more significantly in subsequent periods compared to the first quarter of 2025.

Sentiment

Score: 7

Explanation: The document presents a positive outlook with the launch of new initiatives and expected revenue growth, but also acknowledges risks and uncertainties associated with forward-looking statements.

Positives

• The launch of the Whiskey-as-a-Service (WaaS) model and securing initial contracts demonstrate market validation and potential for recurring revenue.
• The acquisition of aged whiskey provides a substantial increase in raw material inventory for future sales.
• The launch of Uplifting Spirits by Two Trees Beverage Company enhances the company's brand image and supports charitable causes.
• The appointment of David Stephens as CFO brings significant financial expertise to the company.
• The company expects revenue to increase in the second quarter and subsequent periods of 2025.

Risks

• The success of the Whiskey-as-a-Service model depends on the timely completion and deployment of SRAS units.
• The international spirits investment fund's exclusivity agreement is contingent on deploying at least one SRAS unit annually in each of the three countries.
• The company's future financial performance is subject to economic conditions, competition, and other factors outlined in their SEC filings.
• Forward-looking statements are subject to inherent risks and uncertainties that may cause actual results to differ materially.

Future Outlook

MDWerks expects revenue to trend upward in the second quarter and more significantly in subsequent periods of 2025 compared to the first quarter, driven by recent progress and investments in the business.

Management Comments

• We believe we have taken the necessary calculated steps needed to reposition the Company onto a prosperous path.
• Our upfront investment in these units will begin to pay off as they go live later this year, providing us with new recurring cash flow streams.
• We are continuing to make important investments in our business today to deliver sustainable long-term growth and shareholder value.
• We are excited about MDWerks future and appreciate your continued support.

Industry Context

The announcement reflects a trend towards sustainable and innovative solutions in the spirits industry, with MDWerks positioning itself as a leader in energy wave technologies for spirit aging and other applications.

Comparison to Industry Standards

• The Whiskey-as-a-Service model is innovative, but its success will depend on its cost-effectiveness and the quality of the aged spirits compared to traditional methods.
• Companies like Beam Suntory and Brown-Forman use traditional aging processes, so MDWerks' SRAS technology offers a potentially disruptive alternative.
• The donation of 10% of sales from Uplifting Spirits to Hurricane Helene relief efforts aligns with a growing trend of corporate social responsibility, similar to initiatives by companies like Patagonia and Ben & Jerry's.

Management Changes

Stakeholder Impact

• Shareholders can expect potential revenue growth and increased shareholder value.
• Customers may benefit from sustainable and cost-effective spirit aging solutions.
• The community benefits from charitable donations through the Uplifting Spirits product line.
• Employees benefit from the company's growth and expansion.

Next Steps

• Complete construction and deployment of SRAS units in the third quarter of 2025.
• Monitor the performance of the Whiskey-as-a-Service model and secure additional contracts.
• Track the deployment of SRAS units by the international spirits investment fund.
• Continue quality control and testing of the sawdust drying machine for deployment in the third quarter of 2025.

Key Dates

Keywords

MDWerks, Whiskey-as-a-Service, SRAS, Two Trees Beverage Company, Spirits, Revenue, CFO, Shareholder Update, Sustainable Technology