Madison Technologies Posts Zero Revenue, Deepens Deficit Amid Going Concern Warning

TL;DR

**MDEX is a zombie company with no revenue and a massive deficit; avoid at all costs unless you're a speculative gambler.**

AI Summary

Madison Technologies Inc. (MDEX) reported no revenue for the three months ended March 31, 2025, consistent with the prior year. The company incurred a net loss of $709,477 for the quarter, an improvement from the $830,912 net loss in the same period of 2024, representing a 14.6% reduction in net loss. Operating expenses decreased by 15.9% to $117,880 from $140,175 year-over-year, primarily due to a significant reduction in professional fees from $124,703 in Q1 2024 to $56,904 in Q1 2025. However, general and administrative expenses increased substantially from $15,472 to $60,976. The company's working capital deficit worsened to $21,095,771 as of March 31, 2025, from $20,386,294 at December 31, 2024, and its accumulated deficit grew to $32,367,604. MDEX continues to operate with substantial doubt about its ability to continue as a going concern, relying on future capital raises. Interest expense increased to $591,597 from $560,511, while amortized expense was $0 compared to $130,226 in the prior year.

Why It Matters

This filing highlights Madison Technologies' precarious financial position, with zero revenue and a growing accumulated deficit of $32.37 million, raising significant red flags for investors. The explicit 'going concern' warning signals that the company's survival is highly dependent on securing additional financing, which could lead to substantial dilution for existing shareholders. For employees, this indicates job insecurity, while customers face uncertainty regarding product or service continuity. In a competitive market, MDEX's inability to generate revenue or achieve profitability makes it an outlier and a high-risk proposition, suggesting it's far from a viable competitor.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about our ability to continue as a going concern' due to generating no revenues, a net loss of $709,477, a working capital deficit of $21,095,771, and an accumulated deficit of $32,367,604 as of March 31, 2025. These financial indicators demonstrate extreme operational and financial instability.

Analyst Insight

Investors should avoid Madison Technologies Inc. (MDEX) given its zero revenue, significant and growing accumulated deficit, and explicit 'going concern' warning. The company's reliance on future capital raises for survival presents an unacceptably high risk of total loss of investment.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$90,921

total Debt

$21,186,693

net Income

$(709,477)

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

0.0%

Key Numbers

• $0 — Revenue (No revenue generated for Q1 2025 or Q1 2024)
• $(709,477) — Net Loss (Net loss for Q1 2025, an improvement from $(830,912) in Q1 2024)
• $(21,095,771) — Working Capital Deficit (Increased from $(20,386,294) at Dec 31, 2024, indicating worsening liquidity)
• $(32,367,604) — Accumulated Deficit (Increased from $(31,658,127) at Dec 31, 2024, reflecting ongoing losses)
• $117,880 — Total Operating Expenses (Decreased from $140,175 in Q1 2024, primarily due to lower professional fees)
• $56,904 — Professional Fees (Decreased significantly from $124,703 in Q1 2024)
• $60,976 — General and Administrative Expenses (Increased from $15,472 in Q1 2024)
• $591,597 — Interest Expense (Increased from $560,511 in Q1 2024)
• 1,603,095,243 — Common Shares Outstanding (Consistent between March 31, 2025, and December 31, 2024)
• $90,921 — Total Assets (Decreased from $130,568 at December 31, 2024)

Key Players & Entities

• Madison Technologies Inc. (company) — registrant
• SEC (regulator) — Securities and Exchange Commission
• OTC Markets, Inc. (company) — operator of Experts Market tier
• Blockchain.tv, Inc. (company) — wholly owned dormant subsidiary
• Chief Executive Officer (person) — chief operating decision maker
• $709,477 (dollar_amount) — net loss for Q1 2025
• $830,912 (dollar_amount) — net loss for Q1 2024
• $21,095,771 (dollar_amount) — working capital deficit as of March 31, 2025
• $32,367,604 (dollar_amount) — accumulated deficit as of March 31, 2025

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: Madison Technologies Inc. faces substantial doubt about its ability to continue as a going concern. The company reported no revenue for Q1 2025 and Q1 2024, and its accumulated deficit grew to $32,367,604. The company relies on future capital raises to fund operations.
• Worsening Working Capital Deficit [high — financial]: The company's working capital deficit increased to $21,095,771 as of March 31, 2025, from $20,386,294 at December 31, 2024. This indicates a deteriorating short-term liquidity position.
• Increasing Interest Expense [medium — financial]: Interest expense rose to $591,597 in Q1 2025 from $560,511 in Q1 2024. This increase, despite no revenue, adds to the financial strain.
• Significant Increase in G&A Expenses [medium — operational]: General and administrative expenses saw a substantial increase from $15,472 in Q1 2024 to $60,976 in Q1 2025. This rise offsets some of the savings in professional fees.
• Declining Total Assets [medium — financial]: Total assets decreased to $90,921 as of March 31, 2025, from $130,568 at December 31, 2024. This reduction in asset base could limit future operational capacity.

Industry Context

Madison Technologies Inc. operates in a sector that typically requires significant capital investment and faces long development cycles. The lack of revenue suggests the company may be in an early-stage development phase or a highly competitive market where new entrants struggle to gain traction without substantial funding or a unique value proposition.

Regulatory Implications

The company's ongoing financial struggles and the explicit mention of 'substantial doubt about its ability to continue as a going concern' may attract increased scrutiny from regulatory bodies like the SEC. Failure to secure financing or demonstrate a path to profitability could lead to delisting or further regulatory actions.

What Investors Should Do

1. Monitor future capital raises closely.
2. Analyze the sustainability of expense reductions.
3. Evaluate the potential for revenue generation.
4. Assess the impact of the growing working capital deficit.

Key Dates

• 2025-03-31: End of Q1 2025 — Reported no revenue, a net loss of $709,477, and a working capital deficit of $21,095,771.
• 2024-12-31: End of Fiscal Year 2024 — Reported a working capital deficit of $20,386,294 and total assets of $130,568.
• 2024-03-31: End of Q1 2024 — Reported no revenue and a net loss of $830,912.

Glossary

Accumulated Deficit

The total net losses of a company that have not been offset by net income since its inception. (Indicates the company has consistently incurred losses, with the deficit growing to $32,367,604.)

Working Capital Deficit

Occurs when a company's current liabilities exceed its current assets, indicating potential short-term liquidity issues. (Worsened to $21,095,771, highlighting ongoing liquidity challenges for Madison Technologies.)

Going Concern

An assumption that a company will continue to operate for the foreseeable future, typically at least the next 12 months. (Madison Technologies faces substantial doubt about its ability to continue as a going concern, a critical warning for investors.)

Mezzanine Equity

A hybrid form of financing that blends debt and equity features, often subordinate to senior debt. (The company has no outstanding Mezzanine Equity as of March 31, 2025, and December 31, 2024.)

Stockholders' Deficiency

The negative equity position of a company when its liabilities exceed its assets. (Reflects the company's overall negative net worth, with the accumulated deficit contributing to this deficiency.)

Year-Over-Year Comparison

Compared to the prior year's first quarter, Madison Technologies Inc. has reduced its net loss by 14.6% to $709,477, primarily driven by a 15.9% decrease in total operating expenses. This reduction was largely due to a significant cut in professional fees, from $124,703 to $56,904. However, this positive trend was partially offset by a substantial increase in general and administrative expenses, which more than tripled from $15,472 to $60,976. The company's liquidity position has weakened, with its working capital deficit growing from $20,386,294 at year-end 2024 to $21,095,771 by March 31, 2025.

Key Financial Figures

• $0.001 — hares of the registrant's Common Stock, $0.001 par value, were issued and outstanding.

Filing Documents

• g085033_10q.htm (10-Q) — 902KB
• g085033_ex31-1.htm (EX-31.1) — 14KB
• g085033_ex32-1.htm (EX-32.1) — 6KB
• 0001753926-25-001966.txt ( ) — 4928KB
• mdex-20250331.xsd (EX-101.SCH) — 41KB
• mdex-20250331_cal.xml (EX-101.CAL) — 31KB
• mdex-20250331_def.xml (EX-101.DEF) — 158KB
• mdex-20250331_lab.xml (EX-101.LAB) — 323KB
• mdex-20250331_pre.xml (EX-101.PRE) — 250KB
• g085033_10q_htm.xml (XML) — 725KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) 3 Condensed Consolidated Interim Balance Sheets at March 31, 2025 (unaudited) and December 31, 2024 (audited) 3 Condensed Consolidated Interim Statements of Operations for the three months ended March 31, 2025 and 2024 (unaudited) 4 Condensed Consolidated Interim Statements of Mezzanine Equity and Stockholders' Deficiency for the three ended March 31, 2025 and 2024 (unaudited) 5 Condensed Consolidated Interim Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited) 6 Notes to the Condensed Consolidated Interim Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 33 Item 1A.

Risk Factors

Risk Factors 33 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33 Item 3. Defaults Upon Senior Securities 33 Item 4. Mine Safety Disclosures 33 Item 5. Other Information 33 Item 6. Exhibits 34 2 Item 1: Financial Statements. MADISON TECHNOLOGIES INC. CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS AT MARCH 31, 2025 (Unaudited) AND DECEMBER 31, 2024 (Audited) (Currency expressed in United States Dollars ("US$ or $"), except for number of shares) March 31, 2025 December 31, 2024 ASSETS CURRENT ASSETS Prepaid expense $ 90,921 $ 130,568 Total Assets $ 90,921 $ 130,568 LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' DEFICIENCY CURRENT LIABILITIES Accounts payable and accrued liabilities (Note 4) $ 2,990,084 $ 2,772,924 Loan from a principal shareholder (Note 8) 485,311 394,617 Promissory notes (Note 5) 1,064,834 1,064,834 Convertible notes (Note 6) 2,545,500 2,545,500 Interest payable on senior secured notes (Note 7) 6,760,871 6,398,894 Senior secured notes (Note 7) 7,340,093 7,340,093 Total liabilities 21,186,693 20,516,862 MEZZANINE EQUITY Preferred Stock – Series A, 50,000,000 shares authorized, $ 0.001 par value per share, stated value $ 100 per share, 100,000 shares designated, No shares issued and outstanding, March 31, 2025 and December 31, 2024, respectively (Note 9) — — Preferred Stock - Series C, $ 0.001 par value; stated value $ 100 per share, 10,000 shares designated, No issued and outstanding, March 31, 2025 and December 31, 2024, respectively (Note 9) — — Total Mezzanine Equity — — STOCKHOLDERS' DEFICIENCY Preferred Stock - Series B, $ 0.001 par value; 100 shares designated, 100 shares issued and outstanding, March 31, 2025 and December 31, 2024, respectively (Note 9) — — Preferred Stock - Series D, $ 0.001 par value; convertible, stated value $ 3.32 per share, 230,000 shares designated, 155,000 sh

View Full Filing

View this 10-Q filing on SEC EDGAR