| Summary of Significant Accounting Policies | 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting
policies presented below is designed to assist in understanding the Company’s financial statements. Such financial statements and
accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity.
These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in
all material respects and have been consistently applied in preparing the accompanying financial statements. Going Concern Since
its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management
and technical staff, acquiring operating assets and raising capital. The Company has not generated significant revenues from its principal
operations, and there is no assurance of future revenues. As of March 31, 2021, the Company had an accumulated deficit of $3,596,095.
The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet
its obligations and/or obtaining additional financing from its members or other sources, as may be required. The Company’s activities
will necessitate significant uses of working capital beyond March 31, 2021. Additionally, the Company’s capital requirements will
depend on many factors, including the success of the Company’s sales and the status of competitive products. The Company plans to
continue financing its operations with cash received from financing activities, revenue from operations and or affiliate funding. While the Company strongly believes
that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will generate
sufficient revenues to sustain its operations without additional capital or, if additional capital is needed, that such funds if available,
will be obtainable on terms satisfactory to the Company. The accompanying financial statements
have been prepared assuming that the Company will continue as a going concern; however, the above condition raises substantial doubt about
the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on
the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be
unable to continue as a going concern. Use of Estimates In preparing these unaudited condensed
financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amount of revenues and
expenses during the reporting periods. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company
follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements
of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring basis. Additionally, the
Company adopted guidance for fair value measurement related to nonfinancial items that are recognized and disclosed at fair value in the
financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level
3 measurements). The three levels of the fair value hierarchy are as follows: Level
1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access
at the measurement date. Level
2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly. Level
3 inputs are unobservable inputs for the asset or liability. The Company
monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and out of the levels
of the fair value hierarchy, the Company elects to disclose the fair value measurement at the beginning of the reporting period during
which the transfer occurred. The Company’s
financial instruments consisted of cash, accounts payable and accrued liabilities, due to related parties, note payable-stockholder, and
income tax payable. The estimated fair value of these financial instruments approximates its carrying amount due to the short maturity
of these instruments. Cash The Company considers all highly
liquid investments with maturities of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents
as of March 31, 2021 and December 31, 2020, respectively. Concentration of Credit Risk Financial instruments that potentially
subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company places its cash with
high quality banking institutions. From time to time, the Company may maintain cash balances at certain institutions in excess of the
Federal Deposit Insurance Corporation limit. The Company has not incurred any loss from this risk. Property and Equipment Property and equipment is stated
at cost. Capital expenditures for improvements and upgrades to existing equipment are also capitalized. Maintenance and repairs are expensed
as incurred. The computer equipment is depreciated over 5 years on a straight-line basis. Depreciation expense for the periods ended March
31, 2021 and 2020 was $750 and $750, respectively. Intangible Asset The Company considers intangible
asset - cryptocurrency to be revenue that has been earned, but for which no cash has been received. Intangible asset consists of crypto
mined coins that are held in a digital wallet and have not been cashed out. The basis of the valuation is the market price of the Sia
coins on March 31, 2021. The Company considers this to be an intangible asset under GAAP guidelines. The Company had $41,365 of intangible
asset as of March 31, 2021 and $4,787 as of December 31, 2020. Revenue is recognized on the last date of the quarter based on the transaction
price of the Sia coin at that date times the number of coins in the wallet. Unrealized gains and losses are recognized quarterly based
on the fluctuation in the market value of the coin versus the value booked when obtained. Derivatives and Hedging In April 2008, the FASB issued
a pronouncement that provides guidance on determining what types of instruments or embedded features in an instrument held by a reporting
entity can be considered indexed to its own stock for the purpose of evaluating the first criteria of the scope exception in the pronouncement
on accounting for derivatives. This pronouncement was effective
for financial statements issued for fiscal years beginning after December 15, 2008. The adoption of these requirements can affect the
accounting for many convertible instruments with provisions that protect holders from a decline in the stock price. Each reporting period,
the Company evaluates whether convertible debt to acquire stock of the Company contain provisions that protect holders from declines in
the stock price or otherwise could result in modification of the exercise price under the respective convertible debt agreements. Long-Lived Assets In accordance with ASC 350-30
(formerly SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets Income Taxes As a result of the implementation
of certain provisions of ASC 740, Income Taxes Accounting for Uncertainty in Income Taxes – An Interpretation
of FASB Statement No. 109), In 2010, the Company adopted Accounting
for Uncertain Income Taxes under the provisions of ASC 740. ASC 740 clarifies the accounting for income taxes by prescribing a minimum
recognition threshold a tax position is required to meet before being recognized in the financial statements. It also provides guidance
on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company
did not recognize any additional liability for unrecognized tax benefits as a result of the adoption of ASC 740. Deferred tax assets and
liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases. Valuation allowances are established when it is more likely
than not that some or all of the deferred tax assets will not be realized. The Company believes that its
income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material
change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In
addition, the Company did not record a cumulative effect adjustment related to the adoption of ASC 740. The Company’s policy for
recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. The Company’s tax provision
is determined using an estimate of its annual effective tax rate using enacted tax rates expected to apply to taxable income in the years
in which they are earned, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company
updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.
Income taxes payable as of March 31, 2021 and December 31, 2020 were $2,550 and $2,550, respectively. Income (Loss) per Common Share Basic income (loss) per common share excludes dilutive
securities and is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted
earnings per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. As
of March 31, 2021, and December 31, 2020, there were no outstanding dilutive securities. The following table represents the computation of
basic and diluted income (losses) per share:
Three months ended March 31, 2021 Three months ended March 31, 2020
Income (loss) available for common shareholder $ 11,961 $ (5,701 )
Basic and fully diluted loss per share $ 0.00 $ 0.00
Weighted average common shares outstanding - basic and diluted 1,914,930,584 1,914,930,584 Net income (loss) per share is based upon the weighted
average shares of common stock outstanding. Recent Accounting Pronouncements In January
2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-01, Business
Combinations (Topic 805) In March 2016, the FASB issued
ASU No. 2016-09, Compensation-Stock Compensation Topic 718 Improvements to Employee Share-Based Payment Accounting
(ASU 2016-09). Revenue Recognition In February 2016, the FASB issued
ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued an
accounting standard update that amends the accounting guidance on revenue recognition. The amendment in this accounting standard update
are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue standard update will be
applied using either of the following transition methods: 1) a full retrospective approach reflecting the application of the standard
in each prior reporting period with the option to elect certain practical expedients, or 2) a modified retrospective approach with the
cumulative effect of initially adopting the standard recognized at the date of adoption (which requires additional footnote disclosures).
This accounting update is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted only as of reporting
periods beginning after December 31, 2016. Sia coin is the only crypto coin
that Powerdyne is mining. The coins are held in the Company’s Sia coin digital wallet. When coins are going to be exchanged for
USD, they are then transferred to the company’s exchange wallet held at a US based crypto exchange which provides support for two-factor
authentication. We also have wallet password management, and offsite backups. The coins are held in anticipation of future price appreciation
as crypto currencies become more widely accepted, but some coins may be exchanged for USD on a as needed basis. The company also realizes
there is no guarantee the coins will apricate in value. Revenue is recognized on the last date of the quarter based on the market price
of the Sia coin at that date times the number of coins in the wallet. |
