| 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 consolidated financial
statements. Such
consolidated 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 consolidated
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 December 31, 2021, the Company had an accumulated deficit of $ 3,651,212 The
Company’s activities will necessitate significant uses of working capital beyond December 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 audited consolidated 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 consolidated 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 Our
management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent
assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted
in the United States of America. Actual results could differ from those estimates. Fair
Value of Financial Instruments When
determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, we consider the
principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing
the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. We use the following three levels of
inputs in determining the fair value of our assets and liabilities, focusing on the most observable inputs when available: ●
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or
liabilities. ●
Level 2 - Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially
the full term of the asset or liability. ●
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. To
the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair
value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value
hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed
is determined based on the lowest level input that is significant to the fair value measurement. POWERDYNE
INTERNATIONAL, INC. December
31, 2021, and 2020 4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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, intangible asset-Cryptocurrency, accounts payable and accrued liabilities, due
to related parties and notes payable-stockholder. The estimated fair value of cash, intangible asset-Cryptocurrency, accounts payable
and accrued liabilities, due to related parties and notes payable-stockholder 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 December 31, 2021, and 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. Intangible
asset - Cryptocurrency The
Company considers intangible asset-Cryptocurrency to be revenue that has been earned, but for which no cash has been received. Intangible
asset-Cryptocurrency 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 December 31, 2021. The Company considers this to be a current asset since the crypto
mined coins can be redeemed for cash at any time. The Company had $ 13,389 4,787 Equipment 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 equipment is depreciated over 5 3,000 3,000 Impairment
of Long-Lived Assets and Long-Lived Assets to Be Disposed Of In
accordance with ASC 360, we evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that their
net book value may not be recoverable. When such factors and circumstances exist, we compare the projected undiscounted future cash flows
associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment,
if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected
cash flows, of those assets and is recorded in the period in which the determination is made. We currently believe there is no impairment
of our long-lived assets. There can be no assurance, however, that market conditions will not change or demand for our products under
development will continue. Either of these could result in future impairment of long-lived assets. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS December
31, 2021, and 2020 4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 December 31, 2021, and December 31, 2020, were $ 2,550
and $ 2,550 ,
respectively. Loss
per Common Share Basic
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 December 31, 2021, and December 31, 2020, there were no outstanding dilutive securities. The
following table represents the computation of basic and diluted losses per share: SCHEDULE OF COMPUTATION OF BASIC AND DILUTED INCOME (LOSSES) PER SHARE
Year ended Year ended
Loss available for common shareholder $ (43,156 ) $ (57,256 )
Basic and fully diluted loss per share $ (0.00 ) $ 0.00
Weighted average common shares outstanding - basic and diluted 1,903,348,392 1,914,930,584 Net
loss per share is based upon the weighted average shares of common stock outstanding. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS December
31, 2021, and 2020 4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Recent
Accounting Pronouncements In
February 2016, the FASB issued ASU 2016-02, Leases Recent
Accounting Guidance Not Yet Adopted Accounting
for Income Taxes In
December 2019, the FASB issued a new standard to simplify the accounting for income taxes. The guidance eliminates certain exceptions
related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period, and the recognition
of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries.
The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting
for transactions that result in a step-up in the tax basis of goodwill. The standard will be effective for us beginning August 1, 2021.
Management will continue to analyze whether the adoption of this new standard will have a material impact on our consolidated financial
statements. In
December 2019, the FASB issued Accounting Standards Update (“ASU”) 2019-12, “ Simplifying the Accounting for Income
Taxes Income Taxes In
October 2020, the FASB issued ASU No. 2020-10 Codification Improvements The
Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not
believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial
position or results of operations. 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 an as needed basis. The company also realizes there is no guarantee the coins will appreciate 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. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS December
31, 2021, and 2020 |
