| SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES | 3.
SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES The
summary of significant accounting policies presented below is designed to assist in understanding the Company’s financial statements.
Such condensed consolidated financial statements and accompanying notes are a representation of the Company’s management, who are
responsible for 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 accompany condensed
consolidated financial statements. Basis
of Presentation The
accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting
principles (“GAAP”) as promulgated in the United States of America. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June
30, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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. As of June 30, 2023, the Company had an accumulated deficit of $ 5,073,962 The
Company’s activities will necessitate significant uses of working capital beyond June 30, 2023. 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 condensed 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 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. Principals
of Consolidation Our
condensed consolidated financial statements include the accounts of Powerdyne International, Inc. and its one division and related subsidiaries.
All intercompany transactions have been eliminated. Reclassifications Certain
amounts in the prior period have been reclassified to confirm for the current period presentation. 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. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June
30, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cash
and Cash Equivalents 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 June 30, 2023, and December 31, 2022, respectively. Allowance
for Sale Returns and Doubtful Accounts Sales
Returns – We may, on a case-by-case basis, accept returns of products from our customers, without restocking charges, when they
can demonstrate an acceptable cause for the return. Doubtful
Accounts – Accounts receivable are recorded at net realizable value or the amount we expect to collect on gross customer trade
receivables. We evaluate the collectability of our accounts receivable based on a combination of factors. If we become aware of a customer’s
inability to meet its financial obligations after a sale has occurred, we record an allowance to reduce the net receivable to the amount
we reasonably believe we will be able to collect from the customer. For all other customers, we recognize allowances for doubtful accounts
based on the length of time the receivables are past due, the current business environment and historical experience. If the financial
condition of our customers were to deteriorate or if economic conditions worsen, additional allowances may be required in the future.
All of our accounts receivable are trade-related receivables. The
allowance for sales returns and doubtful accounts as of June 30, 2023, amounted to $ 0 0 The
Company sometimes receives cash deposits in advance of manufacturing and shipping its products. As of June 30, 2023, there is $ 20,895 10,231 Inventory Inventory,
consisting principally of products held for sale, is stated lower of cost, using the first-in, first-out method, and net realizable value.
The amount presented in the accompanying consolidated balance sheet has no valuation allowance. We
regularly evaluate our inventory to identify costs in excess of the lower of cost and net realizable value, slow-moving inventory and
potential obsolescence. Equipment Equipment
is stated at cost. Capital expenditure for improvements and upgrades to existing equipment are also capitalized. Maintenance and repairs
are expensed as incurred. The computer equipment is depreciated over 5 0 750 POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June
30, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Intangible
Asset – Cryptocurrency The
Company considers intangible assets - cryptocurrency to be revenue that has been earned, but for which no cash has been received. Intangible
assets consist 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 June 30, 2023. The Company considers this to be an intangible asset under GAAP guidelines. The Company
had $- 0 6,103 The
Company disposed of all of its cryptocurrency intangible assets on April 5, 2023, and closed our cryptocurrency brokerage account. There
was a nominal loss of $ 22 Impairment
of Long-Lived Assets and Long-Lived Assets to be Disposed of In
accordance with ASC 360, the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate
that their net book value may not be recoverable. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June
30, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Impairment
of Long-Lived Assets and Long-Lived Assets to be Disposed of (Continued) When
such factors and circumstances exist, the Company compares 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. The Company’s management currently believes there is no impairment
of its long-lived assets. There can be no assurance, however, that market conditions will not change or demand for the Company’s
products under development will continue. Either of these could result in future impairment of long-lived assets. The Company as of June
30, 2023, has no long-lived assets with any tangible value recorded on the balance sheet for accounting purposes. Shipping
Activities Outbound
shipping changes to customers are included in “Product revenue”. Outbound shipping-related costs are included in “Costs
of products sold”. Stock-Based
Compensation We
account for all share-based compensation in accordance ASC 718-20 Stock-Based Compensation cost is measured at the grant date, based
on the estimated fair value of the award, and is recognized as expense over the requisite vesting period. Income
Taxes We
account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which
the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the
tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary,
to reduce deferred tax assets to the amount expected to be realized. ASC
740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined,
seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for
income taxes. We adopted the provisions of ASC 740 as of January 1, 2007, and have analyzed filming positions in each of the federal
and state jurisdictions where are required to file income tax returns, as well as all open tax years in these jurisdictions. We have
identified the U.S. federal and Massachusetts as our “major” tax jurisdictions. With limited exceptions, we remain subject
to Internal Revenue Service (“IRS”) examination of our income tax returns filed within the last three (3) years, and to Massachusetts
Department of Revenue examination of our income tax returns within the last four (4) years. However, certain tax attribute carryforwards
which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect
to the year in which such attributes are utilized. We
believe that our income tax filing positions and deductions will be sustained in the audit and do not anticipate any adjustments that
will result in a material change to our financial position. Therefore, no reserves for uncertain tax positions have been recorded pursuant
to ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component
of income taxes. Income
taxes payable as of June 30, 2023, and December 31, 2022, was $ 2,950 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 receivable, intangible assets – cryptocurrency, accounts payable
and accrued expenses, advance deposit, due to related party - CEO, sales tax payable, and income tax payable. The estimated fair value
of these financial instruments approximates its carrying amount due to the short maturity of these instruments. 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 June 30, 2023, and December 31, 2022, there were no 2,000,000 POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June
30, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The
following table represents the computation of basic and diluted losses per share: Loss
per share is based upon the weighted average shares of common stock outstanding. SCHEDULE OF COMPUTATION OF BASIC AND DILUTED
INCOME (LOSS) PER SHARE
For the three For the three For the six For the six
months ended months ended months ended months ended
June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Loss available for common shareholders $ (76,653 ) $ (43,977 ) $ (80,734 ) $ (1,474,658 )
Basic and fully diluted loss per common share $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 )
Weighted average common shares outstanding – basic and diluted 1,877,720,639 1,862,430,584 1,877,720,639 1,862,430,584 Use
of Estimates and Assumptions Our
management has made several estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent
assets and liabilities to prepare these condensed consolidated financial statements in conformity with accounting principles generally
accepted in the United States of America. Actual results could differ from those estimates. Recent
Accounting Guidance Not Yet Adopted Accounting
for Income Taxes 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 condensed consolidated 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. POWERDYNE
INTERNATIONAL, INC. NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June
30, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue
Recognition Sia
coin is the only crypto coin that Powerdyne used to mine. 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 and the difference
between the current market value and the value recorded on the consolidated balance sheet in previous quarter. The Company no longer
is in the business of producing Sia coins. As
of March 6, 2022, with the acquisition of CM Tech, we recognize revenue from contracts with customers in accordance with Financial Accounting
Standards Board (“FASB”) ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). Revenue
is recognized at the point at which control of the underlying products are transferred to the customer. Satisfaction of our performance
obligations occurs upon the transfer of control of products from our facilities. We consider customer purchase orders to be the contracts
with a customer. All revenue is generated from contracts with customers. Business
Segments We
primarily service the Original Equipment Manufacturers (OEM’s) in the semiconductor market by supplying custom designed motors
for the robotics used in semiconductor manufacturing equipment. We provide cost-effective value-added turn-key solutions to our clients’
drives and articulation needs. The
Market We
service the Global Semiconductor Equipment Manufacture’s our Sales to International customers were 36 54 POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June
30, 2023, and 2022 |
