| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3.
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. Basis
of Presentation The
accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”)
as promulgated in the United States of America. All
figures are in U.S. Dollars. 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 until March 6, 2022, with the acquisition of CM Tech that will generate between $ 1.4 2.0 5,077,401 4,993,228 The
Company’s activities will necessitate significant uses of working capital beyond December 31, 2023. Additionally, the Company’s
capital requirements will depend on many factors, including the success of the Company’s sales, cash flow from operations 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. Principles
of Consolidation Our
consolidated financial statements include the accounts of Powerdyne International Inc and its one division and related subsidiaries.
All intercompany transactions and balances between consolidated entities have been eliminated. The Company has the following wholly owned
subsidiaries: Creative Motion Technology, LLC and Frame One, LLC. Reclassifications Certain
amounts in the prior period have been reclassified to conform to the current period presentation. These reclassifications have no material
effect on the reported financial results. POWERDYNE
INTERNATIONAL, INC. December
31, 2023, and 2021 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 December 31, 2023, and 2022, respectively. Allowances
for Sales 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 - Management analysis its accounts receivable in accordance with ASC 326 are their “expected losses” in their
portfolio of customers. The Company has a direct and long-term relationship with all of its customers. The Company reviews each
customer on a quarterly basis. Historically, the Company has not incurred any significant bad debt expenses. Therefore, based on
historical results and our current analysis the Company does not expect any losses to the December 31, 2023 as no losses are
expected to be incurred. The Company operates in the manufacturing and
retail industry and its accounts receivable are primarily derived from retail and wholesale customers; the Company recognizes an expected
allowance for credit losses. In addition, also at each reporting date, this estimate is updated to reflect any changes in credit risk
since the receivable was initially which could exist in circumstances where amounts are considered at risk or uncollectible. The
allowance estimate is derived from a review of the Company’s historical losses based on the ageing of receivables. This estimate
is adjusted for management’s assessment of current conditions, in which to calculate the expected allowance for credit losses.
The Company’s customer base has remained constant since inception. The Company expects across all pools of accounts receivable that there
are no changes in credit losses for 2023 and maintains a zero balance for 2023 and for 2022. The Company does not expect its credit loss
reserve to change in the next twelve months. The
Company sometimes receives cash deposits in advance of manufacturing and shipping its products. As of December 31, 2023, there is
$ 3,658 10,231 Inventory Inventory,
consisting principally of products held for sale, is stated at the 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 6,000 Intangible
Assets and Goodwill We
account for intangible assets and goodwill in accordance with ASC 350 “Intangibles-Goodwill and Other” 10 20 We
assess our intangible assets in accordance with ASC 360 “ Property, Plant, and Equipment The
Company had disposed of all its crypto currencies in the second quarter of 2023. The Company immediately closed its crypto-currency account
and / or wallet. Long-Lived
Assets 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 CONSOLIDATED FINANCIAL STATEMENTS December
31, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Long-Lived
Assets (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 since they are fully amortized and / or disposed of. 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, if the Company acquires any long-lived assets. Business
Combinations We
apply the provisions of ASC 805, Business Combinations (ASC 805), in accounting for our acquisitions. ASC 805 requires that we evaluate
whether a transaction pertains to an acquisition of assets, or to an acquisition of a business. A business is defined as an integrated
set of assets and activities that is capable of being conducted and managed for the purpose of providing a return to investors. Asset
acquisitions are accounted for by allocating the cost of the acquisition to the individual assets and liabilities assumed on a relative
fair value basis; whereas the acquisition of a business requires us to recognize separately from goodwill the assets acquired, and the
liabilities assumed at the acquisition date fair values. Goodwill as of the business acquisition date is measured as the excess of consideration
transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best
estimates and assumptions to accurately value assets acquired and liabilities assumed at the business acquisition date as well as any
contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the
measurement period, which may be up to one year from the business acquisition date, we record adjustments to the assets acquired and
liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of a business acquisition’s measurement period
or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are
recorded to our consolidated statements of operations. In
addition, uncertain tax positions and tax related valuation allowances assumed in a business combination are initially estimated as of
the acquisition date. We reevaluate these items quarterly based upon facts and circumstances that existed as of the business acquisition
date with any adjustments to our preliminary estimates being recorded to goodwill if identified within the measurement period. Subsequent
to the measurement period or our final determination of the tax allowances or contingency’s estimated value, whichever comes first,
changes to these uncertain tax positions and tax related valuation allowances will affect our provision for income taxes in our consolidated
statement of operations and could have a material impact on our results of operations and financial position. Advertising
Expenses The
Company records advertising expenses per ASC 720-35-50-1 which they are expensed as they are incurred or the first time when the advertising
takes place. During the years ended December 31, 2023, and 2022, there were no Shipping
Activities Outbound
shipping charges to customers are included in “Product revenue”. Outbound shipping-related costs are included in “Cost
of products sold”. Stock-Based
Compensation Share-based
compensation is accounted for based on the requirements of ASC 718, “Compensation-Stock Compensation’ (“ASC 718”)
which requires recognition in the financial statements of the cost of employee, consultant, or director services received in exchange
for an award of equity instruments over the period the employee, consultant, or director is required to perform the services in exchange
for the award (presumptively, the vesting period). ASC 718 also requires measurement of the cost of employee, consultant, or director
services received in exchange for an award based on the grant-date fair value of the award. 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 the 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 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 positions, as defined,
seeks to reduce the diversity in practice associated with certain aspects 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 filing positions in each of the federal and
state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. We have identified
the U.S. federal, Rhode, Island 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 filed within the last four (4) years. However, we have 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 income 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. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS December
31, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Financial Instruments The
Company follows Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures” (“ASC
820”), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair
value to be applied to existing generally accepted accounting principles that requires the use of fair value measurements, establishes
a framework for measuring fair value, and expands disclosure about such fair value measurements. ASC
820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the
use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level
1: Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level
2: Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability
such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets
with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are
observable or can be derived principally from, or corroborated by, observable market data. Level
3: Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the
measurement of the fair value of the assets or liabilities. The
Company analyzes all financial instruments with features of both liabilities and equity under the Financial Accounting Standard Board’s
(“FASB”) accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in
their entirety based on the lowest level of input that is significant to the fair value measurement. 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 and sales tax payable. The estimated fair value of these financial
instruments approximates its carrying amount based on the short-term maturity of these instruments. Other
Comprehensive Income The
Company has analyzed paragraphs ASC 220-10-45-1 to ASC 220-10-45-10B and none of the items recorded in the income statement would qualify
as Other Comprehensive Income. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS December
31, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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, 2023, and December 31, 2022, there were no 2,000,000 The
following table represents the computation of basic and diluted losses per share: Net
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
Year
ended Year
ended
Loss
available for common shareholder $ (84,173 ) $ (1,342,016 )
Basic
and fully diluted loss per share $ (0.00 ) $ (0.00 )
Weighted
average common shares outstanding - basic and diluted 1,881,355,242 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 consolidated financial statements in conformity with accounting principles generally accepted
in the United States of America. Actual results could differ from those estimates. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS December
31, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Recent
Accounting Guidance Not Yet Adopted None
Recent
Accounting Guidance Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Measurement of
Credit Losses on Financial Instruments, which introduces a new approach to estimate credit losses on certain types of financial instruments
based on expected losses instead of incurred losses. It also modified the impairment model for available-for-sale debt securities and
provided a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU No. 2016-13
is effective for smaller reporting companies for fiscal years beginning after December 15, 2021, and the interim periods within those
fiscal years. Early adoption is permitted. The Company has adopted
this new accounting standard on its consolidated financial statements and related disclosures; however, adoption of this ASU has had no
material impact on the Company’s financial statements. In
December 2019, the FASB issued Accounting Standards Update (“ASU”) 2019-12, “Simplifying the Accounting for Income
Taxes” “Income Taxes” In
August 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-08, “Clarifies Accounting for Contract Assets
and Contract Liabilities in a Business Combination”. The pronouncement requires an acquirer to recognize and measure contract assets
and contract liabilities acquired in a business combination in accordance with revenue recognition guidance as if the acquirer had originated
the contract. That is such acquired contracts will not be measured at fair value. ASU 2021-08 will be effective in fiscal years starting
after December 15, 2022. Early adoption is permitted. The adoption of this standard did not have a material impact on our consolidated
financial statements. In November 2023, the FASB issued ASU 2023-07, Segment
Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic
740): Improvements to Income Tax Disclosures The
Company has implemented all new accounting pronouncements that are in effect and that may impact its 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 consolidated financial position or consolidated results of operations. Lease Accounting For contracts entered into on or after October 1,
2019, the Company assesses at contract inception whether the contract is, or contains, a lease. Generally, it determines that a lease
exists when (i) the contract involves the use of a distinct identified asset, (ii) obtains the right to substantially all economic benefits
from use of the asset and (iii) it has the right to direct the use of the asset. At the lease commencement date, the Company recognizes
a right-of-use asset and a lease liability for all leases, except short-term leases with an original term of 12 months or less. The right-of-use
asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments
under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability,
plus any prepayments to the lessor and initial direct costs, such as brokerage commissions, less any lease incentives received. All right-of-use assets are periodically reviewed
for impairment in accordance with standards that apply to long-lived assets. The lease liability is initially measured at the present
value of the lease payments, discounted using an estimate of the Company’s incremental borrowing rate for a collateralized loan
with the same term as the underlying lease. The incremental borrowing rates used for the initial measurement of lease liabilities as of
October 1, 2019, were based on the original lease terms. Lease payments included in the measurement of lease
liabilities consist of (i) fixed lease payments for the noncancelable lease term, (ii) fixed lease payments for optional renewal periods
where it is reasonably certain the renewal option will be exercised, and (iii) variable lease payments that depend on an underlying index
or rate, based on the index or rate in effect at lease commencement. Certain of the Company’s real estate lease agreements require
variable lease payments that do not depend on an underlying index or rate, such as sales and value-added taxes, the Company’s proportionate
share of actual property taxes, insurance, common area maintenance, and utilities. The Company has elected an accounting policy, as permitted
by ASC 842, not to account for such payments as part of related lease payments. Consequently, such payments are recognized as operating
expenses when incurred. Lease expense for operating leases consists of the
fixed lease payments recognized on a straight-line basis over the lease term plus variable lease payments as incurred. Amortization of
the right-of-use asset for operating leases reflects amortization of the lease liability, any differences between straight-line expense
and related lease payments during the accounting period, and any impairments. Finance lease payments are allocated between a reduction
of the lease liability and interest expense, and the related asset is depreciated as described under “Equipment” above. Revenue
Recognition Sia
coin is the only crypto coin that Powerdyne has mined. The coins were held in the Company’s Sia coin digital wallet. When coins
were exchanged for USD, they were then transferred to the Company’s exchange wallet that was held at a US based crypto exchange
which provides support for two-factor authentication. We also had wallet password management, and offsite backups. The coins were held
in anticipation of future price appreciation as crypto currencies become more widely accepted, but some coins were exchanged for USD
on an as needed basis. The Company also realized there was no guarantee the coins would appreciate in value. Revenue was 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. 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. Major
Customers and Concentration of Credit Risk The
Company has two major customers, which account for approximately 66 66 30 22 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 of $250,000. The Company has not incurred any loss from this
risk, nor does it expect it to. The Company’s revenues from product sales and accounts receivable have no material or significant
concentration in anyone or a multitude of customers and all receivables are expected to be collected. Segment
Reporting ASC
Topic 280, “ Segment Reporting 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 also provide custom picture framing under Frame One. We consider both
businesses to operate as their own business for reporting purposes. We provide cost-effective value-added turn-key solutions to our clients’
drives and articulation needs. POWERDYNE
INTERNATIONAL, INC. NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS December
31, 2023, and 2022 3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The
Market We
service the Global Semiconductor Equipment Manufacture’s our Sales to International customers were 32 36 |
