10-K: Powerdyne International Reports FY2025 Results, Faces Revenue Dip

Powerdyne International, Inc. reported a decrease in revenue for the fiscal year ended December 31, 2025, primarily due to tariff uncertainty impacting its CM Tech division, while also highlighting efforts to secure future financing.

Summary

• Powerdyne International, Inc. reported revenues of $1,160,976 for the year ended December 31, 2025, a decrease from $1,251,454 in the prior year.
• The decline in revenue is attributed to lower demand at CM Tech, a motor manufacturer for the semiconductor industry, influenced by tariff uncertainty.
• Cost of revenues decreased by 11.65% to $782,549 in 2025 from $885,697 in 2024, in line with reduced sales.
• Gross profit increased to $378,427 in 2025, with a gross profit margin of 32.60%, up from $365,757 and 29.23% in 2024.
• Total operating expenses rose by 6.1% to $629,837 in 2025, compared to $545,335 in 2024, due to auditor changes and expenses for a capital raise.
• The company incurred a net loss of $251,410 in 2025, an increase from $179,579 in 2024.
• Working capital deficits were $504,955 in 2025 and $253,544 in 2024.
• Cash used by operating activities was $192,005 in 2025, an improvement from $204,031 in 2024.
• Financing activities provided $193,808 in 2025, up from $165,500 in 2024, including short-term loans and related party financing.
• The company is actively pursuing a Form S-1 filing to raise additional capital, though success is not guaranteed.
• Powerdyne International's stock has traded between $0.0011 and $0.0052 during 2025.
• The company has one executive officer and 9 full-time employees, supplemented by 5 consultants.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative filing due to declining revenues, increased net loss, and a worsening working capital position, despite some operational improvements and a stated intent to raise capital.

Positives

• Gross profit margin improved to 32.60% in 2025 from 29.23% in 2024.
• Cash used by operating activities decreased in 2025 compared to 2024.
• Financing activities provided increased cash in 2025 compared to 2024.
• The company has secured new customers in 2026 to offset reductions from a major customer.
• The company has a strong collaborative relationship with a select few ISO Certified component manufacturers.
• No material cybersecurity incidents have been experienced to date.
• The company believes its existing facilities are suitable and adequate.

Negatives

• Revenues decreased by $90,478 to $1,160,976 in 2025 from $1,251,454 in 2024.
• Net loss increased to $251,410 in 2025 from $179,579 in 2024.
• Working capital deficit increased to $504,955 in 2025 from $253,544 in 2024.
• Operating expenses increased by 6.1% to $629,837 in 2025.
• The company's continuation as a going concern is dependent on its ability to generate sufficient cash flows or obtain additional financing.
• The company has two major customers accounting for approximately 66% of accounts receivable and 30% of revenues in 2025.
• The company's stock is not actively traded on major exchanges.

Risks

• Dependence on key customers and availability of raw materials for CM Tech.
• Requirements of and access to capital.
• Ability to continue making acquisitions and successfully integrate acquired businesses.
• Downturns in general economic conditions and in the motor and retail industries.
• Technological developments.
• Ability to attract and retain key personnel.
• Product liabilities in excess of insurance.
• Changes in governmental regulation and oversight.
• Current federal regulatory issues and policies.
• Domestic or international hostilities and terrorism.
• Future trading prices of common stock.
• Vulnerability to evolving cyber threats such as phishing, malware, ransomware, or unauthorized access attempts.
• Tariff costs on certain products imported from China.
• Disruptions in the delivery of merchandise from foreign suppliers.
• Potential for significant cybersecurity incidents leading to financial losses, legal liabilities, regulatory penalties, reputational harm, or operational disruptions.
• The company's ability to meet its obligations and continue as a going concern is highly dependent on its ability to obtain additional financing.
• The success of the capital raise through Form S-1 filing is not guaranteed.

Future Outlook

The company is working towards filing a Form S-1 to raise additional capital, but success is not guaranteed. Management expects that as revenues increase, cash flow from operations and working capital positions will continue to improve. They believe that funds generated from operations, existing cash balances, and potential related party short-term loans will be sufficient to finance working capital and capital expenditure requirements for the foreseeable future. However, the company's ability to continue as a going concern is highly dependent on obtaining additional financing.

Management Comments

• "We generated product revenue of $1,160,976 during the year ended December 31, 2025, compared to $1,251,454 for the comparative year ended December 31, 2024. The decrease in revenues is due to lower demand from the 2025 tariff uncertainty during the year where most of the decrease is attributable to slower sales at CM Tech."
• "We have obtained two new customers in 2026 and are currently adding more customers to increase revenues for our business to offset our largest customer reduction in purchases from the Company."
• "We believe that funds generated from operations, existing cash balances and, if necessary, related party short-term loans, are likely to be sufficient to finance our working capital and capital expenditure requirements for the foreseeable future."
• "Our ability to meet our obligations and continue to operate as a going concern is highly dependent on our ability to obtain additional financing."
• "We are currently working towards filing a Form S-1 to raise additional capital, we cannot guarantee that this capital raise will be successful."

Industry Context

StockSavvy.ai notes that Powerdyne International's results reflect challenges within the semiconductor equipment manufacturing sector, particularly concerning supply chain disruptions and trade policies impacting international sales. The company's reliance on a niche market for industrial robotics motors positions it to benefit from automation trends, but also exposes it to specific industry downturns and customer concentration risks.

Comparison to Industry Standards

• The semiconductor equipment manufacturing industry typically experiences cyclicality tied to capital expenditure cycles of semiconductor manufacturers. Powerdyne's revenue decline in 2025, while concerning, may be partially explained by broader industry slowdowns or specific customer project delays.
• Gross profit margins in specialized motor manufacturing can vary significantly based on product complexity, volume, and competitive landscape. Powerdyne's reported gross margin of 32.60% in 2025 is a positive indicator of its ability to maintain pricing power for its custom-designed motors, especially when compared to lower-margin commodity component suppliers.
• Companies in the industrial automation sector often face challenges related to raw material costs and supply chain reliability. Powerdyne's stated reliance on a few ISO-certified suppliers and a 'just-in-time' inventory approach, while efficient, can also increase vulnerability to disruptions, a common concern across the industry.
• The semiconductor industry is increasingly focused on advanced robotics for precision manufacturing. Competitors like Rockwell Automation, ABB, and Yaskawa Electric offer a broad range of automation solutions, but Powerdyne's focus on niche, high-quality, cost-effective motors for specific robotic articulation may provide a competitive advantage in its target segment.

Corporate Governance

Legal Proceedings

• No pending, threatened, or actual legal proceedings in which the Company or any subsidiary is a party.

Related Party Transactions

• The Company owes its CEO $250,591 as of December 31, 2025, for funds advanced and unpaid compensation.
• The Company received a $40,000 non-interest bearing advance from a stockholder on April 2, 2025, to be repaid later.

Stakeholder Impact

• Shareholders: The company's financial performance and ongoing concern status may impact share value. The planned capital raise could dilute existing shareholders.
• Employees: The company has a small team of 9 employees and 4 consultants. Continued operations and potential growth could secure employment.
• Creditors: The company has a working capital deficit and relies on financing, which could impact its ability to meet obligations.
• Suppliers: The company maintains strong relationships with component manufacturers, but potential disruptions from foreign suppliers could impact operations.

Next Steps

• File a Registration Statement on Form S-1 with the SEC within thirty (30) days of June 23, 2025.
• Have the Registration Statement declared effective by the SEC within ninety (90) days after filing.
• Continue to add more customers to increase revenues and offset reductions from the largest customer.
• Monitor inflation and evaluate possible future effects on business and operations.
• The company may adopt employee pension, profit sharing, or other retirement plans in the future.
• The company expects to adopt a directors compensation policy by the end of the current year.

Key Dates

Recommendation

The company shows signs of operational improvement with increased gross margins and reduced cash burn from operations. However, the declining revenue, increasing net loss, and significant going concern risk due to reliance on future financing and an unproven capital raise strategy warrant a cautious 'hold' recommendation. Investors should monitor the success of the capital raise and any signs of revenue recovery.

Keywords

Powerdyne International, Form 10-K, Annual Report, CM Tech, Creative Motion Technology, Semiconductor Manufacturing, Industrial Robotics, Motor Manufacturer, Frame One, Picture Framing, Revenue, Net Loss, Working Capital, Capital Raise, Cybersecurity, Tariffs, Going Concern