NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
1.
ORGANIZATION
Powerdyne,
Inc., was incorporated on February 2, 2010 in Nevada, and is registered to do business in Rhode Island and Massachusetts. On February
7, 2011, Powerdyne, Inc. merged with Powerdyne International, Inc., formerly Greenmark Acquisition Corporation, a publicly held
Delaware corporation.
On
December 13, 2010, Powerdyne International, Inc., formerly Greenmark Acquisition Corporation, filed an Amended and Restated Articles
of Incorporation in order to, among other things, increase the authorized capital stock to 300,000,000 common shares, par value
$0.0001 per share. Unless the context specifies otherwise, as discussed in Note 2, references to the “Company” refers
to Powerdyne International, Inc. and Powerdyne, Inc. after the merger.
At
the closing of the merger, each share of Powerdyne, Inc.’s common stock issued and outstanding immediately prior to the
closing of the Merger was exchanged for the right to receive 7,520 shares of common stock of Powerdyne International, Inc. Accordingly,
an aggregate of 188,000,000 shares of common stock of Powerdyne International, Inc. were issued to the holders of Powerdyne, Inc.’s
common stock.
In
2014, Powerdyne International, Inc. filed an amendment to its Articles of Incorporation which increased the authorized capital
stock to 550,000,000 common shares, par value $0.0001 per share.
On
January 26, 2015, Powerdyne International, Inc. filed an amendment to its Articles of Incorporation which increased the authorized
capital stock to 2,020,000,000 shares consisting of 2,000,000,000 common shares, par value $0.0001 per share and 20,000,000 shares
which may be designated as common or preferred stock, par value $0.0001 per share.
In
March 2014 the Company began production and distribution of completely packaged independent electrical generator units that run
on environmentally-friendly fuel sources, such as natural gas and propane.
2.
REVERSE MERGER ACCOUNTING
On
February 7, 2011, Greenmark Acquisition Corporation, which was a publicly held Delaware corporation, merged with Powerdyne, Inc.
Upon closing of the transaction, Greenmark Acquisition Corporation, the surviving corporation in the merger, changed its name
to Powerdyne International, Inc.
The
merger was accounted for as a reverse-merger, and recapitalization in accordance with generally accepted accounting principles
in the United States (“GAAP”). Powerdyne, Inc. was the acquirer for financial reporting purposes and the Company was
the acquired company. Consequently, the assets and liabilities and the operations that are reflected in the historical financial
statements prior to the merger are those of Powerdyne, Inc. and have been recorded at the historical cost basis of Powerdyne,
Inc., and the financial statements after completion of the merger include the assets and liabilities of the Company and Powerdyne,
Inc., historical operations of Powerdyne, Inc. and operations of the Company from the closing date of the merger. Common stock
and the corresponding capital amounts of the Company pre-merger were retroactively restated as capital stock shares reflecting
the exchange ratio in the merger. In conjunction with the merger, the Company received no cash and assumed no liabilities from
Greenmark Acquisition Corporation.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
3.
BASIS OF PRESENTATION
The
accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (“GAAP”) and include all the notes required by generally accepted accounting principles
for complete financial statements. Accordingly, certain information and footnote disclosures, normally included in the financial
statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted pursuant to such
rules and regulations. The statements presented as of March 31, 2017 and March 31, 2016 are unaudited. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation of the financial statements
have been included.
Certain
information and footnote disclosure normally included in financial statements in accordance with generally accepted accounting
principles have been omitted pursuant to the rules of the United States Securities and Exchange Commission (“SEC”).
These unaudited financial statements should be read in conjunction with our audited financial statements and accompanying notes
included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 filed on April 13, 2017.
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, 2017, the Company had an accumulated
deficit of $3,399,608. 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, 2017. 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 and revenue from
operations.
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.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Use
of Estimates
In
preparing these unaudited 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, advances to stockholders, and notes
payable. The estimated fair value of cash, accounts payable and accrued liabilities, advances to stockholders, and notes payable
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, 2017 and December 31, 2016, 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.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 equipment is depreciated over 10 years on a straight-line basis.
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
), the
Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their then carrying
values may not be recoverable. 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.
Income
Taxes
As
a result of the implementation of certain provisions of ASC 740,
Income Taxes
, (formerly FIN 48,
Accounting for Uncertainty
in Income Taxes – An Interpretation of FASB Statement No. 109),
(“ASC 740”), which clarifies the accounting
and disclosure for uncertainty in tax positions, as defined. ASC 740 seeks to reduce the diversity in practice associated with
certain aspects of the recognition and measurement related to accounting for income taxes.
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.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Income
Taxes (continued)
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, 2017 and December 31, 2016 were
$1,000 and $1,000, 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. Since the Company has only incurred losses, basic and diluted loss per share is
the same. As of March 31, 2017 and December 31, 2016, there were no outstanding dilutive securities.
The
following table represents the computation of basic and diluted losses per share (unaudited):
|
|
|
Three months ended March 31, 2017
|
|
|
Three months ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
Loss available for common shareholder
|
|
$
|
(25,605
|
)
|
|
$
|
(85,955
|
)
|
|
Basic and fully diluted loss per share
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic and diluted
|
|
|
1,527,930,584
|
|
|
|
1,487,403,111
|
|
Net
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)
to clarify the definition of a business, which is fundamental in the determination of whether
transactions should be accounted for as acquisitions (or disposals) of assets or businesses combinations. The updated guidance
requires that in order to be considered a business the integrated set of assets and activities acquired must include, at a minimum,
an input and process that contribute to the ability to create output. If substantially all of the fair value of the assets acquired
is concentrated in a single identifiable asset or group of similar assets, it is not considered a business, and therefore would
not be considered a business combination. The update is effective for fiscal years beginning after December 15, 2018, and interim
periods with fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of adopting this guidance
on our consolidated financial statements.
POWERDYNE
INTERNATIONAL, INC
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recent
Accounting Pronouncements (continued)
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).
Under ASU 2016-09, the tax effects of stock compensation will be
recognized as income tax expense or benefit to the Company’s income statement and the tax effects of exercised or vested
awards will be treated as discrete items in the reporting period in which they occur. Along with other income tax cash flows,
excess tax benefits will be classified as operating activities, and cash paid by the Company when directly withholding shares
for tax withholding purposes will be classified as financing activities. At this time, this does not apply to the Company and
therefore does not have an impact on its current financial statements. The Company decided to account for forfeitures when they
occur, which did not have a material impact to the Company’s financial statements,
In
February 2016, the FASB issued ASU 2016-02,
Leases (Topic 842)
, requiring lessees to recognize for all leases (with
the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make
lease payments arising from a lease, measured on a discounted basis, and (2) a right-of-use (“ROU”) asset, which is
an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The update
is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December
15, 2020. The Company currently anticipates that upon adoption of the new standard, ROU assets and lease liabilities will be recognized
in amounts that will be immaterial to the consolidated balance sheets.
Revenue Recognition
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.
5.
PROPERTY AND EQUIPMENT - NET
Equipment
consists of the following as of March 31, 2017 and December 31, 2016:
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
Machinery
and equipment
|
|
$
|
39,956
|
|
|
$
|
39,956
|
|
|
Less
accumulated depreciation
|
|
|
(6,659
|
)
|
|
|
(5,660
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total
Property and Equipment
|
|
$
|
33,297
|
|
|
$
|
34,296
|
|
Equipment
is stated at cost and depreciated on a straight-line basis over the assets’ estimated useful lives: machinery and equipment
10 years. Total depreciation expense for the three months ended March 31, 2017 and 2016 was $999 and $3,314, respectively.
6. LEASE
On
March 11, 2015 Powerdyne International, Inc. (the “Company”) finalized its negotiations with Farmacia Brisas del Mar,
a corporation organized under the laws of Puerto Rico (the “Lessee”), and the Company and the Lessee have entered
into a five-year contract to lease power generating equipment to Lessee based upon power consumption. In addition, the custom
designed system will also provide cogeneration capabilities with the addition of chillers to support the air conditioning demands.
The agreement provides for a payment to the Company of a monthly fee equal to the greater of a set monthly base rate or a monthly
base rate plus an additional amount based on kilowatt wattage. The agreement provides for termination by the Company only in the
event of nonperformance by the Lessee unless Lessee pays all payments due for the remainder of the term. The agreement contains
representation and warranties, default provisions and indemnification provisions typical for agreements of this type. In 2016
the terms on the Farmacia Del Mar lease was modified to a monthly payment, based on actual power consumption.
On
March 28, 2017, Powerdyne International Inc. entered into a fifteen year contract with a third party to lease power generating
equipment. The lease is subject to financing.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
7.
RELATED PARTY – Promissory Note
The
Company obtained financing from five different related parties from 2012 through March 31, 2017. As of March 31, 2017, 84.75%
of the short-term financing is from Arthur Read. The accrued interest payable to Mr. Read is $50,666. The following are breakdowns
for the promissory notes issued to all five related parties.
The
Company obtained financing from a related party in the form of three demand Notes Payable in the aggregate amount of $10,000 which
has been outstanding since the year ended December 31, 2012. All three notes have been amended, extending the maturity dates.
See maturity dates on table below. The Notes bear an interest rate of 7% per annum and are unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
3/31/17
|
|
|
12/31/16
|
|
|
|
|
Promissory
note 1
|
|
$
|
6,000
|
|
|
|
7
|
%
|
|
$
|
1,919
|
|
|
$
|
1,816
|
|
|
9/4/2018
|
|
Promissory
note 2
|
|
$
|
2,000
|
|
|
|
7
|
%
|
|
$
|
629
|
|
|
$
|
594
|
|
|
10/1/2017
|
|
Promissory
note 3
|
|
$
|
2,000
|
|
|
|
7
|
%
|
|
$
|
605
|
|
|
$
|
571
|
|
|
12/3/2017
|
|
Total
|
|
$
|
10,000
|
|
|
|
|
|
|
$
|
3,153
|
|
|
$
|
2,981
|
|
|
|
P
OWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
7.
RELATED PARTY – Promissory Note (Continued)
The
Company obtained financing from a related party in the form of twenty-three demand Notes Payable in the aggregate amount of $387,409
during the period from 2012 through March 31, 2017. We repaid a total of $2,353 of the principal on Note 7 during the years ended
December 31, 2014 and December 31, 2015. Several of the notes have been amended and extended during the period from 2014 through
March 31, 2017. See maturity dues on table below. Notes 1 - 21 bear an interest rate of 7% per annum and are unsecured. Notes
22 – 23 bear an interest rate of 20% to begin accruing 90 days after issuance of notes.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
3/31/17
|
|
|
12/31/16
|
|
|
|
|
Promissory
note 1
|
|
$
|
5,000
|
|
|
|
7
|
%
|
|
$
|
1,608
|
|
|
$
|
1,522
|
|
|
7/25/2018
|
|
Promissory
note 2
|
|
$
|
11,000
|
|
|
|
7
|
%
|
|
$
|
3,418
|
|
|
$
|
3,228
|
|
|
10/22/2017
|
|
Promissory
note 3
|
|
$
|
15,000
|
|
|
|
7
|
%
|
|
$
|
4,565
|
|
|
$
|
4,306
|
|
|
11/24/2017
|
|
Promissory
note 4
|
|
$
|
102
|
|
|
|
7
|
%
|
|
$
|
32
|
|
|
$
|
30
|
|
|
10/22/2017
|
|
Promissory
note 5
|
|
$
|
879
|
|
|
|
7
|
%
|
|
$
|
268
|
|
|
$
|
252
|
|
|
11/24/2017
|
|
Promissory
note 6
|
|
$
|
973
|
|
|
|
7
|
%
|
|
$
|
313
|
|
|
$
|
296
|
|
|
7/25/2018
|
|
Promissory
note 7
|
|
$
|
22,147
|
|
|
|
7
|
%
|
|
$
|
4,687
|
|
|
$
|
4,305
|
|
|
5/4/2017
|
|
Promissory
note 8
|
|
$
|
7,000
|
|
|
|
7
|
%
|
|
$
|
1,130
|
|
|
$
|
1,010
|
|
|
12/11/2018
|
|
Promissory
note 9
|
|
$
|
6,000
|
|
|
|
7
|
%
|
|
$
|
956
|
|
|
$
|
853
|
|
|
12/22/2018
|
|
Promissory
note 10
|
|
$
|
25,000
|
|
|
|
7
|
%
|
|
$
|
3,903
|
|
|
$
|
3,471
|
|
|
1/8/2018
|
|
Promissory
note 11
|
|
$
|
35,000
|
|
|
|
7
|
%
|
|
$
|
5,276
|
|
|
$
|
4,672
|
|
|
2/5/2018
|
|
Promissory
note 12
|
|
$
|
40,000
|
|
|
|
7
|
%
|
|
$
|
5,554
|
|
|
$
|
4,864
|
|
|
4/8/2017
|
|
Promissory
note 13
|
|
$
|
30,000
|
|
|
|
7
|
%
|
|
$
|
4,010
|
|
|
$
|
3,492
|
|
|
5/5/2017
|
|
Promissory
note 14
|
|
$
|
45,000
|
|
|
|
7
|
%
|
|
$
|
5,584
|
|
|
$
|
4,807
|
|
|
6/24/2017
|
|
Promissory
note 15
|
|
$
|
25,000
|
|
|
|
7
|
%
|
|
$
|
2,939
|
|
|
$
|
2,508
|
|
|
7/28/2017
|
|
Promissory
note 16
|
|
$
|
15,000
|
|
|
|
7
|
%
|
|
$
|
1,697
|
|
|
$
|
1,438
|
|
|
8/20/2017
|
|
Promissory
note 17
|
|
$
|
13,000
|
|
|
|
7
|
%
|
|
$
|
1,391
|
|
|
$
|
1,167
|
|
|
9/21/2017
|
|
Promissory
note 18
|
|
$
|
5,000
|
|
|
|
7
|
%
|
|
$
|
525
|
|
|
$
|
439
|
|
|
10/13/2017
|
|
Promissory
note 19
|
|
$
|
10,000
|
|
|
|
7
|
%
|
|
$
|
995
|
|
|
$
|
823
|
|
|
10/30/2017
|
|
Promissory
note 20
|
|
$
|
3,000
|
|
|
|
7
|
%
|
|
$
|
272
|
|
|
$
|
220
|
|
|
12/15/2017
|
|
Promissory
note 21
|
|
$
|
17,000
|
|
|
|
7
|
%
|
|
$
|
1,542
|
|
|
$
|
1,249
|
|
|
12/15/2017
|
|
Promissory
note 22
|
|
$
|
50,000
|
|
|
|
20
|
%
|
|
$
|
-
|
|
|
$
|
-
|
|
|
6/20/2017
|
|
Promissory
note 23
|
|
$
|
6,308
|
|
|
|
20
|
%
|
|
$
|
-
|
|
|
$
|
-
|
|
|
6/20/2017
|
|
Total
|
|
$
|
387,409
|
|
|
|
|
|
|
$
|
50,666
|
|
|
$
|
44,952
|
|
|
|
The
Company obtained financing from a related party in the form of six demand Notes Payable in the aggregate amount of $9,409 during
the period from 2012 through December 31, 2016. Notes 1 - 4 were amended and extended. See maturity dates on table below. The
Notes bear an interest rate of 7% per annum and are unsecured.
P
OWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
7.
RELATED PARTY – Promissory Note (Continued)
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
3/31/17
|
|
|
12/31/16
|
|
|
|
|
Promissory
note 1
|
|
$
|
234
|
|
|
|
7
|
%
|
|
$
|
71
|
|
|
$
|
67
|
|
|
12/5/2017
|
|
Promissory
note 2
|
|
$
|
170
|
|
|
|
7
|
%
|
|
$
|
52
|
|
|
$
|
49
|
|
|
11/18/2017
|
|
Promissory
note 3
|
|
$
|
4,100
|
|
|
|
7
|
%
|
|
$
|
1,191
|
|
|
$
|
1,120
|
|
|
2/5/2018
|
|
Promissory
note 4
|
|
$
|
2,000
|
|
|
|
7
|
%
|
|
$
|
580
|
|
|
$
|
546
|
|
|
2/7/2018
|
|
Promissory
note 5
|
|
$
|
1,780
|
|
|
|
7
|
%
|
|
$
|
126
|
|
|
$
|
95
|
|
|
3/29/2018
|
|
Promissory
note 6
|
|
$
|
1,125
|
|
|
|
7
|
%
|
|
$
|
59
|
|
|
$
|
40
|
|
|
6/30/2018
|
|
Total
|
|
$
|
9,409
|
|
|
|
|
|
|
$
|
2,079
|
|
|
$
|
1,917
|
|
|
|
The
Company obtained financing from a related party in the form of two demand Notes Payable in the aggregate amount of $18,000 during
the year of 2013. Both notes were amended and extended during the quarter ended March 31, 2016. See maturity dates on table below.
The Notes bear an interest rate of 7% per annum and are unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
3/31/17
|
|
|
12/31/16
|
|
|
|
|
Promissory
note 1
|
|
$
|
10,000
|
|
|
|
7
|
%
|
|
$
|
2,875
|
|
|
$
|
2,702
|
|
|
2/21/2018
|
|
Promissory
note 2
|
|
$
|
8,000
|
|
|
|
7
|
%
|
|
$
|
2,261
|
|
|
$
|
2,123
|
|
|
3/18/2018
|
|
Total
|
|
$
|
18,000
|
|
|
|
|
|
|
$
|
5,136
|
|
|
$
|
4,826
|
|
|
|
The
Company obtained financing from a related party in the form of six demand Note Payables in the aggregate amount of $32,300 during
the period from 2014 through December 31, 2016. The Notes bears an interest rate of 7% per annum and are unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
3/31/17
|
|
|
12/31/16
|
|
|
|
|
Promissory
note 1
|
|
$
|
6,000
|
|
|
|
7
|
%
|
|
$
|
1,115
|
|
|
$
|
1,011
|
|
|
8/6/2018
|
|
Promissory
note 2
|
|
$
|
2,500
|
|
|
|
7
|
%
|
|
$
|
217
|
|
|
$
|
174
|
|
|
1/4/2018
|
|
Promissory
note 3
|
|
$
|
4,200
|
|
|
|
7
|
%
|
|
$
|
314
|
|
|
$
|
242
|
|
|
2/5/2018
|
|
Promissory
note 4
|
|
$
|
3,000
|
|
|
|
7
|
%
|
|
$
|
217
|
|
|
$
|
165
|
|
|
3/20/2018
|
|
Promissory
note 5
|
|
$
|
11,500
|
|
|
|
7
|
%
|
|
$
|
604
|
|
|
$
|
406
|
|
|
6/30/2018
|
|
Promissory
note 6
|
|
$
|
5,100
|
|
|
|
7
|
%
|
|
$
|
194
|
|
|
$
|
106
|
|
|
8/8/2018
|
|
Total
|
|
$
|
32,300
|
|
|
|
|
|
|
$
|
2,661
|
|
|
$
|
2,104
|
|
|
|
During
the three months ended March 31, 2017 the total amount of related party loan proceeds was $56,308. The total interest accrued
on related party loans at March 31, 2017 and December 31, 2016 was $63,695 and $56,117, respectively.
Before
the Company became public, $11,321 was advanced to one stockholder. In the 1
st
quarter of 2016 this advance was deemed
uncollectible and therefore written off to bad debt expense. From time to time, we receive payments from stockholders in the form
of cash and/or out-of-pocket expenditures for the benefit of the Company, which are business in nature. The balance of advances
to stockholder as of March 31, 2017 and December 31, 2016 was $-0- and $-0, respectively. Amounts accrued, but not yet paid as
due to related party at March 31, 2017 and December 31, 2016 was $25,000 and $25,000, respectively.
8.
COMMITMENTS AND CONTINGENCIES
Litigation
There
are no pending, threatened or actual legal proceedings in which the Company or any subsidiary is a party.