0001493152-26-015155
SEC filingPowerdyne International faced a challenging fiscal 2025, with revenue declining due to tariff uncertainty, while gross margin improved. The company continues to navigate liquidity constraints and is preparing for a capital raise to support its operations.
For the fiscal year ended December 31, 2025, Powerdyne International reported revenue of $1.2 million, a decrease of 7.2% from the $1.3 million reported in the prior year. Management attributes this decline primarily to lower demand resulting from tariff uncertainty during 2025, with a significant portion of the decrease attributable to slower sales at the CM Tech motor manufacturing segment. Despite this contraction, the company notes that customer demand continues to increase, indicating underlying growth potential in its markets.
Gross profit for the year was $378.4 thousand, an increase of 3.5% year-over-year. This improvement, achieved despite lower revenue, resulted in a gross margin of 32.6%, demonstrating enhanced cost management and operational efficiency. However, net income deteriorated to a loss of $251.4 thousand, a 40.0% increase in loss compared to the prior year. Management explains that this widening loss was driven by an increase in operating expenses, specifically citing costs associated with the change of the company's auditor and additional expenses incurred in preparing a Form S-1 for a planned capital raise.
Net cash used in operating activities was $192.0 thousand, a slight improvement from the $203.9 thousand used in the prior year. The company's financial statements and management discussion highlight a working capital deficit, which raises substantial doubt about Powerdyne's ability to continue as a going concern. Management explicitly states in its commentary that if the company is not successful in generating sufficient liquidity from operations or in raising sufficient capital resources on acceptable terms, it could have a material adverse effect on the business, results of operations, liquidity, and financial condition. The company's strategy to address this includes the preparation of a Form S-1 for a capital raise.
In response to its liquidity challenges, Powerdyne is undertaking strategic initiatives focused on securing additional capital. The preparation of the Form S-1 is a key step in this process. Management also expects that as revenues increase, cash flow from operations and the working capital position will continue to improve. The company identifies several operational risks, including its reliance on limited sensitive data making it a potential target for cyberattacks such as phishing, malware, and ransomware. Management also notes it will continue to monitor inflation and evaluate its potential future effects on the business.
Looking forward, management expects revenue growth from new customers to contribute to improved cash flow. The successful execution of the capital raise via the Form S-1 is presented as critical to strengthening the company's balance sheet and providing the necessary resources to support ongoing operations and strategic goals. The overall narrative remains one of a company navigating a period of external market pressure and internal transition, with its future trajectory heavily dependent on its ability to secure additional financing and return to revenue growth.