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<p id="xdx_807_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock_zB4ZkoT67anf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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 <span id="xdx_907_eus-gaap--BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued_c20101213__20101213__us-gaap--BusinessAcquisitionAxis__custom--PowerdyneIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_znUI8PRCz7ab" title="Number of shares exchanged for right">7,520 shares of common stock of Powerdyne International, Inc. Accordingly, an aggregate of <span id="xdx_90B_ecustom--NumberOfSharesIssuedToHoldersUnderBusinessCombination_c20101213__20101213__us-gaap--BusinessAcquisitionAxis__custom--PowerdyneIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zQNKwY5eThb4" title="Number of shares issued">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. On March 6, 2022, pursuant to a Securities Purchase Agreement (the “SPA”), Powerdyne International, Inc. (the “Company”), acquired all of the issued and outstanding membership interests of Creative Motion Technology, LLC, a Massachusetts limited liability company, (the “Membership Interests”). Membership Interests are owned by Mr. James F. O’Rourke, the former principal owner and sole director and officer of the Company. The purchase price paid by the Company was <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20220306__20220306__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zrUb6HFV14Z3" title="Number of shares issued for purchase price">2,000,000 shares of its Series A Preferred Stock valued at $<span id="xdx_908_eus-gaap--StockIssuedDuringPeriodValueAcquisitions_c20220306__20220306__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zpG8mS28IO3e" title="Value of shares issued for purchase price">1,500,000. <span id="xdx_90A_eus-gaap--PreferredStockVotingRights_c20220306__20220306__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_znYCbnsjQcNa" title="Preferred stock voting rights">The Series A Preferred Stock, shall be entitled to have one thousand (1,000) votes per one (1) share, at each meeting of stockholders of the Corporation (or pursuant to any action by written consent) with respect to any and all matters presented to the stockholders of the Corporation for their action or consideration. The holders of Series A Preferred Stock shall vote together with the holders of Common Stock as a single class. Creative Motion Technology, LLC (“CM Tech”) is a small New England based motor manufacturer founded in 2004 and has been in business for over 17 years. CM Tech’s management has over 60 years of design and manufacturing expertise, specializing in the design and custom building of industrial servomotors both brush and brushless motor designs. CM Tech’s current market focus is on the niche motor demands for low volume, high-quality cost-effective motors which are primarily used in industrial robotics for the semiconductor manufacturing industry. The motors that CM Tech currently has in production primarily provide the X, Y, and Z axis articulation in factory automation robots. Included with CM Tech acquisition is Frame One, which is a custom picture framing shop located in North Reading, MA. Frame One has been in business since 2006 and brings with it a strong client base consisting of local schools, colleges, artist guilds, artists, interior decorators/designers, museums, photographers, art galleries and theatres. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 1. ORGANIZATION (continued) The issuance of the <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20220306__20220306__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zIapSXZtfTK" title="Number of shares issued for purchase price">2,000,000 shares of Series A Preferred Stock pursuant to the Securities Purchase Agreement were made in reliance on the exemption from registration afforded under Section 4(2), of the Securities Act of 1933, as amended, and/or Rule 506 of Regulation D promulgated thereunder. Such offer and sale were not conducted in connection with a public offering, and no public solicitation or advertisement was made or relied upon by the Seller/Investor in connection with the issuance by the Company of the Shares.

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The Series A Preferred Stock, shall be entitled to have one thousand (1,000) votes per one (1) share, at each meeting of stockholders of the Corporation (or pursuant to any action by written consent) with respect to any and all matters presented to the stockholders of the Corporation for their action or consideration.

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<p id="xdx_804_eus-gaap--BusinessAcquisitionIntegrationRestructuringAndOtherRelatedCostsTextBlock_zExMcJpCoAxj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">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.

3. 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 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 (UNAUDITED) June 30, 2026, and 2025 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, 2026, the Company had an accumulated deficit of $5,766,914 (December 31, 2025 - $5,508,297). 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 June 30, 2026. 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 condensed 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 condensed 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. 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 (UNAUDITED) June 30, 2026, and 2025 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, 2025, and December 31, 2025, 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, 2026, and 2025 was $0, respectively. The Company sometimes receives cash deposits in advance of manufacturing and shipping its products or before products are created. As of June 30, 2026, there is $0 (December 31, 2025 - $13,357) in advance deposits recorded on the balance sheet. When the products are shipped to or picked up by the customer the advance deposits are recognized as product revenue. Inventories Inventories, 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. As of December 31, 2025, and 2024, the Company’s inventories consist of custom designed motors and picture frames. Inventories are valued at the lower cost of the market (net realizable value). 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 years on a straight-line basis. Depreciation expenses for the three and six months ended June 30, 2026, and 2025 were $0, respectively. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Intangible Asset and Goodwill We account for intangible assets and goodwill in accordance with ASC 350 “Intangibles-Goodwill and Other” (“ASC 350”). Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Intangible asset amounts represent the acquisition date fair values of identifiable intangible assets acquired. The fair values of the intangible assets were determined by using the income approach, discounting projected future cash flows based on management’s expectations of the current and future operating environment. The rates used to discount projected future cash flows reflected a weighted average cost of capital based on our industry, capital structure and risk premiums including those reflected in the current market capitalization. Definite-lived intangible assets are amortized over their useful lives, which have historically ranged from 10 to 20 years. The carrying amounts of our definite-lived intangible assets are evaluated for recoverability whenever events or changes in circumstances indicate that the entity may be unable to recover the asset’s carrying amount. We assess our intangible assets in accordance with ASC 360 “Property, Plant, and Equipment” (“ASC 360”). Impairment testing is required when events occur that indicate an asset group may not be recoverable (“triggering events”). As detailed in ASC 360-10-35-21, the following are examples of such events or changes in circumstances (sometimes referred to as impairment indicators or triggers): (a) A significant decrease in the market price of a long-lived asset (asset group) (b) A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition. (c) A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator (d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group) (e) A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group) (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent. We have evaluated our intangible assets and found that certain losses and a delay in our business plan may have constituted a triggering event for our intangible assets. The Company does not have any intangible assets or goodwill. 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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 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. 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. 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 are expensed as they are incurred or the first time when the advertising takes place. During the three and six months ended June 30, 2026, and 2025, there were no advertising costs incurred by the Company. 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. The Company recognized $29,375 in stock based compensation related to shares issued to consultants for the three months ended June 30, 2026, and zero for the three months ended June 30, 2025, respectively The Company recognized $33,882 in stock based compensation related to shares issued to consultants for the six months ended June 30, 2026, and zero for the six months ended June 30, 2025. 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. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Income Taxes (Continued) 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 filing 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 attributes carry forwards 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, 2026, and December 31, 2025, was $-0-. 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, trade accounts receivable, accounts payable and accrued expenses, advance deposit due to related party – CEO, sales tax payable, short-term loan payable, and line of credit. 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. Loss per Common Share 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. For the three and six months ended June 30, 2026, and 2025, there were no outstanding dilutive securities, except as of June 30, 2026, and 2025, there was <span id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20260101__20260630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zCWPu9BVY3S1" title="Anti-dilutive securities"><span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20250101__20250630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zuOrZznbpQ1d" title="Anti-dilutive securities">2,000,000 Series A Preferred Stock outstanding and two convertible notes, however, they were not included in the calculations as they are considered anti-dilutive. Additionally, the two convertible notes have legal and contractual lock up provisions that prevent them from trading the common shares upon conversion. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Loss per Common Share (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 LOSSES PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_495_20260401__20260630_zALwVsdiQHjb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the three months ending June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20250401__20250630_zbGkhzJopNfk" style="border-bottom: Black 1pt solid; text-align: center">For the three months ending June 30, 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_494_20260101__20260630_zXmDMhn9d459" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ending June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_495_20250101__20250630_zxvTMbwlG9za" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ending June 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_z5cBN24oGOG4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: right">Loss available for common shareholder</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(138,371</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(156,039</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(258,617</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(211,173</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">Basic and fully diluted loss per share</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">Weighted average common shares outstanding - basic and diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,972,126,307</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,884,930,584</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,930,340,298</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,884,930,584</td><td style="text-align: left"> </td></tr> </table> 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 None Recent Accounting Guidance Adopted In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient (available to all entities) that allows an entity to assume current conditions as of the balance sheet date will remain unchanged over the remaining life of the asset when developing reasonable and supportable forecasts for estimating expected credit losses on current accounts receivable and current contract assets arising from Topic 606 revenue transactions. For entities other than public business entities, it also permits an accounting policy election (if the practical expedient is elected) to consider subsequent cash collections after the balance sheet date when estimating expected credit losses. The ASU is effective for annual reporting periods beginning after December 15, 2025 (including interim periods therein), with early adoption permitted. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. In November 2024, the FASB issued ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This ASU clarifies the requirements for determining whether a settlement of a convertible debt instrument should be accounted for as an induced conversion (versus a debt extinguishment). Key clarifications include: (i) the inducement offer must preserve the form and amount of consideration issuable under the existing debt instrument’s conversion privileges (assessed as of the offer acceptance date), (ii) application to instruments with cash conversion features, and (iii) use of terms existing 12 months prior to the offer acceptance date if a recent modification occurred. The ASU is effective for annual reporting periods beginning after December 15, 2025 (including interim periods), with early adoption permitted (if ASU 2020-06 has been adopted). The Company adopted this ASU. Management does not expect the adoption to have a material impact on the Company’s condensed consolidated financial statements unless it engages in induced conversions of convertible debt. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires enhanced disclosures, including: (i) a tabular rate reconciliation disaggregating income tax expense (or benefit) into eight specific categories (with further disaggregation for certain items meeting a 5% quantitative threshold) for public business entities, and (ii) disaggregated information about income taxes paid by jurisdiction. Non-public entities may elect qualitative disclosure for the rate reconciliation. For entities other than public business entities, the ASU is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The amendments may be applied prospectively or retrospectively. The Company has adopted this ASU. The adoption did not have a material impact on the Company’s condensed consolidated financial position or results of operations but will expand income tax footnote disclosures. Management has reviewed other ASUs issued through Q1 2026 (or effective in 2026), including various codification improvements and targeted updates on hedge accounting, financial instruments, and other topics. The Company has implemented all the 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 condensed consolidated financial position or consolidated results of operations. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Revenue Recognition 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 <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260630__srt--MajorCustomersAxis__custom--TwoMajorCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zglU8LU6mx0a" title="Total sales percentage">95% of the balance of accounts receivable as of June 30, 2026 (December 31, 2025 - <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__srt--MajorCustomersAxis__custom--TwoMajorCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zmRlrbznXova" title="Total sales percentage">30%). For the six months ended June 30, 2026 – <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260630__srt--MajorCustomersAxis__custom--TwoMajorCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zz0pvqiojkTk" title="Total sales percentage">95% (June 30, 2025 –<span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250630__srt--MajorCustomersAxis__custom--TwoMajorCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_z4I0HlWDD2N1" title="Total sales percentage">95%) of CM Tech’s revenues were attributable to these same two customers. The Company evaluates industry specific credit risk but does not believe that any material risk is identified that could materially impact on our results of condensed consolidated operations and condensed consolidated financial position. 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,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a Company’s management organizes segments within the Company for making operating decisions and assessing performance. 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. 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 Global Semiconductor Equipment Manufacture’s our Sales to International customers were <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__srt--ProductOrServiceAxis__us-gaap--ServiceMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zNenUGXReHug" title="Concentration risk percentage">32% and <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__srt--ProductOrServiceAxis__us-gaap--ServiceMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zu2OXx9q0iW2" title="Concentration risk percentage">68% of our total sales in 2025 and 2024, respectively. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Suppliers We have developed a strong collaborative relationship with a select few ISO Certified component manufacturers both domestically and in Asia. These strategic relationships have been developed over the past 20 years, which ensure that we are able to maintain a steady flow of components while maintaining a high level of quality.

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.

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, 2026, the Company had an accumulated deficit of $5,766,914 (December 31, 2025 - $5,508,297). 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 June 30, 2026. 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 condensed 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.

-5766914

-5508297

Principles of Consolidation Our condensed 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.

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.

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, 2025, and December 31, 2025, 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, 2026, and 2025 was $0, respectively. The Company sometimes receives cash deposits in advance of manufacturing and shipping its products or before products are created. As of June 30, 2026, there is $0 (December 31, 2025 - $13,357) in advance deposits recorded on the balance sheet. When the products are shipped to or picked up by the customer the advance deposits are recognized as product revenue.

13357

Inventories Inventories, 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. As of December 31, 2025, and 2024, the Company’s inventories consist of custom designed motors and picture frames. Inventories are valued at the lower cost of the market (net realizable value).

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 years on a straight-line basis. Depreciation expenses for the three and six months ended June 30, 2026, and 2025 were $0, respectively.

P5Y

Intangible Asset and Goodwill We account for intangible assets and goodwill in accordance with ASC 350 “Intangibles-Goodwill and Other” (“ASC 350”). Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Intangible asset amounts represent the acquisition date fair values of identifiable intangible assets acquired. The fair values of the intangible assets were determined by using the income approach, discounting projected future cash flows based on management’s expectations of the current and future operating environment. The rates used to discount projected future cash flows reflected a weighted average cost of capital based on our industry, capital structure and risk premiums including those reflected in the current market capitalization. Definite-lived intangible assets are amortized over their useful lives, which have historically ranged from 10 to 20 years. The carrying amounts of our definite-lived intangible assets are evaluated for recoverability whenever events or changes in circumstances indicate that the entity may be unable to recover the asset’s carrying amount. We assess our intangible assets in accordance with ASC 360 “Property, Plant, and Equipment” (“ASC 360”). Impairment testing is required when events occur that indicate an asset group may not be recoverable (“triggering events”). As detailed in ASC 360-10-35-21, the following are examples of such events or changes in circumstances (sometimes referred to as impairment indicators or triggers): (a) A significant decrease in the market price of a long-lived asset (asset group) (b) A significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used or in its physical condition. (c) A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (asset group), including an adverse action or assessment by a regulator (d) An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group) (e) A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group) (f) A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent. We have evaluated our intangible assets and found that certain losses and a delay in our business plan may have constituted a triggering event for our intangible assets. The Company does not have any intangible assets or goodwill.

P10Y

P20Y

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 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 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. 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.

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 are expensed as they are incurred or the first time when the advertising takes place. During the three and six months ended June 30, 2026, and 2025, there were no advertising costs incurred by the Company.

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. The Company recognized $29,375 in stock based compensation related to shares issued to consultants for the three months ended June 30, 2026, and zero for the three months ended June 30, 2025, respectively The Company recognized $33,882 in stock based compensation related to shares issued to consultants for the six months ended June 30, 2026, and zero for the six months ended June 30, 2025.

29375

33882

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. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Income Taxes (Continued) 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 filing 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 attributes carry forwards 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, 2026, and December 31, 2025, was $-0-.

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, trade accounts receivable, accounts payable and accrued expenses, advance deposit due to related party – CEO, sales tax payable, short-term loan payable, and line of credit. 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.

Loss per Common Share 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. For the three and six months ended June 30, 2026, and 2025, there were no outstanding dilutive securities, except as of June 30, 2026, and 2025, there was <span id="xdx_907_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20260101__20260630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zCWPu9BVY3S1" title="Anti-dilutive securities"><span id="xdx_903_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20250101__20250630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zuOrZznbpQ1d" title="Anti-dilutive securities">2,000,000 Series A Preferred Stock outstanding and two convertible notes, however, they were not included in the calculations as they are considered anti-dilutive. Additionally, the two convertible notes have legal and contractual lock up provisions that prevent them from trading the common shares upon conversion. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Loss per Common Share (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 LOSSES PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_495_20260401__20260630_zALwVsdiQHjb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the three months ending June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20250401__20250630_zbGkhzJopNfk" style="border-bottom: Black 1pt solid; text-align: center">For the three months ending June 30, 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_494_20260101__20260630_zXmDMhn9d459" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ending June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_495_20250101__20250630_zxvTMbwlG9za" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ending June 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_z5cBN24oGOG4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: right">Loss available for common shareholder</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(138,371</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(156,039</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(258,617</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(211,173</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">Basic and fully diluted loss per share</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">Weighted average common shares outstanding - basic and diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,972,126,307</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,884,930,584</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,930,340,298</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,884,930,584</td><td style="text-align: left"> </td></tr> </table>

2000000

Loss per share is based upon the weighted average shares of common stock outstanding. SCHEDULE OF COMPUTATION OF BASIC AND DILUTED LOSSES PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_495_20260401__20260630_zALwVsdiQHjb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the three months ending June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_496_20250401__20250630_zbGkhzJopNfk" style="border-bottom: Black 1pt solid; text-align: center">For the three months ending June 30, 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_494_20260101__20260630_zXmDMhn9d459" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ending June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_495_20250101__20250630_zxvTMbwlG9za" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the six months ending June 30, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_z5cBN24oGOG4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: right">Loss available for common shareholder</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(138,371</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(156,039</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(258,617</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">(211,173</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: right">Basic and fully diluted loss per share</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(0</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: right">Weighted average common shares outstanding - basic and diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,972,126,307</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,884,930,584</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,930,340,298</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,884,930,584</td><td style="text-align: left"> </td></tr> </table>

-138371

-156039

-258617

-211173

-0

1972126307

1884930584

1930340298

1884930584

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 None

Recent Accounting Guidance Adopted In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient (available to all entities) that allows an entity to assume current conditions as of the balance sheet date will remain unchanged over the remaining life of the asset when developing reasonable and supportable forecasts for estimating expected credit losses on current accounts receivable and current contract assets arising from Topic 606 revenue transactions. For entities other than public business entities, it also permits an accounting policy election (if the practical expedient is elected) to consider subsequent cash collections after the balance sheet date when estimating expected credit losses. The ASU is effective for annual reporting periods beginning after December 15, 2025 (including interim periods therein), with early adoption permitted. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. In November 2024, the FASB issued ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This ASU clarifies the requirements for determining whether a settlement of a convertible debt instrument should be accounted for as an induced conversion (versus a debt extinguishment). Key clarifications include: (i) the inducement offer must preserve the form and amount of consideration issuable under the existing debt instrument’s conversion privileges (assessed as of the offer acceptance date), (ii) application to instruments with cash conversion features, and (iii) use of terms existing 12 months prior to the offer acceptance date if a recent modification occurred. The ASU is effective for annual reporting periods beginning after December 15, 2025 (including interim periods), with early adoption permitted (if ASU 2020-06 has been adopted). The Company adopted this ASU. Management does not expect the adoption to have a material impact on the Company’s condensed consolidated financial statements unless it engages in induced conversions of convertible debt. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires enhanced disclosures, including: (i) a tabular rate reconciliation disaggregating income tax expense (or benefit) into eight specific categories (with further disaggregation for certain items meeting a 5% quantitative threshold) for public business entities, and (ii) disaggregated information about income taxes paid by jurisdiction. Non-public entities may elect qualitative disclosure for the rate reconciliation. For entities other than public business entities, the ASU is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The amendments may be applied prospectively or retrospectively. The Company has adopted this ASU. The adoption did not have a material impact on the Company’s condensed consolidated financial position or results of operations but will expand income tax footnote disclosures. Management has reviewed other ASUs issued through Q1 2026 (or effective in 2026), including various codification improvements and targeted updates on hedge accounting, financial instruments, and other topics. The Company has implemented all the 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 condensed 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 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 <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260630__srt--MajorCustomersAxis__custom--TwoMajorCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zglU8LU6mx0a" title="Total sales percentage">95% of the balance of accounts receivable as of June 30, 2026 (December 31, 2025 - <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__srt--MajorCustomersAxis__custom--TwoMajorCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zmRlrbznXova" title="Total sales percentage">30%). For the six months ended June 30, 2026 – <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20260101__20260630__srt--MajorCustomersAxis__custom--TwoMajorCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zz0pvqiojkTk" title="Total sales percentage">95% (June 30, 2025 –<span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20250630__srt--MajorCustomersAxis__custom--TwoMajorCustomersMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_z4I0HlWDD2N1" title="Total sales percentage">95%) of CM Tech’s revenues were attributable to these same two customers. The Company evaluates industry specific credit risk but does not believe that any material risk is identified that could materially impact on our results of condensed consolidated operations and condensed consolidated financial position. 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.

0.95

0.30

0.95

250000

Segment Reporting ASC Topic 280, “Segment Reporting,” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a Company’s management organizes segments within the Company for making operating decisions and assessing performance. 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. 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 Global Semiconductor Equipment Manufacture’s our Sales to International customers were <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250101__20251231__srt--ProductOrServiceAxis__us-gaap--ServiceMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zNenUGXReHug" title="Concentration risk percentage">32% and <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240101__20241231__srt--ProductOrServiceAxis__us-gaap--ServiceMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zu2OXx9q0iW2" title="Concentration risk percentage">68% of our total sales in 2025 and 2024, respectively.

0.32

0.68

Suppliers We have developed a strong collaborative relationship with a select few ISO Certified component manufacturers both domestically and in Asia. These strategic relationships have been developed over the past 20 years, which ensure that we are able to maintain a steady flow of components while maintaining a high level of quality.

4. DUE TO RELATED PARTY – CEO During the six months ended June 30, 2026, the Company’s ex-CEO provided $<span id="xdx_90A_eus-gaap--ProceedsFromRelatedPartyDebt_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--ChiefExecutiveOfficerMember_zNqHzFL1FvE1" title="Funds received for operations">23,000 to fund our operations. The Company owes the following amounts to our ex-CEO as of June 30, 2026, $273,591 and December 31, 2025, $250,591 respectively. The balances owed to our ex-CEO are due on demand and therefore recorded as a current liability.

23000

273591

250591

5. LOANS - RELATED PARTIES 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. On March 3 and March 25, 2026, we received 2 noninterest bearing advances from a stockholder in the amount of $3,000 and $21,500, to be repaid at a later date. The balance of this advance as of March 31, 2026, was $24,500. 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. On April 16, 2026, April 30 and May 13,2026, we received 3 noninterest bearing advances from a stockholder in the amount of $2,250, $2,225 and $2,200, to be repaid at a later date. The balance of this advance as of June 30, 2026, was $6,675.00. The total Balance as of June 30, 2026, was $31,175. On April 2, 2025, we received a noninterest bearing advance from the now Vice President in the amount of $40,000, to be repaid at a later date. The balance of this advance as of June 30, 2026, was $40,000. As of June 30, 2026, and December 31, 2025, the loans – related parties was $71,175 and $40,000, respectively.

3000

21500

24500

2250

2225

2200

6675.00

31175

40000

71175

40000

6. SHORT TERM LOAN PAYABLE On September 12, 2025, the Company issued a convertible promissory note with a principal amount of $77,720 for cash proceeds of $67,000 (original-issue discount $10,720). A one-time interest charge of 12% ($9,326) was applied on the Issue Date, resulting in total scheduled repayments of $87,046 payable in five installments beginning March 15, 2026. No payments were made under the Note. The March 15, 2026, installment was missed. Written notice of default was received on March 31, 2026. Default Interest at 22% per annum began accruing on March 15, 2026. Upon the Event of Default on April 4, 2026, the Note became immediately due and payable at the Default Amount of $130,569 (<span id="xdx_905_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_c20260404__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_zgeTcS3d7ex7" title="Interest rate on default payment amount">150% of $87,046). Between April 13 and May 8, 2026, the Holder converted the entire Default Amount (plus additional Default Interest of $749.63 and contractual conversion fees of $12,000) into an aggregate of <span id="xdx_90B_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260413__20260508__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_znc0PlJZlsL9" title="Aggregate shares">87,552,757 shares of common stock pursuant to the post-default conversion provisions of the Note. The conversions occurred as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">April 13, 2026: $10,000 at $0.00234 → <span id="xdx_907_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260413__20260413__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_z1zkPQd2bYj4" title="Aggregate shares">4,273,504 shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">April 15, 2026: $15,000 at $0.00247 → <span id="xdx_907_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260415__20260415__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_zE0OW6QeWhW3" title="Aggregate shares">6,072,874 shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">April 21, 2026: $15,000 at $0.00208 → <span id="xdx_906_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260421__20260421__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_zna5LqRjPbIf" title="Aggregate shares">7,211,538 shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">April 22, 2026: $20,000 at $0.00208 → <span id="xdx_908_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260422__20260422__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_zjl74KmMMb8e" title="Aggregate shares">9,615,384 shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">April 24, 2026: $20,000 at $0.00156 → <span id="xdx_903_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260424__20260424__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_zsHtUoWMHKPh" title="Aggregate shares">12,820,513 shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">April 27, 2026: $22,000 at $0.00156 → <span id="xdx_903_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260427__20260427__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_zQVtd91DeKs2" title="Aggregate shares">14,102,564 shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">May 1, 2026: $25,000 at $0.001235 → <span id="xdx_90A_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260501__20260501__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_zepryuL3dy3i" title="Aggregate shares">20,242,915 shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">May 8, 2026: $<span id="xdx_905_eus-gaap--DebtConversionConvertedInstrumentAmount1_pp2d_c20260508__20260508__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_zChtiGE0dA01" title="Note default amount converted">16,318.63 (remaining balance including $749.63 interest) at $0.001235 → <span id="xdx_904_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260508__20260508__us-gaap--DebtInstrumentAxis__custom--ConvertiblePromissoryNoteMember_zNkUEbGjS719" title="Shares issued upon note conversion">13,213,465 shares</td></tr></table> POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 6. SHORT TERM LOAN PAYABLE (continued) The May 8 shares were issued via DWAC without restrictive legend pursuant to a Rule 144 opinion of counsel. On May 11, 2026, the Holder confirmed that the obligation recorded at the Default Amount had been fully satisfied and the Note balance is zero. Total amount extinguished (principal, default premium, interest and fees) was $159,637.26. Interest expense for the three and six months ended June 30, 2026, includes the default premium of $43,523, additional Default Interest of $749.63 and conversion fees of $12,000. The 199,282,051 shares previously held in escrow as collateral were released upon satisfaction of the Note. On April 22, 2026, we entered a convertible note payable with a common stock purchase warrant with Quick Capital, LLC. The full convertible note payable and warrant accounted for as a derivative was issued on April 22, 2026, the Company issued a convertible promissory note with a legal face amount of $71,022.72. The Company received cash proceeds of $58,500 after the lender withheld $4,000 for counsel fees. The note carries a contractual original-issue discount / guaranteed interest charge of $<span id="xdx_90D_eus-gaap--DebtConversionOriginalDebtAmount1_pp2d_c20260422__20260422__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--QuickCapitalLLCMember_zwloyNkoNym8" title="Original-issue discount">8,522.72. The total amount payable under the scheduled amortization is $79,545.44, consisting of four payments of $<span id="xdx_90E_eus-gaap--DebtInstrumentPeriodicPayment_pp2d_c20260422__20260422__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--QuickCapitalLLCMember_zNmQYCmZXdxk" title="Note installment amount payable">19,886.36. The note matures on January 22, 2027, and may be prepaid at <span id="xdx_90E_ecustom--DebtInstrumentInterestRatePrepaidPercentage_iI_pid_dp_c20260422__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--QuickCapitalLLCMember_zebnf33UmNX2" title="Prepaid percentage">105% of the outstanding principal plus accrued interest, subject to conditions. <span id="xdx_90B_eus-gaap--DebtConversionDescription_c20260422__20260422__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--QuickCapitalLLCMember_zztydjXVMk29" title="Note conversion description">The note is convertible at the holder’s option at the lower of (i) $<span id="xdx_90C_eus-gaap--DebtInstrumentConvertibleConversionPrice1_iI_c20260422__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--QuickCapitalLLCMember_zuA4WfFSpU4c" title="Debt conversion price">0.004 per share or (ii) 65% of the lowest trading price of the Company’s common stock during the ten trading days preceding the conversion date. In the event of default, the conversion price is $0.001. In connection with the note the Company also issued a five-year warrant for <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20260422__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--QuickCapitalLLCMember_znh1EnLUDum5" title="Warrants issued for common shares">3,551,136 shares of common stock with an initial exercise price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260422__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--QuickCapitalLLCMember_zb9sNtTw6JDe" title="Exercise price">0.01 per share. The warrant contains a full-ratchet down-round reset provision. On May 22, 2026, the Company issued a convertible promissory note to Vanquish Funding Group Inc. in the principal amount of $67,000. The note was funded on or about May 28, 2026. In connection with the closing, the Company reimbursed the lender $7,000 for legal fees and due diligence costs. These costs have been recorded as debt issuance costs and are presented as a direct deduction from the carrying amount of the note. The initial net carrying amount of the note is therefore $60,000. The issuance costs are being amortized as additional interest expense over the term of the note. The note matures on February 28, 2027, and bears interest at <span id="xdx_90D_eus-gaap--ShortTermDebtPercentageBearingFixedInterestRate_iI_pid_dp_c20260522__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VanquishFundingGroupIncMember_zpcjgCxyzaX" title="Interest rate">10% per annum. Interest accrues from the Issue Date but is payable only at maturity, upon acceleration, or upon prepayment. Default interest is <span id="xdx_901_ecustom--DebtInstrumentInterestRateDefaultPercentage_iI_pid_dp_c20260522__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VanquishFundingGroupIncMember_zVvBFiQqBiHf" title="Default interest rate">22% per annum. <span id="xdx_90C_eus-gaap--DebtConversionDescription_c20260522__20260522__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VanquishFundingGroupIncMember_z6PUMMJitk2d" title="Note conversion description">The note is convertible beginning 180 days after the Issue Date (approximately November 18, 2026) at a Conversion Price equal to 65% of the lowest Trading Price of the Company’s common stock during the ten (10) Trading Days prior to the Conversion Date. The Holder may deduct $1,500 from each conversion amount for deposit fees. Conversion is subject to a 4.99% beneficial-ownership limitation. The Company is required to reserve four times the number of shares issuable upon full conversion; the reserved shares have not been issued and are not included in issued and outstanding shares. Because conversion is contractually prohibited for the first 180 days and management has determined that the fair value of the embedded conversion feature is nominal during this period, no derivative liability has been recorded as of June 30, 2026. The Company will re-evaluate the conversion feature when the 180-day lock-up expires or if its fair value becomes material prior to that date. As of June 30, 2026, the Company was in compliance with the terms of the note. No conversions had occurred. Unamortized debt issuance costs on June 30, 2026, were $<span id="xdx_90E_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VanquishFundingGroupIncMember_ziT6PLXkeVV6" title="Unamortized debt issuance costs">6,033. Interest expense recognized on the note for the period from issuance through June 30, 2026, was $<span id="xdx_90C_eus-gaap--InterestExpenseShortTermBorrowings_pp2d_c20260101__20260630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--VanquishFundingGroupIncMember_zPbVHOsWwV6f" title="Interest expense">1,682.89. As of June 30, 2026 and December 31, 2025, the short-term loan payable balances were $90,286 and $87,046 respectively. The original issue discount on the short-term loan payables is estimated at $28,214. The guaranteed interest payable is pertaining to accrued interest on the Vanquish and Quick Capital notes and is $11,442. The warrant derivative liability of $8,026 pertains to the warrant attached to the Quick Capital short term loan payable. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025

77720

67000

10720

0.12

9326

87046

0.22

130569

1.50

87046

749.63

12000

87552757

10000

0.00234

4273504

15000

0.00247

6072874

15000

0.00208

7211538

20000

0.00208

9615384

20000

0.00156

12820513

22000

0.00156

14102564

25000

0.001235

20242915

16318.63

749.63

0.001235

13213465

159637.26

43523

749.63

12000

199282051

71022.72

58500

4000

8522.72

79545.44

19886.36

2027-01-22

1.05

The note is convertible at the holder’s option at the lower of (i) $0.004 per share or (ii) 65% of the lowest trading price of the Company’s common stock during the ten trading days preceding the conversion date. In the event of default, the conversion price is $0.001

0.004

3551136

0.01

67000

7000

60000

2027-02-28

0.10

0.22

The note is convertible beginning 180 days after the Issue Date (approximately November 18, 2026) at a Conversion Price equal to 65% of the lowest Trading Price of the Company’s common stock during the ten (10) Trading Days prior to the Conversion Date. The Holder may deduct $1,500 from each conversion amount for deposit fees. Conversion is subject to a 4.99% beneficial-ownership limitation. The Company is required to reserve four times the number of shares issuable upon full conversion; the reserved shares have not been issued and are not included in issued and outstanding shares

1500

6033

1682.89

90286

87046

28214

11442

8026

7. LINE OF CREDIT On May 30th, 2024, CM Technology, LLC (“CM Tech”) a wholly owned subsidiary of the Company entered into a line of credit with a financial institution that has national scope through one of their local branches. The line of credit is for a maximum of $170,000 which is collateralized and has a security interest in the deposit account or cash, inventories and trade accounts receivable of CM Tech and is due and payable on demand. Our CEO has personally guaranteed the line of credit. The Company paid a $450 documentation fee. On March 12, 2025, CM Tech was approved for an additional increase in the line of credit to $250,000. The additional increase in the line of credit does not change any terms from the original agreement as of May 30th, 2024. The Company is not in default on the line of credit. The Company accrues monthly interest on outstanding balances at 2.5% plus the prime interest rate. As of June 30, 2026, CM Tech has cash of $53,785, trade accounts receivable at $39,823 and inventories of $39,678 collateralized against the line of credit creating a security interest.

170000

450

250000

0.025

53785

39823

39678

8. ACQUISITION OF PRIVATE COMPANY OWNED BY EX-CEO On March 6, 2022, pursuant to a Securities Purchase Agreement (the “SPA”), Powerdyne International, Inc. (the “Company”), acquired <span id="xdx_906_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pid_dp_uPure_c20220306__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zfcgsRx49rv9" title="Membership interest acquired">100% of the issued and outstanding membership interests of Creative Motion Technology, LLC, a Massachusetts limited liability company, (the “Membership Interests”). The Membership Interest is owned by Mr. James F. O’Rourke, the former principal owner and sole director and officer of the Company. The purchase price paid by the Company was <span id="xdx_900_eus-gaap--BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued_c20220306__20220306__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_z8DgcG1GmXjh" title="Number of shares issued">2,000,000 shares of its Series A Preferred Stock valued at $<span id="xdx_90D_eus-gaap--BusinessAcquisitionEquityInterestIssuedOrIssuableValueAssigned_iI_c20220306__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_ztYYrprjgmw9" title="Value of shares issued">1,500,000, which each Series A Preferred Stock is convertible into <span id="xdx_90C_eus-gaap--PreferredStockConvertibleSharesIssuable_iI_c20220306__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zovyS5VKitEd" title="Common shares issuable upon conversion">1,000 common shares of the Company at a fixed price of $<span id="xdx_90B_eus-gaap--PreferredStockConvertibleConversionPrice_iI_pid_c20220306__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zY0oQnBEEJFf" title="Conversion price">0.0001 at the option of the holder. Creative Motion Technology, LLC (“CM Tech”) is a small New England based motor manufacturer founded in 2004 and has been in business for over 17 years. CM Tech’s management has over 60 years of design and manufacturing expertise, specializing in the design and custom building of industrial servomotors both brush and brushless motor designs. CM Tech’s current market focus is on the niche motor demands for low volume, high-quality cost-effective motors which are primarily used in industrial robotics for the semiconductor manufacturing industry. The motors that CM Tech currently has in production primarily provide the X, Y, and Z axis articulation in factory automation robots. Included with CM Tech acquisition is Frame One, which is a custom picture framing shop located in North Reading, MA. Frame One has been in business since 2006 and brings with it a strong client base consisting of local schools, colleges, artist guilds, artists, interior decorators/designers, museums, photographers, art galleries and theaters. The foregoing description of the SPA does not purport to be complete and is qualified in its entirety by reference to the complete text of the document, which is filed as an exhibit to this report and is incorporated herein by reference. The following table summarizes the consideration transferred to acquire CM Tech and the amounts of identified assets acquired recorded at historical cost at the acquisition date and the consideration provided: SCHEDULE OF AMOUNTS OF IDENTIFIED ASSETS ACQUIRED AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20220306__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zRjXwhKQoJ6i" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_maBCRIAzRgM_zsmySAtIZOyk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">26,042</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_maBCRIAzRgM_zLcRjujdMCc" style="vertical-align: bottom; background-color: White"> <td>Inventory</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">82,588</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets_iTI_mtBCRIAzRgM_zHllEC2tPdg6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total Assets Acquired</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">108,630</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_zMUsMgREjE9l" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Loss on acquisition of entity owned by CEO.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,391,370</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">The purchase price consists of the following:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable_c20220306__20220306__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zitsoJELbk76" title="Preferred Shares">1,500,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Total Purchase Price</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_902_eus-gaap--BusinessCombinationConsiderationTransferred1_c20220306__20220306__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zGshRFy2XbVe" title="Total Purchase Price">1,500,000</td><td style="text-align: left"> </td></tr> </table> The historical cost of the assets acquired includes cash and inventory at approximately $<span id="xdx_904_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentAssets_iI_c20220306__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zx1Q97ZSXhSk" title="Historical cost of assets acquired">108,630. There was no impairment to the cash and inventory received. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025 8. ACQUISITION OF PRIVATE COMPANY OWNED BY CEO (Continued) The pro forma information below presents statements of operations data as if the acquisition of CM Tech took place on January 1, 2020. SCHEDULE OF PRO FORMA INFORMATION OF STATEMENTS OF OPERATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20210101__20211231__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zLXChSTTYcii" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Consolidated For the year Ended December 31, 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20200101__20201231__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zJuUDhUg03N5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Consolidated For the year ended December 31, 2020</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_40C_eus-gaap--BusinessAcquisitionsProFormaRevenue_maGPzbvn_zgOxq9wowWJg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,224,290</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">985,613</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--BusinessAcquisitionsProFormCostOfGoodsSold_msGPzbvn_zhF3RdRlPLji" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Cost of Goods Sold</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">721,243</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">525,454</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--BusinessAcquisitionsProFormaGrossProfit_iT_mtGPzbvn_maNILzgAw_zAFpIaYmMQ7d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Gross profit</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">503,047</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">460,159</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--BusinessAcquisitionsProFormaOperatingExpenses_msNILzgAw_zzo6j1DdqO91" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">265,779</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">245,531</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--BusinessAcquisitionsProFormaNetIncomeLoss_iT_mtNILzgAw_zxauEjj2EJ8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net Income</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">237,268</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">214,628</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2000000

1500000

1000

0.0001

The following table summarizes the consideration transferred to acquire CM Tech and the amounts of identified assets acquired recorded at historical cost at the acquisition date and the consideration provided: SCHEDULE OF AMOUNTS OF IDENTIFIED ASSETS ACQUIRED AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_49D_20220306__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zRjXwhKQoJ6i" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_maBCRIAzRgM_zsmySAtIZOyk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">26,042</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_maBCRIAzRgM_zLcRjujdMCc" style="vertical-align: bottom; background-color: White"> <td>Inventory</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">82,588</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets_iTI_mtBCRIAzRgM_zHllEC2tPdg6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total Assets Acquired</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">108,630</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedNet_iI_zMUsMgREjE9l" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Loss on acquisition of entity owned by CEO.</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,391,370</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">The purchase price consists of the following:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Preferred Shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable_c20220306__20220306__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zitsoJELbk76" title="Preferred Shares">1,500,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Total Purchase Price</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_902_eus-gaap--BusinessCombinationConsiderationTransferred1_c20220306__20220306__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zGshRFy2XbVe" title="Total Purchase Price">1,500,000</td><td style="text-align: left"> </td></tr> </table>

26042

82588

108630

1391370

1500000

108630

The pro forma information below presents statements of operations data as if the acquisition of CM Tech took place on January 1, 2020. SCHEDULE OF PRO FORMA INFORMATION OF STATEMENTS OF OPERATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20210101__20211231__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zLXChSTTYcii" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Consolidated For the year Ended December 31, 2021</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20200101__20201231__us-gaap--BusinessAcquisitionAxis__custom--CreativeMotionTechnologyLLCMember_zJuUDhUg03N5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Consolidated For the year ended December 31, 2020</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr id="xdx_40C_eus-gaap--BusinessAcquisitionsProFormaRevenue_maGPzbvn_zgOxq9wowWJg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,224,290</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">985,613</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_ecustom--BusinessAcquisitionsProFormCostOfGoodsSold_msGPzbvn_zhF3RdRlPLji" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Cost of Goods Sold</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">721,243</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">525,454</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_ecustom--BusinessAcquisitionsProFormaGrossProfit_iT_mtGPzbvn_maNILzgAw_zAFpIaYmMQ7d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Gross profit</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">503,047</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">460,159</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--BusinessAcquisitionsProFormaOperatingExpenses_msNILzgAw_zzo6j1DdqO91" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">265,779</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">245,531</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--BusinessAcquisitionsProFormaNetIncomeLoss_iT_mtNILzgAw_zxauEjj2EJ8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net Income</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">237,268</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">214,628</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1224290

985613

721243 525454 503047 460159 265779 245531

237268

214628

9. STOCKHOLDERS’ DEFICIT Preferred Stock – There are 20,000,000 shares of authorized preferred stock, par value $0.0001 per share, with 2,000,000 shares issued and outstanding as of June 30, 2026 (December 31, 2025 – 2,000,000). The Series A Preferred Stock shall be entitled to have one thousand (1,000) votes per one (1) share, at each meeting of stockholders of the Corporation (or pursuant to any action by written consent) with respect to any and all matters presented to the stockholders of the Corporation for their action or consideration. The holders of Series A Preferred Stock shall vote together with the holders of Common Stock as a single class. Common Stock - On March 25, 2025, The Delaware Secretary of State approved an amendment authorizing the Company to increase the number of authorized shares of common stock to three billion twenty million (3,020,000,000) shares, consisting of three billion (3,000,000,000) shares of common stock and twenty million (20,000,000) shares of preferred stock – There are 3,000,000,000 shares of authorized Class A common stock, par value $0.0001 per share, with 1,997,483,341 shares issued and outstanding June 30, 2026, and 1,884,930,584 December 31, 2025, respectively. March 6, 2022, the Company issued 2,000,000 preferred shares to our CEO in exchange for his <span id="xdx_90D_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20220306__srt--ScheduleOfEquityMethodInvestmentEquityMethodInvesteeNameAxis__custom--CreativeMotionTechnologyLLCMember_zlz9hQi5a0Xg" title="Ownership percentage">100% owned private company CM Tech and Frame One. <span id="xdx_901_eus-gaap--PreferredStockVotingRights_c20220306__20220306__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zIhZkbGHUXz8" title="Preferred stock voting rights">The Series A Preferred Stock shall be entitled to have one thousand (1,000) votes per one (1) share, at each meeting of stockholders of the Corporation (or pursuant to any action by written consent) with respect to any and all matters presented to the stockholders of the Corporation for their action or consideration. The holders of Series A Preferred Stock shall vote together with the holders of Common Stock as a single class. Stock issued for services. On March 17, 2026, we hired a company to render corporate relations, advisory and market awareness campaign for <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pn6n6_c20260317__20260317__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TranscontinentalPartnersLLCMember_zW0N41exMaEd" title="Restricted shares">25 million restricted shares for a one-year contract. The Company recorded $<span id="xdx_909_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_c20260317__20260317__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ThirdPartyConsultantsMember_zZJMtwdac1Tc" title="Value of shares issued for prepaid consulting services">117,500 as prepaid consulting services for the <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20260317__20260317__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ThirdPartyConsultantsMember_zRxRoUVSVTy5" title="Number of shares issued for prepaid consulting services">25,000,000 shares issued to third party consultants, which was the fair value of the closing price of the shares on the date of issuance. The prepaid consulting services will be amortized over the twelve-month term of the agreement, the amortization commenced on March 17, 2026. During the three months ended June 30, 2026, the Company recognized $29,375 of share-based compensation. During the six months ended June 30, 2026, the Company recognized $33,882 of share-based compensation. The Company relied upon Section 4(2) and/or Regulation D of the Securities Act of 1933, as amended, for the issuance of these securities. No commissions were paid regarding the share issuance, and the share certificates were issued, or “book entry”, with a Rule 144 restrictive legend. On April 4, 2026, 1800 Diablo began converting the note payable into common stock of the Company. Between April 13 and May 8, 2026, 1800 Diablo converted the entire default amount into an aggregate of <span id="xdx_901_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_pid_c20260413__20260508__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zj7aidPSr8If" title="Shares issued upon debt conversion">87,552,757 shares of our common stock pursuant to the post-default conversion provisions of the short-term loan payable. POWERDYNE INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2026, and 2025

20000000

0.0001

2000000

The Series A Preferred Stock shall be entitled to have one thousand (1,000) votes per one (1) share, at each meeting of stockholders of the Corporation (or pursuant to any action by written consent) with respect to any and all matters presented to the stockholders of the Corporation for their action or consideration. The holders of Series A Preferred Stock shall vote together with the holders of Common Stock as a single class.

3020000000

3000000000

20000000

3000000000

0.0001

1997483341

1884930584

2000000

25000000

117500

25000000

29375

33882

87552757

10. COMMITMENTS AND CONTINGENCIES Office Space Our corporate headquarters are in a full-service office suite located in a building in North Reading, Massachusetts, consisting of approximately 5,000 square feet of retail, manufacturing, and office space. The Company’s contractual term as of February 1, 2025, is 36 months expiring January 31, 2028. The lease requires monthly payments of $5,500, payable at the beginning of each month, with no variable payments, residual value guarantees, or purchase options. The lease does not include renewal or termination options reasonably certain to be exercised. The lease liability and ROU asset were measured at commencement using the Company’s estimated incremental borrowing rate of 10% per annum, as the rate implicit in the lease was not readily determinable. Maturity Analysis of Lease Liability: The following table presents the undiscounted cash flows for the operating lease liability as of June 30, 2026, reconciled to the present value: SCHEDULE OF MATURITY ANALYSIS OF LEASE LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_48E_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_zwYkXoBSfDG5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Undiscounted Cash Flows</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_488_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zIM46krhXrj3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Present Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%">2026 - 6 months</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 30%; text-align: right"><span id="xdx_906_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20260630__us-gaap--LeaseContractualTermAxis__custom--TwoThousandTwentySixSixMonthsMember_zTGaUa89zi1f" title="Undiscounted Cash Flows">33,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 30%; text-align: right">28,546</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>2027 - 12 months</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20260630__us-gaap--LeaseContractualTermAxis__custom--TwoThousandTwentySevenTwelveMonthsMember_z8EUKd08H4If" title="Undiscounted Cash Flows">66,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">62,645</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">2028 - 1 month</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_903_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20260630__us-gaap--LeaseContractualTermAxis__custom--TwoThousandTwentyEightOneMonthMember_zt4VDUsVjI6l" title="Undiscounted Cash Flows">5,500</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,500</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total Remaining</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">104,500</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">96,691</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The current portion of the operating lease liability as of June 30, 2026, is $59,070 (December 31, 2025 - $55,822). Contractual Arrangements On June 23, 2025, Powerdyne International, Inc. (“Powerdyne International, Inc.” or the “Company”) (OTCPK: PWDY) entered into an investment agreement (the “Agreement”) with GHS Investments, LLC (the “Investor”), whereby the Investor has agreed to invest up to $<span id="xdx_908_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20250623__20250623__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember_zZPioLuBETw3" title="Number of shares purchased">10,000,000 to purchase shares of our common stock. GHS Investments LLC is a Nevada limited liability company, with offices at 420 Jericho Turnpike, Suite 102, Jericho, NY 11753 (the “Investor”). Subject to the terms and conditions of the Investment Agreement and Registration Agreement, we may, in our sole discretion, deliver a put notice to the Investor which states the dollar amount which we intend to sell to the Investor on a certain date. <span id="xdx_90D_eus-gaap--SaleOfStockDescriptionOfTransaction_c20250623__20250623__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--InvestorMember_zollMDDOgXp1" title="Sale of stock description">The amount that we shall be entitled to sell to Investor shall be equal to two hundred percent (200%) of the average daily volume (U.S. market only) of the common stock for the ten (10) trading days prior to the applicable notice date so long as such amount does not exceed a calculated dollar amount per every 10 days of $500,000. The minimum amount shall be equal to $10,000. In connection with the Agreement, we also entered into a registration rights agreement dated June 23, 2025, whereby we agreed to file a Registration Statement on Form S-1 with the Securities and Exchange Commission within thirty (30) days of the date of the registration rights agreement and to have the Registration Statement declared effective by the Securities and Exchange Commission within ninety (90) days after we have filed the Registration Statement. On March 17, 2026, the company hired Transcontinental Partners LLC to render corporate relations, advisory and market awareness campaign for <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pn6n6_c20260317__20260317__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TranscontinentalPartnersLLCMember_zKkcRQsqhOM7" title="Restricted shares">25 million restricted shares for a one-year contract. The Company recorded $<span id="xdx_909_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_c20260317__20260317__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ThirdPartyConsultantsMember_z41macVSj1hf" title="Value of shares issued for prepaid consulting services">117,500 as prepaid consulting services for the <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20260317__20260317__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ThirdPartyConsultantsMember_z4du2DcFtGo9" title="Number of shares issued for prepaid consulting services">25,000,000 shares issued to third party consultants, which was the fair value of the closing price of the shares on the date of issuance. The prepaid consulting services will be amortized over the twelve-month term of the agreement, which commenced on March 17, 2026. During the three months ended June 30, 2026, the Company recognized $29,375 of share-based compensation. During the six months ended June 30, 2026, the Company recognized $33,882 of share-based compensation. The Company relied upon Section 4(2) and/or Regulation D of the Securities Act of 1933, as amended, for the issuance of these securities. No commissions were paid regarding the share issuance, and the share certificates were issued, or “book entry”, with a Rule 144 restrictive legend. Litigation There are no pending, threatened or actual legal proceedings in which the Company or any subsidiary is a party to.

5000

P36M

2028-01-31

5500

0.10

Maturity Analysis of Lease Liability: The following table presents the undiscounted cash flows for the operating lease liability as of June 30, 2026, reconciled to the present value: SCHEDULE OF MATURITY ANALYSIS OF LEASE LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 50%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Year</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_48E_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_zwYkXoBSfDG5" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Undiscounted Cash Flows</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" id="xdx_488_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iI_zIM46krhXrj3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Present Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 32%">2026 - 6 months</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 30%; text-align: right"><span id="xdx_906_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20260630__us-gaap--LeaseContractualTermAxis__custom--TwoThousandTwentySixSixMonthsMember_zTGaUa89zi1f" title="Undiscounted Cash Flows">33,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 30%; text-align: right">28,546</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>2027 - 12 months</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20260630__us-gaap--LeaseContractualTermAxis__custom--TwoThousandTwentySevenTwelveMonthsMember_z8EUKd08H4If" title="Undiscounted Cash Flows">66,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">62,645</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">2028 - 1 month</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_903_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iI_c20260630__us-gaap--LeaseContractualTermAxis__custom--TwoThousandTwentyEightOneMonthMember_zt4VDUsVjI6l" title="Undiscounted Cash Flows">5,500</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,500</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total Remaining</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">104,500</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">96,691</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

33000

28546

66000

62645

5500

104500

96691

59070

55822

10000000

The amount that we shall be entitled to sell to Investor shall be equal to two hundred percent (200%) of the average daily volume (U.S. market only) of the common stock for the ten (10) trading days prior to the applicable notice date so long as such amount does not exceed a calculated dollar amount per every 10 days of $500,000. The minimum amount shall be equal to $10,000.

25000000

117500

25000000

29375

33882

11. SUBSEQUENT EVENTS On July 24, 2026, the Company filed a Form S-1 with the Securities and Exchange Commission pursuant to the terms of an Equity Financing Agreement with GHS Investments LLC dated June 23, 2025 (the “Equity Financing Agreement’), and <span id="xdx_909_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_pid_c20260724__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--EquityFinancingAgreementMember_zRnevh2aqNE4" title="Shares are issuable upon exercise in full of warrants">3,551,136 shares are issuable upon exercise in full of warrants under the terms of a Common Stock Purchase Warrant dated April 22, 2026, between the Company and Quick Capital, LLC. On August 3, 2026, the Company received a Notice of Effectiveness from the Securities and Exchange Commission.

3551136