Powerdyne International Reports Q1 2025 Financial Results with Revenue Decline and Reduced Net Loss

Powerdyne International, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $271,056, a slight decrease from $275,739 in the same period of 2024. The company's cost of revenues also decreased, amounting to $209,418 compared to $215,251 a year earlier. This resulted in a gross profit of $61,639, up from $60,487 in the previous year. Despite the decline in revenue, the company managed to reduce its operating expenses significantly from $156,189 in Q1 2024 to $116,773 in Q1 2025, leading to a reduced net loss of $55,134, compared to a loss of $95,702 in the prior year.

The financial position of Powerdyne International showed a notable increase in total assets, which rose to $340,213 as of March 31, 2025, from $219,330 at the end of 2024. This increase was primarily driven by the addition of a right-of-use asset valued at $110,372. However, the company also reported a significant rise in total liabilities, which increased to $648,891 from $472,874, largely due to an increase in the line of credit and current lease liabilities. The stockholders' deficit widened to $308,678 from $253,543, reflecting the ongoing challenges in achieving profitability.

Strategically, Powerdyne continues to focus on its acquisition of Creative Motion Technology, LLC, which was completed in March 2022. This acquisition has allowed the company to expand its product offerings in the industrial motor sector, particularly for semiconductor manufacturing. The company also operates Frame One, a custom picture framing business, which has shown growth, contributing an increase in revenue of $27,642 during the quarter. The company’s management anticipates that revenues from CM Tech will improve as economic conditions stabilize, despite facing challenges such as potential tariffs.

Operationally, Powerdyne reported a working capital deficit of $322,640 as of March 31, 2025, compared to $253,544 at the end of 2024. The increase in the deficit is attributed to the current portion of lease liabilities and an increase in the line of credit. The company has drawn $220,000 from its line of credit to support working capital needs, which is secured against its trade accounts receivable and inventories. As of the end of the quarter, the company had cash reserves of $11,525, a significant decrease from $45,579 at the end of 2024.

Looking ahead, Powerdyne International remains cautiously optimistic about its financial outlook. Management expects to continue generating revenue growth, particularly from its CM Tech subsidiary, while maintaining a focus on cost management to improve profitability. However, the company acknowledges the uncertainty in market conditions and the need for additional financing to support its operations and growth initiatives. The management's forward-looking statements emphasize the importance of navigating these challenges to achieve sustainable financial health.