POWERDYNE INTERNATIONAL, INC. Annual Report - How They Did This Year

I’m putting together this guide to help you understand Powerdyne International’s performance. My goal is to explain their financial filings in plain English so you can decide if this company belongs in your portfolio.

1. What does this company do?

Powerdyne International is a small, Massachusetts-based business with two main segments:

• Creative Motion Technology (CM Tech): They design and build custom industrial motors for robotics used in semiconductor manufacturing. This makes up about 92% of their total revenue.
• Frame One: A local custom picture framing shop in North Reading, MA. This retail shop brings in $150,000 to $200,000 annually, providing steady, minor cash flow.

They are a niche manufacturer that relies on international customers. In 2025, 58% of their sales came from outside the U.S., down from 82% in 2024. This shift shows they are pivoting toward domestic semiconductor factories expanding under the U.S. CHIPS Act.

2. Financial performance and health

The company is currently in a "survival and stabilization" phase. For the 2025 fiscal year, they reported about $2.4 million in revenue and a loss of roughly $450,000. They are a tiny operation with only 9 full-time employees and 5 consultants. Because their stock does not trade on a public exchange, they aren't valued like typical stocks. They often struggle to pay their bills, relying on short-term loans and delayed pay for management to keep running.

3. Major wins and challenges

• The "Just-in-Time" Strategy: They have 20-year relationships with Asian suppliers. This helps them keep inventory moving quickly and keeps storage costs low. Their lean model keeps inventory levels below $300,000.
• Tariff Impacts: Since 2018, they have faced 25% import tariffs on Chinese motor parts. They have managed to pass about 60% of these extra costs to customers through price increases in their contracts.
• Heavy Reliance: They depend heavily on a few semiconductor customers. Their top two clients represent 74% of total revenue. Losing either would be a devastating blow to the company’s survival.

4. Key risks

• No Trading Market: The SEC revoked their registration in 2019. You cannot buy or sell these shares on any public exchange. It is an extremely "illiquid" investment; if you own it, you are likely stuck with it until the company is sold or liquidated.
• Foreign Trade Risks: Because they rely on parts from Asia, they are vulnerable to trade wars and shipping delays. A 10% increase in shipping costs can cut their thin profit margins by 1.5%.
• Dilution: They have about 1.98 billion shares outstanding. If they need more cash, they may issue more shares, which reduces your ownership percentage.
• Control: Mr. James F. O’Rourke holds Series A Preferred Stock with 1,000 votes per share. This gives him absolute veto power over any shareholder vote, regardless of what other stockholders want.

5. Future outlook

The company is in "wait and see" mode. They are trying to stay in business, but they haven't provided a clear plan for growth or profit. Management is currently exploring "strategic alternatives," which usually means they are looking for a buyer or a merger partner to provide an exit for shareholders.

Bottom Line: This is not a typical investment. With no active market for the stock, heavy reliance on a few clients, and a single person holding all the voting power, it is a high-risk, speculative situation. Before considering an investment, ask yourself if you are comfortable holding an asset that cannot be easily sold and is currently operating at a loss.