UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
or
For the Transition Period from _________ to ________.
Commission File Number
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
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| (Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
| Large accelerated filer | ☐ | ☒ | ||
| Accelerated filer | ☐ | Smaller reporting company | ||
| Emerging Growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of June 30, 2026, we had Class A shares outstanding.
TABLE OF CONTENTS
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PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
Internet Sciences Inc.
Consolidated Balance Sheets
(Unaudited)
| June 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | $ | ( |
) | ||||
| Receivables | ||||||||
| Total Current Assets | ||||||||
| Intellectual property – software | ||||||||
| Deferred Compensation | ||||||||
| Total Long-Term Assets | ||||||||
| Total Assets | $ | $ | ||||||
| Liabilities and Stockholders’ Deficit | ||||||||
| Current Liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | $ | ||||||
| Due to related party | ||||||||
| Total Current Liabilities | ||||||||
| Deferred Compensation Liabilities | ||||||||
| Total Liabilities | ||||||||
| Stockholders’ Deficit | ||||||||
| Common Stock, $ par value authorized, Common Stock, and shares issued and outstanding at March 31 and December 31, 2025, respectively | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated deficit | ( |
) | ( |
) | ||||
| Total stockholders’ Equity | ||||||||
| TOTAL Liabilities and Stockholders’ Equity | $ | $ | ||||||
See accompanying notes to consolidated financial statements (unaudited)
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Internet Sciences Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
| For the Six Months Ended June 30, |
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| 2026 | 2025 | |||||||
| Revenue | ||||||||
| Cost of Sales | ||||||||
| Gross Profit | ||||||||
| Operating Expenses | ||||||||
| Professional Fees | ( |
) | ||||||
| Compensation | ||||||||
| Total Operating Expenses | ||||||||
| Operating Income (Loss) | ( |
) | ( |
) | ||||
| Other Income (Expense) | ||||||||
| Net gain (loss) before taxes | ( |
) | ( |
) | ||||
| Income Tax Provision | ||||||||
| Net Income (Loss) | ( |
) | ( |
) | ||||
| Net Income (Loss) attributable to: | ||||||||
| Internet Sciences, Inc. | ( |
) | ( |
) | ||||
| Non-Controlling Interest | ||||||||
| Comprehensive Income (Loss) | ( |
) | ( |
) | ||||
| Basic and diluted net income (loss) per share | ) | |||||||
| Basic and diluted weighted average common shares outstanding | ||||||||
See accompanying notes to consolidated financial statements (unaudited)
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Internet Sciences Inc.
Consolidated Statement of Changes in Stockholders’ Deficit
Six months ended June 30, 2026 and 2025
(Unaudited)
| Common A | Additional Paid In |
Accumulated | Total Stockholders’ |
|||||||||||||||||
| Shares | Value | Capital | Deficit | Equity | ||||||||||||||||
| Balance at December 31, 2024 | ( |
) | ( |
) | ||||||||||||||||
| Net Loss | ( |
) | ( |
) | ||||||||||||||||
| Balance March 31, 2025 | ( |
) | ( |
) | ||||||||||||||||
| Compensation | ||||||||||||||||||||
| Sale of Stock | ||||||||||||||||||||
| Net Income (Loss) | ( |
) | ( |
) | ||||||||||||||||
| Balance at June 30, 2025 | ( |
) | ||||||||||||||||||
| Net Income (Loss) | ( |
) | ( |
) | ||||||||||||||||
| Balance at September 30, 2025 | ( |
) | ||||||||||||||||||
| Purchase of Services | ||||||||||||||||||||
| Compensation | ||||||||||||||||||||
| Net Income/(Loss) | ( |
) | ||||||||||||||||||
| Balance at December 31, 2025 | ( |
) | ||||||||||||||||||
| Net Income (Loss) | ( |
) | ( |
) | ||||||||||||||||
| Balance at March 31, 2026 | ( |
) | ||||||||||||||||||
| Net Income (Loss) | ( |
) | ( |
) | ||||||||||||||||
| Balance at March 31, 2026 | ( |
) | ||||||||||||||||||
See accompanying notes to consolidated financial statements (unaudited)
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Internet Sciences Inc.
Consolidated Statements of Cash Flows
(Unaudited)
| Six Months Ended June 30, |
||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net Income (Loss) | $ | ( |
) | $ | ( |
) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Changes in operating assets and liabilities: | ( |
) | ||||||
| Stock Based Compensation | ||||||||
| Increase in accounts payable and accrued liabilities | ||||||||
| Net cash provided (used) in operating activities | ( |
) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Deferred Compensation | ( |
( |
) | |||||
| Net cash used in investing activities | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from related party | ||||||||
| Other Issuance of Common Stock | ||||||||
| Net cash provided by financing activities | ||||||||
| Net change in cash for the period | ( |
) | ||||||
| Cash at beginning of period | ( |
) | ||||||
| Cash at end of period | $ | $ | ||||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for income taxes | $ | $ | ||||||
| Cash paid for interest | $ | $ | ||||||
| Schedule of Non-cash Investing and Financing Activities: | ||||||||
| Issuance of common shares for repayment of debt, related party | $ | $ | ||||||
| Issuance of common shares for acquisition of intellectual property – software | $ | $ | ||||||
| Forgiveness of accrued wages, related party | $ | $ | ||||||
See accompanying notes to consolidated financial statements (unaudited)
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Internet Sciences Inc.
Notes to Consolidated Financial Statements
For the Three Months Ended March 31, 2026 and 2025
(Unaudited)
NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
The Company was incorporated under the laws of the State of Delaware on May 20, 2016 as Luxury Trine Digital Media Group Inc. and subsequently changed its name to Internet Sciences Inc. on October 5, 2018. The Company has two wholly owned subsidiaries, Institute of Technology Informatics & Computer Analytics LLC, a New York limited liability company organized in September 2014 (“IoTICA”), and Analygence Limited, incorporated in the United Kingdom in April 2020.
The Company is an emerging enterprise data intelligence and analytics platform focused on delivering data purification, operational analytics, and IoT-enabled intelligence solutions for enterprise customers.
See “Business of the Company”.
CORPORATE STRUCTURE
The Company was incorporated under the laws of the State of Delaware on May 20, 2016. The head office is located at 1330 Avenue of Americas, 23rd Floor, New York, NY 10019 and its registered agent office in the State of Delaware is 8 The Green, Suite A, Dover, Delaware 19901.
BUSINESS OF THE COMPANY
General Description of the Business
Internet Sciences Inc. (“ISI”) is an enterprise data intelligence and analytics platform focused on delivering data purification, operational analytics, and IoT-enabled intelligence solutions for enterprise and government customers. ISI’s technology platform is designed to support large-scale data processing, validation, and optimization to improve operational efficiency, decision-making, and automation across complex organizational environments.
ISI is the Company’s primary operating entity. The Company maintains two wholly owned subsidiaries, Institute of Technology Informatics & Computer Analytics LLC (“IoTICA”) and Analygence Limited, which serve primarily as research and development arms supporting advanced computational research initiatives, including the development of quantum-inspired learning model (“QLM”) architectures and related analytical technologies.
ISI develops and commercializes proprietary software solutions delivered through API-based and SaaS deployment models, enabling customers to integrate automated data cleansing, validation, and optimization capabilities into their operational workflows and enterprise systems. These solutions are designed to help organizations automate manual processes, improve data integrity, reduce operational friction, and enhance analytics performance.
ISI’s long-term technology roadmap includes continued enhancement of its enterprise analytics platform through advanced computational optimization methods, including quantum-inspired learning model (“QLM”) architectures intended to support improved scalability and optimization performance for complex enterprise datasets.
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The Company’s proprietary software products are designed to serve middle-market and enterprise customers across multiple industries. The Company’s platform architecture is industry-agnostic and supports horizontal deployment across sectors that rely on large-scale operational data, including manufacturing, logistics, transportation, infrastructure management, and enterprise IT environments.
The Company’s products are designed to support connected devices, distributed systems, and enterprise data environments by enabling automated data ingestion, cleansing, validation, monitoring, and optimization across operational workflows. These capabilities allow organizations to improve data integrity, enhance reliability of information exchange, and optimize data collected from edge devices and enterprise systems for operational decision-making.
The Company’s software solutions, including DataClenz® API and IoTIMAX® API, are commercially available and currently distributed through enterprise cloud marketplaces, including AWS Marketplace and IBM Cloud Catalog. The Company also distributes its products through public-sector technology distributor Carahsoft and continues to expand its private-sector distribution footprint.
The Company’s SaaS-based companion solutions provide enterprise customers with hosted deployment options and expanded functionality designed to support automation of manual data workflows, operational analytics, and enterprise reporting processes.
SALES AND REVENUE EXPANSION STRATEGY
The Company’s current operational focus is the expansion of commercial revenue through scalable enterprise software deployment models. Revenue growth initiatives include:
Direct Enterprise Sales
The Company is building a direct enterprise sales organization focused on business development officers and sales directors with enterprise software sales expertise. The direct sales organization is intended to support consultative sales engagement with middle-market and enterprise customers seeking to address operational data management challenges.
Technology Distribution Channels
The Company leverages established enterprise distribution platforms, including AWS Marketplace, IBM Cloud Catalog, and Carahsoft, which provide marketplace visibility, procurement pathways, and co-marketing opportunities supporting enterprise customer acquisition.
Channel Partner Development
The Company is actively pursuing relationships with value-added resellers, system integrators, and channel development organizations to expand its distribution network. These relationships are intended to support scalable revenue growth by enabling third-party partners to incorporate the Company’s products into broader enterprise solution offerings.
REVENUE MODEL
The Company generates revenue primarily from licensing its proprietary software products through API-based and SaaS deployment models. Additional revenue may be generated through enterprise integration support and solution deployment activities associated with customer adoption of the Company’s platform.
Management expects that, as commercial adoption increases, a growing proportion of revenue will be derived from proprietary software licensing and recurring SaaS subscriptions, supported by continued expansion of distribution channels and enterprise sales capacity.
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PRODUCTS
IoTIMAX
The Company’s universal data optimization SaaS, IotIMAX, is an agnostic data optimization solution tailored for IoT devices. The purpose of this cloud-based platform is to ensure that the user’s IoT data is continuously cleaned, optimized, and primed for real-time analytics, no matter the source or type of device. Each of the primary features of this software are described below.
| ● | Agnostic integration: Compatible with any IoT platform, device, or data source and seamlessly integrates into diverse IoT ecosystems, whether on the edge, in the cloud, or within hybrid environments. |
| ● | Real-time data cleansing: Automatically identifies and rectifies errors, inconsistencies, and redundancies in the user’s IoT data, which is intended to result in high-quality and reliable information providing data validation and correction. |
| ● | Advanced optimization algorithms: Utilizes algorithms that are intended to enhance data for storage and processing, reducing latency and thereby boost the efficiency of IoT applications. |
| ● | Scalable cloud architecture: Designed to scale with the user’s IoT infrastructure, as it can be used in a range of contexts, from small sensor networks to extensive multi-location deployments. |
| ● | Customizable workflows: Provides flexible configuration options, so that the user can customize data cleansing and optimization processes with strong front-end integration. |
| ● | Robust security: Implements rigorous security measures intended to protect data from unauthorized access and breaches, which are designed to be following industry standards and regulations. |
| ● | Comprehensive analytics: Provides detailed analytics and reporting tools designed to help customers gain insights into their data optimization processes and make informed decisions for continuous improvement. |
IoTIMAX API
The IoTIMAX API serves as a centralized interface for optimizing the data generated by IoT devices. In order to achieve this, IoTIMAX API incorporates the following features:
| ● | Data compression: employs compression algorithms to reduce the size of IoT data streams while preserving essential information. |
| ● | Deduplication: identifies and eliminates duplicate data entries within IoT datasets, ensuring that unique information is retained. |
| ● | Normalization: normalizes IoT data by standardizing formats, units of measurement, and timestamps across different data sources. |
| ● | Anomaly detection: utilizes machine learning algorithms to detect anomalies or unusual patterns in IoT data streams. |
| ● | Data aggregation: aggregates IoT data from multiple sources or devices into a unified dataset for analysis. |
| ● | Real-time processing: performs data optimization tasks in real-time or near-real-time, allowing for timely insights and responses to dynamic IoT environments. |
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| ● | Edge computing support: supports edge computing deployments by enabling data optimization to be performed directly on IoT devices or edge gateways. |
| ● | Scalability and performance optimization: designed to scale horizontally to accommodate growing volumes of IoT data and increasing computational demands. |
| ● | Security and privacy: incorporates robust security features to protect IoT data from unauthorized access, tampering, or interception. |
| ● | Integration and interoperability integrate with existing IoT platforms, protocols, and data management systems. |
DATACLENZ
The DataClenz software specializes in cleaning, enhancing, and preparing data generated by various IoT devices for analysis and decision-making. To achieve this, DataClenz incorporates the following features:
| ● | Data cleansing: removes noise, outliers, and inconsistencies from raw IoT data to improve its quality and reliability. |
| ● | Normalization, and standardization: standardizes data formats and units across different sources to ensure consistency and compatibility with a universal data ingestion layer. |
| ● | Anomaly detection and validation: identifies anomalies or unusual patterns in the data that may indicate errors, faults, or significant events, providing detection and validation services. |
| ● | Data enrichment: enriches raw data with additional context or information to provide more insights and context for analysis through data storage and retrieval. |
| ● | Predictive analytics: utilizes machine learning algorithms to analyze historical data patterns and predict future trends or events. |
| ● | Real-time processing: processes real-time data to enable timely insights and actions monitoring events and action. |
| ● | Scalable architecture and flexibility: designed to handle large volumes of data from diverse IoT devices through data enrichment layer and offers flexibility in terms of deployment options. |
| ● | User-friendly interface: provides an intuitive front-end integration user interface that allows users to easily upload, process, visualize, and analyze IoT data with metadata repository of user history. |
| ● | Security and compliance: incorporates robust security measures to protect sensitive IoT data from unauthorized access, manipulation, or disclosure. |
| ● | Integration and interoperability integrate with existing IoT platforms, systems, and workflows ingesting CSV and JSON file formats. |
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DATACLENZ API
DataClenz is being designed to be an agnostic universal data cleansing API. Its purpose is to ensure the accuracy, consistency, and reliability of the user’s IoT data. This product is intended to be able to integrate with any IoT platform, as a solution for cleaning and standardizing data from diverse IoT devices and sensors. The anticipated benefits of this product for customers are to enhance data quality, streamline operations, and drive better decision-making. The primary features of this software are outlined below.
| ● | Platform agnostic: Compatible with all major IoT platforms and protocols, as it is designed to allow for integration regardless of the user’s existing infrastructure. |
| ● | Comprehensive data cleansing: Automatically detects and corrects errors, removes duplicates, fills missing values, and standardizes data formats with the intent of ensuring consistency across all devices. |
| ● | Real-time processing: Cleans data in real-time and provides immediate feedback, which is intended to ensure that only accurate and reliable data is used in the customer’s applications and analytics. |
| ● | Customizable rules and policies: Allows users to define custom cleansing rules and policies tailored to their specific needs to ensure the API adapts to diverse use cases and data requirements. |
| ● | Scalability: Designed to handle large volumes of data, making it accessible for both small-scale IoT projects and extensive industrial IoT deployments. |
| ● | Advanced analytics integration: Integrates with analytics platforms to ensure that the data being analyzed is clean, accurate, and actionable. |
| ● | Security and compliance: Intended to ensure data integrity and compliance with industry standards and regulations, along with safeguarding sensitive information. |
| ● | Easy integration: Simple API calls and comprehensive documentation are intended to facilitate integration into the user’s existing systems. |
ANCILLARY SERVICES
In addition to its proprietary software platform, the Company may from time to time provide ancillary technical and integration services to support customer implementation and deployment of its software solutions.
Historically, the Company explored certain white-label engineering and infrastructure service arrangements through third-party technology distributors. However, such services have not represented a material component of the Company’s business operations, and the Company’s current strategic focus is on the development, commercialization, and scaling of its proprietary software products delivered through API-based and SaaS models.
OUR MISSION
Our mission is to help advance critical milestones in the future of technology.
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HOW ISI CREATES VALUE FOR CLIENTS
ISI’s primary business focus is the development, commercialization, and deployment of its proprietary enterprise data intelligence software platform. The Company’s solutions are designed to automate data cleansing, validation, optimization, and analytics processing across enterprise and IoT-enabled environments.
The Company’s proprietary products are intended to integrate into existing enterprise technology ecosystems and cloud infrastructures. To support customer deployment and integration, ISI maintains relationships with major enterprise technology distributors and platform providers, including IBM, Red Hat, TD SYNNEX, Ingram Micro, and other enterprise technology partners. These relationships primarily support distribution channels, marketplace deployment, procurement pathways, and integration compatibility with customer environments.
ISI’s core value proposition focuses on:
Operational Efficiency
Providing automated data processing and analytics solutions that reduce manual workflows, improve data reliability, and enhance operational decision-making across enterprise systems.
Scalable Deployment
Delivering API-based and SaaS software solutions that can be integrated into diverse enterprise environments, allowing customers to deploy analytics capabilities without requiring large-scale infrastructure replacement.
Platform Compatibility
Ensuring interoperability with widely used enterprise software, cloud platforms, and infrastructure providers so that customers can incorporate ISI’s solutions into existing operational technology stacks.
MARKET OPPORTUNITY
The Company’s current market strategy focuses on expanding commercial adoption of its proprietary software platform through:
| ● | direct enterprise sales |
| ● | recruitment of value-added resellers and system integrators |
| ● | continued expansion of distribution across enterprise cloud marketplaces and technology procurement platforms |
The Company also intends to pursue strategic acquisitions of complementary enterprise software and analytics businesses that can expand its customer base, technology capabilities, and recurring revenue streams.
STRATEGIC FOCUS
ISI’s long-term objective is to build a scalable enterprise software platform centered on data intelligence, automation, and analytics capabilities delivered through recurring SaaS and API-based licensing models.
While enterprise customers may utilize broader infrastructure, connectivity, or hosting services from third-party providers, ISI’s primary focus is on software platform deployment, analytics automation, and data optimization capabilities rather than telecommunications infrastructure ownership or network service provision.
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Our Corporate Strategy
The Company’s corporate strategy focuses on executing a two-tier growth strategy:
| a. | Growth by acquiring existing revenue producing companies with at least 10 years of operations in the technology spaces in which they operate, a critical mass of customers, ownership of key intellectual property assets and that provide critical services to business and government customers. |
| b. | Organic growth by developing product and services in new business segments in horizontal markets for diversification across geographies, industries, and customers. |
The consolidated financial statements include the following subsidiaries:
Schedule of consolidated financial statements
| Ownership | |||||||
| Country | Interest | ||||||
| Institute of Technology, Informatics & Computer Analytics LLC (IoTICA) | % | ||||||
| Analygence Limited (AL) | % | ||||||
In June 2020, AL was formed in UK as an extension of IoTICA and as a response to the limitations of travel between the UK and US caused by the COVID-19 pandemic. There were no operations through TDB and AL for the three months ended March 31, 2026. There were no assets and liabilities of TDB and AL as of December 31, 2025.
In the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated in consolidation.
Foreign Currency
The Company’s functional and reporting currency is the United States dollar. The functional currency of AL is the British pound. On consolidation, the subsidiaries translate their assets and liabilities to U.S. dollars using foreign exchange rates which prevailed at the balance sheet date and translate their revenues and expenses using average exchange rates during the period. Gains and losses arising on settlement of foreign currency denominated transactions are included in earnings, while differences arising from translation of balances are included in the other comprehensive income/loss. No foreign currency translation or transactions gains or losses were recognized during the six months ended June 30, 2026, or 2025 due to the absence of operations in the UK subsidiaries.
Basis of Presentation
The accompanying consolidated financial statements (unaudited) are condensed and have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with US GAAP, have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025. The results of operations for the six months ended June 30, 2026, are not necessarily indicative of the operating results for the full year ended December 31, 2026.
In the opinion of management, all adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position, results of operations, and cash flows as of and for the six months ended June 30, 2026, and 2025, have been made.
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Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management in the accompanying financial statements include, but are not limited to, the fair value of stock-based compensation and the deferred tax asset valuation allowance.
Cash and Cash Equivalents
All highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The Company places its cash with high credit quality financial institutions. The Company’s accounts at these institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $
Fair Value of Financial Instruments
The Company follows ASC 820, “Fair Value Measurements and Disclosures,” 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 US GAAP that require 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: Observable inputs such as quoted market prices in active markets for identical assets or liabilities
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data
Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions.
ASC 825-10-25 Fair Value Option expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments.
The carrying amounts reported in the balance sheet for the Company’s current assets and liabilities approximate their estimated fair market value based on the short-term maturity of these instruments.
Revenue Recognition
The Company plans to follow the guidance of ASC 606, “Revenue from Contracts with Customers,” and will recognize revenue from the sale of products and services in accordance with the following five criteria:
Step 1: Identify the contract(s) with customers
Step 2: Identify the performance obligations in the contract
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Step 3: Determine the transaction price
Step 4: Allocate the transaction price to performance obligations
Step 5: Recognize revenue when the entity satisfies a performance obligation
The Company plans to recognize revenue as it transfers control of promised services to its customers. The amount of revenue recognized will reflect the consideration to which the Company expects to be entitled in exchange for these services.
Income Taxes
Income taxes are accounted for under the asset and liability method as prescribed by ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance, when in the Company’s opinion it is likely that some portion or the entire deferred tax asset will not be realized.
ASC 740 related to the accounting for uncertainty in income taxes, the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. The accounting standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition.
Stock-based compensation is accounted for based on the requirements of ASC 718, “Compensation – Stock Compensation,” which requires recognition in the financial statements of the cost of employee, director, and non-employee services received in exchange for an award of equity instruments over the period the individual or entity is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of services received in exchange for an award based on the grant-date fair value of the award.
ASC 260 “Earnings Per Share,” requires dual presentation of basic and diluted earnings per share (“EPS”) with a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. Basic EPS excludes dilution. Diluted EPS reflects 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. Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of shares of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during each period, unless the result is anti-dilutive.
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Net loss per share for each class of common stock is as follows:
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net loss per share, basic and diluted | $ | ) | $ | ) | ||||
| Net loss per common shares outstanding: | ||||||||
| Common stock | $ | ) | $ | ) | ||||
| Weighted average shares outstanding: | ||||||||
| Common stock | ||||||||
For the six months ended June 30, 2026 and 2025, there were no potentially dilutive securities outstanding.
Software Costs
The Company accounts for software costs in accordance with several accounting pronouncements, including ASC 730, “Research and Development,” ASC 350-40, “Internal-Use Software,” ASC 985-20, “Costs of Computer Software to be Sold, Leased, or Marketed” and ASC 350-50, “Website Development Costs.”
Costs incurred during the period of planning and design, prior to the period determining technological feasibility, for all software developed for use internal and external, has been charged to operations in the period incurred as research and development costs. Additionally, costs incurred after determination of readiness for market have been expensed as research and development.
The Company will capitalize certain costs in the development of our proprietary software (computer software to be sold, leased or licensed) for the period after technological feasibility was determined and prior to our marketing and initial sales. Website development costs are capitalized under the same criteria as our marketed software, and purchased software is capitalized at cost and amortized over its useful life.
Impairment of Long-lived Assets
Long-lived assets, such as fixed assets, software and identifiable intangibles, are reviewed for impairment whenever facts and circumstances indicate that the carrying value may not be recoverable. When required, impairment losses on assets to be held and used are recognized based on the fair value of the asset. The fair value is determined based on estimates of future cash flows, market value of similar assets, if available, or independent appraisals, if required. If the carrying amount of the long-lived asset is not recoverable from its undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount and fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risk associated with the recovery of the assets. We did not recognize any impairment losses for any periods presented.
Related Parties
The Company follows ASC 850, “Related Party Disclosures,” for the identification of related parties and disclosure of related party transactions (see Note 3).
Recent Accounting Pronouncements
The Company has reviewed and implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations.
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NOTE 2 – GOING CONCERN CONSIDERATIONS
The accompanying consolidated financial
statements are prepared assuming the Company will continue as a going concern. As of June 30, 2026, the Company had an accumulated
deficit of $
NOTE 3 – RELATED PARTY TRANSACTIONS
During the six months ended June 30, 2026 and 2025, the Company received advances from its CEO totaling $
NOTE 4 – EQUITY
Prior to September 2024 the Company has authorized shares of common stock, par value of $ per share, with shares of common stock -class A designated and shares of common stock -class B designated. Each holder of common stock-class A and common stock-class B is entitled to one vote and three votes, respectively, for each such share outstanding in the holder’s name.
In September 2024 the Company’s Board of Directors resolved to convert all of its issued and outstanding Common Stock B shares of to Common Stock A shares. The shares were converted on a one-for-one basis. Common Stock B shares and Common Stock A shares had the same par value of $ per share. All Common Stock A shares are entitled to one vote for each share outstanding in the holder’s name.
Common Stock – Class A
As of June 30, 2026 and December 31, 2025, the Company had shares of common stock-class A issued and outstanding.
During the six months ended June 30, 2026, the Company did t issue and shares of class A common stock.
NOTE 5 – INTELLECTUAL PROPERTY
During the three months ended March 31, 2023, the Company acquired software from a third-party in exchange for shares of common stock valued at $ per share for total software cost of $
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NOTE 6 – 83(i) ELECTION
Sec. 83(i) provides an election that allows a qualified employee to defer the inclusion of income from the exercise of an RSU or option of the qualified stock to the point of vesting. The company will recognize the amount of compensation upon the vesting date. The company will deduct the salary compensation upon the vesting date. Until the point of vesting, the company is reporting the deferred salary of: $
NOTE 7 – Subsequent Event – Equity Commitment for ESG Initiatives
Subsequent to the quarter ended March 31, 2026, the Company’s Board of Directors approved a plan to issue up to an aggregate of shares of common stock, to be allocated over a five year period at the rate of shares per year, in support of initiatives aligned with the Company’s environmental, social and governance (ESG) objectives. The shares are intended to fund and support programs focused on advancing science, technology, promoting arts initiatives at children’s museums, and supporting environmental and biodiversity efforts.
As of the date of this filing, no shares have been issued pursuant to this plan. The timing and issuance of shares will be subject to further Board authorization and applicable regulatory and contractual considerations.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Management’s Discussion and Analysis
This section of Form 10-Q includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.
Overview
Internet Sciences Inc. (“ISI” or the “Company”) was originally incorporated as Luxury Trine Digital Media Group, Inc. in the State of Delaware on May 20, 2016. On October 5, 2018, the Company changed its name to Internet Sciences Inc. On October 5, 2018, the Company changed its name to Internet Sciences Inc. (“ISI”). Internet Sciences Inc. (“ISI” or the “Company”), formerly known as Luxury Trine Digital Media Group Inc., is an emerging enterprise data intelligence and analytics platform focused on delivering data purification, operational analytics, and IoT-enabled intelligence solutions for enterprise customers.
The consolidated financial statements include the following subsidiaries:
| Ownership | |||||||
| Country | Interest | ||||||
| Institute of Technology, Informatics & Computer Analytics LLC (IoTICA) | USA | 100 | % | ||||
| Analygence Limited (AL) | United Kingdom | 100 | % | ||||
The Company’s current strategic emphasis is on the development, commercialization, and scaling of its proprietary software products delivered through licensing, API-based and SaaS models.
Concurrently, the Company formalized its research and development structure by designating its wholly owned subsidiaries, Institute of Technology Informatics & Computer Analytics LLC (“IoTICA”) and Analygence Limited, as dedicated research arms supporting advanced computational initiatives. These subsidiaries now focus primarily on the development of quantum-inspired learning model (“QLM”) architectures and related optimization frameworks intended to enhance the Company.
Operating Structure
Internet Sciences Inc. (“ISI”) is the Company’s primary operating entity and is responsible for commercialization, customer engagement, and revenue-generating activities. ISI develops and distributes its proprietary enterprise data intelligence software solutions through API-based and SaaS deployment models.
The Company maintains two wholly owned subsidiaries, Institute of Technology Informatics & Computer Analytics LLC (“IoTICA”) and Analygence Limited, which serve as dedicated research and development arms. These subsidiaries do not independently commercialize products or generate material revenue. Their primary function is to conduct advanced computational research and support long-term innovation initiatives aligned with ISI’s enterprise analytics platform.
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Current Business Focus
ISI’s current strategic focus is the commercialization and scaling of its proprietary enterprise software platform, which provides data purification, validation, optimization, and analytics capabilities for enterprise and IoT-enabled environments. The Company’s solutions are designed to automate manual data workflows, enhance operational efficiency, and improve decision intelligence across complex systems.
Research and Innovation Initiatives
In parallel with commercialization activities, the Company continues to invest in research initiatives focused on advanced computational optimization methods. These initiatives include the development of quantum-inspired learning model (“QLM”) architectures and related decision-intelligence frameworks designed to enhance scalability and optimization performance for large-scale enterprise datasets.
QLM research is intended to support long-term technological differentiation and platform enhancement. Commercial deployment of products derived from such research, if any, is undertaken by ISI.
Strategic Platform Enhancement
The Company’s research initiatives are designed to enhance and extend the capabilities of its enterprise analytics platform over time. By maintaining dedicated research subsidiaries focused on advanced computational methods, ISI is able to pursue long-term innovation while preserving operational focus on commercialization and revenue generation.
The integration of advanced optimization frameworks, including quantum-inspired learning model (“QLM”) architectures, is intended to improve scalability, decision intelligence, and system performance across complex enterprise environments. These enhancements are expected to strengthen the Company’s ability to address large-scale data challenges in IoT-enabled and distributed systems.
The separation of research and commercialization functions allows ISI to manage development risk while continuing to expand its enterprise software footprint. This structure is designed to support sustainable innovation, disciplined capital allocation, and scalable growth.
The Company’s principal place of business is 1330 Avenue of the Americas, 23rd Floor, New York, NY 10019.
Its registered address with the State of Delaware is 8 The Green STE A, Dover, Delaware 19901.
Our Competition
The Company operates in highly competitive and rapidly evolving markets for enterprise data analytics, data management, and optimization software. The competitive landscape includes large, well-capitalized enterprise software providers, cloud platform operators, and specialized analytics and data infrastructure companies.
The Company competes with established enterprise software vendors that offer data integration, analytics, automation, and cloud-based solutions, as well as emerging technology firms developing advanced data intelligence and optimization tools. Many of these competitors have significantly greater financial resources, longer operating histories, broader customer bases, and established brand recognition.
In addition, certain cloud platform providers and infrastructure vendors may offer integrated analytics capabilities within their broader ecosystems, which could limit the need for third-party solutions such as those offered by the Company.
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Competition in this market is based on factors including technological capability, scalability, integration flexibility, performance, pricing, customer relationships, and the ability to demonstrate measurable operational value. The Company’s ability to compete effectively will depend on its capacity to continue enhancing its platform, expand distribution channels, and secure sufficient capital to support commercialization and growth initiatives.
There can be no assurance that the Company will be able to compete successfully against existing or future competitors.
Results of Operations
Six months ended June 30, 2026, compared to the six months ended June 30, 2025
Revenue and Cost of Sales
During the six months ended June 30, 2026, and June 30, 2025, the company earned revenues of $0. There were no Cost associated as there were no revenues.
Operating Expenses and Loss from Operations
Total operating expenses and loss from operations for the six months ended June 30, 2026 were $6,067, a decrease of $39,830 from total operating expenses and loss from operations for the comparable six months ended June 30, 2025. The decrease is due primarily to a decrease in General and Administrative and Professional expenses.
Other Income (Expense)
Other Income for the six months ended June 30, 2026 and June 30, 2025 was Interest Income of $0 and $126 respectively.
Net Loss and Net Comprehensive Loss
We reported a net loss and net comprehensive loss of $6,067 for the six months ended June 30, 2026 and net comprehensive loss of $45,896 for the six months ended June 30, 2025, due to the factors noted above.
Liquidity and Capital Resources
Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. At June 30, 2026 and December 31, 2025, we had a cash balance of $0 and $(14) respectively, and our working capital deficit was $72,440 and $66,373 respectively.
Accrued expenses and accounts payable were $63,993 and $58,730 as of June 30, 2026, and December 31, 2025, respectively. Accrued expenses and accounts payable for related parties were $2,699 and $1,881 as of June 30, 2026 and December 31, 2025, respectively.
The Company is considered to be an early-stage company and had no sales during the six months ended March, 2026. The Company generated its first and only revenue to date during the quarter ended June 30, 2024. Thus, net sales are not sufficient to fund our operating expenses. We will need to raise significant additional capital to fund our operating expenses, pay our obligations, and grow our company. We are unsure if we will be profitable in 2026. Therefore, our operations will be dependent on our ability to secure additional financing. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. If we are successful in securing additional working capital, we intend to increase our marketing efforts to grow our revenues.
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Operating Activities
Net cash flows provided by operating activities for the six months ended June 30, 2026 amounted to $502,943 and was attributable to our net loss of $6,067 in addition to an increase in accounts payable and Deferred Compensation of $509,101.
Investing Activities
Net cash flows used in invest activities for the six months ended June 30, 2026 amounted to $502,930 and was attributable to deferred compensation. Net cash flows used in investing activities for the six months ended June 30, 2025 amounted to $522,327 and was attributable to deferred compensation.
Financing Activities
Net cash flows provided by finance activities were $0 for the six months ended June 30, 2026 and $543,502 for the six months ended June30, 2025.
Critical Accounting Policies and Estimates
Our financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. These estimates and assumptions are affected by management’s applications of accounting policies. Critical accounting policies for our company include revenue recognition and accounting for stock-based compensation, use of estimates, and income taxes.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management in the accompanying financial statements include but are not limited to the fair value of stock-based compensation and the deferred tax asset valuation allowance.
Recent Accounting Pronouncements and Adoption of New Accounting Principles
The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations.
Off Balance Sheet Arrangements
None
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Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.
Item 4. Controls and Procedures.
Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time period specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is accumulated and communicated to management including our principal executive officer and principal financial officer as appropriate, to allow timely decisions regarding required disclosure.
In connection with this quarterly report, as required by Rule 15d-15 under the Securities Exchange Act of 1934, we have carried out an evaluation of the effectiveness of the design and operation of our company’s disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our company’s management, including our company’s principal executive officer and principal financial officer. Based upon that evaluation, our company’s principal executive officer and principal financial officer concluded that as of March 31, 2026 our disclosure controls and procedures were effective due to the correction of material weaknesses in our internal controls over financial reporting.
Changes in Internal Control Over Financial Reporting
There were several changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f)) during the quarter ended June 30, 2025, that have improved our internal controls over financial reporting.
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PART II—OTHER INFORMATION
Item 1. Legal Proceedings.
Currently we are not involved in any pending litigation or legal proceeding.
Item 1A. Risk Factors.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
Item 2. Unregistered Sales of Securities and Use of Proceeds.
No shares of common stock were sold or otherwise issued by the Company during the three months ended March 31, 2026.
Item 3. Defaults Upon Senior Securities.
None
Item 4. Mine Safety Disclosure.
None
Item 5. Other Information.
Item 6. Exhibits.
The following documents are filed as a part of this report or are incorporated by reference to previous filings, if so indicated:
| * | Included in Exhibit 31.1 |
| ** | Included in Exhibit 32.1 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Internet Sciences Inc. | ||
| Date: August 3, 2026 | By: | /s/ Lynda Chervil |
| Lynda Chervil | ||
|
Director, Chief Executive Officer, President (Principal Executive Officer) | ||
| Date: August 3, 2026 | By: | /s/ DeeAnn M. Cain CPA |
| Chief Financial Officer | ||
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