NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Nature of Business | 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
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| General Description of the Business | 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.
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.
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.
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:
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:
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.
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 | 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.
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| MARKET OPPORTUNITY | MARKET OPPORTUNITY
The Company’s current market strategy focuses on expanding commercial adoption of its proprietary software platform through:
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.
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| STRATEGIC FOCUS | 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 | Our Corporate Strategy
The Company’s corporate strategy focuses on executing a two-tier growth strategy:
The consolidated financial statements include the following subsidiaries:
Schedule of consolidated financial statements
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.
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| Foreign Currency | 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.
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| Basis of Presentation | 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 | 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.
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| Cash and Cash Equivalents | 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 $250,000. As of June 30, 2026 and December 31, 2025, the Company did not reach bank balances exceeding the FDIC insurance limit.
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| Fair Value of Financial Instruments | 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.
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| Revenue Recognition | 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
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.
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| Income Taxes | 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.
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| Stock-Based Compensation |
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.
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| Net Loss per Share |
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.
Net loss per share for each class of common stock is as follows:
For the six months ended June 30, 2026 and 2025, there were no potentially dilutive securities outstanding.
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| Software Costs | 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.
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| Impairment of Long-lived Assets | 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.
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| Related Parties | 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).
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| Recent Accounting Pronouncements | 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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