As filed with the U.S. Securities and Exchange Commission on July 29, 2019.August 31, 2021.

Registration No. 333-229256

333-

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM S-1 Amendment No. 3
to

FORM S-1

 

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 

IINTERNETNTERNET SCIENCES INC.

(Exact name of Company as specified in its charter)

 

Delaware______ 81-2775456
(State or other jurisdiction
of Incorporation)

Primary Standard Industrial

Classification Code Number)

(IRS EIN)

 

275 Madison521 Fifth Ave, 617th Floor
New York, New York 1001610175
Telephone Number 212-880-3750212-586 4141
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

Lynda Chervil, CEO

275 Madison521 Fifth Ave, 617th Floor
New York, New York 1001610175
Telephone Number 212-880-3750212-586 4141
(Name, address, including zip code, and telephone number, including area code, of agent for service)

 

Copies to:

Joseph Lesko, BlackCastle Strategies

Jeff Turner, Esq.

JDT Legal PLLC

897 Baxter Drive

South Jordan, UT 84095

801-810-4465

jeff@jdt-legal.com

4653 Carmel Mountain Road, Ste. 308-83
San Diego, California 92130
(858) 354-6816 (Tel.)

 

As soon as practicable after the effective date of this Registration Statement.

(Approximate date of commencement of proposed sale to the public)

 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.xo

 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act Registration Statement number of the earlier effective Registration Statement for the same offering.¨o

 

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act Registration Statement number of the earlier effective Registration Statement for the same offering.¨o

 

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act Registration Statement number of the earlier effective Registration Statement for the same offering.¨o

 

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.

 

Large accelerated filer¨oAccelerated filer¨o
Non-accelerated filer¨oSmaller reporting companyx
  Emerging growth companyx

 

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 to Section 7(a)(2)(B) of the Securities Act.¨x

 

Calculation of Registration Fee
 
Title of Securities To Be Registered 

Proposed Maximum Aggregate

Offering Price (1)(2)

  Registration Fee(2)(3) 
       
Class A Common Stock, $0.001 per share $590,000  $72.00 
Class B Common Stock, $0.001 per share $800,000  $97.00 
      $169.00 
Calculation of Registration Fee

 

Title of Securities To Be Registered Proposed Maximum Aggregate
Offering Price (1)
  Registration Fee 
       
Class A Common Stock, par value $0.001 per share $10,000,000  $1,091(2)

(1) Pursuant to Rule 416 under the Securities Act, the shares of common stock offered hereby also include an indeterminate number of additional shares of common stock as may from time to time become issuable by reason of stock splits, stock dividends, recapitalizations or other similar transactions.

(2) The Offering price has been estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(a) of the Securities Act and is based upon the Company’s estimate of the value of the Class A Common Stock.

(3) Previously paid.

(1)Estimated solely for the purpose of calculating the amount of the registration fee in accordance with Rule 457(o) under the Securities Act.
(2)Previously Paid

 

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

 

 

 
 

EXPLANATORY NOTE

Pursuant to the applicable provisions of the Fixing America’s Surface Transportation Act, we are omitting our unaudited financial statements as of and for each of the nine months ended September 30, 2017 and 2018 because they relate to historical periods that we believe will not be required to be included in the prospectus at the time of the contemplated offering. We intend to amend this registration statement to include all financial information required by Regulation S-X at the date of such amendment before distributing a preliminary prospectus to investors.

   

The information in this Prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission becomes effective. This Prospectus is not an offer to sell these securities and we are not soliciting offers to buy these securities in any state where the offer or sale is not permitted.

 

PRELIMINARY PROSPECTUS

 

SUBJECT TO COMPLETION ON JULY ___, 2019

August 30, 2021

 

Internet Sciences Inc.

590,0002,000,000 Shares of Class A Common Stock
800,000 Shares of Class B Common Stock

 

This Prospectus relates to the resale of up to 590,000 sharesis a public offering of our Class A Common Stock, par value $0.001 per share and 800,000common stock. We are selling 2,000,000 shares of Class B Common Stock $0.001 by selling stockholders. The selling stockholders may sell all or a portionA common stock at $5.00 per share of the shares being offered pursuant to this Prospectus at fixed prices, at prevailing market prices at the time of sale, at varying prices or at negotiated prices.

The selling stockholders are underwriters within the meaning of the Securities Act of 1933 (the “Act”) and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters” within the meaning of the Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Act.

We will not receive any proceeds from the sale of shares of our Class A or B Common Stock by the selling stockholders. We will pay for expenses of this offering, except that the selling stockholders will pay any broker discounts or commissions or equivalent expenses and expenses of its legal counsel applicable to the sale of its shares.common stock.

 

Investing in our Common Stock involves a high degree of risk. See “Risk Factors” to read about factors you should consider before buying shares of our Common Stock.

 

We are an “emerging growth company” as that term is useddefined under the federal securities laws and, as such, we have elected to comply with certain reduced reporting requirements for this prospectus and may elect to do so in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). See “Description of Business” and “Risk Factors.”future filings.

 

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

The Date of This Prospectus is: July ____, 2019

 3

  Per Share  Total 
Public offering price $5.00  $10,000,000 
         
Proceeds to us (before expenses) assuming 2,000,000 shares are sold $5.00  $10,000,000 

TABLE OF CONTENTS

 

PROSPECTUS SUMMARY4
 Page
Prospectus SummaryRISK FACTORS58
Risk FactorsUSE OF PROCEEDS713
Use of ProceedsDILUTION14
Determination of Offering Price14
Dilution14
Selling Stockholders14
Plan of DistributionSHARES ELIGIBLE FOR FUTURE SALE15
Description of Securities to be RegisteredDESCRIPTION OF CAPITAL STOCK16
Interests of Named Experts and CounselINTEREST OF NAMED EXPERTS AND COUNSEL16
WHERE YOU CAN FIND MORE INFORMATION17
Where You Can Find More Information17
Description of BusinessDESCRIPTON OF BUSINESS18
Management Discussion and Analysis of Financial Condition and Plan of Operations22
Description of PropertyMANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS2721
Executive CompensationDESCRIPTION OF PROPERTY24
EXECUTIVE COMPENSATION25
LEGAL PROCEEDINGS26
MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT’S26
COMMON EQUITY AND RELATED STOCKHOLDER MATTERS26
CHANGES IN AND DISAGREEMENTS WITH26
ACCOUNTANT ON ACCOUNTING AND FINANCIAL DISCLOSURE26
FINANCIAL STATEMENTS AND EXHIBITS28
Legal Proceedings29
Market for Common Equity and Related Stockholder MattersSIGNATURES29
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure29
Index to Financial StatementsF-131

  

Please read this Prospectus carefully and in its entirety. This Prospectus contains disclosure regarding our business, our financial condition and results of operations and risk factors related to our business and our Common Stock, among other material disclosure items. We have prepared this Prospectus so that you will have the information necessary to make an informed investment decision.

 

You should rely only on information contained in this Prospectus. We have not authorized any other person to provide you with different information. This Prospectus is not an offer to sell, nor is it seeking an offer to buy, these securities in any state where the offer or sale is not permitted. The information in this Prospectus is complete and accurate as of the date on the front cover, but the information may have changed since that date.

 

The Registration Statement containing this Prospectus, including the exhibits to the Registration Statement, provides additional information about our Company and the Common Stock offered under this Prospectus. The Registration Statement, including the exhibits and the documents incorporated herein by reference, can be read on the Securities and Exchange Commission website or at the Securities and Exchange Commission offices mentioned under the heading “Where You Can Find More Information.”

 4

PROSPECTUS SUMMARY

 

This summary highlights selected information contained elsewhere in this Prospectus. It does not contain all the information that you should consider before investing in the Common Stock. You should carefully read the entire Prospectus, including “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Financial Statements, before making an investment decision. In this Prospectus, the terms “Internet Sciences” “Company,” “Registrant,” “we,” “us” and “our” refer to Internet Sciences, a Delaware Corporation.corporation.

 

Our Business

 

Internet Sciences Inc. (“ISI” or the “Company”), formerly known as Luxury Trine Digital Media Group Inc., is a developmentan early stage emerging diversified information and communications technology company specializing in cutting-edge digital transformation services, including new-media technology; telecommunication and network carrier services; IoT-enabled solutions; and managed ICT, managed cloud services, data centers and co-location services.

 

Founded in 2016, and based in New York, N.Y., ISI seeks to operate internationally with a global team known for its technological expertise, deep industry knowledge, world-class research and analytical capabilities, and innovative mindset.

 

ISI seeks to transform corporations, enterprises and government entities by providing best-in-class solutions, rooted in and driven by the technology, data, and organizational strategy required for operational excellence. Our interdisciplinary teams work in close collaboration with clients, helping them to solve their biggest problems utilizing a user-centric, data-driven approach focusing on creating seamless unified experiences across all digital, communication and physical touchpoints.

 

Our mission is to help advance critical milestones in the future of communication technology.

How We Create Value for Clients

Our top priorities are to manage and deliver products and services of acquired companies while concurrently extending our current product and service offerings to meet clients’ needs. Our core value proposition is designed to offer:

·Convenience – Our goal will be to provide a comprehensive offering of products and services to meet all of the information and communications technology needs of our clients. We will provide semi-annual proposals with a list of recommendations to be implemented within ISI’s family of companies.

·Cost Effectiveness – Since ISI will use bundle pricing for its products and services, clients will benefit from our ability to provide lower prices in a bundle than purchasing individual stand-alone products or services.

Our Broad Inventory of the Existing Products and Services of the Acquisition Targets:

Broadbank Telecom and Voice Services

·Gigabit WAN connectivity via wireless and wired leased lines.
·Structured cabling design and installation
·Digital Signage and IPTV solutions

Wired and Wireless Surveys

·SME & enterprise network design
·Network installation and build
·Cloud hosting and virtualization
·Systems integration

·Software development
·Consultancy

Onsite Infrastructure Support

·Network management
·Service management
·Onsite network support

Data Centers and Co-location Services

·Hybrid co-locations
·Hyperscale
·Cloud solutions
·Managed services
·Connectivity

Cybersecurity

·Audit Compliance
·Encryption
·Firewall Implementation
·Intrusion Detection/Penetration Testing
·Virus Protection
·Vulnerability Assessment/Audits

Our Market Opportunity

We see our market opportunities as follows:

Opportunities in building a high margin business model-open source platform, software and hardware which offer substantial cost-savings on licenses, with better security and reliability than many leading closed-source platforms.

We intend to target acquisitions in digital telecommunication that are Tier 1 and Tier 2 network providers, furthering opportunities with services delivered over guaranteed access networks, increasing security, quality and speed:

·By migrating future clients who might use legacy technology to more efficient technology, this migration will significantly increase rental margins.

·By marketing internet hosted telephone platforms to satisfy demand in the global marketplace for telephone systems and services “in the cloud”.

·By integrating existing installations into multimedia contact center environment.

·By capitalizing on general transposition of IT services not “in the cloud”, requiring the faster, more robust
·internet connectivity that some of the acquisition targets are primed to provide.

·By integrating voice services with multimedia contact center applications.

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. Currently, we do not have any planned acquisitions.

b.Organic growth by developing product and services in new business segments in horizontal markets for diversification across geographies, industries, and customers.

Implications of Being an Emerging Growth Company

 

We qualify as an emerging growth company as that term is used in the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. These provisions include:

 

 A requirement to have only two years of audited financial statements and only two years of related MD&A;
   
 Exemption from the auditor attestation requirement in the assessment of the emerging growth company’s internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002 (“SOX”);
   
 Reduced disclosure about the emerging growth company’s executive compensation arrangements; and
   
 No non-binding advisory votes on executive compensation or golden parachute arrangements.

 

We have already taken advantage of these reduced reporting burdens in this Prospectus, which are also available to us as a smaller reporting company as defined under Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the “Act”) for complying with new or revised accounting standards. We have elected to take advantage of the extended transition period for complying with new or revised accounting standards, which allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements contained in this Form S-1 may not be comparable to companies that comply with public company effective dates. The existing scaled executive compensation disclosure requirements for smaller reporting companies will continue to apply to our filings for so long as our Company is an emerging growth company, regardless of whether the Company remains a smaller reporting company.

 

We could remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our Common Stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.

 

 5

The Offering

 

Common Stock offered by

selling stockholdersthe Company

 This Prospectus relates to the resalesale of 590,0002,000,000 shares of our Class A Common Stock. and 800,000 shares of Class B Common Stock.
   

Common Stock outstanding

before the Offering

 590,0001,387,000  shares of Class A Common Stock and 800,00018,800,000 shares of Class B common Stock, both as of June 1, 2019.August 30, 2021.
   

Common Stock outstanding

after the Offering

 590,0003,387,000  shares of Class A Common Stock and 800,00018,800,000 shares of Class B Common Stock
   

Terms of the Offering

 

 The selling stockholdersCompany will determine when and how theyit will sell the Class A and B Common Stock offered in this Prospectus. The prices at which the selling stockholdersCompany may sell the shares of Class A and B Common Stock in this Offering will be determined by the prevailing market priceCompany for the shares of Class A and B Common Stock or in negotiated transactions.

Termination of the Offering The Offering will conclude upon such time as all of the Class A and B Common Stock has been sold pursuant to the Registration Statement.
   
Trading Market Our Class A and B Common Stock areis not traded on any market.
   
Use of proceeds The Companyuse of proceeds is not selling any shares of the Class A or B Common Stock covered by this Prospectus. As such, we will not receive any of the Offering proceeds from the registration of the shares of Class A and B Common Stock covered by this Prospectus. Seeset forth in “Use of Proceeds.”
   
Risk Factors The Class A and B Common Stock offered hereby involves a high degree of risk and should not be purchased by investors who cannot afford the loss of his/her/its entire investment. See “Risk Factors”.

 

Special Note Regarding Forward-Looking Statements

 

The information contained in this Prospectus, including in the documents incorporated by reference into this Prospectus, includes some statements that are not purely historical and that are “forward-looking statements.” Such forward-looking statements include, but are not limited to, statements regarding our management’s expectations, hopes, beliefs, intentions and/or strategies regarding the future, including our financial condition and results of operations. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “seeks,” “should,” “would” and similar expressions, or the negatives of such terms, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

 

The forward-looking statements contained in this Prospectus are based on current expectations and beliefs concerning future developments and the potential effects on the parties and the transaction. There can be no assurance that future developments actually affecting us will be those anticipated. These that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including the following forward-looking statements involve a number of risks, uncertainties (some of which are beyond the parties’ control) or other assumptions.

 6

RISK FACTORS

 

The risks and uncertainties described below are not the only ones facing the Company. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations. If any of the following risks actually occur, our business could be materially adversely affected. In such case, the Company may not be able to proceed with its planned operations and your investment may be lost entirely.

 

An investment in our securities is highly speculative and subject to a high degree of risk. Only those who can bear the risk of the entire loss of their investment should participate. Prospective investors should carefully consider the following factors, among others, prior to making an investment in the Securities described herein.

 

There is no trading market in our Class A or B Common Stock. There can be no assurance that a trading market in our Class A or B Common Stock or other securities will develop, or if such a market develops, that it will be sustained.

 

AS SUCH, INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME AND MUST BE ABLE TO WITHSTAND A TOTAL LOSS OF THEIR INVESTMENT.

 

THE RISKS AND UNCERTAINTIES DESCRIBED BELOW ARE NOT THE ONLY ONES WE FACE. ADDITIONAL RISKS AND UNCERTAINTIES NOT PRESENTLY KNOWN TO US OR THAT WE CURRENTLY DEEM IMMATERIAL MAY ALSO IMPAIR OUR BUSINESS OPERATIONS. IF ANY OF THE FOLLOWING RISKS ACTUALLY OCCUR, OUR BUSINESS COULD BE MATERIALLY ADVERSELY AFFECTED. IN SUCH CASE, WE MAY NOT BE ABLE TO PROCEED WITH ITS PLANNED OPERATIONS AND YOUR INVESTMENT MAY BE LOST ENTIRELY.

RISKS ASSOCIATED WITH THE COMPANY’S PROSPECTIVE BUSINESS AND OPERATIONS:

We do not have sufficient capital to implement our business strategy.

 

We lack working capital to continue operations. We will need approximately $20$8 million during the next 3 months to implement our business plan. While management has had discussions with several investment bankers and underwriters, the Company has no firm commitment and has not signed any type of underwriting agreement. As such, there can be no assurance that we will secure sufficient funding to implement our business plan.

We have no commitment for additional funding.

 

We have no commitment for additional funding. We may attempt to secure working capital through either a debt or equity offering. We may also seek to secure financing from an institutional investor. There can be no assurance that we will be able to secure institutional financing or if available, will be available on terms acceptable to the Company.

We have had limited operations to date.

 

We have limited operations to date and no funds to finance ongoing operations. As a result, it will be difficult for you to evaluate our potential future performance without the benefit of an established track record. We may encounter unanticipated problems implementing our business plan, which may have a material adverse effect on our results of operations. Accordingly, no assurance can be given that we will be successful in implementing our business strategy or that we will be successful in achieving our objective. Our prospects for success must be considered in the context of a new company with limited resources in a highly competitive industry. As a result, investors may lose their entire investment.

 

 7

We may not be able to operate our business successfully or generate sufficient cash flows to meet our operational requirements

8

 

Our revenues may not be sufficient to meet our cash flow requirements. As a result, we may not be able to implement our business strategies, expansion plans. There is no commitment for additional equity or debt financing. Even if we were to obtain funding, there can be no assurance that it will be available on terms acceptable to the Company.

WE WILL NEED TO RAISE ADDITIONAL CAPITAL TO MEET OUR FUTURE BUSINESS REQUIREMENTS AND SUCH CAPITAL RAISING MAY BE COSTLY OR DIFFICULT TO OBTAIN AND COULD DILUTE CURRENT STOCKHOLDERS’ OWNERSHIP INTERESTS.

 

We will require a significant capital infusion to implement our business modelmodel. We do not have any firm commitments or other identified sources of additional capital from third parties or from our officer and director or from other shareholders. There can be no assurance that additional capital will be available to us, or that, if available, it will be on terms satisfactory to us. Any additional financing will involve dilution to our existing shareholders. If we do not obtain additional capital on terms satisfactory to us, or at all, it may cause us to delay, curtail, scale back or forgo some or all of our business operations, which could have a material adverse effect on our business and financial results and investors would be at risk to lose all or a part of any investment in our Company.

WE ARE DEPENDENT UPON OUR CEO FOR HER SERVICES AND ANY INTERRUPTION IN HER ABILITY TO PROVIDE HER SERVICES COULD CAUSE US TO CEASE OPERATIONS.

 

The loss of the services of Ms. Lynda Chervil, our CEO, Chairman and President, could have a material adverse effect on us. We do not maintain any life insurance on Ms. Chervil. The loss of Ms. Chervil’s services could cause investors to lose all or a part of their investment. Our future success will also depend on our ability to attract, retain and motivate other highly skilled employees. Competition for personnel in our industry is intense. We may not be able to assimilate or retain highly qualified employees now or in the future. If we do not succeed in attracting new personnel or retaining and motivating our current personnel, our business will be adversely affected.

OUR FUTURE SUCCESS WILL DEPEND ON OUR ABILITY TO GENERATE AND INCREASE REVENUES.

 

We operate in a highly competitive market and face numerous risks and uncertainties in achieving both the ability to generate and increase revenues. In order to drive revenues for our business, we must successfully:

 

 Deploy, implement and execute a marketing plan for client acquisition and retention, to attract corporations and individuals to our services;
 Acquire digital information and communications companies; co-location comm tech data analytics
 Attract and retain qualified personnel from our competitors with experience and expertise to serve in various capacities, including sales and marketing positions; and

 8

 Invest in software technologies that will enable our company to build scalability with the ability to continue to function well with changes in size and volume of our audiences to meet their needs.

 

If we are not successful in the execution of these strategies, our business, results of operations and financial condition will be materially adversely affected.

THERE IS NO ASSURANCE OUR FUTURE OPERATIONS WILL RESULT IN PROFITABLE OPERATIONS. IF WE CANNOT GENERATE SUFFICIENT REVENUES TO OPERATE PROFITABLY OR WE ARE UNABLE TO RAISE ADDITIONAL FUNDS, THIS MAY DECREASE SHAREHOLDER VALUE OR CAUSE US TO CEASE OPERATIONS.

 

We expect to incur operating losses in future periods as we develop our various business,business. We cannot be sure that we will be successful in generating revenues in the future. If we are unable to generate sufficient revenues or raise additional funds, our business will be adversely affected and our shareholders may lose their investment.

WE FACE INTENSE COMPETITION FROM OTHER PROVIDERS.

 

We compete with many providers of information and communications technology companies specializing in cutting-edge digital transformation services, including new-media technology; telecommunication and network carrier services; IoT-enabled solutions; and managed ICT, data center and co-location services, Artificial Intelligence and Big Data Analytics consulting services. Because our market poses no substantial barriers to entry, we expect this competition to continue to intensify. The types of companies with which we compete and challenge include:

Larger information communication technology and telecommunicationscompanies;
start-up companies entering the market;
changes in our competitors’ strategies and tactics to which we may not be able to adequately respond.

 

Many of our existing competitors, as well as many of our potential competitors, have longer operating histories, greater name recognition, larger customer bases and significantly greater financial, technical and marketing resources than we do.

 

Many of our competitors will be able to respond more quickly to new or emerging technologies and changes in the industry or to devote greater resources to the development, promotion and sale of their services than we can. Competitors may be more able to launch extensive marketing campaigns and enhance their visibility in the market. In addition, current and prospective competitors may establish cooperative relationships among themselves or with third parties to improve their ability to address the needs of our existing and prospective customers. If these events occur, they could have a materially adverse effect on our revenue. Increased competition could also result in price reductions, reduced margins or loss of market share.

 9

Our ability to compete may depend upon factors outside of our controlcontrol.

 

Factors outside of our control which may inhibit the ability to implement our business strategy and profitably operate the Company include:

 

the prices of our competitor’s services;
the ability of competitors to launch extensive marketing campaigns;
changes in consumer behavior;
changes in the global economy;
changes within the media, technology and telecommunications business sectors of the global economy.

 

In order to remain competitive, we must have the ability to respond promptly and efficiently to the ever-changing marketplace. We will have to adapt by revamping our own strategies and tactics to adequately respond in changing competitive business climates.

 

IF WE DO NOT SUCCESSFULLY ESTABLISH AND MAINTAIN OUR COMPANY AS A HIGHLY TRUSTED AND RESPECTED NAME OR ARE UNABLE TO ATTRACT AND RETAIN CLIENTS, WE COULD SUSTAIN LOSS OF REVENUES, WHICH COULD SIGNIFICANTLY AFFECT OUR BUSINESS.

 

In order to attract and retain a client base and increase business, we must establish, maintain and strengthen our name and the services we provide. To be successful in establishing our reputation, clients must perceive us as a trusted source for quality services. If we are unable to attract and retain clients with our current marketing plans, we may not be able to successfully establish our name and reputation, which could significantly affect our business, financial condition and results of operations.

WE MAY NOT BE SUCCESSFUL IN INCREASING OUR BRAND AWARENESS WHICH WOULD ADVERSELY AFFECT OUR BUSINESS.

 

Our future success will depend, in part, on our ability to increase the brand awareness of our service offerings. If our marketing efforts are unsuccessful or if we cannot increase our brand awareness, our business, financial condition and results of operations would be materially adversely affected.

 

OUR BUSINESS COULD BE ADVERSELY AFFECTED BY A DOWNTURN IN THE ECONOMY.

 

We are relying on the demand of businesses and in the stability of economic markets to generate revenues.

10

 

OUR BUSINESS WOULD BE ADVERSELY AFFECTED IF WE ARE NOT ABLE TO CREATE AND DEVELOP AN EFFECTIVE WORKFORCE.

 

A significant component to our growth strategy is attracting and retaining qualified, creative, innovative and experienced personnel. Our business would be adversely affected if we were unable to succeed in developing an effective workforce. We currently do not employ a workforce capable of generating revenue.

 

RAPID CHANGES IN TECHNOLOGY COULD IMPACT OUR ABILITY TO COMPETE.

 

Rapid changes in technology could affect our ability to compete for business customers. The technology used to deliver communications services has changed rapidly in the past and will likely continue to do so in the future. If we are unable to keep up with such changes, we may not be able to offer competitive services to our business customers. This could adversely affect our ability to compete for business customers, which, in turn, would adversely affect our results of operations and financial condition.

 10

 

PAYMENTS FOR TARIFFS MAY ADVERSELY AFFECT OUR BUSINESS.

 

In certain markets where we provide services to businesses, we may pay a significant portion for our network capacity from certain platforms and verticals. These platforms may compete directly with us for customers. The prices for platform services are contained in either tariffs, interconnection agreements, or negotiated contracts. Terms, conditions and pricing for tariff services may be changed, but they must be approved by the appropriate regulatory agency before they go into effect.

 

DISRUPTIONS AND NETWORK CONGESTION MAY CAUSE US TO LOSE CUSTOMERS AND INCUR ADDITIONAL COSTS.

 

Disruptions and congestion in our networks and infrastructure may cause us to lose customers and incur additional expenses.

 

Our customers will depend on reliable service over various networks. Some of the risks to our network infrastructure include physical damage to lines, security breaches, capacity limitations, power surges or outages, software defects and disruptions beyond our control, such as natural disasters and acts of terrorism. From time to time in the ordinary course of business, we will experience disruptions in our service due to factors such as cable damage, inclement weather and service failures in our third-party service providers. Additionally, we could face disruptions due to capacity limitations because of changes in our customers’ high-speed Internet usage patterns. These patterns have changed in recent years, for example through the increased usage of video and streaming, resulting in a significant increase in the utilization of our network.

 

We could experience more significant disruptions in the future. Disruptions may cause interruptions in service or reduced capacity for customers, either of which could cause us to lose customers or incur additional expenses or capital expenditures. Such results could adversely affect our results of operations and financial condition.

 

Disruptions in our data centers could cause service interruptions for customers. If a disruption occurs in one of our data centers, our customers could lose access to information critical to running their businesses, which could result in a loss of customers. We may also incur significant operating or capital expenditures to restore service. Thus, disruptions could affect our results of operations and financial condition.

 

A CHANGING REGULATOY ENVIRONMENT CAN AFFECT OUR OPERATIONS.

 

Future revenues, costs, and capital investment in our platform could be adversely affected by material changes to, or decisions regarding applicability of government requirements, including, but not limited to, state and federal USFisupport and other pricing and requirements. Federal and state communications laws may be amended in the future, and other laws may affect our business. In addition, certain laws and regulations applicable to us and our competitors may be, and have been, challenged in the courts and could be changed at any time. We cannot predict future developments or changes to the regulatory environment or the impact such developments or changes would have.

 11

In addition, these regulations could result in significant compliance costs. Delays in obtaining certifications and regulatory approvals could result in substantial legal and administrative expenses and additionally, conditions imposed in connection with such approvals could adversely affect the rates that we are able to charge our customers. Our business also may be affected by legislation and regulations imposing new or greater obligations related to, for example, assisting law enforcement, bolstering homeland and cyber-security, protecting intellectual property rights of third parties, minimizing environmental impacts, protecting customer privacy, or addressing other issues that affect our business.

WE MAY BE SUBJECT TO INTELLECTUAL PROPERTY CLAIMS.

 

We may need to defend ourselves against lawsuits or claims that we infringe upon the intellectual property rights of others.

 

From time to time, we may receive notices from third parties, or we may be named in lawsuits filed by third parties, claiming we have infringed or are infringing upon their intellectual property rights. We may receive similar notices or be involved in similar lawsuits in the future. In certain situations, we may have the ability to seek indemnification from our vendors regarding these lawsuits or claims. If we cannot enforce our indemnification rights or if our vendors lack the financial means to indemnify us, these claims may require us to expend significant time and money defending our alleged use of the affected technology, may require us to enter into licensing agreements requiring one-time or periodic royalty payments that we would not otherwise have to pay, or may require us to pay damages. If we are required to take one or more of these actions, it may result in an adverse impact to our results of operations and financial condition. In addition, in responding to these claims, we may be required to stop selling or redesign one or more of our products or services, which could adversely affect the way we conduct our business.

WE MAY NOT BE ABLE TO SUCCESSFULLY MANAGE OUR GROWTH.

 

We could experience growth over a short period, which could put a significant strain on our managerial, operational and financial resources. We must implement and constantly improve our certification processes and hire, train and manage qualified personnel to manage such growth. As part of this growth, we may have to implement new operational and financial systems and procedures and controls to expand, train and manage our employees, especially in the areas of marketing and technology. If we fail to develop and maintain our services and processes as we experience our anticipated growth, demand for our services and our revenues could decrease.

 

OUR INABILITY TO GENERATE SIGNIFICANT REVENUES TO DATE RAISES DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN.

 

We have nominal revenues to date and will need a significant capital infusion to implement our business plan. As a result, our Independent Registered Public Accounting Firm has expressed substantial doubt about the Company’s ability to continue as a going concern in their report to the audited financial statements as of and for the years ended December 31, 2020 and 2019 included in the registration statement.

 12

 

BECAUSE WE HAVE NOT IMPLEMENTED OUR BUSINESS MODEL, WE HAVE NOT PROVEN OUR ABILITY TO GENERATE REVENUES OR PROFITS, AND ANY INVESTMENT IN THE COMPANY IS RISKY.

 

We have very little meaningful operating history so it will be difficult for you to evaluate an investment in our stock. We have not sold any of our products to date. Our Independent Registered Public Accounting Firm have expressed substantial doubt about our ability to continue as a going concern. We cannot assure that we will ever be profitable. As a result, investors will bear the risk of complete loss of their investment in the event we are not successful.

WE WILL INCUR INCREASED COSTS AS A RESULT OF BECOMING A PUBLIC COMPANY.

 

Following the filing of this Registration Statement we will become a mandatory filer with the Securities and Exchange Commission. As a public company, we will incur significant legal, accounting, consulting and other expenses that we did not incur as a private company. We will incur costs associated with our public company reporting requirements.

12

 

THERE IS CURRENTLY NO MARKET FOR OUR COMMON STOCK, AND WE DO NOT EXPECT THAT A MARKET WILL DEVELOP IN THE FORESEEABLE FUTURE MAKING AN INVESTMENT IN OUR COMMON STOCK ILLIQUID.

 

There is currently no market for our common stock. We do not expect that a market will develop in the foreseeable future. The lack of a market may impair the ability to sell shares at the time investors wish to sell them or at a price considered to be reasonable. In the event that a market develops, we expect that it would be extremely volatile.

 

WE DO NOT ANTICIPATE DIVIDENDS TO BE PAID ON OUR COMMON STOCK AND INVESTORS MAY LOSE THE ENTIRE AMOUNT OF THEIR INVESTMENT.

 

A dividend has never been declared or paid in cash on our common stock and we do not anticipate such a declaration or payment for the foreseeable future. We expect to use future earnings, if any, to fund business growth. Therefore, stockholders will not receive any funds absent a sale of their shares. We cannot assure stockholders of a positive return on their investment when they sell their shares nor can we assure that stockholders will not lose the entire amount of their investment.

 

OUR CHIEF EXECUTIVE OFFICER AND MAJORITY STOCKHOLDER MAY SIGNIFICANTLY INFLUENCE MATTERS TO BE VOTED ON AND HER INTERESTS MAY DIFFER FROM, OR BE ADVERSE TO, THE INTERESTS OF OUR OTHER STOCKHOLDERS.

 

The Company’s executive officer and majority stockholder controls 99%control 97% of our outstanding common stock. Accordingly, the Company’s executive officer and majority stockholder possess significant influence over the Company on matters submitted to the stockholders for approval, including the election of directors, mergers, consolidations, the sale of all or substantially all our assets, and also the power to prevent or cause a change in control. This amount of control gives them substantial ability to determine the future of our Company, and as such, they may elect to close the business, change the business plan or make any number of other major business decisions without the approval of shareholders. The interest of our majority stockholders may differ from the interests of our other stockholders and could therefore result in corporate decisions that are averse to other stockholders.

 

 13

USE OF PROCEEDS

 

We will not receive anyestimate that the net proceeds from this offering will be up to approximately $10,000,000. The table below depicts how we plan to utilize the saleproceeds of sharesthe offering if the full amount is sold; however, the amounts actually expended for the items set forth below may vary significantly and will depend on many factors, including the amount of our Class A or B Common Stockfuture revenues and the other factors described under “Risk Factors.”  Accordingly, we will retain broad discretion in the allocation of proceeds of this offering. Net proceeds may be reduced by the selling stockholders.sales commissions.

 

We will pay for expenses of this offering, except that the selling stockholders will pay any broker discounts or commissions or equivalent expenses and expenses of its legal counsel applicable to the sale of its shares.

DETERMINATION OF OFFERING PRICE

Marketing $125,000 
Technology $140,000 
Accounting & Legal $75,000 
ISI & IoTICA Personnel $860,000 
Commissions & Fees $1,000,000 
Projects $5,000,000 
ISI, Analygence & IoTICA Operations $2,400,000 
Cash Reserve $400,000 
Net Proceeds $10,000,000 

 

The selling stockholdersfollowing table displays the use of funds where less than all securities offered may sell her sharesbe sold.

  25%  50%  75%  100% 
Marketing $30,542  $62,028  $93,514  $125,000 
Technology $34,207  $69,471  $104,736  $140,000 
Accounting & Legal $75,000  $75,000  $75,000  $75,000 
ISI & IoTICA Personnel $210,126  $426,740  $643,375  $860,000 
Commissions & Fees $244,332  $496,222  $748,111  $1,000,000 
Projects $1,221,662  $2,481,108  $3,740,554  $5,000,000 
ISI, Analygence and IoTICA Operations $586,398  $1,190,932  $1,795,466  $2,400,000 
Cash Reserve $97,733  $198,499  $299,244  $400,000 
Net Proceeds $2,500,000  $5,000,000  $7,500,000  $10,000,000 

This expected use of the net proceeds from this offering represents our intentions based upon our current plans and prevailing business conditions, which could change in the over-the-counter marketfuture as such plans and conditions evolve. In the event that less than all the securities to be offered are sold, we will prioritize our use of funds in the following order: Commissions & Fees, Accounting and Legal, ISI’s acquisitions, ISI and IoTICA’s personal, ISI & IoTICA’s Operations, Technology, Marketing , Cash Reserve. Predicting the cost necessary to develop our business can be difficult, and the amounts and timing of our actual expenditures may vary significantly depending on numerous factors. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering.

Based on our current business plans, we believe that the net proceeds from this offering, together with our existing cash and cash equivalents, will be sufficient to fund our planned operations for at least 12 months from the date of this prospectus. The expected net proceeds from this offering will not be sufficient for us to fund any of our product candidates through regulatory approval, and we will need to raise substantial additional capital to complete the development and commercialization of our product candidates. For additional information regarding our potential capital requirements, see “Risk Factors.”

Pending our use of the net proceeds from this offering, we plan to invest the net proceeds in short-term interest-bearing investment-grade securities, certificates of deposit or otherwise, at market prices prevailing at the time of sale, at prices related to the prevailing market price, or at negotiated prices.government securities.

 

DILUTION

 

The saleIf you invest in our common stock in this offering, your interest will be diluted to the extent of our Class A or B Common Stock by the selling stockholders will not have a dilutive impact on our stockholders.difference between the initial public offering price per share and the pro forma as adjusted net tangible book value per share immediately following the completion of this offering.

 

SELLING STOCKHOLDERS

This Prospectus relates to the resaleOur historical net tangible book value (deficit) as of up to 590,000 sharesJune 30, 2021, was $(163,661) or $(0.008) per share of our Class A Common Stock, by the selling stockholders. The selling stockholders may offer and sell, from time to time, any or all of shares of our Class A and B Common Stock.

The following table sets forth certain information regarding the beneficial ownership ofcommon stock based on 19,851,000 shares of Class A and B Common Stockcommon stock outstanding as of June 30, 2021. Our net tangible book value (deficit) per share represents total tangible assets, excluding deferred offering costs, less total liabilities, all divided by the selling stockholdersnumber of shares of common stock outstanding on June 30, 2021.

Our pro forma net tangible book value as of January 11, 2019June 30, 2021 was $9,836,339 or $0.450 per share of common stock. Pro forma net tangible book value per share represents our net tangible book value per share on a pro forma basis, giving effect to the issuance of 2,000,000 shares that we will issue, based upon a public offering price of $5.00 per share.

After giving effect to the sale by us of 2,000,000 shares of common stock in this offering at an assumed public offering price of $5.00 per share and deducting estimated offering expenses of $75,000 payable by us, our pro forma as adjusted net tangible book value as of June 30, 2021 was $9,761,339 or $0.447 per share of common stock. This amount represents an immediate increase in pro forma as adjusted net tangible book value of $0.455 per share to our existing stockholders and an immediate dilution in pro forma as adjusted net tangible book value of $(4.553) per share to new investors participating in this offering. We determine dilution per share to investors participating in this offering by subtracting the pro forma as adjusted net tangible book value per share after this offering from the initial public offering price per share paid by investors participating in this offering. The following table illustrates this dilution on a per share basis.

Assumed  public offering price per share     $5.00 
Historical net tangible book value (deficit) per share as of June 30, 2021 $(.008)    
Pro forma change in net tangible book value (deficit) per share $0.458     
Pro forma net tangible book value per share as of June 30, 2021     $0.450 
Increase in pro forma net tangible book value per share attributable to new
investors in this offering
     $0.455 
Pro forma as adjusted net tangible book value per share following this offering     $0.447 
Dilution in net tangible book value per share to new investors in this offering     $4.553 

The following table summarizes, as of June 30, 2021, on a pro forma as adjusted basis as described above, the number of shares of our Class Acommon stock, the total consideration and B Common Stock being offered pursuantthe average price per share (i) paid to us by existing stockholders and (ii) to be paid by new investors purchasing common stock in this offering at an assumed public offering price of $5.00 per share before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us:

  Shares Purchased  Total Consideration  Average Price
Per Share
 
  Number  Percent  Amount  Percent    
Existing stockholders before this offering  19,851,000   90.85% $1,985,100   16.6% $.10 
New investors participating in this offering  2,000,000   9.15% $10,000,000   83.4% $5.00 
                     
Total  21,851,000   100% $11,985,100   100%    

SHARES ELIGIBLE FOR FUTURE SALE

Prior to this Prospectus. The selling stockholders have sole votingoffering, there has been no public market for our common stock. Future sales of substantial amounts of our common stock, including shares issued upon the exercise of outstanding stock options and investment powers over their shares.warrants, in the public market following this offering, or the possibility of these sales or issuances occurring, could adversely affect the prevailing market price for our common stock or impair our ability to raise equity capital.

 

Because the selling stockholders may offer and sell all or only some portionBased on our shares outstanding as of the 590,000 shares of our Class A Common Stock or of the 800,000 shares of our Class B Common Stock being offered pursuant to this Prospectus, the numbers in the table below representing the amount and percentage of these shares of our Class A and B Common Stock that will be held by the selling stockholders upon termination of the offering are only estimates based on the assumption that the selling stockholders will sell all of their shares of our Class A or B Common Stock being offered in the offering.

Ms. Chervil has been an officer, director and majority stockholder since inception.

To our knowledge, the selling stockholders are not a broker-dealer or an affiliate of a broker-dealer. We may require the selling stockholders to suspend the sales of the shares of our Class A and B Common Stock being offered pursuant to this ProspectusJune 30, 2021, upon the occurrencecompletion of any event that makes any statement in this Prospectus or the related registration statement untrue in any material respect or that requires the changingoffering, a total of statements in those documents in order to make statements in those documents not misleading.

 14

Name of selling
stockholders
 Class A or B Shares
Owned by selling
stockholders before the
Offering(1)
  Total Class A or
B Shares Offered
in the Offering
  Number of Class A or B Shares to Be
Owned by selling stockholders After the
Offering and Percent of Total Issued and
Outstanding Class A or B Shares(1)(2)
 
        # of Class A Shares  % of Class 
Lynda Chervil  495,000   495,000   0   0%
   800,000   800,000   0   0%
Jennifer Buzzelli  10,000   10,000   0   0%
Mark L. Deutsch  10,000   10,000   0   0%
Myron Gould  10,000   10,000   0   0%
Aude Soichet  20,000   20,000   0   0%
Alan D. Swersky  5,000   5,000   0   0%
Roger M. Young  5,000   5,000   0   0%
Hiromi Ishizu  10,000   10,000   0   0%
Bart L. Fooden  25,000   25,000   0   0%

(1) All3,051,000 and 18,800,000 shares are Class A Common Stock except for 800,000 shares owned by Mr. Chervil that are Class B Common Stock. Beneficial ownership is determined in accordance with Securities and Exchange Commission rules and generally includes voting or investment power with respect to shares of Common Stock. Shares of Class A and B Common Stock subject to options and warrants currently exercisable, or exercisable within 60 days, are counted ascommon stock, respectively, will be outstanding, for computingassuming the percentageissuance of the person holding such options or warrants but are not counted as outstanding for computing the percentage of any other person.

(2) We have assumed that the selling stockholders will sell all of the shares being offered in this offering. Lynda Chervil will continue to own 18,000,0002,000,000 shares of Class B Common Stock.

PLAN OF DISTRIBUTION

This Prospectus relates to the resale of up to 590,000 shares of our Class A Common Stock and 800,000that we will issue, based upon an assumed public offering price of $5.00 per share. Of these shares, all shares of Class B Common Stock. The selling stockholders may, from time to time sell anycommon stock sold in this offering by us will be freely tradable in the public market without restriction or all of their shares of Class A or B Common Stock on any market or trading facility on whichfurther registration under the Securities Act, unless these shares are traded orheld by “affiliates” as defined in private transactions. These sales may be at fixed or negotiated prices. The selling stockholders may use any one or more of the following methods when selling shares:

ordinary brokerage transactions and transactions in which the broker-dealer solicits the purchaser;
block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal;
purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
an exchange distribution in accordance with the rules of the applicable exchange;
privately negotiated transactions;
broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share;
a combination of any such methods of sale; and
any other method permitted pursuant to applicable law.

The selling stockholders may also sell securities under Rule 144 under the Securities Act, of 1933, if available, rather than under this Prospectus.

 15

Broker-dealers engaged by the selling stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440.144.

 

The selling stockholdersremaining shares of common stock will be “restricted securities” as defined in Rule 144. These restricted securities are underwriters withineligible for public sale only if they are registered under the meaningSecurities Act or if they qualify for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, or Rule 701, which are summarized below. Restricted securities may also be sold outside of the United States to non-U.S. persons in accordance with Rule 904 of Regulation S under the Securities Act.

Rule 144

In general, under Rule 144 as currently in effect, once we have been subject to public company reporting requirements of Section 13 or 15(d) of the Exchange Act for at least 90 days, an eligible stockholder is entitled to sell such shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. To be an eligible stockholder under Rule 144, such stockholder must not be deemed to have been one of our affiliates for purposes of the Securities Act of 1933at any time during the 90 days preceding a sale and any broker-dealers or agents that are involved in sellingmust have beneficially owned the shares may be deemedproposed to be “underwriters” withinsold for at least six months, including the meaningholding period of any prior owner other than our affiliates. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then such person is entitled to sell such shares without complying with any of the Securities Actrequirements of 1933Rule 144, subject to the expiration of the lock-up agreements described below.

Beginning 90 days after the date of this prospectus, within any three-month period, such stockholders may sell a number of shares that does not exceed the greater of:

1% of the number of shares of common stock then outstanding, which will equal approximately 218,510 shares immediately following this offering, assuming no exercise of the underwriters’ option to purchase additional shares; or

the average weekly trading volume of our common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

UNDERWRITING

The Company may use a placement agent to sell its shares of Class A Common Stock to investors. The Company may also engage an underwriter in a firm commitment or best effort offering to sell the shares of its Class A Common Stock.

Prior to this offering, there has been no public market for our shares. Consequently, the public offering price for the shares was determined by us. Among the factors considered in determining the public offering price were our results of operations, our current financial condition, our future prospects, our markets, the economic conditions in and future prospects for the industry in which we compete, our management, and currently prevailing general conditions in the equity securities markets, including current market valuations of publicly traded companies considered comparable to our company. We cannot assure you, however, that the price at which the shares will sell in the public market after this offering will not be lower than the initial public offering price or that an active trading market in our shares will develop and continue after this offering.

We have applied to have our shares quoted on NASDAQ Capital Market under the symbol “ISI.”

We estimate that the expenses of this offering will be approximately $75,000. We will pay all of the offering expenses in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act of 1933. We are required to pay certain fees and expenses incurred by us incident to the registration of the securities.this offering.

 

The selling stockholders will be subject to the Prospectus delivery requirements of the Securities Act of 1933 including Rule 172 thereunder.

The shares of the Class A and B Common Stock will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

Under applicable rules and regulations under the Securities Exchange Act of 1934, any person engaged in the distribution of the resale securities may not simultaneously engage in market making activities with respect to the Class A and B Common Stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions of the Securities Exchange Act of 1934 and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of securities of the Class A and B Common Stock by the selling stockholders or any other person. We will make copies of this Prospectus available to the selling stockholders and will inform it of the need to deliver a copy of this Prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act of 1933).

DESCRIPTION OF SECURITIES TO BE REGISTEREDCAPITAL STOCK

 

The Company is authorized to issue 100,000,000 shares of capital stock of which 81,200,000 shall be designated Class A Common Stock at $0.001 par value and 18,800,000 shares be designated Class B Common Stock at $0.001 par value.

 

The powers, preferences and rights of the Class A Common Stock and Class B Common Stock and the qualification, limitations and restrictions thereof, are in all respects identical except that each Class A Common Stock has one vote per share on all matters brought to a vote of the shareholders and holders of our Class B Common Stock have three votes per share on all matters brought to a vote of the shareholders.

 16

  

The future issuance of all or part of its remaining authorized common stock may result in substantial dilution in the percentage of its common stock held by its then existing stockholders. The Company may value any common stock issued in the future on an arbitrary basis. The issuance of common stock for future services or acquisitions or other corporate actions may have the effect of diluting the value of the shares held by the Company’s investors, and might have an adverse effect on any trading market for the Class A and B Common Stock that may develop.

 

No stockholder has any preemptive right or other similar right to purchase or subscribe for any additional securities issued by us, and no stockholder has any right to convert the common stock into other securities. No shares of common stock are subject to redemption or any sinking fund provisions. All the outstanding shares of our common stock are fully paid and non-assessable. Our shareholders of common stock are entitled to dividends when, as and if declared by our board from funds legally available therefore and, upon liquidation, to a pro-rata share in any distribution to shareholders. We do not anticipate declaring or paying any cash dividends on our common stock in the foreseeable future.

 

INTEREST OF NAMED EXPERTS AND COUNSEL

 

No expert or counsel named in this prospectus as having prepared or certified any part of this prospectus or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration or offering of the common stock was employed on a contingency basis, or had, or is to receive, in connection with the offering, a substantial interest, direct or indirect, in the registrant or any of its parents or subsidiaries. Nor was any such person connected with the registrant or any of its parents or subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.

BlackCastle Strategies, our independent legal counsel, has provided an opinion on theThe validity of our Class A common stockthe Common Stock being offered hereby, and Class B Common Stock.other certain legal matters will be passed upon for us by JDT Legal, PLLC.

 

Ahmed & Associates CPA P.C. has audited ourThe financial statements as of and for the years ended December 31, 2020 and 2019 included in this prospectusProspectus and registration statementRegistration Statement have been audited by Pinnacle Accountancy Group of Utah (a dba of Heaton & Company, PLLC), an independent registered public accounting firm, to the extent and for the periods set forth in their audit report. Ahmed & Associates CPA P.C. has presented their report with respect to our audited financial statements. The report of Ahmed & Associates CPA P.C. isappearing elsewhere herein and in the Registration Statement, and are included in reliance upon theirsuch report given upon the authority of said firm as experts in accountingauditing and auditing.accounting. Our unaudited interim financial statements as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020 are also included herein.

 

WHERE YOU CAN FIND MORE INFORMATION

 

We filed this Registration Statement on Form S-1 with the SEC under the Act with respect to the Class A and B Common Stock offered by selling stockholders in this Prospectus. This Prospectus, which constitutes a part of the Registration Statement, does not contain all of the information set forth in the Registration Statement or the exhibits and schedules filed therewith. For further information with respect to us and our Class A and B Common Stock, please see the Registration Statement and the exhibits and schedules filed with the Registration Statement. Statements contained in this Prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the Registration Statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the Registration Statement. The Registration Statement, including its exhibits and schedules, may be inspected without charge at the public reference room maintained by the SEC, located at 100 F Street, N.E., Room 1580, Washington, D.C. 20549, and copies of all or any part of the Registration Statement may be obtained from such offices upon the payment of the fees prescribed by the SEC. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. The SEC also maintains an Internet website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the site iswww.sec.gov.

 17

DESCRIPTION OF BUSINESS

 

Internet Sciences Inc. (“ISI” or the “Company”) was incorporated in the State of Delaware on May 20, 2016. Its consolidated Variable Interest Entity (“VIE”), Trine Digital Broadcasting Ltd, was incorporated in the United Kingdom on July 3, 2017. It is also the 100% owner of 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’s principal place of business is located at 275 Madison521 Fifth Ave, 6th17th Floor, New York, New York 10016.10175.

DESCRIPTON OF BUSINESS

 

OVERVIEW

 

(ISIOn October 5, 2019, the Company changed its name to Internet Sciences Inc. (“ISI” or the “Company”). Internet Sciences Inc., formerly known as Luxury Trine Digital Media Group Inc., is an early-stage emerging diversified information and communications technology company specializing in cutting-edge digital transformation services, including new-media technology; telecommunication and network carrier services; IoT-enabled solutions; and managed ICT, managed cloud services, data centers and co-location services.

ASC 810-10-25-38, “Consolidation of Variable Interest Entities” requires a variable interest entity (“VIE”) to be consolidated by a company if that company absorbs a majority of the VIE’s expected losses and/or receives a majority of the entity’s expected residual returns as a result of holding variable interests. Trine Digital Broadcasting is a variable interest entity as defined by ASC 810-10-25-38. As ISI owns 49% of the VIE and the founder (CEO) majority shareholder (a related party) of ISI controls the remaining 51%, ISI has been determined to be the primary beneficiary of this VIE. The VIE was formed to expand the business of ISI into the United Kingdom. There are no formal explicit arrangements as of June 30, 2021 that require ISI to provide financial support to the VIE, although financial support is implied by the relationship. There were no operations, assets, or liabilities of the VIE as of June 30, 2021.

We are unaware of any material risks associated with this VIE.

ISI is an Information Communications Technology company that seeks to become a multi-industry technology basedtechnology-based enterprise primarily through merger and acquisition of business segments in new media technologies, digital telecommunication, Cybersecurity, data storage, IoT enabling technologies and cutting edge ICT technologies for Data Analytics.

 

Though its planned acquisitions in the United Kingdom, the company expects to reach a broad base of existing clients across Continental Europe, principally in the United Kingdom, Belgium, the Netherlands and Luxemburg. While ISI’s primary activities in the United Kingdom will focus on delivering managed high performance WIFI networks, managed ITC solutions, data centers and co-location services, broadband and mobile connectivity across Continental Europe, its US operations will sharply focus on Cybersecurity and organic growth by launching new business segments that design commercial intelligent software applications, scalable cloud based platforms that deliver enterprise solutions as Platform-as -a -Service (PaaS) and infrastructure solutions as Infrastructure-as-a service (IaaS).

 

As a complement to its total products and service offerings across the entire company’s landscape and global footprint, ISI seeks to add value by offering its consulting services with expertise in artificial intelligence, data analytics, blockchain and supply chain and logistics.

 

The Company’s principal place of business is 275 Madison521 Fifth Ave, 617th Floor, New York, NY 10016.10175.

 

The Company’s business model focuses on executing a two-tier growth strategy :strategy:

 

a.Growth by identifying and acquiring existing revenue producing companies with tenure of 10 years or greater in the technology spaces in which they operate, have attained a critical mass of customers, own intellectual property assets or provide critical services to business customers and governments. We do not currently have any planned acquisitions under executed Letters of Interest.

b.Organic growth by launching product development projects aimed to be commercialized by forming new business segments that sells its services in horizontal markets for diversification across geographies, industries, and customers.

 

 18

The Company currently owns and licenses several media properties through the following service marks: Luxury Trine Publications and Luxury Trine TV.

 

Luxury Trine Publications

Luxury Trine Publications was launched in 2015 to demonstrate the proof of concept for a provisional utility patent filed by our CEO, Lynda Chervil, with the US Patent and Trademark Office under US20160371739. This invention revealed new business methods for a digital new-media communications platform that promotes luxury brands with eco-friendly products and sustainable practices via targeted marketing extension strategies with branding initiatives. Although this invention is currently patent-pending, Internet Sciences Inc., entered into a licensing agreement in January 2018 with our CEO which extended software development rights to the company to rebuild the Luxury Trine Publications marketing platform into native applications with its own proprietary source codes. Previously, the Luxury Trine publications were developed on Twixl Publisher, a third-party software development platform from Belgium, as custom applications which were subsequently removed from publication.

We anticipate transferring the Luxury Trine Publications to the (VIE), Trine Digital Broadcasting to be re-published in the second quarter of 2019.

 

Luxury Trine TV

 

Luxury Trine TV is an OTT platform1 owned by ISI that distributes short form luxury lifestyle information and entertainment content to diverse consumer segments via smart TV platforms and set top boxes. The company developed and owns 6 proprietary TV application for Apple TV, Amazon Fire TV, Roku TV, Samsung, LG and Android TV.

 

As of July 2018, the companyCompany has ceased its broadcasting activities in the US as it is preparing to relaunch its broadcasting activities in the UK via Trine Digital Broadcasting Ltd ( the “ VIE”). The companyCompany has chosen to change its strategy by focusing on a UK audience through connected Freeview which is a hybrid of terrestrial TV and OTT.

 

Freeview (terrestrial) is the largest UK broadcasting platform available in 18.3 million UK households (this includes homes that have two or more platforms – i.e. Freeview and another platform) and dedicated Freeview only homes equate to 11.4 million UK households. See below figures:-

 

Freeview 18.31 million UK households
Freeview ONLY 11.4
Sky 8.6
Cable 4.17
YouView 2.2
Other Sat 1.18
Freesat 1.18

 

Connected Freeview, is IP streamed TV which appears on the main Freeview EPG – and Ofcom estimate nowestimates that over 7 millionthree quarters of UK households now have internet enabled TVseither a connected or smart TV in their homes (42% of Households in 2017 had a Smart TV – seehomes. 

(See linkhttps://www.ofcom.org.uk/research-and-data/multi-sector-research/cmr/cmr-2018/summary).__data/assets/pdf_file/0011/222401/communications-market-report-2021.pdf)

 19

 

Trine Digital Broadcasting LTD. (the “VIE”)

 

Trine Digital Broadcasting Ltd is a UK based broadcasting company that will distribute both short form and long form television content via a hybrid of terrestrial TV and OTT enabling advertisers to reach critical mass audiences with diverse forms of access to television contents.

 

The VIE’s objectives are twofold:

 

a.Develop Software as a Service (‘SaaS”) broadcast technology products to expand its commercial activities.

b.Bring addressable TV to the US once there is a market for HbbTV in the US. Presently there is no market for Hybrid broadcast broadband TV (“HbbTV”) in the US and addressable TV is an opportunity gap that we intend to fill with HbbTV enabling technologies in the US market.

 

Based upon the growth of the UK media market, our initial focus for Trine Digital Broadcasting Ltd., will be in the UK where we intend to acquire existing UK based media companies to deploy our strategies which include strategic alliances with UK based companies to balance market penetration, market development, product development and diversification.

 

1Over-the-top content (OTT) is the audio, video, and other media content delivered over the Internet without the involvement of a multiple-system operator (MSO) in the control or distribution of the content.

 

Studies

According to a 2017 PriceWaterhouse2021 Price Waterhouse Global Entertainment & Media Outlook, the UK is predictedforecasted to return to growth this year and continue to grow at a compound rate of 3% per annum over the next 5four years driven by sectors liberated from Covid restrictions. By 2025, the UK is set to be worth £72 billionovertake Germany as the biggest E&M market in Western Europe by 2021.revenue. Digital services will account foradvertising is forecast to continue to forge ahead, rising at a CAGR of almost 8% over 60% of all spend in the sector growing at 5.8% CAGR per annum. The fastest growing sectors will be Virtual Reality (VR) and E-Sports, both new additions to our interactive forecasting tool, whilst in the analogue world TV Advertising continues to grow.next four years, twice as fast as non digital.

 

·The internet continuesUK compound annual growth rate to dominate the advertising sector, as the UK maintains its market leading position in Europeoutpace global over the next 5 years.forecast period
·
The Internet advertising industry will be worth £14.4b in 2021 accounting for 53% of allTotal UK advertising spend growingto grow at 8.2% CAGR7% p.a. over the next 5 years and showing no signs of slowing down.as it recovers from the pandemic disruption
·
With 89m smartphones in theTotal UK in 2021 advertisers continueconsumer spending on Entertainment & Media to channel their spend online and especially in mobile. Mobile advertising will be one of the largest and fastest growing sectorsgrow at 5% p.a. over the next 5 years, driven by continued digital downloads, access and will account for over half of all internet advertising spend in 2021.
In 2021 consumers will spend more on video content than cinema admissions as “Netflix and chill” and binge-watching content continues to shape viewing habits.consumption

 20·PwC forecasts growth will rebound 9% this year and over the forecast period at a compound annual growth rate (CAGR) of 5% outpacing the expected growth in E&M revenues at a global level.

·Interactive video content through E-Sports, Virtual Reality and Video games continueBy 2025, the UK’s E&M sector is expected to be firm favorites amongst consumers,worth £88bn with exceptional growth forecast overonly the next 5 years.US, China and Japan worth more globally.
·Latest forecasts support optimism about augmented reality (AR) and virtual reality (VR) growing to a value of more than $44.7 billion worldwide by 2024.
·The VR sector will be worth £801m in 2021, all ofUK is a key driver for these sectors within Europe, which is consumer spend. With over 16m VR headsets inforecast to hold a 25% share of the UK alone, innovative brandsglobal market behind only the US and content creators have a real opportunity to engage with consumers on a new level if they can enhance their experiencethe Asia-Pacific region.

 

The implications of these studies suggest that we will benefit from current and future growth in new media by focusing, identifying, and investing in growing and emerging sectors.

Revenue Streams

We have generated nominal revenues to date. The key to our success will be securing acquisition financing to implement our business plan. Future revenue streams will be based onsectors as we recognize the following pillars:

Management anticipates $18,800,000 revenues ifinnovative nature of British enterprises is critical as the planned acquisitiontechnologies seek new use cases outside of existing revenue producing technology companies are completed in the UK with expected recurring revenues north of $20,000,000 and an expected 95% blended customer retention rate.

Additional sales revenues are expected to be generated by increasing the current sales development teams at the acquisition target companies by 50% once the planned acquisitions are completed with expected completion date during the first quarter of 2019.

Organic sales revenues from organic business segments expected to be launched in the US in technology project consulting as work products commissioned by others and from developing and selling our own proprietary developed product and service sets to be marketed and sold as IaaS (Infrastructure-as-a-Service) , PaaS ( Platform-as-a- service) and DraaS (Disaster Recovery as a Service)

Once fully operational, we intend to focus on cross selling products and services from all business segments to our entire client population in an effort to increase the share of wallet per customer and boost our revenue per customer.

Management believes that if we integrate each customer in at least 3 of our business segments, we will be able to reduce customer attrition and improve customer retention rate from 95% to 98% and achieve improved customer loyalty. Both customer retention and customer loyalty are significant components of sustained revenue streams.gaming industry.

 

Our Competition

 

Our competitive landscape is as diverse as the business segments in which we seek to operate. We face competition from some of the largest and best capitalized companies in the United States and throughout the world and include media conglomerate such as Google, Apple, British Telecom, Amazon to smaller technology consulting companies such as Critical Future. These and other niche companies have greater name recognition and financial resources, enabling them to finance acquisition and development opportunities or develop and support their own operations. They may also be in a position to pay higher prices than we would for the same acquisition opportunities. Consequently, we may encounter significant competition in our efforts to achieve our internal and external growth objectives. Many of our competitors have established methods of operation that have been proven over time to be successful.

 

 21

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes and other financial information included elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. See “Special Note Regarding Forward-Looking Statements” and “Risk Factors” for a discussion of forward-looking statements and important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements.

 

Overview

 

(ISI is an information and communications technology company that seeks to become a multi-industry technology based-based enterprise primarily through merger and acquisition of business segments in new media technologies, digital telecommunication, data storage, IoT enabling technologies and cutting edge ICT technologies for Data Analytics.

 

Though its planned acquisitions in the United Kingdom, theThe company expects to reach a broad base of existing clients across Continental Europe, principally in the United Kingdom, Belgium, the Netherlands and Luxemburg. While ISI’s primary activities in the United Kingdom will focus on delivering managed high performance WIFI networks, managed ITC solutions, data centers and co-location services, broadband and mobile connectivity across Continental Europe, its US operations will sharply focus on Cybersecurity and telecommunication infrastructure as a contractor to Verizon, Comcast, AT&T and others in the telecommunication space for design engineering and installation of fiberoptic cable lines in addition to organic growth by launching new business segments that design commercial intelligent software applications, scalable cloud based platforms that deliver enterprise solutions as Platform-as -a -Service (PaaS) and infrastructure solutions as Infrastructure-as-a service (IaaS).

 

As a complement to its total products and service offerings across the entire company’s landscape and global footprint, ISI seeks to add value by offering its consulting services with expertise in artificial intelligence, data analytics, blockchain and supply chain and logistics.

 

The Company’s principal place of business is 275 Madison521 Fifth Avenue Ave, 617thFloor, New York, NY 10016.10175

 

The Company’s business model focuses on executing a two-tier growth strategy :

 

a.Growth by identifying and acquiring existing revenue producing companies with tenure of 10 years or greater in the technology spaces in which they operate, have attained a critical mass of customers, own intellectual property assets or provide critical services to business customers and governments. We do not currently have any planned acquisitions under executed Letters of Intent.

b.Organic growth by launching product development projects aimed to be commercialized by forming new business segments that sells its services in horizontal markets for diversification across geographies, industries, and customers.

 

The Company currently owns and licenses several media properties through the following service marks: Luxury Trine Publications and Luxury Trine TV.

 

Our Outlook

 

We are considered to be in the development stage as defined in the accounting standards since we have not commenced planned principal operations. Our activities since inception include devoting substantially all of our efforts to business planning and development. Additionally, we have allocated a substantial portion of our time and investment to the completion of our development activities to launch our marketing plan and generate revenues and to raising capital. We have generated limited revenue from operations. The Company’s activities during the development stage are subject to significant risks and uncertainties. The Company currently plans on raising funds in the amount of $20 million.$50 million through an Initial Public Offering. There is currently no public market for our common stock. While the Company believes in the viability of its strategy to initiate sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The financial statements do not include adjustments to reflect the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

 

 22

Results of Operations

 

Quarter ended March 31, 2019Six Months Ended June 30, 2021 Compared to Quarter ended March 31, 2018 and Year ended December 31, 2018 Compared to the YearSix Months Ended December 31, 2017June 30, 2020

 

Revenue

 

The Company isWe are considered to be inan early-stage company. There were no revenues generated during the development stage. During the quartersix months ended March 1, 2019 revenue was $0 compared to the quarter ended March 31, 2018, where revenue was $0. During the year ended December 31, 2018 revenue was $0 compared to December 31, 2017, where revenue was $846.June 30, 2021 or 2020.

 

Operating Expenses and Loss from Operations

 

Total operating expenses and loss from operations for the quartersix months ended March 31, 2019June 30, 2021 were $13,922 compared to$2,485 a decrease of $8,669, or approximately 78%, from total operating expenses for the quarter ended March 31, 2018 of $57,316. Total operating expenses for the year ended December 31, 2018 were $36,037. compared to total operating expenses for the year ended December 31, 2017 of $284,716.

Loss from Operations

We reported aand loss from operations of $13,922 for the quartercomparable six months ended March 31, 2019, as comparedJune 30, 2020 of $11,154. This decrease is primarily attributable to a loss from operations of $57,316 for the quarter ended March 31, 2018. We reported a loss from operations of $36,037 for the year ended December 31, 2018, as compared to a loss from operations of $283,870 for the year ended December 31, 2017.decrease in general and administrative expenses, professional fees, and compensation.

 

Other Income (Expense)

 

During the six months ended June 30, 2021, the Company incurred $887 in other income from PPP loan forgiveness, and $2 interest expense. There were nominalnot any other expense for all relevant reporting periods.income or expenses during the six months ended June 30, 2020

 23

 

Net Loss

 

We reported a net loss of $13,922$1,600 for the quartersix months ended March 31, 2019June 30, 2021 as compared to $57,316 for the quarter ended March 31, 2018.We reported a net loss of $36,037$11,154 for the yearsix months ended December 31, 2018 comparedJune 30, 2020 due to $283,884 for the year ended December 31, 2017.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 March 31, 2019,June 30, 2021, we had a cash balance of $106. Our$0 and a working capital deficit was $110,773 at March 31, 2019.of $163,661.

 

We reported a net loss in cash for the quarter ended March 31, 2019Current liabilities were $163,661 and $162,061 as of $7June 30, 2021 and net increase in cash for the year ended December 31, 20182020, respectively, and consisted primarily of $109.accounts payable, accrued liabilities, and amounts due to related parties.

 

The Company is considered to be in the developmentearly stage and we had minimalno sales during the quartersix months ended March 31, 2019 and the year ended December 31, 2018. There were $0 ofJune 30, 2021. Thus, net sales generated for the quarter ended March 31, 2019 and $0 of sales generated for the quarter ended March 31, 2018. There were $0 of sales generated in 2018 and $846 of sales generated in 2017.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 reported a net loss of $1,600 during the six months ended June 30, 2021.  At March 31, 2019June 30, 2021, we had a working capital deficit of $110,773.$163,661. We do not anticipate we will be profitable in 2019.2021.  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. Included in our Notes to the financial statements for the quarters ended March 31, 2019 and 2018 and the years ended December 31, 2018 and 2017 is a discussion regarding going concern.

 

Operating activities

 

Net cash used in operating activities for the quartersix months ended March 31, 2019 was $110,773 andJune 30, 2021 amounted to $2,441, which was attributable to our net loss of $13,922$1,600, the forgiveness of the PPP Loan of $887, and change in accounts payable of $46. Net cash used in operating activities for the quartersix months ended March 31, 2018 was $andJune 30, 2020 amounted to $595, which was attributable to our net loss of $57,316. $11,154, stock-based compensation of $5,000, and net change in operating assets and liabilities of $5,559.

Financing activities

Net cash flows provided by financing activities were $2,441 for the six months ended June 30, 2021. We received proceeds from a related party loan of $2,441. Net cash flows provided by financing activities for the six months ended June 30, 2020 totaled $8,669, which consisted of $512 in net repayments on related party loans, $8,300 in proceeds from the issuance of common stock, and $881 in PPP loan proceeds.

Year Ended December 31, 2020, compared to Year Ended December 31, 2019.

Revenue

We are considered to be an early-stage company. There were no revenues generated during the year ended December 31, 2020 or 2019.

Operating Expenses and Loss from Operations

Total operating expenses and loss from operations for the year ended December 31, 2020 were $39,033, a decrease of $35,246 from total operating expenses and loss from operations for the comparable year ended December 31, 2019 of $74,279. This decrease is primarily attributable to a decrease in professional fees, compensation, and general and administrative expenses.

Other Income (Expense)

For the year ended December 31, 2020, we reported net other income of $994 as compared to $0 other income (expense) for the year ended December 31, 2019.

Net Loss

We reported a net loss of $38,039 for the year ended December 31, 2020, as compared to a net loss of $74,279 for the year ended December 31, 2019 due to the factors 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 December 31, 2020, we had a cash balance of $0 and working capital deficit of $162,061.

Current liabilities were $162,061 and $145,443 as of December 31, 2020 and 2019, respectively, and consisted primarily of accounts payable, accrued liabilities, and amounts due to related parties.

The Company is considered to be in the early stage and we had no sales during the year ended December 31, 2020. 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 reported a net loss of $38,039 during the year ended December 31, 2020.  We do not anticipate we will be profitable in 2021.  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.  

Operating activities

Net cash used in operating activities for the year ended December 31, 20182020 amounted to $27,731 and$3,581, which was attributable to ourcomprised of a net loss of $36,037.$38,039, offset by $6,300 in stock-based compensation and net change in operating assets and liabilities totaling $28,158. Net cash used in operating activities for the year ended December 31, 20172019 amounted to $107,598 and$36,310, which was attributable to ourcomprised of a net loss of $283,884.$74,279, offset by $28,500 in stock-based compensation and net change in operating assets and liabilities totaling $9,469.

 

Financing activities

 

Net cash flows provided by financing activities was $18,225 for the quarter ended March 31, 2019 and $6,809 for the quarter ended March 31, 2018. Net cash provided by financing activities was $27,840_for the year ended December 31, 2018. We received proceeds from A related party loan of $30,499. We made repayments of the related party loan of $2,659. Net cash provided by financing activities was $107,602were $3,560 for the year ended December 31, 2017. We received2020, which consisted of net repayments on related party loans of $9,621, proceeds from shareholder contributionsthe issuance of common stock of $12,300, and $881 in PPP loan proceeds. Net cash flows provided by financing activities for the year ended December 31, 2019 was $36,218 in net proceeds from related party loan of $88,863 and 37,922, respectively. We made repayments of shareholder contributions and related party loan of $12,049 and $7,134, respectively.loans.

 

 24

Contractual Obligations

We have certain fixed contractual obligations and commitments that include future estimated payments. Changes in our business needs, cancellation provisions, and other factors may result in actual payments differing from the estimates. We cannot provide certainty regarding the timing and amounts of payments. We have presented below a summary of the most significant assumptions used in our determination of amounts presented in the tables, in order to assist in the review of this information within the context of our consolidated financial position, results of operations, and cash flows.

The following table summarizes our contractual obligations as of March 31, 2019, and the effect these obligations are expected to have on our liquidity and cash flows in future periods.

  Payments Due by Period 
  Total  

Less than

1 year

  1-3
Years
  4-5
Years
  5 Years
+
 
Contractual Obligations:  22,250   22,250             
                     
Total Contractual Obligations: $22,250   22,250   -   -   - 

 

Critical Accounting Policies and Estimates

 

Our consolidated 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’smanagement'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.

 

Revenue Recognition

 

The Company followsadopted the guidance of the FASB ASC 606 “Revenue from Contracts with Customers” on January 1, 2017 and in general will record revenue when persuasive evidencea contract with the rights of an arrangement exists, product deliverythe parties identified has occurred,been approved and the sales priceparties have committed to the customer is fixed or determinable,contract, payment terms have been established, the contract has commercial substance, performance obligations have been satisfied and collectability is reasonably assured.probable. There was no cumulative effect of the adoption of ASC 606 “Revenue from Contracts with Customers” since the Company is in the early stage and had no revenues during the years ended December 31, 2020 or 2019, or subsequently through June 30, 2021.

 

Stock Based Compensation

 

Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718, Compensation – Stock Compensation, which requires recognition in the financial statements of the cost of employee, director, and directornon-employee services received in exchange for an award of equity instruments over the period the employeeentity or directorindividual is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.

 25

Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date.

 

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.

 

Income Taxes

 

Income taxes are accounted for under the asset and liability method as prescribed by ASC Topic 740: Income Taxes (“ASC 740”). 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’sCompany's opinion it is likely that some portion or the entire deferred tax asset will not be realized.

 

Pursuant to ASC Topic 740-10: Income Taxes 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. The adoption had no effect on the Company’s financial statements. The tax years ending December 31, 2018 and 2017 are subject to examination by the Internal Revenue Service.

 

 26

Recent Accounting Pronouncementsand Adoption of New Accounting Principles

In February 2016, the FASB issued Accounting Standards Update, Leases (Topic 842), intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. The ASU on leases will take effect for all public companies for fiscal years beginning after December 15, 2018.

In February 2016, the FASB issued Accounting Standards Codification, Revenue from Contracts with Customers (Topic 606) intended to provide guidance related to general criteria for revenue recognition including identifying the contracts with a customer, identifying the performance obligations in the contracts, determining the transaction price, allocating the transaction price to the performance obligations in the contracts, and recognizing revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer.

 

The Company has reviewed an implemented all new accounting pronouncements that are in effect and that may impact its consolidated financial statements and does not believe that there are any otherno new pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

Off Balance Sheet Arrangements

 

We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as stockholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity.None.

 

DESCRIPTION OF PROPERTY

 

Our principal office is located at 275 Madison521 Fifth Ave, 6th17th Floor, New York, New York 10016 .10175. We lease this space on a month to month-to -month basis at a cost of $1,200$160 per month. We believe that this space is sufficient for our current needs. If this lease is not renewed or we seek to lease additional space, we anticipate that we will be able to lease space at competitive rates.

 27

 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT

 

The following table sets forth, the number of shares of common stock owned of record and beneficially by executive officers, directors, persons who hold 5% or more of our outstanding common stock, and by all officers and directors as a group:

 

Name # Shares Owned Beneficially 

Percentage of Ownership

(%)(1)

 
Lynda Chervil 18,800,000 Class B Common Shares and 495,000 Class A Common Shares  99%(1)
Name# Shares Owned BeneficiallyPercentage of Ownership (1)
Lynda Chervil

870,000 Class A Common Shares

18,800,000 Class B Common Shares

62.7%

100%

 

1. Percent of ownership is based on the total number of issued and outstanding shares of the Company’s Class A and Class B common shares of 19,350,000.

(1)Percent of ownership is based on the 1,387,000 shares of Class A Common Stock issued and outstanding and 18,800,000 shares of Class B Common Stock issued and outstanding as of August 30, 2021.

 

DIRECTOR AND EXECUTIVE OFFICER

 

Lynda Chervil – Chairman/President/CEO/Treasurer/Secretary

Lynda Chervil is our sole officer and Chairperson of the Board of Directors. She graduated from New York University with a Master of Science in Integrated Marketing Communications and has held many roles in new business sales development, executive leadership, sales management, marketing strategy development, deployment and implementation. Prior to venturing into entrepreneurial pursuits, Ms. Chervil led and managed a consumer and commercial bank market of $1.1 billion at Wells Fargo Bank for five years with full P/L accountability. She is both a Fellow of the Institute of Consulting and Chartered Management Institute in the United Kingdom and a recipient of Level 7 Award in Professional Consulting conferred by both the Institute of Consulting and the Chartered Management Institute for writing a disquisition on Strategy Consulting. She is a the author of Fool’s Return and Project Odyssey.

 

EXECUTIVE COMPENSATION

 

On July 15, 2016,During the Company’s Board of Directors approved a corporate resolution whereby Lynda Chervil will receive a salary of $175,000 per year commencing August 1, 2016years ended December 31, 2020 and continuing for a period of two years. Her salary is being accrued2019, the Company issued 50,000 and at March 31, 2019 was $0. On December 7, 2018, Ms. Chervil exchanged her deferred salary in the amount of $350,000 for 375,000245,000 shares of Class A Common Stock.Stock for services to the former Chief Operating Officer and Chief Executive Officer/Chairman of Board of Directors at $0.10 fair market value for total expense of $5,000 and $24,500, respectively.

 

During the year ended December 31, 2020, the Company recorded accrued wages totaling $16,000. On July 30, 2021, 160,000 shares of Class A common stock were issued in satisfaction of the accrual.

 28

 

Summary Compensation Table

 

The following table presents all of the compensation paid or awarded to or earned by our principal executive officer for the fiscal years ended December 31, 2021, 2020, 2019, 2018 and 2017. Ms. Chervil is the only employee of the Company.

 

Name and Principal
Position
 Year  Salary  Bonus  Option
Awards
  Stock
Awards(2)
  Non-Equity
Incentive Plan
Compensation
  All Other
Compensation
  Total 
Lynda Chervil  2018  $0  $  $  $10,000  $  $  $0 

President and Chief

Executive Officer(1)

  2017  $174,916  $  $  $10,000  $  $  $174,916 

Name and Principal
Position
 Year  Salary  Bonus  Option
Awards
  Stock
Awards(1)
  Non-Equity
Incentive Plan
Compensation
  All Other
Compensation
  Total 
Lynda Chervil  2021  $0  $  $  $16,000  $  $  $16,000 
President, CEO  2020  $0  $  $  $5,000  $  $  $5,000 
   2019  $0  $  $  $24,500  $  $  $24,500 

 

(1) Ms. Chervil has been our President and Chief Executive Officer since inception.

(2) Ms. Chervil was awarded 10,000Consisting of shares of Class A Common Stock for her board service.issued at $0.10 fair market value.

 

Ms. Chervil’s address is 275 Madison521 Fifth Ave, 6th17th Floor, New York, New York 10016.

Jennifer Buzzelli was the only member of our Board of Directors to receive 10,000 shares of our Class A Common Stock annually in consideration for serving on our Board of Directors. There was no other compensation provided to our Board10175. 

 

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

AND DIRECTOR INDEPENDENCE

 

The Company’s Chief Executive Officer advanced $9,386 in 2016 to the Company which was included in additional paid in capital on the balance sheet as contributed capital.

During the nine months’year ended September 30, 2917December 31, 2020 the Company’s Chief Executive Officer advanced $81,583$2,822 short term, non-interest-bearing loans to the Company and was repaid $4,915.$12,433. During the year ended December 31, 2019 the CEO advanced the Company $38,808 and was repaid $2,590. As of December 31, 2020 and 2019, there were $85,225 and $94,846, respectively, due to, the Company’s CEO.

 

During the years ended December 31, 2020 and 2019, the Company issued 60,000 and 245,000 shares of common stock -class A to its officers and director for services rendered to the Company, respectively. The shares were valued at fair market value of $.10 on the grant date and recognized as compensation expense totaling $6,000 and $24,500, respectively.

During the year ended December 31, 2020, the Company recorded accrued CEO wages of $16,000 and expenses reimbursable to its CEO of $4,985, for total related party accruals of $20,985 at December 31, 2020. The common shares were subsequently issued on July 20, 2021.

During the six months ended June 30, 2021 and 2020, the Company received advances from its CEO totaling $2,441 and $2,528, respectively, and repaid $0 and $3,040, respectively. As of June 30, 2021, there was $87,666 due to the Company’s CEO.

LEGAL PROCEEDINGS

 

No proceedings are pending to which the Company or any of its property is subject, nor to the knowledge of the Company, are any such legal proceedings threatened against the Company.

 

MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT’S

COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

 

The Company’s Class A and/or B common stock does not trade on any exchange or on any electronic quotation system.

 

INCORPORATION BY REFERENCE

The SEC allows us to "incorporate by reference" into this prospectus the information we have filed with the SEC. This means that we can disclose important information to you by referring you to other documents filed separately with the SEC. These other documents contain important information about us, our financial condition and results of operations. The information incorporated by reference is an important part of this prospectus. Information that we file later with the SEC will automatically update and supersede the information that is either contained, or incorporated by reference, in this prospectus, and will be considered to be a part of this prospectus from the date those documents are filed. 

We have filed with the SEC and incorporate by reference in this prospectus the documents listed below: 

·Our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed on August 13, 2021
·Our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, as filed on August 19, 2021

We also incorporate by reference all additional documents that we file with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, that are filed after the filing of the registration statement of which this prospectus is a part(excluding any information furnished pursuant to Item 2.02 or Item 7.01, or any other information furnished under Item 9.01, on any Current Report on Form 8-K, which is not deemed "filed" with the SEC), as well as between the date of this prospectus and the termination of any offering of securities offered by this prospectus.

Any statement contained in a document incorporated, or deemed to be incorporated, by reference in this prospectus shall be deemed modified, superseded, or replaced for purposes of this prospectus to the extent that a statement contained in this prospectus or in any subsequently filed document that also is, or is deemed to be incorporated, by reference in this prospectus modifies, supersedes, or replaces such statement. Any statement so modified, superseded, or replaced shall not be deemed, except as so modified, superseded, or replaced, to constitute a part of this prospectus.

You may obtain any of the documents incorporated by reference into this prospectus from the SEC through its web site at the address provided above.

CHANGES IN AND DISAGREEMENTS WITH

ACCOUNTANT ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

Effective asOn April 23, 2020, the Board of April 14, 2018,Directors of Internet Sciences, Inc. (the "Company") approved the Company terminated the servicesdismissal of its then independent registered public accounting firm, SalbergAhmad & Company P.A. (“Salberg”Associates CPA, P.C. ("Ahmed") effective April 23, 2020. The Board made this decision due to the revocation of Ahmed's registration with the approval of its board of directors.Public Company Accounting Oversight Board ("PCAOB").

 

Salberg’sAhmed's reports on the financial statements of the Company for the fiscal yearyears ended December 31, 20162017 and December 31, 2018 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. During the Company’sCompany's fiscal year ended December 31, 20162017 and through the date hereof,December 31, 2018, there were (i) no disagreements (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K) with SalbergAhmed on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, disagreements, if not resolved to Salberg’sAhmed's satisfaction, would have caused themAhmed to make reference to the subject matterthereto in connection with their reportreports on the Company’s consolidated financial statements for such period. Furthermore,years, and (ii) no reportable events occurred"reportable events" within the period coveredmeaning of Item 304(a)(1)(v) of Regulation S-K. Ahmed was not requested by Salberg’s reportsthe Board to recertify the 2017 and 2018 audits due to its removal from the PCAOB as a member firm.

Effective December 7, 2020, the Company engaged Pinnacle Accountancy Group of Utah (a dba of Heaton & Company, PLLC) (“Pinnacle”) as the Company's independent registered public accounting firm beginning with the fiscal years ended December 31, 2019 and 2020, as approved by the Company’s Board of Directors.

Prior to engagement, the Company did not consult with Pinnacle regarding (1) the application of accounting principles to a specified transaction, (2) the type of audit opinion that might be rendered on the Company’s financial statements, (3) written or subsequently uporal advice provided that would be an important factor considered by the Company in reaching a decision as to an accounting, auditing or financial reporting issue, or (4) any matter that was the datesubject of Salberg’s dismissal. As used herein,a disagreement between the term “reportable event” means any of the items listedCompany and its predecessor auditor as described in paragraphs (a)Item 304(a)(1)(iv) or a reportable event as described in Item 304(a)(1)(v)(A)-(D) of Item 304 of Regulation S-K.

 

In accordance with Item 304(a)(3) of Regulation S-K, the Company provided Salberg with a copy of the above disclosures prior to the filing of its Form 8-K/A. The Company has requested that Salberg furnish the Company with a letter addressed to the SEC stating whether Salberg agrees with the above statements as required by SEC rules.

 29

FINANCIAL STATEMENTS AND EXHIBITS

INDEX TO THE FINANCIAL STATEMENTS

QUARTER ENDED MARCH 31, 2019

Page
Financial Statements:
Balance SheetsF-2
Statements of Operations and Comprehensive LossF-3
Statements of Stockholders’ DeficitF-4
Statements of Cash FlowsF-5
Notes to the Financial StatementsF-6

INDEX TO THE FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2016 AND 2017

Page
Financial Statements:
Report of Independent Registered Public Accounting FirmF-13
Balance SheetsF-14
Statements of Operations and Comprehensive LossF-15
Statements of Stockholders’ DeficitF-16
Statements of Cash FlowsF-17
Notes to the Financial StatementsF-18

INDEX TO THE FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2017 AND 2018

Page
Financial Statements:
Report of Independent Registered Public Accounting FirmF-26
Balance SheetsF-27
Statements of Operations and Comprehensive LossF-28
Statements of Stockholders’ DeficitF-29
Statements of Cash FlowsF-30
Notes to the Financial StatementsF-31

 F-1

Internet Sciences Inc.

Consolidated Balance Sheet

  March 31, 2019  March 31, 2018 
ASSETS      
Current Assets      
Cash $106  $- 
Accounts receivable  5,000   - 
Prepaid assets  1,200   - 
Security deposit  1,800   1,500 
Total Current Assets  8,106   1,500 
         
TOTAL ASSETS $8,106  $1,500 
         
LIABILITIES AND STOCKHOLDERS’ DEFICIT        
Current Liabilities        
Cash Overdraft  -   9 
Accounts payable  690   - 
Accrued expenses  41,328   38,889 
Accrued compensation - officer  -   262,417 
Stock payable  10   10 
Related party loan  76,851   37,597 
Deferred rent  -   - 
Total Current Liabilities  118,879   338,922 
         
Total Liabilities  118,879   338,922 
         
Commitments and contingencies (see Note 3)        
         
STOCKHOLDERS’ DEFICIT        
Common Stock, $0.001 par value 100,000,000 authorized        

Common Stock Class A, 81,200,000 Shares Designated, 580,000

shares issued and outstanding as of March 31, 2019 and 165,000

shares issued and outstanding as of March 31, 2018

 $788  $168 

Common Stock Class B, 18,800,000 Shares Designated,

18,800,000 shares issued and outstanding as of March 31, 2019

and March 31, 2018

 $18,800   18,800 
Additional paid-in-capital $86,200   86,200 
Accumulated Deficit  (216,561)  (442,590)
         
Total Stockholders’ Deficit  (110,773)  (337,422)
         
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $8,106  $1,500 

See accompanying notes to consolidated financial statements (unaudited)

 F-2

Inernet Sciences Inc.

Consolidated Statement of Operations

  For the Three Months Ended March 31, 
  2019  2018 
       
Revenue $-  $- 
Total Revenue  -   - 
         
Operating Expenses:        
Selling, General and Administrative  9,486   7,972 
Marketing and Public Relations        
Rent Expense  2,069   4,096 
Software Development  -   1,491 
Compensation and Related Taxes  2,367   43,758 
Total Operating Expenses  13,922   57,316 
         
Loss from Operations  (13,922)  (57,316)
         
Other Income (Expenses):        
Other Expense        
Total Other Income (Expenses)  -   - 
         
Net Loss  (13,922)  (57,316)
         
Net Loss Per Common Share:        
Basic ($0.01) ($0.01)
Diluted ($0.01) ($0.01)
         
Weighted Average Common Shares Outstanding:        
Basic  19,380,000   18,965,000 
Diluted  19,380,000   18,965,000 

See accompanying notes to consolidated financial statements (unaudited)

 F-3

Internet Sciences Inc.

Statement of Changes in Stockholders’ Deficit

For the period from May 20, 2016 (Inception) to March 31, 2019

  Common Stock Class A  Common Stock Class B  Additional  Accumulated  Total
Stockholders’
 
  Shares  Amount  Shares  Amount  Paid-in Capital  Deficit  Deficit 
Balance, May 20, 2016 (Inception)  -  $-   -  $-  $-  $-  $- 
                             
Issuance of Founder’s Shares  -   -   18,800,000   18,800   -   -   18,800 

Issuance of common shares for

compensation

  160,000   160   -   -   -   -   160 
Shareholder contributions  -   -   -   -   9,386   -   9,386 
Net Loss  -   -   -   -   -   (101,390)  (101,390)
                             
Balance, December 31, 2016  160,000  $160   18,800,000  $18,800  $9,386  $(101,390) $(73,044)
                             
Shareholder contributions  -   -   -   -   76,668   -   76,668 
Issuance of common shares for compensation  -   -   -   -   146   -   146 
Net Loss  -   -   -   -   -   (283,884)  (283,884)
                             
Balance, December 31, 2017  160,000  $160   18,800,000  $18,800   86,200  $(385,274)  (280,114)
                             
Shareholder contributions  -   -   -   -       -   0 
Issuance of common shares for compensation  45,000   620   -   -   8   -   628 
Reduction of accumlated deficit due to stock issue  375,000   -   -   -   -   218,672   218,672 
Net Loss  -   -   -   -   -   (36,037)  (36,037)
                             
Balance, December 31, 2018  580,000  $780   18,800,000  $18,800   86,208  $(202,639)  (96,851)
                             
Shareholder contributions  -   -   -   -       -   - 

Issuance of common shares for

compensation

  -   -   -   -       -   - 
Net Loss  -   -   -   -   -   (13,922)  (13,922)
                             
Balance, March 31, 2019  580,000  $780   18,800,000  $18,800   86,208  $(216,561)  (110,773)

See accompanying notes to consolidated financial statements (unaudited)

 F-4

Internet Sciences Inc.

Consolidated Statement of Cash Flows

  For the
Three Months Ended
March 31, 2019
  For the
Three Months Ended
March 31, 2018
 
Cash flows from Operating activities      
Net Loss $(13,922)  (57,316)

Adjustments to Reconcile Net Loss to Net Cash used in

Operating Activities:

        
Stock compensation  0   8 
Changes in operating assets and liabilities:        
Security deposit        
Prepaid asset        
Accounts receivable  (5,000)  - 
Accounts payable  690     
Accrued expenses  -   6,736 
Accrued compensation  -   43,750 
Stock payable  -   - 
Deferred rent  -   - 
Cash used in operating activities  (18,232)  (6,822)
         
Cash flows from investing activities        
Acquisition of Company        
Due from related party        
Capital Expenditures/(Disposals)        
Cash used in investing activities        
         
Cash flows from financing activities        
Repayments of related party loan  -   (54)
Proceeds from related party loan  18,225   6,863 
Repayments to shareholder  -   - 
Proceeds from shareholder contributions  -   - 
Cash provided by financing activities  18,225   6,809 
         
Net change in cash  (7)  (13)
Cash (overdraft) at beginning of period  113   4 
Cash (overdraft) at end of period $106  $(9)
         
Supplemental cash flow information        
Cash paid for interest        
Cash paid for income taxes        

See accompanying notes to consolidated financial statements (unaudited)

 F-5

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Quarters ended March 31, 2019 and March 31, 2018

(Unaudited)

NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Luxury Trine Digital Media Group, Inc. (“Luxury Trine” or the “Company”) was incorporated in the State of Delaware on May 20, 2016 and its consolidated Variable Interest Entity (“VIE”), Trine Digital Broadcasting Ltd., was incorporated in the United Kingdom on July 3, 2017.

On October 5, 2019, 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 a development stage emerging diversified information and communications technology company specializing in cutting-edge digital transformation services, including new-media technology; telecommunication and network carrier services; IoT-enabled solutions; and managed ICT, managed cloud services, data centers and co-location services.

Founded in 2016, and based in New York, N.Y., ISI seeks to operate internationally with a global team known for its technological expertise, deep industry knowledge, world-class research and analytical capabilities, and innovative mindset.

ISI seeks to transform corporations, enterprises and government entities by providing best-in-class solutions, rooted in and driven by the technology, data, and organizational strategy required for operational excellence. Our interdisciplinary teams work in close collaboration with clients, helping them to solve their biggest problems utilizing a user-centric, data-driven approach focusing on creating seamless unified experiences across all digital, communication and physical touchpoints.

The Company’s principal place of business is 275 Madison Ave, 6th Floor, New York, NY 10016.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its consolidated VIE. In the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated in consolidation.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its VIE, Trine Digital Broadcasting Ltd. as of March 31, 2019 (unaudited). In the preparation of the consolidated financial statements of the Company, intercompany transactions and balances are eliminated.

The accompanying consolidated financial statements (Unaudited) have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

In the opinion of management, all adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position as of March 31, 2019 and 2018.

Variable Interest Entity

ASC 810-10-25-38, “Consolidation of Variable Interest Entities” requires a variable interest entity (“VIE”) to be consolidated by a company if that company absorbs a majority of the VIE’s expected losses and/or receives a majority of the entity’s expected residual returns as a result of holding variable interests. Trine Digital Broadcasting is a variable interest entity as defined by ASC 810-10-25-38. As ISI owns 49.9% of the VIE and the founder (CEO) majority shareholder (a related party) of ISI controls the remaining 50.1%, ISI has been determined to be the primary beneficiary of this VIE. The VIE was formed to expand the business of ISI into the United Kingdom. There are no formal explicit arrangements as of March 31, 2019 that requires ISI to provide financial support to the VIE, although financial support is implied by the relationship. There were no assets and liabilities of the VIE as of March 31, 2019. Related to consolidated VIEs, it is the Company’s policy not to present non-controlling interest separately on the Company’s financial statements. During the year ended December 31, 2017, there was $2,346 of contributed capital of the Company that was used for formation expense of the VIE. Related to consolidated VIEs, it is the Company’s policy not to present non-controlling interest separately on the Company’s financial statements.

 F-6

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Quarters ended March 31, 2019 and March 31, 2018

(Unaudited)

Risks and Uncertainties for Development Stage Company

We are considered to be in the development stage as defined in the accounting standards since we have not commenced planned principal operations. Our activities since inception include devoting substantially all of our efforts to business planning and development. Additionally, we have allocated a substantial portion of our time and investment to the completion of our development activities to launch our marketing plan and generate revenues and to raising capital. We have generated limited revenue from operations. The Company’s activities during the development stage are subject to significant risks and uncertainties. The Company plans on raising funds through a private placement in which the Company will be offering for sale 5,000,000 shares of our common stock, $0.001 par value per share, at $2.00 per share. The offering is made in reliance upon an exemption from registration under the federal securities laws provided by Rule 506(c) of Regulation D as promulgated by the United States Securities and Exchange Commission under the Securities Act of 1933, as amended. There is currently no public market for our common stock. While the Company believes in the viability of its strategy to initiate sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The financial statements do not include adjustments to reflect the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

Use of Estimates

The preparation of financial statements (Unaudited) 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 (Unaudited) 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 maturity of three months or less are considered to be cash equivalents. The Company places its cash with a high credit quality financial institution. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of March 31, 2019, and March 31, 2018, the Company did not reach bank balances exceeding the FDIC insurance limit.

Fair Value of Financial Instruments

The Company follows FASB 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 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.

 F-7

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Quarters ended March 31, 2019 and March 31, 2018

(Unaudited)

FASB 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 cash, accounts payable, and accrued expenses approximate their estimated fair market value based on the short-term maturity of these instruments.

Impairment of Long-Lived Assets

Long-Lived Assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360-10-35-15,“Impairment or Disposal of Long-Lived Assets”. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value.

Revenue Recognition

The Company adopted the guidance of the FASB ASC 606 “Revenue from Contracts with Customers” on January 1, 2017 and in general will record revenue when a contract with the rights of the parties identified has been approved and the parties have committed to the contract, payment terms have been established, the contract has commercial substance, performance obligations have been satisfied and collectability is probable. There was no cumulative effect of the adoption of ASC 606 “Revenue from Contracts with Customers” since the Company is in the development stage and had no revenues in 1st Quarter, 2019.

Advertising

Advertising is expensed as incurred. Advertising expenses for the years ended March 31, 2019 and for the March 31, 2018 was $0 and $0, respectively.

Income Taxes

Income taxes are accounted for under the asset and liability method as prescribed by ASC Topic 740: Income Taxes (“ASC 740”). 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.

Pursuant to ASC Topic 740-10: Income Taxes 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. The adoption had no effect on the Company’s financial statements. The tax year ending December 31, 2018 is subject to examination by the Internal Revenue Service.

 F-8

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Quarters ended March 31, 2019 and March 31, 2018

(Unaudited)

Stock Based Compensation

Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.

Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date.

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.

Net loss per share for each class of common stock is as follows:

  For the year ended  For the year ended 
Net loss per common shares outstanding: March 31, 2019  to March 31, 2018 
Class A common stock $(0.01) $(0.01)
Class B common stock $(0.01) $(0.01)
         
Weighted average shares outstanding:        
Class A common stock  580,000   160,000 
Class B common stock  18,800,000   18,800,000 
Total weighted average shares outstanding  19,380,000   18,960,000 

Concentration of Credit Risks

Financial instruments that potentially subject the company to credit risk consist principally of cash and cash equivalents and receivables. The Company places its cash and cash equivalents with financial institutions. Deposits are insured to Federal Deposit Insurance Corp. limits. At March 31, 2019 and March 31, 2018 there was no uninsured cash.

 F-9

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Quarters ended March 31, 2019 and March 31, 2018

(Unaudited)

Related Parties

A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Recent Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update, Leases (Topic 842), intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP - which requires only capital leases to be recognized on the balance sheet - the new ASU will require both types of leases to be recognized on the balance sheet. The ASU on leases will take effect for all public companies for fiscal years beginning after December 15, 2018.

In February 2016, the FASB issued Accounting Standards Codification, Revenue from Contracts with Customers (Topic 606) intended to provide guidance related to general criteria for revenue recognition including identifying the contracts with a customer, identifying the performance obligations in the contracts, determining the transaction price, allocating the transaction price to the performance obligations in the contracts, and recognizing revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. The Company adopted this standard effective January 1, 2017.

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.

NOTE 2 – GOING CONCERN CONSIDERATIONS

The accompanying consolidated financial statements are prepared assuming the Company will continue as a going concern. At March 31, 2019, the Company had an accumulated deficit of $216,561, a stockholders’ deficit of $110,773 and a working capital deficiency of $110,773. For the quarter ended March 31, 2019, the Company had a net loss of $13,922 and cash used in operating activities of $18,232. These matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of three months from the issue date of this unaudited report. The ability of the Company to continue as a going concern is dependent upon initiating sales and obtaining additional capital and financing. The Company plans on raising funds through a private placement in which the Company will be offering for sale 5,000,000 shares of our common stock, $0.001 par value per share, at $2.00 per share. The offering is to be made in reliance upon an exemption from registration under the federal securities laws provided by Rule 506(c) of Regulation D as promulgated by the United States Securities and Exchange Commission under the Securities Act of 1933, as amended. As of the date of this report no funds have been raised and no future commitments have been received under this private placement. There is currently no public market for our common stock. While the Company believes in the viability of its strategy to initiate sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The consolidated financial statements (unaudited) do not include adjustments to reflect the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

 F-10

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Quarters ended March 31, 2019 and March 31, 2018

(Unaudited)

NOTE 3 – COMMITMENTS AND CONTINGENCIES

In November 2019, the Company executed a new office License Agreement to lease office space commencing on January 1, 2019 with a twelve month term ending on December 31, 2019. The monthly license fee is $1,200 per month with the first month at no charge. The Company paid a month’s rent in advance and paid a security deposit of $1,800. Rent expense for the year ended March 31, 2019 and for the year ended March 31, 2018 was $2,069 and $4,096, respectively.

In March 2018 the Company executed a video contact licensing agreement with guaranteed fees of $500; $1,000; $1,500; $2,000 and $2,500 for June; July; August; September; and October and thereafter until February 2019, respectively. As of March 31, 2019, $16,000 was owed.

On October 11, 2017 the Company executed an Engagement Memorandum for the development of a Private Placement Memorandum (PPM), Form 10 Registration Statement, Reg D Filing, obtaining CUSIP numbers, IR campaign – for the purpose of raising capital and/or recruitment of potential investors for the Company. The fee for the above mentioned services was $25,000 which included an initial payment of $5,000 which was paid in October 2017 and $20,000 due upon the Company receiving a minimum of ten indications of interest and first round of private placement funds from Licensed FINRA member broker/dealer firms to be paid out of inward investment proceeds. As of March 31, 2019, proceeds have not been secured by the Company.

NOTE 4 – ACCRUED COMPENSATION

On July 15, 2016, at a meeting of the Company’s Board of Directors, the Board resolved by unanimous vote to sign a two-year employment contract with the Company’s founder and CEO at rate of $175,000 per annum on August 1, 2016 through July 31, 2018. As of March 31, 2018, the Company accrued compensation of $262,417 and as of March 31, 2019 all accrued compensation was exchanged for stock compensation.

On October 29, 2017, at a meeting of the Company’s Board of Directors, the Company’s founder and CEO agreed to accept 375,000 shares of Class A shares of the company in lieu of the accrued compensation. The Company has issued 375,000 Class A shares at $0.001 par value in lieu of accrued compensation.

NOTE 5 – STOCKHOLDERS’ DEFICIT

On May 26, 2016 the Company issued 18,800,000 Class B Common Shares as founder shares for services rendered. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.001 per share and recognized as compensation expense of $18,800 on the grant date.

On July 15, 2016 the Company issued 120,000 Class A Common Shares related to executive compensation. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.001 per share and recognized as compensation expense of $120 on the grant date.

On July 15, 2016 the Company also issued 40,000 Class A Common Shares to three different board members related to board member services. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.001 per share and recognized as compensation expense of $40 on the grant date.

In July 2017, as part of the formation of the VIE an affiliate paid $2,346 of formation costs which was recorded as capital contribution.

On October 26, 2017 the Board of Directors granted a new Director 10,000 Class A shares which was recognized immediately on the grant date of October 26, 2017 due to the de minimis value of the shares. If the Director is not employed at the cliff vesting date of August 26, 2018, the shares will be forfeited. The Company valued the shares at fair market value of $0.0155 per share.

 F-11

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Quarters ended March 31, 2019 and March 31, 2018

(Unaudited)

On March 27, 2018 the Company issued 5,000 Class A Common Shares to Roger Young as service shares for consultancy on technology asset acquisition. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.0155 per share and recognized as compensation expense of $78 on the grant date.

On November 27, 2018 the Company issued 10,000 Class A Common Shares to Jennifer Buzzelli. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.0155 per share and recognized as compensation expense of $155 on the grant date.

On December 4, 2018 the Company issued 5,000 Class A Common Shares to Alan Swersky. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.0155 per share and recognized as compensation expense of $78 on the grant date.

On December 19, 2018 the Company issued 25,000 Class A Common Shares to Bart Fooden. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.0155 per share and recognized as compensation expense of $388 on the grant date.

NOTE 6 – RELATED PARTY TRANSACTIONS

During the quarter ended March 31, 2019 the Company’s Chief Executive Officer advanced 18,225 short term, non-interest-bearing loans to the Company which is included in related party loan on the balance sheet of the Company as of March 31, 2019.

NOTE 7 – SUBSEQUENT EVENTS

Management has assessed subsequent events through May 27, 2019, the date on which the financial statements (unaudited) were available to be issued.

 F-12

AHMED & ASSOCIATES CPA P.C.

35 Aberdeen Road, New Hyde Park, NY 11040

P: 516-713-9979 F: 516-706-1376 E: riz@ahmedassociatescpa.com

MEMBER

AMERICAN INSTITUTE OF

CERTIRIED PUBLIC ACCOUNTANTS

INDEPENDENT ACCOUNTANTS’ AUDIT REPORT

 

 

ToUnaudited Financial Statements for the Board of DirectorsSix Months ended June 30, 2021 and Shareholder(s) of2020

Internet Sciences, Inc.

New York, NYIncorporated by reference to the Company's Form 10-Q filed with the Commission on August 19, 2021

 

I have audited the accompanying balance sheet of Internet Sciences, Inc. as of December 31, 2017, and the related statement of income, and cash flows for the year then ended, and the related notes to the financial statements. In my opinion, the financial statements referred to previously present fairly, in all material respects, the financial position of Internet Sciences, Inc. as of December 31, 2017 and the results of its operations and its cash flows for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America.

These financial statements are the responsibility of the Company’s management. My responsibility is to express an opinion on the company’s financial statements based on my audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

I conducted the audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. My audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. My audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that my audit provide a reasonable basis for our opinion.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 of the financial statements, the Company had an accumulated deficit of $385,274, a stockholders’ deficit of $280,114 and a working capital deficiency of $280,114. For the year ended December 31, 2017, the Company had a net loss of $283,884 and cash used in operating activities of $107,598. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plan in regards to these matters is also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

I have served as the Company’s auditors since 2019

New Hyde Park, NY

May 24, 2019

Internet Sciences, Inc.

Consolidated Balance Sheet

For The Years Ended December 31, 2017 and May 20, 2016 (inception) to December 31, 2016

ASSETS December 31, 2017  December 31, 2016 
       
   Current Assets        
Cash $4  $- 
Prepaid asset  -   - 
Security deposit  1,500   1,950 
   Total Current Assets  1,504   1,950 
         
TOTAL ASSETS $1,504  $1,950 
         
LIABILITIES AND STOCKHOLDERS' DEFICIT        
Current Liabilities        
Accounts payable  -   - 
Accrued expenses  32,153   1,102 
Accrued compensation - officer  218,667   72,917 
Stock payable  10   - 
Related party loan  30,788   - 
Deferred rent  -   975 
Total Current Liabilities  281,618   74,994 
         
Total Liabilities  281,618   74,994 
         
Commitments and contingencies (see Note 3)        
         
STOCKHOLDERS' DEFICIT        
    Common Stock, $0.001 par value 100,000,000 authorized        
Common Stock Class A, 81,200,000 Shares Designated,        
160,000 shares issued and outstanding as of December 31, 2017 and December 31, 2016  160   160 
Common Stock Class B, 18,800,000 Shares Designated,        
18,800,000 shares issued and outstanding as of December 31, 2017 and December 31, 2016  18,800   18,800 
    Additional paid-in-capital  86,200   9,386 
    Accumulated Deficit  (385,274)  (101,390)
         
   Total Stockholders' Deficit  (280,114)  (73,044)
         
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $1,504  $1,950 

See accompanying notes to consolidated financial statements

Internet Sciences, Inc.

Consolidated Statement of Operations

For The Years Ended December 31, 2017 and May 20, 2016 (inception) to December 31, 2016

  For the Year  For the Period 
  Ended  May 20, 2016 (Inception) 
  December 31, 2017  to December 31, 2016 
       
Revenue $846  $- 
          Total Revenue  846   - 
         
Operating Expenses:        
     Selling, General and Administrative  64,668   1,534 
     Marketing and Public Relations  330   - 
     Rent Expense  14,654   7,979 
     Software Development  29,908   - 
     Compensation and Related Taxes  175,156   91,877 
          Total Operating Expenses  284,716   101,390 
         
Loss from Operations  (283,870)  (101,390)
         
Other Income (Expenses):        
     Other Expense  (14)  - 
          Total Other Income (Expenses)  (14)  - 
         
Net Loss  (283,884)  (101,390)
         
Net Loss Per Common Share:        
     Basic $(0.01) $(0.01)
     Diluted $(0.01) $(0.01)
         
Weighted Average Common Shares Outstanding:        
     Basic  18,960,000   18,923,470 
     Diluted  18,960,000   18,923,470 

See accompanying notes to consolidated financial statements

Internet Sciences, Inc.

Statement of Changes in Stockholders' Deficit

For the period from May 20, 2016 (Inception) to December 31, 2017

              Total 
  Common Stock Class A  Common Stock Class B  Additional  Accumulated  Stockholders' 
  Shares  Amount  Shares  Amount  Paid-in Capital  Deficit  Deficit 
Balance, May 20, 2016 (Inception)  -  $-   -  $-  $-  $-  $- 
                             
Issuance of Founder's Shares  -   -   18,800,000   18,800   -   -   18,800 
Issuance of common shares for compensation  160,000   160   -   -   -   -   160 
Shareholder contributions  -   -   -   -   9,386   -   9,386 
Net Loss  -   -   -   -   -   (101,390)  (101,390)
                             
Balance, December 31, 2016  160,000  $160   18,800,000  $18,800  $9,386  $(101,390) $(73,044)
                             
Shareholder contributions  -   -   -   -   76,668   -   76,668 
Issuance of common shares for compensation  -   -   -   -   146   -   146 
Net Loss  -   -   -   -   -   (283,884)  (283,884)
                             
Balance, December 31, 2017  160,000  $160   18,800,000  $18,800   86,200  $(385,274)  (280,114)

See accompanying notes to consolidated financial statements

Internet Sciences, Inc.

Consolidated Statement of Cash Flows

For The Years Ended December 31, 2017 and 2016

  For the Year Ended  For the Period May 20, 2016
(Inception)
 
  December 31, 2017  to December 31, 2016 
Cash flows from Operating activities        
Net Loss $(283,884) $(101,390)
Adjustments to Reconcile Net Loss to Net Cash        
used in Operating Activities:        
Stock compensation  -   18,960 
Changes in operating assets and liabilities:        
Security deposit  450   (1,950)
Prepaid asset  -     
Accounts payable  -   - 
Accrued expenses  31,051   1,102 
Accrued compensation  145,750   72,917 
Stock payable  10     
Deferred rent  (975)  975 
Cash used in operating activities  (107,598)  (9,386)
         
Cash flows from financing activities        
Repayments of related party loan  (7,134)    
Proceeds from related party loan  37,922     
Repayments to shareholder  (12,049)  - 
Proceeds from shareholder contributions  88,863   9,386 
Cash provided by financing activities  107,602   9,386 
         
Net change in cash  4   - 
Cash at beginning of period  -   - 
Cash at end of period $4  $- 
         
         
Supplemental cash flow information        
Cash paid for interest $-  $- 
Cash paid for income taxes $-  $- 

See accompanying notes to consolidated financial statements

Internet Sciences, Inc.

Notes to ConsolidatedAudited Financial Statements

For the year ended December 31, 2017

NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Luxury Trine Digital Media Group, Inc. (“Luxury Trine” or the “Company”) was incorporated in the State of Delaware on May 20, 2016 and its consolidated Variable Interest Entity (“VIE”), Trine Digital Broadcasting Ltd., was incorporated in the United Kingdom on July 3, 2017.

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 a development stage emerging diversified information and communications technology company specializing in cutting-edge digital transformation services, including new-media technology; telecommunication and network carrier services; IoT-enabled solutions; and managed ICT, managed cloud services, data centers and co-location services.

Founded in 2016, and based in New York, N.Y., ISI seeks to operate internationally with a global team known for its technological expertise, deep industry knowledge, world-class research and analytical capabilities, and innovative mindset.

ISI seeks to transform corporations, enterprises and government entities by providing best-in-class solutions, rooted in and driven by the technology, data, and organizational strategy required for operational excellence. Our interdisciplinary teams work in close collaboration with clients, helping them to solve their biggest problems utilizing a user-centric, data-driven approach focusing on creating seamless unified experiences across all digital, communication and physical touchpoints.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its consolidated VIE. In the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated in consolidation.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its VIE, Trine Digital Broadcasting Ltd. as of December 31, 2017. In the preparation of the consolidated financial statements of the Company, intercompany transactions and balances are eliminated.

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

In the opinion of management, all adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position as of December 31, 2017 and 2016.

Variable Interest Entity

ASC 810-10-25-38, “Consolidation of Variable Interest Entities” requires a variable interest entity (“VIE”) to be consolidated by a company if that company absorbs a majority of the VIE’s expected losses and/or receives a majority of the entity’s expected residual returns as a result of holding variable interests. Trine Digital Broadcasting Ltd. is a variable interest entity as defined by ASC 810-10-25-38. As Internet Sciences, Inc. owns 49.9% of the VIE and the founder (CEO) majority shareholder (a related party) of Internet Sciences, Inc. controls the remaining 50.1%, Internet Sciences, Inc. has been determined to be the primary beneficiary of this VIE. The VIE was formed to expand the business of Internet Sciences, Inc. into the United Kingdom. There are no formal explicit arrangements as of December 31, 2017 that requires Internet Sciences, Inc. to provide financial support to the VIE, although financial support is implied by the relationship. There were no assets and liabilities of the VIE as of December 31, 2017. During the year ended December 31, 2017, there was $2,346 of contributed capital of the Company that was used for formation expense of the VIE. Related to consolidated VIEs, it is the Company’s policy not to present non-controlling interest separately on the Company’s financial statements.

Internet Sciences, Inc.

Notes to Consolidated Financial Statements

For the year ended December 31, 2017

Risks and Uncertainties for Development Stage Company

We are considered to be in the development stage as defined in the accounting standards since we have not commenced planned principal operations. Our activities since inception include devoting substantially all of our efforts to business planning and development. Additionally, we have allocated a substantial portion of our time and investment to the completion of our development activities to launch our marketing plan and generate revenues and to raising capital. We have generated no revenue from operations. The Company’s activities during the development stage are subject to significant risks and uncertainties.

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.

Cash and Cash Equivalents

All highly liquid investments with maturity of three months or less are considered to be cash equivalents. The Company places its cash with a high credit quality financial institution. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of December 31, 2017, and December 31, 2016, the Company did not reach bank balances exceeding the FDIC insurance limit.

Fair Value of Financial Instruments

The Company follows FASB 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 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.

FASB 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.

Internet Sciences, Inc.

Notes to Consolidated Financial Statements

For the year ended December 31, 2017

The carrying amounts reported in the balance sheet for cash, accounts payable, and accrued expenses approximate their estimated fair market value based on the short-term maturity of these instruments.

Impairment of Long-Lived Assets

Long-Lived Assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360-10-35-15,“Impairment or Disposal of Long-Lived Assets”. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value.

Revenue Recognition

The Company adopted the guidance of the FASB ASC 606 “Revenue from Contracts with Customers” on January 1, 2017 and in general will record revenue when a contract with the rights of the parties identified has been approved and the parties have committed to the contract, payment terms have been established, the contract has commercial substance, performance obligations have been satisfied and collectability is probable. There was no cumulative effect of the adoption of ASC 606 “Revenue from Contracts with Customers” since the Company is in the development stage and had no revenues in 2016.

Advertising

Advertising is expensed as incurred. Advertising expenses for the year ended December 31, 2017 and for the period from May 20, 2016 (inception) through December 31, 2016 was $331 and $0, respectively.

Income Taxes

Income taxes are accounted for under the asset and liability method as prescribed by ASC Topic 740: Income Taxes (“ASC 740”). 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.

Pursuant to ASC Topic 740-10: Income Taxes 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.  The adoption had no effect on the Company’s financial statements. The tax year ending December 31, 2017 and 2016 is subject to examination by the Internal Revenue Service.

Internet Sciences, Inc.

Notes to Consolidated Financial Statements

For the year ended December 31, 2017

Stock Based Compensation

Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.

Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date.

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.

Net loss per share for each class of common stock is as follows:

     For the period from 
  Year ended  May 20, 2016
(Inception)
 
Net loss per common shares outstanding: December 31, 2017  to December 31, 2016 
Class A common stock $(0.01) $(0.01)
Class B common stock $(0.01) $(0.01)
         
Weighted average shares outstanding:        
Class A common stock  160,000   160,000 
Class B common stock  18,800,000   18,800,000 
Total weighted average shares outstanding  18,960,000   18,960,000 

Concentration of Credit Risks

Financial instruments that potentially subject the company to credit risk consist principally of cash and cash equivalents and receivables. The Company places its cash and cash equivalents with financial institutions. Deposits are insured to Federal Deposit Insurance Corp. limits. At December 31, 2017 and December 31, 2016 there was no uninsured cash.

Internet Sciences, Inc.

Notes to Consolidated Financial Statements

For the year ended December 31, 2017

Related Parties

A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Segment Reporting

Separate segment data has not been presented as the Company meets the criteria for aggregation as permitted by ASC Topic 280, “Segment Reporting” (formerly Statement of Financial Accounting Standards (SFAS) No. 131, “Disclosures About Segments of an Enterprise and Related Information”).

Our chief operating decision-maker is considered to be our Chief Executive Officer (CEO). The CEO reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The financial information reviewed by the CEO is identical to the information presented in the accompanying consolidated statements of operations. Therefore, the Company has determined that it operates in a single operating segment. For the years ended December 31, 2017 and 2016 all material assets of the Company were in the United States.

Recent Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update, Leases (Topic 842), intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet— the new ASU will require both types of leases to be recognized on the balance sheet. The ASU on leases will take effect for all public companies for fiscal years beginning after December 15, 2018.

In February 2016, the FASB issued Accounting Standards Codification, Revenue from Contracts with Customers (Topic 606) intended to provide guidance related to general criteria for revenue recognition including identifying the contracts with a customer, identifying the performance obligations in the contracts, determining the transaction price, allocating the transaction price to the performance obligations in the contracts, and recognizing revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. The Company adopted this standard effective January 1, 2017.

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.

Internet Sciences, Inc.

Notes to Consolidated Financial Statements

For the year ended December 31, 2017

NOTE 2 – GOING CONCERN CONSIDERATIONS

The accompanying consolidated financial statements are prepared assuming the Company will continue as a going concern. At December 31, 2017, the Company had an accumulated deficit of $385,274, a stockholders’ deficit of $280,114 and a working capital deficiency of $280,114. For the year ended December 31, 2017, the Company had a net loss of $283,884 and cash used in operating activities of $107,598. These matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issue date of this report. The ability of the Company to continue as a going concern is dependent upon initiating sales and obtaining additional capital and financing. The Company plans on raising funds through a private placement in which the Company will be offering for sale 5,000,000 shares of our common stock, $0.001 par value per share, at $2.00 per share. The offering is to be made in reliance upon an exemption from registration under the federal securities laws provided by Rule 506(c) of Regulation D as promulgated by the United States Securities and Exchange Commission under the Securities Act of 1933, as amended. As of the date of this report no funds have been raised and no future commitments have been received under this private placement. There is currently no public market for our common stock. While the Company believes in the viability of its strategy to initiate sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The consolidated financial statements do not include adjustments to reflect the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

NOTE 3 – COMMITMENTS AND CONTINGENCIES

For the period of July 1, 2016 through September 30, 2016 the Company incurred a monthly rent expense, without a lease, of approximately $1,500 per month. On October 23, 2016 the Company executed an Office License Agreement to lease office space commencing on October 1, 2016 with a twelve month term ending on September 30, 2017. The monthly license fee is $1,300 per month with the first month at no charge. The company recognized deferred rent of $1,300 on October 1, 2016 which will be amortized on a straight line basis over the term of the agreement. The Company also incurred a refundable security deposit of $1,950 related to the Office License Agreement. On June 30, 2017, the Company executed an Amendment to License Agreement which effective July 1, 2017 reduced the monthly lease expense from $1,300 to $1,000 per month and reduced the security deposit from $1,950 to $1,500. The term of the lease was extended to December 31, 2017 and defaulted to a month to month basis on January 1, 2018.

Rent expense for the year ended December 31, 2017 and for the period of May 20, 2016 (Inception) to December 31, 2016 was $14,654 and $7,979, respectively.

In March 2017 the Company executed a video contact licensing agreement with guaranteed fees of $500; $1,000; $1,500; $2,000 and $2,500 for June; July; August; September; and October and thereafter, respectively. As of December 31, 2017, $11,000 was owed. There was an Addendum to this contract signed on June 18, 2018, which outlined a payment plan irrespective of whether the service has been delivered in the particular month of the payment due, the 2018 total commitment amounted to $16,000 of which $11,000 is carried over from December 31, 2017 amount owed.

On October 11, 2017 the Company executed an Engagement Memorandum for the development of a Private Placement Memorandum (PPM), Form 10 Registration Statement, Reg D Filing, obtaining CUSIP numbers, IR campaign – for the purpose of raising capital and/or recruitment of potential investors for the Company. The fee for the above mentioned services was $25,000 which included an initial payment of $5,000 which was paid in October 2017 and $20,000 due upon the Company receiving a minimum of ten indications of interest and first round of private placement funds from Licensed FINRA member broker/dealer firms to be paid out of inward investment proceeds. As of December 31, 2017, proceeds have not been secured by the Company.

Internet Sciences, Inc.

Notes to Consolidated Financial Statements

For the year ended December 31, 2017

NOTE 4 – STOCKHOLDERS’ DEFICIT

On May 26, 2016 the Company issued 18,800,000 Class B Common Shares as founder shares for services rendered. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.001 per share and recognized as compensation expense of $18,800 on the grant date.

On July 15, 2016 the Company issued 120,000 Class A Common Shares related to executive compensation. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.001 per share and recognized as compensation expense of $120 on the grant date.

On July 15, 2016 the Company also issued 40,000 Class A Common Shares to three different board members related to board member services. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.001 per share and recognized as compensation expense of $40 on the grant date.

In July 2017, as part of the formation of the VIE an affiliate paid $2,346 of formation costs which was recorded as capital contribution.

On October 26, 2017 the Board of Directors granted a new Director 10,000 Class A shares which was recognized immediately on the grant date of October 26, 2017 due to the de minimis value of the shares. If the Director is not employed at the cliff vesting date of August 26, 2018, the shares will be forfeited. The Company valued the shares at fair market value of $0.0155 per share.

NOTE 5 – INCOME TAXES

The Company accounts for income taxes under ASC Topic 740: Income Taxes which requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. There was no income tax expense in 2017 and 2016 due to net losses in both years. The Company has aggregate net operating loss carryforward of $74,730 for income tax purposes as of December 31, 2017, which may be available to reduce future taxable income through 2037.

Effective December 22, 2017, a new tax bill was signed into law that reduced the federal income tax rate for corporations from 35% to 21%. The new bill reduced the blended tax rate for the Company from 38.5% to 25.4%. The change in the blended tax rate reduced the 2017 net operating loss carryforward deferred tax assets by approximately $40,000. The table below summarizes the differences between the Company’s effective tax rate and the statutory federal rate as follows for the year ended December 31, 2017 and 2016: 

  2017  2016 
Tax benefit computed at “expected” statutory rate $(99,359) $(35,487)
         
State income taxes, net of federal benefit  (9,936)  (3,549)
Stock compensation  -   7,300 
Effect of change in federal rate to 21%  39,744   - 
Increase in valuation allowance  69,552   31,736 
Net income tax benefit $-  $- 

Internet Sciences, Inc.

Notes to Consolidated Financial Statements

For the year ended December 31, 2017

Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to net deferred tax assets are as follows:

Deferred tax assets: 2017  2016 
Net operating loss carryforward $18,981  $3,663 
Accrued salaries  18,521   28,073 
Total Deferred tax assets  37,502   31,736 
Less: Valuation allowance  (37,502)  (31,736)
  $-  $- 

After consideration of all the evidence, both positive and negative, management has recorded a full valuation allowance at December 31, 2017 and 2016, due to the uncertainty of realizing the deferred income tax assets. The valuation allowance was increased by $37,502 and $31,736 during 2017 and 2016, respectively. 

NOTE 6 – RELATED PARTY TRANSACTIONS

The Company’s Chief Executive Officer has advanced $9,386 in funds to the Company in 2016 which is included in additional paid- in capital on the balance sheet of the Company as of December 31, 2016.

During the year ended December 31, 2017 the Company’s Chief Executive Officer advanced $88,863 in funds to the Company and was repaid $12,049 which is included in additional paid- in capital on the balance sheet of the Company as of December 31, 2017. The Company’s Chief Executive Officer also advanced $37,922 short term, non-interest-bearing loans to the Company and was repaid $7,134 which is included in related party loan on the balance sheet of the Company as of December 31, 2017.

In 2016 the Company did not have a bank account; consequently, the Company used a related party affiliate’s bank account to conduct business transactions. In January 2017 the Company opened a bank account.

NOTE 7 – SUBSEQUENT EVENTS

Management has assessed subsequent events through May 24, 2019, the date on which the financial statements were available to be issued.

The Company plans on raising funds through a private placement in which the Company will be offering for sale 5,000,000 shares of our common stock, $0.001 par value per share, at $2.00 per share. The offering is to be made in reliance upon an exemption from registration under the federal securities laws provided by Rule 506(c) of Regulation D as promulgated by the United States Securities and Exchange Commission under the Securities Act of 1933, as amended. As of the date of this report no funds have been raised and no future commitments have been received under this private placement.

On January 22, 2018, the Company (Licensee) signed a Licensing Agreement with the CEO of the Company (Licensor). The License Agreement grants the Licensee the exclusive rights to use a patent pending owned by the Licensor in connection with the expansion of the Licensee’s business operations. The term of the License Agreement shall be for five years (the “Initial Term”) and shall be renewed for three additional five year terms unless notice of cancellation is provided at least ninety days prior to the termination date of either the Initial Term or any extension thereof. The Licensee shall pay the Licensor a licensing fee of $100 per annum with the first annual payment due one year from the execution of the Licensing Agreement.

AHMED & ASSOCIATES CPA P.C.

35 Aberdeen Road, New Hyde Park, NY 11040

P: 516-713-9979 F: 516-706-1376 E: riz@ahmedassociatescpa.com

MEMBER

AMERICAN INSTITUTE OF

CERTIRIED PUBLIC ACCOUNTANTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholder(s) of

Internet Sciences, Inc.

New York, NY

I have audited the accompanying balance sheet of Internet Sciences, Inc. as of December 31, 2018 and December 31, 2017, and the related statement of income, and cash flows for the years then ended, and the related notes to the financial statements. In my opinion, the financial statements referred to previously present fairly, in all material respects, the financial position of Internet Sciences, Inc. as of December 31, 2018 and December 31, 2017 and the results of its operations and its cash flows for the fiscal years then ended in conformity with accounting principles generally accepted in the United States of America.

These financial statements are the responsibility of the Company’s management. My responsibility is to express an opinion on the company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

I conducted the audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. My audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. My audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that my audits provide a reasonable basis for our opinion.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 of the financial statements, the Company had an accumulated deficit of $202,641, a stockholders’ deficit of $96,853 and a working capital deficiency of $96,853. For the year ended December 31, 2018, the Company had a net loss of $36,037 and cash used in operating activities of $27,731. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plan in regards to these matters is also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

I have served as the Company’s auditor since 2019

New Hyde Park, NY

May 24, 2019

Internet Sciences Inc.

Consolidated Balance Sheet

For The Years Ended December 31, 2018 and 2017

       
ASSETS December 31. 2018  December 31, 2017 
       
   Current Assets        
Cash $113  $4 
Prepaid asset  1,200   - 
Security deposit  1,800   1,500 
   Total Current Assets  3,113   1,504 
         
TOTAL ASSETS $3,113  $1,504 
         
LIABILITIES AND STOCKHOLDERS' DEFICIT        
Current Liabilities        
Accounts payable  -   - 
Accrued expenses  41,328   32,153 
Accrued compensation - officer  -   218,667 
Stock payable  10   10 
Related party loan  58,627   30,788 
Deferred rent      - 
Total Current Liabilities  99,966   281,618 
         
Total Liabilities  99,966   281,618 
         
Commitments and contingencies (see Note 3)        
         
STOCKHOLDERS' DEFICIT        
    Common Stock, $0.001 par value 100,000,000 authorized        
Common Stock Class A, 81,200,000 Shares Designated,        
580,000 shares issued and outstanding as of December 31, 2018 and 160,000 shares issued
and outstanding December 31, 2017
 $788   160 
Common Stock Class B, 18,800,000 Shares Designated,        
18,800,000 shares issued and outstanding as of December 31, 2018 and December 31, 2017 $18,800   18,800 
    Additional paid-in-capital $86,200   86,200 
    Accumulated Deficit ($202,641)  (385,274)
         
   Total Stockholders' Deficit  (96,853)  (280,114)
         
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $3,113  $1,504 

See accompanying notes to consolidated financial statements

Internet Sciences Inc.

Consolidated Statement of Operations

For The Years Ended December 31, 2018 and 2017

  December 31, 2018  December 31, 2017 
       
Revenue $-  $846 
          Total Revenue  -   846 
         
Operating Expenses:        
     Selling, General and Administrative  25,166   64,668 
     Marketing and Public Relations  0   330 
     Rent Expense  8,752   14,654 
     Software Development  1,491   29,908 
     Compensation and Related Taxes  628   175,156 
          Total Operating Income (Expenses)  36,037   284,716 
         
Income (Loss) from Operations  (36,037)  (283,870)
         
Other Income (Expenses):        
     Other Expense  0   (14)
          Total Other Income (Expenses)  0   (14)
         
Net Income (Loss)  (36,037)  (283,884)
         
Net Loss Per Common Share:        
     Basic -$0.00  -$0.01 
     Diluted -$0.00  -$0.01 
         
Weighted Average Common Shares Outstanding:        
     Basic  19,380,000   18,960,000 
     Diluted  19,380,000   18,960,000 

See accompanying notes to consolidated financial statements

Internet Sciences Inc.

Statement of Changes in Stockholders' Deficit

For the period from May 20, 2016 (Inception) to December 31, 2018

              Total 
  Common Stock Class A  Common Stock Class B  Additional  Accumulated  Stockholders' 
  Shares  Amount  Shares  Amount  Paid-in Capital  Deficit  Deficit 
Balance, May 20, 2016 (Inception)  -  $-   -  $-  $-  $-  $- 
                             
Issuance of Founder's Shares  -   -   18,800,000   18,800   -   -   18,800 
Issuance of common shares for compensation  160,000   160   -   -   -   -   160 
Shareholder contributions  -   -   -   -   9,386   -   9,386 
Net Loss  -   -   -   -   -   (101,390)  (101,390)
                             
Balance, December 31, 2016  160,000  $160   18,800,000  $18,800  $9,386  $(101,390) $(73,044)
                             
Shareholder contributions  -   -   -   -   76,668   -   76,668 
Issuance of common shares for compensation  -   -   -   -   146   -   146 
Net Loss  -   -   -   -   -   (283,884)  (283,884)
                             
Balance, December 31, 2017  160,000  $160   18,800,000  $18,800   86,200  $(385,274)  (280,114)
                             
Shareholder contributions  -   -   -   -       -   0 
Issuance of common shares for compensation  45,000   431   -   -       -   431 
Reduction of accumlated deficit due to stock issue  375,000                   218,867   218,867 
Net Gain  -   -   -   -   -   (36,037)  (36,037)
                             
Balance, December 31, 2018  580,000  $591   18,800,000  $18,800   86,200  $(202,444) $(96,853)

See accompanying notes to consolidated finacial statements

Internet Sciences Inc.

Consolidated Statement of Cash Flows

For The Years Ended December 31, 2018 and 2017 

  For the Year Ended  For the Year Ended 
  December 31, 2018  December 31, 2017 
Cash flows from Operating activities        
Net Income (Loss)  (36,037) $(283,884)
Adjustments to Reconcile Net Loss to Net Cash        
used in Operating Activities:        
Stock compensation  631   - 
Prior Period Adjustment  218,667     
Changes in operating assets and liabilities:        
Security deposit  (300)  450 
Prepaid asset  (1,200)  - 
Accounts payable      - 
Accrued expenses  9,175   31,051 
Accrued compensation  (218,667)  145,750 
Stock payable      10 
        Deferred rent      (975)
Cash used in operating activities  (27,731)  (107,598)
         
Cash flows from investing activities        
Acquisition of Company        
Due from related party        
Capital Expenditures/(Disposals)        
Cash used in investing activities        
         
Cash flows from financing activities        
Repayments of related party loan  (2,659)  (7,134)
Proceeds from related party loan  30,499   37,922 
       - 
Repayments to shareholder      (12,049)
Proceeds from shareholder contributions      88,863 
Cash provided by financing activities  27,840   107,602 
         
Net change in cash  109   4 
Cash at beginning of period  4   - 
Cash at end of period $113  $4 
         
         
Supplemental cash flow information        
Cash paid for interest $-  $- 
Cash paid for income taxes $-  $- 

See accompanying notes to consolidated financial statements

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Years ended December 31, 20182020 and December 31, 20172019

NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

Luxury Trine Digital Media Group, Inc. (“Luxury Trine” or the “Company”) was incorporated in the State of Delaware on May 20, 2016 and its consolidated Variable Interest Entity (“VIE”), Trine Digital Broadcasting Ltd., was incorporated in the United Kingdom on July 3, 2017.

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 a development stage emerging diversified information and communications technology company specializing in cutting-edge digital transformation services, including new-media technology; telecommunication and network carrier services; IoT-enabled solutions; and managed ICT, managed cloud services, data centers and co-location services.

Founded in 2016, and based in New York, N.Y., ISI seeks to operate internationally with a global team known for its technological expertise, deep industry knowledge, world-class research and analytical capabilities, and innovative mindset.

ISI seeks to transform corporations, enterprises and government entitiesIncorporated by providing best-in-class solutions, rooted in and driven by the technology, data, and organizational strategy required for operational excellence. Our interdisciplinary teams work in close collaboration with clients, helping them to solve their biggest problems utilizing a user-centric, data-driven approach focusing on creating seamless unified experiences across all digital, communication and physical touchpoints.

The Company’s principal place of business is 275 Madison Ave, 6th Floor, New York, NY 10016.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its consolidated VIE. In the preparation of consolidated financial statements of the Company, intercompany transactions and balances are eliminated in consolidation.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its VIE, Trine Digital Broadcasting Ltd. as of December 31, 2018. In the preparation of the consolidated financial statements of the Company, intercompany transactions and balances are eliminated.

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

In the opinion of management, all adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position as of December 31, 2018 and 2017.

Variable Interest Entity

ASC 810-10-25-38, “Consolidation of Variable Interest Entities” requires a variable interest entity (“VIE”) to be consolidated by a company if that company absorbs a majority of the VIE’s expected losses and/or receives a majority of the entity’s expected residual returns as a result of holding variable interests. Trine Digital Broadcasting is a variable interest entity as defined by ASC 810-10-25-38. As ISI owns 49.9% of the VIE and the founder (CEO) majority shareholder (a related party) of ISI controls the remaining 50.1%, ISI has been determined to be the primary beneficiary of this VIE. The VIE was formed to expand the business of ISI into the United Kingdom. There are no formal explicit arrangements as of December 31, 2018 that requires ISI to provide financial supportreference to the VIE, although financial support is implied by the relationship. There were no assets and liabilities of the VIE as of December 31, 2018. Related to consolidated VIEs, it is the Company’s policy not to present non-controlling interest separately on the Company’s financial statements. During the year ended December 31, 2017, there was $2,346 of contributed capital of the Company that was used for formation expense of the VIE. Related to consolidated VIEs, it is the Company’s policy not to present non-controlling interest separately on the Company’s financial statements.

 F-31

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Years ended December 31, 2018 and December 31, 2017

Risks and Uncertainties for Development Stage Company

We are considered to be in the development stage as defined in the accounting standards since we have not commenced planned principal operations. Our activities since inception include devoting substantially all of our efforts to business planning and development. Additionally, we have allocated a substantial portion of our time and investment to the completion of our development activities to launch our marketing plan and generate revenues and to raising capital. We have generated limited revenue from operations. The Company’s activities during the development stage are subject to significant risks and uncertainties. The Company plans on raising funds through a private placement in which the Company will be offering for sale 5,000,000 shares of our common stock, $0.001 par value per share, at $2.00 per share. The offering is made in reliance upon an exemption from registration under the federal securities laws provided by Rule 506(c) of Regulation D as promulgated by the United States Securities and Exchange Commission under the Securities Act of 1933, as amended. There is currently no public market for our common stock. While the Company believes in the viability of its strategy to initiate sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The financial statements do not include adjustments to reflect the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

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.

Cash and Cash Equivalents

All highly liquid investments with maturity of three months or less are considered to be cash equivalents. The Company places its cash with a high credit quality financial institution. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. As of December 31, 2018, and December 31, 2017, the Company did not reach bank balances exceeding the FDIC insurance limit.

Fair Value of Financial Instruments

The Company follows FASB 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 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.

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Years ended December 31, 2018 and December 31, 2017

FASB 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 cash, accounts payable, and accrued expenses approximate their estimated fair market value based on the short-term maturity of these instruments.

Impairment of Long-Lived Assets

Long-Lived Assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360-10-35-15,“Impairment or Disposal of Long-Lived Assets”. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value.

Revenue Recognition

The Company adopted the guidance of the FASB ASC 606 “Revenue from Contracts with Customers” on January 1, 2017 and in general will record revenue when a contractCompany's Form 10-K filed with the rights of the parties identified has been approved and the parties have committed to the contract, payment terms have been established, the contract has commercial substance, performance obligations have been satisfied and collectability is probable. There was no cumulative effect of the adoption of ASC 606 “Revenue from Contracts with Customers” since the Company is in the development stage and had no revenues in 2018.

Advertising

Advertising is expensed as incurred. Advertising expenses for the years ended December 31, 2018 and for the December 31, 2017 was $0 and $330, respectively.

Income Taxes

Income taxes are accounted for under the asset and liability method as prescribed by ASC Topic 740: Income Taxes (“ASC 740”). 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.

Pursuant to ASC Topic 740-10: Income Taxes 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. The adoption had no effect on the Company’s financial statements. The tax year ending December 31, 2018 is subject to examination by the Internal Revenue Service.

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Years ended December 31, 2018 and December 31, 2017

Stock Based Compensation

Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.

Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date.

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.

Net loss per share for each class of common stock is as follows:

  For the year ended  For the year ended 
Net loss per common shares outstanding: December 31, 2018  to December 31, 2017 
Class A common stock $(0.01) $(0.01)
Class B common stock $(0.01) $(0.01)
         
Weighted average shares outstanding:        
Class A common stock  580,000   160,000 
Class B common stock  18,800,000   18,800,000 
Total weighted average shares outstanding  19,380,000   18,960,000 

Concentration of Credit Risks

Financial instruments that potentially subject the company to credit risk consist principally of cash and cash equivalents and receivables. The Company places its cash and cash equivalents with financial institutions. Deposits are insured to Federal Deposit Insurance Corp. limits. At December 31, 2018 and December 31, 2017 there was no uninsured cash.

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Years ended December 31, 2018 and December 31, 2017

Related Parties

A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Recent Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update, Leases (Topic 842), intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet— the new ASU will require both types of leases to be recognized on the balance sheet. The ASU on leases will take effect for all public companies for fiscal years beginning after December 15, 2018.

In February 2016, the FASB issued Accounting Standards Codification, Revenue from Contracts with Customers (Topic 606) intended to provide guidance related to general criteria for revenue recognition including identifying the contracts with a customer, identifying the performance obligations in the contracts, determining the transaction price, allocating the transaction price to the performance obligations in the contracts, and recognizing revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. The Company adopted this standard effective January 1, 2017.

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.

NOTE 2 – GOING CONCERN CONSIDERATIONS

The accompanying consolidated financial statements are prepared assuming the Company will continue as a going concern. At December 31, 2018, the Company had an accumulated deficit of $202,641, a stockholders’ deficit of $96,853 and a working capital deficiency of $96,853. For the year ended December 31, 2018, the Company had a net loss of $36,037 and cash used in operating activities of $27,731. These matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issue date of this report. The ability of the Company to continue as a going concern is dependent upon initiating sales and obtaining additional capital and financing. The Company plans on raising funds through a private placement in which the Company will be offering for sale 5,000,000 shares of our common stock, $0.001 par value per share, at $2.00 per share. The offering is to be made in reliance upon an exemption from registration under the federal securities laws provided by Rule 506(c) of Regulation D as promulgated by the United States Securities and Exchange Commission under the Securities Act of 1933, as amended. As of the date of this report no funds have been raised and no future commitments have been received under this private placement. There is currently no public market for our common stock. While the Company believes in the viability of its strategy to initiate sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The consolidated financial statements do not include adjustments to reflect the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Years ended December 31, 2018 and December 31, 2017

NOTE 3 – COMMITMENTS AND CONTINGENCIES

For the period of July 1, 2016 through September 30, 2016 the Company incurred a monthly rent expense, without a lease, of approximately $1,500 per month. On October 23, 2016 the Company executed an Office License Agreement to lease office space commencing on October 1, 2016 with a twelve month term ending on September 30, 2017. The monthly license fee is $1,300 per month with the first month at no charge. The company recognized deferred rent of $1,300 on October 1, 2016 which will be amortized on a straight line basis over the term of the agreement. The Company also incurred a refundable security deposit of $1,950 related to the Office License Agreement. On June 30, 2017, the Company executed an Amendment to License Agreement which effective July 1, 2017 reduced the monthly lease expense from $1,300 to $1,000 per month and reduced the security deposit from $1,950 to $1,500. The term of the lease was extended to December 31, 2017 and defaulted to a month to month basis on January 1, 2018. The Company did not incur rent expense for June, July, August, September. Rent expense for the year ended December 31, 2018 and for the year ended December 31, 2017 was $8,752 and $14,654, respectively.

In November 2018, the Company executed a new 12 month lease commencing on January 1, 2019 through December 31, 2019. The Company paid the first month’s rent in advance and paid a security deposit of $1,800.

In March 2017 the Company executed a video contact licensing agreement with guaranteed fees of $500; $1,000; $1,500; $2,000 and $2,500 for June; July; August; September; and October and thereafter until February 2018, respectively. As of December 31, 2018, $16,000 was owed.

On October 11, 2017 the Company executed an Engagement Memorandum for the development of a Private Placement Memorandum (PPM), Form 10 Registration Statement, Reg D Filing, obtaining CUSIP numbers, IR campaign – for the purpose of raising capital and/or recruitment of potential investors for the Company. The fee for the above mentioned services was $25,000 which included an initial payment of $5,000 which was paid in October 2017 and $20,000 due upon the Company receiving a minimum of ten indications of interest and first round of private placement funds from Licensed FINRA member broker/dealer firms to be paid out of inward investment proceeds. As of December 31, 2018, proceeds have not been secured by the Company.

NOTE 4 – ACCRUED COMPENSATION

On July 15, 2016, at a meeting of the Company’s Board of Directors, the Board resolved by unanimous vote to sign a two-year employment contract with the Company’s founder and CEO at rate of $175,000 per annum on August 1, 2016 through July 31, 2018. As of December 31, 2017, the Company accrued compensation of $218,867 and as of December 31, 2018 all accrued compensation was exchanged for stock compensation.13, 2021

On October 29, 2017, at a meeting of the Company’s Board of Directors, the Company’s founder and CEO agreed to accept 375,000 shares of Class A shares of the company in lieu of the accrued compensation. The Company has issued 375,000 Class A shares at $0.001 par value in lieu of accrued compensation

NOTE 5 – STOCKHOLDERS’ DEFICIT

On May 26, 2016 the Company issued 18,800,000 Class B Common Shares as founder shares for services rendered. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.001 per share and recognized as compensation expense of $18,800 on the grant date.

On July 15, 2016 the Company issued 120,000 Class A Common Shares related to executive compensation. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.001 per share and recognized as compensation expense of $120 on the grant date.

On July 15, 2016 the Company also issued 40,000 Class A Common Shares to three different board members related to board member services. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.001 per share and recognized as compensation expense of $40 on the grant date.

Internet Sciences Inc.

Notes to Consolidated Financial Statements

For the Years ended December 31, 2018 and December 31, 2017

In July 2017, as part of the formation of the VIE an affiliate paid $2,346 of formation costs which was recorded as capital contribution.

On October 26, 2017 the Board of Directors granted a new Director 10,000 Class A shares which was recognized immediately on the grant date of October 26, 2017 due to the de minimis value of the shares. If the Director is not employed at the cliff vesting date of August 26, 2018, the shares will be forfeited. The Company valued the shares at fair market value of $0.0155 per share.

On March 27, 2018 the Company issued 5,000 Class A Common Shares to Roger Young as service shares for consultancy on technology asset acquisition. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.0155 per share and recognized as compensation expense of $78 on the grant date.

On November 27, 2018 the Company issued 10,000 Class A Common Shares to Jennifer Buzzelli. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.0155 per share and recognized as compensation expense of $155 on the grant date.

On December 4, 2018 the Company issued 5,000 Class A Common Shares to Alan Swersky. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.0155 per share and recognized as compensation expense of $78 on the grant date.

On December 19, 2018 the Company issued 25,000 Class A Common Shares to Bart Fooden. The shares were immediately vested and therefore valued at their estimated grant date fair value of a nominal $.0155 per share and recognized as compensation expense of $388 on the grant date.

NOTE 6 – RELATED PARTY TRANSACTIONS

During the year ended December 31, 2017 the Company’s Chief Executive Officer advanced $88,863 in funds to the Company and was repaid $12,049 which is included in additional paid- in capital on the balance sheet of the Company as of December 31, 2017. The Company’s Chief Executive Officer also advanced $37,922 short term, non-interest-bearing loans to the Company and was repaid $7,134 which is included in related party loan on the balance sheet of the Company as of December 31, 2017.

During the year ended December 31, 2018 the Company’s Chief Executive Officer advanced 30,499 short term, non-interest-bearing loans to the Company and was repaid $2,659 which is included in related party loan on the balance sheet of the Company as of December 31, 2018.

NOTE 7 – SUBSEQUENT EVENTS

Management has assessed subsequent events through May 24, 2019, the date on which the financial statements were available to be issued.

Item 15. Recent Sales of Unregistered Securities.

 

The following sets forth information regarding all unregistered securities issued and sold by the Registrant since inception.for the past three years:

 

On May 20, 2016 the Company issued 18,800,000 shares of Class B Common Stock to the Company’s founder and Chief Executive Officer, Lynda Chervil. On July 15, 2016 Ms. Chervil was issued an additional 120,000 shares of Class A Common Stock as executive compensation.

On July 15, 2016 the Company issued 10,000 shares of its Class A Common Stock to both Mark Deutsch and Myron Gould, who are former directors, and 20,000 shares of our Class A Common Stock to Aude Soichet.

On October 26, 2017 the Company granted Jennifer Buzzelli, a newly appointed director 10,000 shares of the Company’s Class A common stock which will vest on August 26, 2018.

The offers, sales and issuances of the securities described in this Item 15 were deemed to be exempt from registration under the Securities Act under either (i) Rule 701 promulgated under the Securities Act as offers and sale of securities pursuant to certain compensatory benefit plans and contracts relating to compensation in compliance with Rule 701 or (ii) Section 4(a)(2) of the Securities Act (and Regulation D or Regulation S promulgated thereunder) as transactions by an issuer not involving any public offering. The recipients of securities in each of these transactions represented their intention to acquire the securities for investment only and not with view to or for sale in connection with any distribution thereof and appropriate legends were affixed to the stock certificates and instruments issued in such transactions.

CLASS A COMMON STOCK
NameDate of IssuanceNumber of SharesConsiderationExemption
Lynda Chervil

12/07/2018

09/05/2019

06/24/2020

07/24/2020

375,000

245,000

100,000

35,000

Services

Services

Services

Services

Rule 701

Rule 701

Rule 701

Rule 701

Jean Ernest Chervil06/24/202050,000$5,000Section 4(a)(2)
Rosenie Chervil06/24/202050,000$5,000Section 4(a)(2)
Yolande Saint Juste07/02/202050,000$5,000Section 4(a)(2)
Richard Marriott01/01/202050,000$5,000Section 4(a)(2)
Alliance Equity
Capital Group, Inc.

07/18/2019

09/05/2019

15,000

15,000

$1,500

$1,500

Section 4(a)(2)

Section 4(a)(2)

Moise Jean Louis07/02/202030,000$3,000Section 4(a)(2)
Christopher B Lowry06/24/202026,000$2,600Section 4(a)(2)
Bart L Fooden12/19/201825,000$2,500Section 4(a)(2)
Naomie Leah Chervil07/24/202024,000$2,400Section 4(a)(2)
Getro Maceno07/15/202014,000$1,400Section 4(a)(2)
Roseline Chervil

07/15/2020

07/24/2020

2,000

10,000

$200

$1,000

Section 4(a)(2)

Section 4(a)(2)

Beer Scheba Chervil

07/15/2020

07/24/2020

1,000

10,000

$100

$1,000

Section 4(a)(2)

Section 4(a)(2)

Vilicia Chervil

07/24/2020

08/19/2020

10,000

1,000

$1,000

$100

Section 4(a)(2)

Section 4(a)(2)

Jennifer Buzzelli11/27/201810,000$1,000Section 4(a)(2)
Jesula Delpe07/06/202010,000$1,000Section 4(a)(2)
Myron Gould02/07/201910,000$1,000Section 4(a)(2)
Hiromi Ishizu01/10/201910,000$1,000Section 4(a)(2)
Dino Michetti09/08/202010,000$1,000Section 4(a)(2)
Ethan M Young07/24/202010,000$1,000Section 4(a)(2)
Alan D Swerksy12/04/20185,000$500Section 4(a)(2)
Roger M Young03/27/20185,000$500Section 4(a)(2)
Kevin Mabley09/08/20203,000$300Section 4(a)(2)
Gregore G Maceno07/15/20202,000$200Section 4(a)(2)
Jared G Maceno07/15/20202,000$200Section 4(a)(2)
Jules G Maceno07/15/20202,000$200Section 4(a)(2)
Cleopas Natio08/24/20202,000$200Section 4(a)(2)
Joe Zeela Nicolas08/19/20201,000$100Section 4(a)(2)
Cory R Joseph07/15/20201,000$100Section 4(a)(2)
Angela Lowry06/24/20201,000$100Section 4(a)(2)
Christopher Lowry06/24/20201,000$100Section 4(a)(2)
Joslyn Marcelin08/24/20201,000$100Section 4(a)(2)
Rouby B Metellus07/15/20201,000$100Section 4(a)(2)
Giannia Toussaint07/24/20201,000$100Section 4(a)(2)
Dafnie Nacius 1,000$100Section 4(a)(2)
Jeffrey Turner08/11/202115,000$1,500Section 4(a)(2)

 

Item 16. Exhibits and Financial Statement Schedules.

 

(a) Exhibits

 

Exhibit No. Description
   
3.1*3.1 Certificate of Incorporation
3.2*3.2 Amendment to Certificate of Incorporation
3.5*3.5 Bylaws
5.1 Opinion of BlackCastle StrategiesJDT Legal, PLLC
23.1 Consent of Independent Registered Public Accounting Firm.
23.2 Consent of BlackCastle StrategiesJDT Legal, PLLC  (reference is made to Exhibit 5.1).

 

*To be filed by amendment

(b) Financial Statement Schedules.

 

No financial statement schedules are provided because the information called for is not required or is shown either in the financial statements or related notes.

 

 30

Item 17. Undertakings.

The Registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

 

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

 

The undersigned Registrant hereby undertakes that:

 

(1)For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

(2)For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

 

 31

SIGNATURES

 

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant has duly caused this Registration Statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in New York City, State of New York, on the 2930thday of July 2019.August 2021.

 

 INTERNET SCIENCES INC.
 (Registrant)
   
 By:/s/ LYNDA CHERVIL
  Lynda Chervil, CEO

 

Signature Title Date
     

/s/ LYNDA CHERVIL

 

President and Chief Executive

 July 29, 2019August 30, 2021
Lynda Chervil 

Officer and Director (Principal

Executive, Financial and

Accounting Officer)

  

 

32

31