Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

Management's Discussion and Analysis

This section of Form 10-Q includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

Overview

Internet Sciences Inc. ("ISI" or the "Company") was originally incorporated as Luxury Trine Digital Media Group, Inc. in the State of Delaware on May 20, 2016. On October 5, 2018, the Company changed its name to Internet Sciences Inc. On October 5, 2018, the Company changed its name to Internet Sciences Inc. ("ISI"). Internet Sciences Inc. ("ISI" or the "Company"), formerly known as Luxury Trine Digital Media Group Inc., is an emerging enterprise data intelligence and analytics platform focused on delivering data purification, operational analytics, and IoT-enabled intelligence solutions for enterprise customers.

The consolidated financial statements include the following subsidiaries:

					Ownership
		Country			Interest
Institute of Technology, Informatics & Computer Analytics LLC (IoTICA)		USA				100	%
Analygence Limited (AL)		United Kingdom				100	%

The Company's current strategic emphasis is on the development, commercialization, and scaling of its proprietary software products delivered through licensing, API-based and SaaS models.

Concurrently, the Company formalized its research and development structure by designating its wholly owned subsidiaries, Institute of Technology Informatics & Computer Analytics LLC ("IoTICA") and Analygence Limited, as dedicated research arms supporting advanced computational initiatives. These subsidiaries now focus primarily on the development of quantum-inspired learning model ("QLM") architectures and related optimization frameworks intended to enhance the Company.

Operating Structure

Internet Sciences Inc. ("ISI") is the Company's primary operating entity and is responsible for commercialization, customer engagement, and revenue-generating activities. ISI develops and distributes its proprietary enterprise data intelligence software solutions through API-based and SaaS deployment models.

The Company maintains two wholly owned subsidiaries, Institute of Technology Informatics & Computer Analytics LLC ("IoTICA") and Analygence Limited, which serve as dedicated research and development arms. These subsidiaries do not independently commercialize products or generate material revenue. Their primary function is to conduct advanced computational research and support long-term innovation initiatives aligned with ISI's enterprise analytics platform.

Current Business Focus

ISI's current strategic focus is the commercialization and scaling of its proprietary enterprise software platform, which provides data purification, validation, optimization, and analytics capabilities for enterprise and IoT-enabled environments. The Company's solutions are designed to automate manual data workflows, enhance operational efficiency, and improve decision intelligence across complex systems.

Research and Innovation Initiatives

In parallel with commercialization activities, the Company continues to invest in research initiatives focused on advanced computational optimization methods. These initiatives include the development of quantum-inspired learning model ("QLM") architectures and related decision-intelligence frameworks designed to enhance scalability and optimization performance for large-scale enterprise datasets.

QLM research is intended to support long-term technological differentiation and platform enhancement. Commercial deployment of products derived from such research, if any, is undertaken by ISI.

Strategic Platform Enhancement

The Company's research initiatives are designed to enhance and extend the capabilities of its enterprise analytics platform over time. By maintaining dedicated research subsidiaries focused on advanced computational methods, ISI is able to pursue long-term innovation while preserving operational focus on commercialization and revenue generation.

The integration of advanced optimization frameworks, including quantum-inspired learning model ("QLM") architectures, is intended to improve scalability, decision intelligence, and system performance across complex enterprise environments. These enhancements are expected to strengthen the Company's ability to address large-scale data challenges in IoT-enabled and distributed systems.

The separation of research and commercialization functions allows ISI to manage development risk while continuing to expand its enterprise software footprint. This structure is designed to support sustainable innovation, disciplined capital allocation, and scalable growth.

The Company's principal place of business is 1330 Avenue of the Americas, 23^rd Floor, New York, NY 10019.

Its registered address with the State of Delaware is 8 The Green STE A, Dover, Delaware 19901.

Our Competition

The Company operates in highly competitive and rapidly evolving markets for enterprise data analytics, data management, and optimization software. The competitive landscape includes large, well-capitalized enterprise software providers, cloud platform operators, and specialized analytics and data infrastructure companies.

The Company competes with established enterprise software vendors that offer data integration, analytics, automation, and cloud-based solutions, as well as emerging technology firms developing advanced data intelligence and optimization tools. Many of these competitors have significantly greater financial resources, longer operating histories, broader customer bases, and established brand recognition.

In addition, certain cloud platform providers and infrastructure vendors may offer integrated analytics capabilities within their broader ecosystems, which could limit the need for third-party solutions such as those offered by the Company.

Competition in this market is based on factors including technological capability, scalability, integration flexibility, performance, pricing, customer relationships, and the ability to demonstrate measurable operational value. The Company's ability to compete effectively will depend on its capacity to continue enhancing its platform, expand distribution channels, and secure sufficient capital to support commercialization and growth initiatives.

There can be no assurance that the Company will be able to compete successfully against existing or future competitors.

Results of Operations

Three months ended March 31, 2026, compared to the three months ended March 31, 2025

Revenue and Cost of Sales

During the three months ended March 31, 2026, and March 31, 2025, the company earned revenues of $0. There were no Cost associated as there were no revenues.

Operating Expenses and Loss from Operations

Total operating expenses and loss from operations for the three months ended March 31, 2026 were $1,955, a decrease of $17,365 from total operating expenses and loss from operations for the comparable three months ended March 31, 2025. The decrease is due primarily to a decrease in General and Administrative and Professional expenses.

Other Income (Expense)

Other Income for the three months ended March 31, 2026 and March 31, 2025 was Interest Income of $0 and $121 respectively.

Net Loss and Net Comprehensive Loss

We reported a net loss and net comprehensive loss of $1,955 for the three months ended March 31, 2026 and net comprehensive loss of $19,320 for the three months ended March 31, 2025, due to the factors noted above.

Liquidity and Capital Resources

Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. At March 31, 2026 and December 31, 2025, we had a cash balance of $(157) and $(14) respectively, and our working capital deficit was $68,329 and $66,373 respectively.

Accrued expenses and accounts payable were $59,856 and $58,730 as of March 31, 2026, and December 31, 2025, respectively. Accrued expenses and accounts payable for related parties were $2,568 and $1,881 as of March 31, 2026 and December 31, 2025, respectively.

The Company is considered to be an early-stage company and had no sales during the three months ended March, 2026. The Company generated its first and only revenue to date during the quarter ended June 30, 2024. Thus, net sales are not sufficient to fund our operating expenses. We will need to raise significant additional capital to fund our operating expenses, pay our obligations, and grow our company. We are unsure if we will be profitable in 2026. Therefore, our operations will be dependent on our ability to secure additional financing. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. If we are successful in securing additional working capital, we intend to increase our marketing efforts to grow our revenues.

Operating Activities

Net cash flows provided by operating activities for the three months ended March 31, 2026 amounted to $260,016 and was attributable to our net loss of $1,955 in addition to an increase in accounts payable and Deferred Compensation of $261,971.

Investing Activities

Net cash flows used in invest activities for the three months ended March 31, 2026 amounted to $260,159 and was attributable to deferred compensation. Net cash flows used in investing activities for the three months ended March 31, 2025 amounted to $31,668 and was attributable to deferred compensation.

Financing Activities

Net cash flows provided by finance activities were $0 for the three months ended March 31, 2026 and March 31, 2025.

Critical Accounting Policies and Estimates

Our financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. These estimates and assumptions are affected by management's applications of accounting policies. Critical accounting policies for our company include revenue recognition and accounting for stock-based compensation, use of estimates, and income taxes.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management in the accompanying financial statements include but are not limited to the fair value of stock-based compensation and the deferred tax asset valuation allowance.

Recent Accounting Pronouncements and Adoption of New Accounting Principles

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

Off Balance Sheet Arrangements

None