Internet Sciences Plunges to Zero Revenue, $46K Loss in Q2

TL;DR

**INTERNET SCIENCES INC. is a cash-burning ghost ship with zero revenue, making it a high-risk bet on unproven future commercialization.**

AI Summary

INTERNET SCIENCES INC. reported a significant decline in financial performance for the six months ended June 30, 2025, with revenue plummeting from $686,165 in the prior year period to $0. This resulted in a net loss of $46,131 for the current six-month period, a stark contrast to the net income of $71,744 reported for the same period in 2024. Operating expenses increased to $46,257 from $34,784 year-over-year, driven by higher professional fees of $25,453 and operating expenses of $20,829. The company's cash position significantly deteriorated, falling from $52,544 at December 31, 2024, to $9,468 by June 30, 2025. This decline was primarily due to $522,327 in deferred compensation under investing activities and $64,251 in net cash used in operating activities. Despite the losses, total stockholders' equity improved from a deficit of $42,755 to a positive $454,616, largely due to $543,502 from other issuance of common stock and $541,809 in compensation-related additional paid-in capital. The company is an early-stage diversified information and communications technology company, with two products, DataClenz API and IoTIMAX API, beginning commercialization efforts in April 2025, and two companion software products, DataClenz software and IoTMAX software, expected to be completed in the second half of 2025.

Why It Matters

INTERNET SCIENCES INC.'s complete lack of revenue and significant net loss for the first half of 2025 signals a critical juncture for investors, raising serious questions about its operational viability and ability to commercialize its products. The substantial cash burn and reliance on stock issuance for financing indicate a precarious financial position, potentially impacting employee morale and the company's ability to fund ongoing development. In a competitive ICT market, the delay in full commercialization of its core products, DataClenz and IoTIMAX, puts it at a disadvantage against established players, making its strategic partnerships and sales channel development crucial but unproven. Customers may also be wary of committing to an early-stage company with no current revenue.

Risk Assessment

Risk Level: high — The company reported $0 in revenue for the six months ended June 30, 2025, a drastic drop from $686,165 in the prior year, and a net loss of $46,131. Cash reserves are critically low at $9,468, down from $52,544 at year-end 2024, indicating severe liquidity issues and an inability to generate income from operations.

Analyst Insight

Investors should exercise extreme caution and avoid INTERNET SCIENCES INC. given its zero revenue, significant losses, and critically low cash balance. Await concrete evidence of successful product commercialization and sustained revenue generation before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$555,795

total Debt

$101,179

net Income

$(46,131)

eps

$0.00

gross Margin

N/A

cash Position

$9,468

revenue Growth

-100.0%

Revenue Breakdown

Key Numbers

• $0 — Revenue (for the six months ended June 30, 2025, down from $686,165 in 2024)
• $(46,131) — Net Loss (for the six months ended June 30, 2025, compared to $71,744 net income in 2024)
• $9,468 — Cash (as of June 30, 2025, a decrease from $52,544 at December 31, 2024)
• $522,327 — Deferred Compensation (net cash used in investing activities for the six months ended June 30, 2025)
• $454,616 — Total Stockholders' Equity (as of June 30, 2025, up from a deficit of $(42,755) at December 31, 2024)
• 23,943,500 — Class A shares outstanding (as of June 30, 2025)
• $543,502 — Proceeds from Other Issuance of Common Stock (for the six months ended June 30, 2025)
• $46,257 — Total Operating Expenses (for the six months ended June 30, 2025, up from $34,784 in 2024)

Key Players & Entities

• INTERNET SCIENCES INC. (company) — registrant
• Luxury Trine Digital Media Group Inc. (company) — former name of registrant
• Institute of Technology Informatics & Computer Analytics LLC (company) — wholly owned subsidiary
• Analygence Limited (company) — wholly owned subsidiary
• TD/SYNNEX (company) — principal resell partner
• AWS Marketplace (company) — distribution platform
• IBM Cloud Catalog (company) — distribution platform
• Carahsoft (company) — distributor

FAQ

Risk Factors

• Severe Revenue Decline and Cash Burn [high — financial]: Revenue dropped to $0 for the six months ended June 30, 2025, from $686,165 in the prior year. The company's cash position decreased from $52,544 to $9,468, primarily due to $64,251 in net cash used in operating activities.
• Dependence on Future Product Commercialization [high — financial]: The company has zero revenue in the current period and relies on the successful commercialization of its new products, DataClenz API and IoTIMAX API, which began efforts in April 2025, and companion software products expected in late 2025. Any delays or failures in these commercialization efforts could severely impact financial viability.
• Increased Operating Expenses [medium — operational]: Total operating expenses increased to $46,257 for the six months ended June 30, 2025, from $34,784 in the prior year. This increase was driven by higher professional fees ($25,453) and other operating expenses ($20,829), indicating rising costs associated with early-stage operations.
• Significant Deferred Compensation [medium — financial]: The company reported $522,327 in deferred compensation under investing activities, which significantly impacted its cash position. This large non-cash expense or liability could pose future financial obligations.
• Negative Operating Income [high — financial]: The company reported an operating loss of $46,257 for the six months ended June 30, 2025, compared to an operating income of $71,744 in the prior year. This shift indicates a deterioration in core business operations.
• Stockholder Equity Improvement Driven by Capital Infusion [medium — financial]: Despite operational losses, total stockholders' equity improved from a deficit of $42,755 to $454,616. This was primarily due to $543,502 from other issuance of common stock and $541,809 in compensation-related additional paid-in capital, highlighting reliance on external funding.

Industry Context

The information and communications technology (ICT) sector is characterized by rapid innovation and intense competition. Companies like Internet Sciences Inc. operate in a dynamic environment, focusing on areas like IoT and digital transformation. The success of early-stage companies often hinges on their ability to bring novel solutions to market and secure funding for development and commercialization.

Regulatory Implications

As an early-stage technology company, Internet Sciences Inc. may face evolving regulatory landscapes related to data privacy, cybersecurity, and the deployment of IoT devices. Compliance with these regulations is crucial for market access and maintaining customer trust. The company's reliance on stock issuances also subjects it to securities regulations.

What Investors Should Do

1. Monitor revenue generation from DataClenz API and IoTIMAX API closely in the next reporting period to assess the success of commercialization efforts.
2. Evaluate the company's ability to manage its cash burn rate and secure further funding, given the current low cash balance of $9,468.
3. Analyze the impact of deferred compensation on future cash flows and financial obligations.
4. Assess the progress and timeline for the completion and launch of DataClenz software and IoTMAX software, as these are critical for future revenue streams.
5. Understand the strategy behind the significant increase in additional paid-in capital and its implications for dilution.

Key Dates

• 2025-04-01: Commercialization efforts began for DataClenz API and IoTIMAX API — Marks the start of revenue generation for key products, though no revenue was reported in the subsequent period.
• 2025-06-30: End of the six-month reporting period — Period characterized by zero revenue, significant operating loss, and a sharp decline in cash reserves.
• 2025-06-30: Consolidated Balance Sheet date — Shows a substantial increase in total assets driven by deferred compensation and a significant improvement in equity due to stock issuances.
• 2025-06-30: Consolidated Statements of Operations and Comprehensive Loss date — Confirms the complete absence of revenue and a net loss for the period.

Glossary

API

Application Programming Interface (The company is commercializing two API products, DataClenz API and IoTIMAX API, which are key to its revenue generation strategy.)

IoT

Internet of Things (The company offers IoT-enabled solutions and has an IoTMAX API product, indicating a focus on this growing technology sector.)

ICT

Information and Communications Technology (The company describes itself as an early-stage diversified ICT company, highlighting its broad scope in technology services.)

SaaS

Software as a Service (The company is developing companion software products, DataClenz software and IoTMAX software, which are likely to be offered under a SaaS model.)

Deferred Compensation

Compensation that is earned and vested but not yet paid to an employee. It can be recognized as a liability or an asset depending on the terms. (A significant amount of deferred compensation ($522,327) was recorded under investing activities, impacting the company's cash and asset position.)

Additional Paid-in Capital

The amount of money an investor pays for stock above its par value. (A substantial increase in additional paid-in capital, particularly related to compensation, reflects significant equity financing.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, Internet Sciences Inc. experienced a dramatic downturn compared to the prior year. Revenue plummeted from $686,165 to $0, resulting in a net loss of $46,131 versus a net income of $71,744. Operating expenses increased by 32% to $46,257. While cash reserves significantly decreased from $52,544 to $9,468, total stockholders' equity saw a substantial improvement from a deficit of $42,755 to a positive $454,616, primarily due to substantial capital infusions from stock issuances.

Filing Documents

• insi_10q.htm (10-Q) — 472KB
• insi_ex311.htm (EX-31.1) — 10KB
• insi_ex312.htm (EX-31.2) — 10KB
• insi_ex321.htm (EX-32.1) — 4KB
• insi_ex322.htm (EX-32.2) — 4KB
• 0001477932-25-005911.txt ( ) — 2349KB
• insi-20250630.xsd (EX-101.SCH) — 24KB
• insi-20250630_lab.xml (EX-101.LAB) — 132KB
• insi-20250630_cal.xml (EX-101.CAL) — 26KB
• insi-20250630_pre.xml (EX-101.PRE) — 105KB
• insi-20250630_def.xml (EX-101.DEF) — 41KB
• insi_10q_htm.xml (XML) — 337KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements. 3 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations. 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 22 Item 4.

Controls and Procedures

Controls and Procedures. 22 PART—II OTHER INFORMATION Item 1. Legal Proceedings. 23 Item 1A. Risk Factors. 23 Item 2. Unregistered Sales of Securities and Use of Proceeds. 23 Item 3. Defaults Upon Senior Securities. 23 Item 4. Mine Safety Disclosure. 23 Item 5. Other Information. 23 Item 6. Exhibits 24

Signatures

Signatures 25 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Internet Sciences Inc. Consolidated Balance Sheets (Unaudited) June 30, December 31, 2025 2024 ASSETS Current Assets Cash $ 9,468 $ 52,544 Total Current Assets 9,468 52,544 Intellectual property – software 24,000 24,000 Deferred Compensation 522,327 - Total Long-Term Assets 546,327 24,000 Total Assets $ 555,795 $ 76,544 Liabilities and Stockholders' Deficit Current Liabilities Accounts payable and accrued liabilities $ 85,484 $ 101,225 Due to related party 470 74 Total Current Liabilities 85,954 101,299 Deferred Compensation Liabilities 15,225 18,000 Total Liabilities 101,179 119,299 Stockholders' Deficit Common Stock, $ 0.001 par value 100,000,000 authorized, Common Stock, 23,943,500 and 22,650,200 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 23,944 22,650 Additional paid-in capital 1,480,795 938,586 Accumulated deficit ( 1,050,122 ) ( 1,003,991 ) Total stockholders' Equity 454,616 ( 42,755 ) TOTAL Liabilities and Stockholders' Equity $ 555,795 $ 76,544 See accompanying notes to consolidated financial statements (unaudited) 3 Table of Contents Internet Sciences Inc. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For the Three Months Ended For the Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenue 0 686,165 0 686,165 Cost of Sales 0 579,636 579,636 Gross Profit 0 106,529 0 106,529 Operating Expenses 3,002 783 20,829 1,659 Professional Fees 23,839 2,500 25,453 9,500 Compensation ( 26 ) 15,000 ( 26 ) 23,625 Total Operating Expenses 26,816 18,283 46,257 34,784 Operating Income (Loss) ( 26,816 ) 88,246 ( 46,257 ) 71,744 Other Income (Expense) 5 0 126 0 Net gain (loss) before taxes ( 26,811 ) 88,246 ( 46,131 ) 71,744 Income Tax Provision 0 0

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements For the Six months ended June 30, 2024 and 2025 (Unaudited) NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Company was incorporated under the laws of the State of Delaware on May 20, 2016 as Luxury Trine Digital Media Group Inc. and subsequently changed its name to Internet Sciences Inc. on October 5, 2018. The Company has two wholly owned subsidiaries, Institute of Technology Informatics & Computer Analytics LLC, a New York limited liability company organized in September 2014 (" IoTICA "), and Analygence Limited, incorporated in the United Kingdom in April 2020. The Company is an early-stage emerging diversified information and communications technology company specializing in cutting-edge digital transformation services, including telecommunication and network carrier services; IoT-enabled solutions; and managed ICT, managed cloud services, data centers and co-location services. See " Business of the Company ". CORPORATE STRUCTURE The Company was incorporated under the laws of the State of Delaware on May 20, 2016. The head office is located at 1330 Avenue of Americas, 23rd Floor, New York, NY 10019 and its registered agent office in the State of Delaware is 8 The Green, Suite A, Dover, Delaware 19901. BUSINESS OF THE COMPANY General Description of the Business The Company is an early-stage emerging diversified information and communications technology company specializing in cutting-edge digital transformation services, including telecommunication and network carrier services; IoT-enabled solutions; and managed ICT, managed cloud services, data centers and co-location services. Based in New York, N.Y., the Company 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. Throughout the discussion below, note that the f

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