Business context and reporting period
This is Intellisense Solutions Inc.’s unaudited Form 10-Q for the three and six months ended September 30, 2015, with comparative periods ended September 30, 2014. The filing identifies the registrant as Intellisense Solutions Inc., not Odysight.Ai Inc.; the company name in the request metadata does not match the filing.
Intellisense described a plan to develop online portals for buying and selling vegetarian food products, but reported no significant operations and no revenue. Its fiscal year-end appears to be March 31.
Financial results and position
| Metric | Period or date | Amount |
|---|---|---|
| Revenue | Three and six months ended September 30, 2015 | None |
| Operating expenses and net loss | Three months ended September 30, 2015 | $25,569 |
| Operating expenses and net loss | Six months ended September 30, 2015 | $35,241 |
| Cash and cash equivalents | September 30, 2015 | $2,497 |
| Current liabilities | September 30, 2015 | $31,576 |
| Working capital | September 30, 2015 | $(29,079) |
| Net cash used in operating activities | Six months ended September 30, 2015 | $(9,366) |
| Accumulated deficit | September 30, 2015 | $(102,227) |
Professional fees were $32,827 and general and administrative expense was $2,414 for the six-month period. The filing reports no debt balance. It provides no gross margin or operating margin because there was no revenue.
Changes versus comparable periods
- Six-month net loss increased to $35,241 from $12,001 in 2014. Professional fees rose to $32,827 from $8,150, primarily due to higher legal fees; general and administrative expense declined to $2,414 from $3,851.
- Quarterly net loss increased to $25,569 from $4,601. Quarterly professional fees rose to $24,383 from $1,950, driven mainly by legal fees; general and administrative expense fell to $1,186 from $2,651.
- Cash declined from $11,863 at March 31, 2015 to $2,497 at September 30, 2015. Current liabilities increased from $5,701 to $31,576, including $4,995 payable to a related party.
Outlook, risks and notable items
- Management said available cash was insufficient to fund its plans for the following 12 months. It expected to seek loans or additional equity, but had no financing arranged and gave no assurance it could obtain funding; without financing, management said the business would likely fail.
- The filing states that accumulated losses, negative working capital and operating cash outflows raise substantial doubt about the company’s ability to continue as a going concern. The financial statements contain no adjustments for a potential failure to continue as a going concern.
- On June 15, 2015, the prior officers and directors resigned and Neil Reithinger became the sole director and officer. His firm, Eventus Advisory Group, provided accounting and advisory services; the company incurred $4,995 in fees for the six-month period, all payable at September 30, 2015.
- Management concluded disclosure controls were ineffective due to inadequate segregation of duties and ineffective period-end reporting controls. Planned remediation depends substantially on obtaining financing.
- The company reported no pending legal proceedings considered likely to have a material adverse effect, no material off-balance-sheet arrangements, and no market-risk disclosure applicable.
Important facts for investors to verify
- Confirm the issuer identity: this filing is for Intellisense Solutions Inc., despite the request metadata naming Odysight.Ai Inc.
- Verify the company’s current operating status, business plan and any subsequent financing or change in control.
- Review whether the company obtained funding sufficient to address its stated 12-month liquidity shortfall and going-concern uncertainty.
- Assess the related-party service arrangement and the status of the $4,995 payable.
- Review subsequent disclosures on internal-control remediation and any changes in management or the company’s business.