Filing summary
Entity and period: The supplied filing is for Intellisense Solutions Inc., not Odysight.Ai Inc. It is a Form 10-Q for the quarter ended December 31, 2013, the company’s fiscal third quarter. Intellisense was incorporated in March 2013 and identified itself as a development-stage company. The filing describes its intended business inconsistently: the notes say online marketing of vegetarian products, while management discussion refers to consulting services and a planned web-based business.
Financial results and position
- Revenue: None for the three or nine months ended December 31, 2013, or from inception through that date.
- Expenses and loss: Third-quarter operating expenses and net loss were both $4,551. Nine-month expenses and net loss were both $21,853; inception-to-date net loss was $23,853. Nine-month expenses comprised $17,622 in professional fees and $4,231 in general and administrative costs. Basic and diluted loss per share was reported as $0.00 for the quarter and $0.01 for the nine-month period.
- Cash flow: Nine-month operating cash use was $19,002; financing provided $53,168 from stock sales. Cash increased $34,166 from $19,980 at March 31 to $54,146 at December 31.
- Liquidity: December 31 cash and total assets were $54,146; current liabilities were $4,851, yielding reported working capital of $49,295. Management said available cash was insufficient to fund its planned operations and ongoing expenses beyond 12 months.
- Debt and equity: The balance sheet reports accounts payable and accrued expenses of $4,851 and no separate debt balance. The narrative mentions a shareholder loan but does not provide a clear amount or reconcile it to the balance sheet. The company reported 2,529,680 shares outstanding as of December 31 and February 11, 2014.
- Margins: No revenue was reported, so operating or profit margins are not meaningful.
Changes, outlook, and risks
Compared with March 31, 2013, cash rose from $19,980 to $54,146, accounts payable and accrued expenses increased from $2,000 to $4,851, and accumulated development-stage losses increased from $2,000 to $23,853. The company issued shares for cash during the nine months; the financial statements report 531,680 shares issued for $53,168.
Management stated that substantial doubt exists about the company’s ability to continue as a going concern. The company planned to fund its business plan primarily through an offering of up to approximately $65,033 and potentially additional debt or equity, but had no further financing arranged and gave no assurance it could raise funds. Failure to obtain financing could result in suspended or ceased operations; additional equity could dilute existing holders, while borrowing would add liabilities and cash commitments. Planned spending and milestones were contingent on offering proceeds, including web and software development, marketing, and potentially hiring sales staff. The filing reports no subsequent events through its filing date, no pending material legal proceedings, and no material changes in internal control over financial reporting; management concluded disclosure controls were effective.
Important facts to verify
- Confirm the issuer: this filing names Intellisense Solutions Inc., not Odysight.Ai Inc.
- Reconcile the business description, which alternates between vegetarian-product marketing and consulting/web services.
- Reconcile share-issuance figures: the financial statements say 531,680 shares, while MD&A says 531,880 in one passage; the filing also gives other offering-share figures.
- Clarify the shareholder-loan reference and whether any debt was outstanding at December 31, 2013.
- Verify the offering’s actual proceeds and status, and whether the company had sufficient financing to execute its plan.