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EX-31.1 - CERTIFICATION - Intellisense Solutions Inc.inll_ex311.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

(Mark One) 

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Fiscal Year Ended: March 31, 2018

 

or

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ___________ to ___________

 

Commission file number 333-188920

 

INTELLISENSE SOLUTIONS INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

47-4257143

State or other jurisdiction of incorporation or organization

 

(I.R.S. Employer Identification No.)

 

14201 N. Hayden Road, Suite A-1, Scottsdale, AZ 85260

(Address of principal executive offices) (Zip Code)

 

(480) 659-6404

Registrant’s telephone number, including area code

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Name of each exchange on which registered

None

 

N/A

 

Securities registered pursuant to section 12(g) of the Act:

 

Shares of common stock with a par value of $0.001

(Title of class)

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No x

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No x

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

¨ 

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

x

(Do not check if a smaller reporting company)

Emerging growth company

¨

 

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 pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨.

 

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter: $-0-

 

APPLICABLE ONLY TO CORPORATE REGISTRANTS

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date: 2,529,680 shares of common stock as of July 5, 2018.

 

DOCUMENTS INCORPORATED BY REFERENCE

None.

 

 
 
 
 

 TABLE OF CONTENTS

 

 

 

Page

 

PART I

 

 

 

 

 

 

 

 

ITEM 1.

BUSINESS

 

3

 

 

 

 

 

ITEM 1A.

RISK FACTORS

 

4

 

 

 

 

 

ITEM 1B.

UNRESOLVED STAFF COMMENTS

 

4

 

 

 

 

 

ITEM 2.

PROPERTIES

 

4

 

 

 

 

 

ITEM 3.

LEGAL PROCEEDINGS

 

4

 

 

 

 

 

ITEM 4.

MINE SAFETY DISCLOSURES

 

4

 

 

 

 

 

PART II

 

 

 

 

 

 

 

ITEM 5.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 

5

 

 

 

 

 

ITEM 6.

SELECTED FINANCIAL DATA

 

5

 

 

 

 

 

ITEM 7.

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

 

6

 

 

 

 

 

ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

8

 

 

 

 

 

ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

8

 

 

 

 

 

ITEM 9.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

8

 

 

 

 

 

ITEM 9A.

CONTROLS AND PROCEDURES

 

9

 

 

 

 

 

ITEM 9B.

OTHER INFORMATION

 

10

 

 

 

 

 

PART III

 

 

 

 

 

 

 

 

ITEM 10.

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

11

 

 

 

 

 

ITEM 11.

EXECUTIVE COMPENSATION

 

13

 

 

 

 

 

ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

14

 

 

 

 

 

ITEM 13.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 

14

 

 

 

 

 

ITEM 14.

PRINCIPAL ACCOUNTING FEES AND SERVICES

 

15

 

 

 

 

 

PART IV

 

 

 

 

 

 

 

 

ITEM 15.

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

16

 

 

 

 

 

 

SIGNATURES

 

17

 

 

 
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Table of Contents

 

PART I

 

ITEM 1. BUSINESS

 

Forward-Looking Statements

 

This Annual Report on Form 10-K includes a number of forward-looking statements that reflect management’s current views with respect to future events and financial performance. Forward-looking statements are projections in respect of future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. Those statements include statements regarding the intent, belief or current expectations of us and members of our management team as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Based on the discontinuation of our former business plan, our current business model is to identify a viable business operation that can merge with our operation. Any forward-looking statements made in this Annual Report on Form 10-K regarding this should be read with a view that such transaction may not occur in the near term or at all.

 

These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors” set forth in this Annual Report on Form 10-K. Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the Securities and Exchange Commission. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in the future operating results over time except as required by law. We believe that our assumptions are based upon reasonable data derived from and known about our business and operations. No assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions.

 

As used in this Annual Report on Form 10-K and unless otherwise indicated, the terms “Intellisense,” “we,” “us,” “our,” or the “Company” refer to Intellisense Solutions Inc. Unless otherwise specified, all dollar amounts are expressed in United States dollars.

 

Corporate History and Overview

 

We were incorporated under the laws of the State of Nevada on March 22, 2013. We were initially engaged in the business of developing web portals to allow companies and individuals to engage in the purchase and sales of vegetarian food products over the Internet. However, we never achieved commercial sales or developed any significant operations. We currently are pursuing acquiring or merging with an entity with significant operations in order to create a viable business model and value for our shareholders.

 

Effective June 15, 2015, Neil Reithinger was appointed as President, Treasurer, Secretary and a director. Mr. Reithinger is the Founder and President of Eventus Advisory Group, LLC, a private, CFO-services firm, and Eventus Consulting, P.C., a registered CPA firm (collectively “Eventus”). He has also been Chief Financial Officer, Secretary and Treasurer of Orgenesis Inc. since August 2014. Mr. Reithinger earned a B.S. in Accounting from the University of Arizona and is a Certified Public Accountant. He is a Member of the American Institute of Certified Public Accountants and the Arizona Society of Certified Public Accountants.

 

Our articles of incorporation, as amended, authorize us to issue up to 75,000,000 shares of common stock, par value $.001 per share. There are 2,529,680 shares of our common stock outstanding as of July 5, 2018, the date of this filing. There were no new equity transactions during the year ended March 31, 2018.

 

We have never declared bankruptcy, have never been in receivership, and have never been involved in any legal action or proceedings. Since incorporation, we have not made any significant purchase or sale of assets and we have had limited operating activities, primarily consisting of the incorporation of our company, the initial equity funding by our officers and directors and designing our website. We received our initial funding in March 2014 of $19,980 through the sale of common stock to our two former officers and directors, who purchased an aggregate of 1,998,000 shares at $0.01 per share.

 

 
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Our financial statements from inception (March 22, 2013) through the fiscal year ended March 31, 2018 report no revenues and an accumulated deficit of $145,453. Our independent auditor issued an audit opinion for our Company for the year ended March 31, 2018 which includes a statement expressing substantial doubt as to our ability to continue as a going concern.

 

Our principal offices are located at 14201 N. Hayden Road, Suite A-1, Scottsdale, AZ 85260.

 

Merger Agreement and Subsequent Termination

 

On December 11, 2015, the Company entered into a merger agreement with Dotz Nano Ltd. (“Dotz”), a private Israeli-based company, and Intellisense (Israel) Ltd. (“Merger Sub”), an Israeli company and direct wholly owned subsidiary of the Company. Pursuant to the merger agreement, the Merger Sub was to merge with and into Dotz and Dotz was to continue as the surviving corporation. On May 17, 2016, the Company entered into a Termination Agreement with Dotz and Merger Sub (“TA”) whereby the contemplated transaction with Dotz shall be terminated, cancelled, annulled and of no further force. Pursuant to the terms of the TA, the Company recognized a termination fee of $50,000 which has been paid and was recorded as other income during the year ended March 31, 2017. Upon execution of the TA, we delivered ownership of all the shares of the Merger Sub, via a Share Transfer Deed.

 

Employees

 

As of March 31, 2018, we had no full-time employee and no part-time employees.

 

Subsidiaries

 

As of March 31, 2018, we had no subsidiaries.

 

Intellectual Property

 

We currently have no intellectual property.

 

ITEM 1A. RISK FACTORS

 

Not Applicable.

 

ITEM 1B. UNRESOLVED STAFF COMMENTS

 

Not Applicable.

 

ITEM 2. PROPERTIES

 

The Company’s principal corporate offices are located at 14201 N. Hayden Road, Suite A-1, Scottsdale, AZ 85260. These offices are also the offices of Neil Reithinger, a director and officer of the Company, who is also the Founder and President of Eventus. We do not pay Eventus or any of his affiliated entities rent for the use of his offices.

 

ITEM 3. LEGAL PROCEEDINGS

 

The Company is not currently subject to any legal proceedings. From time to time, the Company may become subject to litigation or proceedings in connection with its business, as either a plaintiff or defendant. There are no such pending legal proceedings to which the Company is a party that, in the opinion of management, is likely to have a material adverse effect on the Company’s business, financial condition or results of operations.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

 
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PART II

 

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 

Market information

 

Our common stock is quoted on the OTC Markets, Pink Tier, under the symbol “INLL”. Currently, our common stock does not trade, and there is no set bid or ask.

 

Transfer Agent

 

The transfer agent and registrar for our common stock is Action Stock Transfer, 2469 E. Fort Union Blvd, Suite 214, Salt Lake City, UT 84121. Their phone number and website are (801) 274-1088 and www.actionstocktransfer.com, respectively.

 

Holders of Common Stock

 

As of July 5, 2018, there were 41 shareholders of record of our common stock. As of such date, 2,529,680 shares were issued and outstanding.

 

Registration Rights

 

There are no registration rights as of March 31, 2018.

 

Dividends

 

We have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to increase our working capital and do not anticipate paying any cash dividends in the foreseeable future.

 

Recent Sales of Unregistered Securities

 

During the year ended March 31, 2018, there were no sales of unregistered securities.

 

Securities Authorized for Issuance Under Equity Compensation Plans

 

We did not have any equity compensation plans as of March 31, 2018.

 

Issuer Purchases of Equity Securities

 

During the year ended March 31, 2018, we did not purchase any of our equity securities.

 

ITEM 6. SELECTED FINANCIAL DATA

 

Not applicable.

 

 
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Forward-Looking Statements

 

This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes a number of forward-looking statements that reflect management’s current views with respect to future events and financial performance. Forward-looking statements are projections in respect of future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. Those statements include statements regarding the intent, belief or current expectations of us and members of our management team as well as the assumptions on which such statements are based. Such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.

 

Management has included projections and estimates in this Form 10-K, which are based primarily on management’s experience in the industry, assessments of our results of operations, discussions and negotiations with third parties and a review of information filed by our competitors with the SEC or otherwise publicly available. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

 

As used in this Annual Report on Form 10-K and unless otherwise indicated, all references to the “Company,” “Intellisense Solutions,” “Intellisense,” “we,” “us” or “our” are to Intellisense Solutions Inc.

 

Overview

 

We were incorporated under the laws of the State of Nevada on March 22, 2013. We were initially engaged in the business of developing web portals to allow companies and individuals to engage in the purchase and sales of vegetarian food products over the Internet. However, we never achieved commercial sales or developed any significant operations. We currently are pursuing acquiring or merging with an entity with significant operations in order to create a viable business model and value for our shareholders.

 

Effective June 15, 2015, Neil Reithinger was appointed as President, Treasurer, Secretary and a director. Mr. Reithinger is the Founder and President of Eventus Advisory Group, LLC, a private, CFO-services firm, and Eventus Consulting, P.C., a registered CPA firm (collectively “Eventus”). He has also been Chief Financial Officer, Secretary and Treasurer of Orgenesis Inc., a biopharmaceutical and regenerative cell therapy company, since August 2014. Mr. Reithinger earned a B.S. in Accounting from the University of Arizona and is a Certified Public Accountant. He is a Member of the American Institute of Certified Public Accountants and the Arizona Society of Certified Public Accountants.

 

Our articles of incorporation, as amended, authorize us to issue up to 75,000,000 shares of common stock, par value $.001 per share. There are 2,529,680 shares of our common stock outstanding as of July 5, 2018, the date of this filing. There were no new equity transactions during the year ended March 31, 2018.

 

We have never declared bankruptcy, have never been in receivership, and have never been involved in any legal action or proceedings. Since incorporation, we have not made any significant purchase or sale of assets and we have had limited operating activities, primarily consisting of the incorporation of our company, the initial equity funding by our officers and directors and designing our website. We received our initial funding in March 2014 of $19,980 through the sale of common stock to our two former officers and directors, who purchased an aggregate of 1,998,000 shares at $0.01 per share.

 

Our financial statements from inception (March 22, 2013) through the fiscal year ended March 31, 2018 report no revenues and an accumulated deficit of $142,653. Our independent auditor issued an audit opinion for our Company for the year ended March 31, 2018 which includes a statement expressing substantial doubt as to our ability to continue as a going concern.

 

 
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Our principal offices are located at 14201 N. Hayden Road, Suite A-1, Scottsdale, AZ 85260.

 

Merger Agreement and Subsequent Termination

 

On December 11, 2015, the Company entered into a merger agreement with Dotz Nano Ltd. (“Dotz”), a private Israeli-based company, and Intellisense (Israel) Ltd. (“Merger Sub”), an Israeli company and direct wholly owned subsidiary of the Company. Pursuant to the merger agreement, the Merger Sub was to merge with and into Dotz and Dotz was to continue as the surviving corporation. On May 17, 2016, the Company entered into a Termination Agreement with Dotz and Merger Sub (“TA”) whereby the contemplated transaction with Dotz shall be terminated, cancelled, annulled and of no further force. Pursuant to the terms of the TA, the Company recognized a termination fee of $50,000 which has been paid and was recorded as other income during the year ended March 31, 2017. Upon execution of the TA, we delivered ownership of all the shares of the Merger Sub, via a Share Transfer Deed.

 

Results of Operations

 

Fiscal Year Ended March 31, 2018 to the Fiscal Year Ended March 31, 2017

 

Revenue

 

We have not earned any revenues and we did not earn any revenues in the fiscal year ended March 31, 2018 and 2017.

 

Expenses

 

Operating expenses for the years ended March 31, 2018 and 2017 were as follows:

 

 

 

For the year
ended
March 31, 2018

 

 

For the year
ended
March 31, 2017

 

 

 

 

 

 

 

 

Professional fees:

 

 

 

 

 

 

Legal

 

$ -

 

 

$ 2,897

 

Accounting and audit

 

 

19,709

 

 

 

26,178

 

 

 

 

19,709

 

 

 

29,075

 

General & administrative

 

 

3,664

 

 

 

4,333

 

Total operating expenses

 

$ 23,373

 

 

$ 33,408

 

 

Professional fees are comprised of legal fees and accounting/audit fees. Professional fees decreased by $9,366 from $29,075 for the year ended March 31, 2017 to $19,709 for the year ended March 31, 2018. The decrease is primarily due to a decline of $2,897 in legal fees for the year ended March 31, 2018, compared to the year ended March 31, 2017.

 

During the year ended March 31, 2018, we incurred accounting fees of $11,009 to Eventus and audit fees of $8,700 to our independent auditors, compared to accounting fees of $13,179 to Eventus, audit fees of $8,700 to our independent auditors. Eventus is owned by Mr. Reithinger, an officer and director of the Company.

 

General and administrative expenses decreased by $669 mainly due to the business license filings completed during year ended March 31, 2017.

 

 
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Liquidity and Capital Resources

 

At March 31, 2018, we had a cash balance of $10,153. Presently, we do not have sufficient cash resources to meet our plans in the twelve months following March 31, 2018. We will need to raise capital to fund our ongoing operational expenses. Such capital will likely come from loans and/or the sale of additional equity securities. We do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding. In the absence of such financing, our business will likely fail. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing.

 

Going Concern

 

Our financial statements report no revenues. We had a net loss of $27,975 for the year ended March 31, 2018. As of that date, we also had an accumulated deficit of $145,453, and have negative working capital of $72,305. Presently, we do not have sufficient cash resources to meet our plans in the twelve months following March 31, 2018. These factors raise substantial doubt about our ability to continue as a going concern. Since inception, the Company has financed its activities from the sale of equity securities. The Company intends on financing its future development activities and its working capital needs from loans and/or the sale of additional equity securities until such time that funds provided by operations are sufficient to fund working capital requirements. There are no assurances that the Company will be able to achieve further sales of its common stock or any other form of additional financing. The financial statements contained in this report do not include any adjustments that may be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to obtain additional financing as may be required.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

 

Effects of Inflation

 

We do not believe that inflation has had a material impact on our business, revenues or operating results during the periods presented.

 

Recent Accounting Pronouncements

 

We do not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on our financial statements.

 

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

The information called for by Item 8 is included following the “Index to Financial Statements” on page F-1 contained in this annual report on Form 10-K.

 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

None.

 

 
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ITEM 9A. CONTROLS AND PROCEDURES

 

Disclosure Controls and Procedures

 

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s president and chief executive officer (who is the Company’s principal executive officer) and the Company’s chief financial officer, treasurer, and secretary (who is the Company’s principal financial officer and principal accounting officer) to allow for timely decisions regarding required disclosure. In designing and evaluating the Company’s disclosure controls and procedures, the Company’s management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and the Company’s management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. The ineffectiveness of the Company’s disclosure controls and procedures was due to material weaknesses identified in the Company’s internal control over financial reporting, described below.

 

Management’s Report on Internal Control over Financial Reporting

 

As of March 31, 2018, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in the updated Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in 2013 and SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls that are considered to be material weaknesses.

 

The matters involving internal controls and procedures that our management considered to be material weaknesses were:

 

 

(i) lack of a functioning audit committee;

 

 

 

 

(ii) inadequate segregation of duties consistent with control objectives; and

 

 

 

 

(iii) ineffective controls over period-end financial disclosure and reporting processes.

   

The aforementioned material weaknesses were identified by our Chief Executive and Financial Officer in connection with the review of our financial statements as of March 31, 2018.

 

Management believes the weaknesses identified above have not had any material effect on our financial statements. However, we are currently reviewing our disclosure controls and procedures related to these material weaknesses and expect to implement changes as soon as practicable and as resources allow, including identifying specific areas within our governance, accounting and financial reporting processes to add adequate resources to remediate these material weaknesses.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes in our internal control over financial reporting during the year ended March 31, 2018 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

 

 
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Management’s Remediation Plan

 

Subject to raising additional working capital, we plan to take steps to enhance and improve the design of our internal control over financial reporting. During the period covered by this annual report on Form 10-K, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes in the next fiscal year once we have identified a suitable business to acquire and as our capital resources allow:

 

 

(i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management and implement modifications to our financial controls to address such inadequacies;

 

 

 

 

(ii) adopt sufficient written policies and procedures for accounting and financial reporting; and

 

 

 

 

(iii) appoint independent board members and a functioning audit committee

 

The remediation efforts set out in (i) is largely dependent upon our company identifying and acquiring a suitable operating business and securing additional financing to cover the costs of hiring the requisite personnel and implementing the changes required. If we are unsuccessful in such endeavors, remediation efforts may be delayed. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.

 

Management believes that despite our material weaknesses set forth above, our financial statements for the year ended March 31, 2018 are fairly stated, in all material respects, in accordance with US GAAP.

 

ITEM 9B. OTHER INFORMATION

 

None.

 

 
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PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

Directors and Executive Officers, Promoters and Control Persons

 

Our executive officer’s and director’s and their respective ages as of March 31, 2018 are as follows:

 

Name

 

Position Held with Company

 

Age

Date First Elected or

Appointed

 

Neil Reithinger

 

President, Treasurer and Director

 

48

June 15, 2015

 

Eyal Ben-Ami

 

Director

 

41

May 16, 2018

  

Set forth below is a brief description of the background and business experience of our executive officers and directors for the past five years.

 

Neil Reithinger. Mr. Reithinger is the Founder and President of Eventus Advisory Group, LLC (“Eventus”), a private, CFO-services firm incorporated in Arizona that specializes in capital advisory and SEC compliance for publicly-traded and emerging growth companies, a firm he founded in 2009. He is also the President of Eventus Consulting, P.C., a registered CPA firm in Arizona, a firm he founded in 2012. He has also been Chief Financial Officer, Secretary and Treasurer of Orgenesis Inc. since August 2014. Mr. Reithinger earned a B.S. in Accounting from the University of Arizona and is a Certified Public Accountant. He is a Member of the American Institute of Certified Public Accountants and the Arizona Society of Certified Public Accountants.

 

Eyal Ben-Ami. Mr. Ben-Ami serves on the board of directors of various companies. Since January 19, 2018, he has served as a director of Virtual Crypto Technologies Inc. From 2008 to the present, Mr. Ben-Ami has served as the Director of Employee Benefits at the IDB Bank of Israel, founded in 1935 and one of Israel’s three largest banks. IDB Bank has more than 260 branches, a staff of approximately 5,700, assets of approximately US$50 billion and international operations with branches in Israel and the United States. From 1993 through 2007, Mr. Ben-Ami was a professional soccer player and a member of Hapoel Tel-Aviv FC, a professional Israeli soccer team, and a member of Israel’s National Soccer Team. Mr. Ben Ami earned his BA in business management from the Israel academic center on November 2011.

 

Significant Employees

 

Other than our officers and directors, we currently have no other significant employees.

 

Committees of Board of Directors

 

Since we do not have an audit or compensation committee comprised of independent directors, the functions that would have been performed by such committees are performed by our directors. The Board of Directors has not established an audit committee and does not have an audit committee financial expert, nor has the Board of Directors established a nominating committee. The Board is of the opinion that such committees are not necessary since the Company is an early exploration stage company and has only two directors, and to date, such directors have been performing the functions of such committees. Thus, there is a potential conflict of interest in that our directors and officers have the authority to determine issues concerning management compensation, nominations, and audit issues that may affect management decisions.

 

 
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There are no family relationships among our directors or officers.

 

Term of Office

 

All directors hold office until the next annual meeting of the stockholders of the Company and until their successors have been duly elected and qualified. The Company’s Bylaws provide that the Board of Directors will consist of no less than three members. Officers are elected by and serve at the discretion of the Board of Directors.

 

Potential Conflicts of Interest

 

Commencing on June 15, 2015, Eventus was engaged to provide accounting and advisory services to the Company in connection with audit coordination, financial statement preparation and SEC filings. Eventus is owned by Mr. Reithinger, an officer and director of the Company.

 

Director Independence

 

Our board of directors is currently composed of two members, one of which who does not qualify as an independent director in accordance with the published listing requirements of the NASDAQ Global Market (the Company has no plans to list on the NASDAQ Global Market). The NASDAQ independence definition includes a series of objective tests, such as that the director is not, and has not been for at least three years, one of our employees and that neither the director, nor any of her family members has engaged in various types of business dealings with us. In addition, our board of directors has not made a subjective determination as to our director that no relationships exist which, in the opinion of our board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director, though such subjective determination is required by the NASDAQ rules. Had our board of directors made these determinations, our board of directors would have reviewed and discussed information provided by directors and us with regard to our director’s business and personal activities and relationships as they may relate to us and our management. Based on these independence definitions, Mr. Reithinger does not qualify as an independent director.

 

Section 16(a) Beneficial Ownership Reporting Compliance

 

Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers and directors, and persons who own more than ten percent of a registered class of our equity securities, file reports of ownership and changes in ownership with the SEC. Executive officers, directors and greater-than-ten percent stockholders are required by SEC regulations to furnish us with all Section 16(a) forms they file. Based on our review of filings made on the SEC website, and the fact of us not receiving certain forms or written representations from certain reporting persons that they have complied with the relevant filing requirements, we believe that, during the year ended March 31, 2018, our executive officers, directors and greater-than-ten percent stockholders did comply with Section 16(a) filing requirements.

 

Code of Ethics

 

We currently do not have a Code of Ethics.

 

 
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ITEM 11. EXECUTIVE COMPENSATION

 

Summary Compensation

 

The following table summarizes the compensation of each named executive for the fiscal years ended March 31, 2018 and 2017 awarded to or earned by (i) each individual serving as our principal executive officer and principal financial officer of the Company and (ii) each individual that served as an executive officer of the Company at the end of such fiscal years who received compensation in excess of $100,000.

 

Name and Principal Position

 

Fiscal Year

 

Salary

($)

 

 

Bonus

($)

 

 

Stock

Awards

($)

 

 

Option

Awards

($)

 

 

Nonequity

Incentive

Plan

Compensation

($)

 

 

Change in

Pension

Value

and Non

Qualified

Deferred

Compensation

Earnings

($)

 

 

All Other

Compensation

($)

 

 

Total

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Neil Reithinger, President, Treasurer, and Director (1)

 

2018

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Neil Reithinger, President, Treasurer, and Director (1)

 

2017

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

_________ 

1) Mr. Reithinger was appointed President, Treasurer, Secretary and Director on June 15, 2015. Mr. Reithinger is the Founder and President of Eventus. Commencing on June 15, 2015, Eventus was engaged to provide accounting and advisory services to the Company in connection with audit coordination, financial statement preparation and SEC filings. Eventus is owned by Mr. Reithinger, an officer and director of the Company. The Company pays customary fees for these services. During the year ended March 31, 2018, we incurred fees of $10,967 due to Eventus.

 

 

Outstanding Equity Awards at Fiscal Year End

 

We had no outstanding equity awards as of March 31, 2018 or through the date of filing of this prospectus.

 

Retirement or Similar Benefit Plans

 

There are no arrangements or plans in which we provide retirement or similar benefits for our directors or executive officers.

 

Resignation, Retirement, Other Termination, or Change in Control Arrangements

 

We have no contract, agreement, plan or arrangement, whether written or unwritten, that provides for payments to our directors or executive officers at, following, or in connection with the resignation, retirement or other termination of our directors or executive officers, or a change in control of our company or a change in our directors’ or executive officers’ responsibilities following a change in control.

 

Director Compensation

 

Directors are not compensated for their services.

 

 
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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

The following table lists, as of March 31, 2018, the number of shares of common stock of our Company that are beneficially owned by (i) each person or entity known to our Company to be the beneficial owner of more than 5% of the outstanding common stock; (ii) each officer and director of our Company; and (iii) all officers and directors as a group. Information relating to beneficial ownership of common stock by our principal shareholders and management is based upon information furnished by each person using “beneficial ownership” concepts under the rules of the Securities and Exchange Commission. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Under the Securities and Exchange Commission rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest. Except as noted below, each person has sole voting and investment power.

 

The percentages below are calculated based on 2,529,680 shares of our common stock issued and outstanding as of March 31, 2018. We do not have any outstanding warrant, options or other securities exercisable for or convertible into shares of our common stock.

 

Title of Class

 

Name and Address of Beneficial Owner

 

Amount and Nature of Beneficial Ownership

 

 

Percent of

Common Stock

 

 

 

 

 

 

 

 

 

 

Common stock

 

Ihsan Falou (1)

 

 

1,300,000

 

 

 

51.4 %

Common stock

 

Majid Khan (1)

 

 

698,000

 

 

 

27.6 %

All directors and executive officers as a group

 

 

 

 

-

 

 

 

-

%

___________ 

1) Mr. Falou resigned as our President, Treasurer and Director and Mr. Khan resigned as our Secretary and Director on June 15, 2015. Their resignations were not as a result of any disagreements on any matter relating to our operations, policies or practices.

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 

Effective June 15, 2015, Neil Reithinger was appointed as President, Treasurer, Secretary and a director. Mr. Reithinger is the Founder and President of Eventus Advisory Group, LLC, a private, CFO-services firm, and Eventus Consulting, P.C., a registered CPA firm (collectively “Eventus”). Commencing on June 15, 2015, Eventus was engaged to provide accounting and advisory services to the Company in connection with audit coordination, financial statement preparation and SEC filings. During the years ended March 31, 2018 and 2017, the Company incurred fees of $10,967 and $17,978, respectively, to Eventus and has $3,530 in related party accounts payable on the accompanying balance sheet as of March 31, 2018. The office space used by the Company is provided by Eventus at no charge.

 

 
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On June 6, 2018, the Company entered into promissory notes with four investors, Amir Uziel, Lavi Krasney, L.I.A. Pure Capital Ltd and Yaad Consulting & Management Services (1995) Ltd, for $15,000 each, totaling $60,000. The notes accrue interest at a rate of 8% per annum and are each due on December 5, 2018. As part of entering into such notes, on May 16, 2018, Neil Reithinger resigned as the Company’s Secretary. As of such date, he remained as the Company’s President, Treasurer and as a director. On that same date, the Company appointed Eyal Ben Ami to the Board of Directors and Oded Gilboa as Secretary. Each of these individuals was identified by the note holders. Mr. Ben Ami and Mr. Reithinger are now the Company’s only two directors. Mr. Gilboa also was granted signature rights to the Company’s bank accounts. These note holders are considered to be related parties due to their influence.

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

Audit and Accounting Fees

 

The following table sets forth the fees billed to the Company for professional services rendered by MaloneBailey LLP, independent registered public accounting firm, for the years ended March 31, 2018 and 2017:

 

Services

 

2018

 

 

2017

 

 

 

 

 

 

 

 

Audit fees

 

$

9,700

 

 

$ 8,700

 

Audit related fees

 

 

-

 

 

 

-

 

Tax fees

 

 

-

 

 

 

-

 

All other fees

 

 

-

 

 

 

-

 

Total fees

 

$

9,700

 

 

$ 8,700

 

 

 
15
 
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PART IV

 

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

Exhibit

 

 

Number

 

Description

(3)

 

(i) Articles of Incorporation; and (ii) Bylaws

3.1

 

Articles of Incorporation (incorporated by reference to our Registration Statement on Form S-1 filed with the Commission May 29, 2013)

3.2

 

Bylaws (incorporated by reference to our Registration Statement on Form S-1 filed with the Commission May 29, 2013)

(10)

 

Material Contracts

10.1

 

Merger Agreement dated December 11, 2015 amongst Intellisense Solutions Inc., Intellisense (Israel) Ltd. And Dotz Nano Ltd. (incorporated by reference to Current Report on Form 8-K filed with the Commission December 17, 2015)

10.2

 

Termination Agreement dated May 17, 2016 amongst Intellisense Solutions Inc., Intellisense (Israel) Ltd. And Dotz Nano Ltd. (incorporated by reference to Current Report on Form 10-K filed on June 29, 2017)

10.3

 

Promissory Note Agreement dated February 11, 2016 with First Capital AG (incorporated by reference to Current Report on Form 10-Q filed on February 8, 2018)

10.4

 

Promissory Note Agreement dated February 29, 2016 with Fountain Drive Limited (incorporated by reference to Current Report on Form 10-Q filed on February 8, 2018)

10.5

 

Promissory Note Agreement dated May 18, 2017 with Trius Holdings Limited (incorporated by reference to Current Report on Form 10-Q filed on February 8, 2018)

10.6

 

Assignment and Assumption of Debt Agreement dated March 30, 2017 with Fountain Drive Limited and Sukh Athwal (incorporated by reference to Current Report on Form 10-Q filed on February 8, 2018)

10.7

 

Promissory Note Agreement dated June 30, 2017 with Trius Holdings Limited (incorporated by reference to Current Report on Form 10-Q filed on February 8, 2018)

10.8

 

Promissory Note Agreement dated July 6, 2017 with Trius Holdings Limited (incorporated by reference to Current Report on Form 10-Q filed on February 8, 2018)

10.9

 

Promissory Note Agreement dated January 10, 2018 with Mediapark Investments Limited (incorporated by reference to Current Report on Form 10-Q filed on February 8, 2018)

(31)

 

Rule 13a-14(a)/15d-14(a) Certification

31.1*

 

Section 302 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

(32)

 

Section 1350 Certification

32.1*

 

Section 906 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

(101)**

 

Interactive Data Files

101.INS

 

XBRL Instance Document

101.SCH

 

XBRL Taxonomy Extension Schema Document

101.CAL

 

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document

___________ 

*

Filed herewith.

 

**

Furnished herewith. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of any registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections.

 

 
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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

INTELLISENSE SOLUTIONS INC.

 

By:  

/s/ Neil Reithinger

 

 

Neil Reithinger

 

 

Chief Executive Officer,

Chief Financial Officer and Treasurer

(Principal Executive Officer,

Principal Financial Officer and

Principal Accounting Officer)

 

 

 

 

 

Date: July 5, 2018

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Signatures

 

Title(s)

 

Date

 

 

 

 

 

/s/ Neil Reithinger

 

 

Neil Reithinger

 

Chief Executive Officer, Chief Financial Officer and Treasurer

(Principal Executive Officer, Principal Financial Officer and

Principal Accounting Officer)

 

Date: July 5, 2018

 

 
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Table of Contents

 

INTELLISENSE SOLUTIONS INC.

FINANCIAL STATEMENTS AS OF MARCH 31, 2018

 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

F-2

 

 

 

 

 

 

FINANCIAL STATEMENTS:

 

 

 

 

 

 

 

 

 

Balance Sheets

 

F-3

 

 

 

 

 

 

Statements of Operations

 

F-4

 

 

 

 

 

 

Statement of Shareholders’ Deficit

 

F-5

 

 

 

 

 

 

Statements of Cash Flows

 

F-6

 

 

 

 

 

 

Notes to Financial Statements

 

F-7

 

 

 
F-1
 
Table of Contents

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Shareholders and Board of Directors of

Intellisense Solutions, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying balance sheets of Intellisense Solutions, Inc. (the “Company”) as of March 31, 2018 and 2017, and the related statements of operations, stockholders’ deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2018 and 2017, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern Matter

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our 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.

 

We conducted our 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, we express no such opinion.

 

Our 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. Our 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. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ MaloneBailey, LLP

www.malonebailey.com

We have served as the Company's auditor since 2013.

Houston, Texas 

July 5, 2018

 

 
F-2
 
Table of Contents

 

INTELLISENSE SOLUTIONS INC.

BALANCE SHEETS

 

 

 

March 31,

2018

 

 

March 31,

2017

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$ 10,153

 

 

$ 2,660

 

Total assets

 

$ 10,153

 

 

$ 2,660

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$ 27,928

 

 

$ 23,274

 

Accounts payable to related party

 

 

3,530

 

 

 

3,066

 

Notes payable

 

 

51,000

 

 

 

20,000

 

Due to related party

 

 

-

 

 

 

650

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

82,458

 

 

 

46,990

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit

 

 

 

 

 

 

 

 

Common stock, $0.001 par value; 75,000,000 shares authorized, 2,529,680 issued and outstanding, respectively

 

 

2,529

 

 

 

2,529

 

Additional paid-in capital

 

 

70,619

 

 

 

70,619

 

Accumulated deficit

 

 

(145,453 )

 

 

(117,478 )

Total stockholders’ deficit

 

 

(72,305 )

 

 

(44,330 )

Total liabilities and stockholders’ deficit

 

$ 10,153

 

 

$ 2,660

 

 

The accompanying notes are an integral part of these financial statements

 

 
F-3
 
Table of Contents

 

INTELLISENSE SOLUTIONS INC.

STATEMENTS OF OPERATIONS

 

 

 

For the year

ended

March 31, 2018

 

 

For the year

ended

March 31, 2017

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

Professional fees

 

$ 19,709

 

 

$ 29,075

 

General & administrative

 

 

3,664

 

 

 

4,333

 

Total operating expenses

 

 

23,373

 

 

 

33,408

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

Other income

 

 

-

 

 

 

50,000

 

Interest expense

 

 

(4,602 )

 

 

(2,774 )

Total other expense

 

 

(4,602 )

 

 

47,226

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$ (27,975 )

 

$ 13,818

 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED NET INCOME (LOSS) PER SHARE

 

$ (0.01 )

 

$ 0.01

 

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

 

 

2,529,680

 

 

 

2,529,680

 

 

The accompanying notes are an integral part of these financial statements

 

 
F-4
 
Table of Contents

 

INTELLISENSE SOLUTIONS INC.

STATEMENT OF STOCKHOLDERS’ DEFICIT

For the years ended March 31, 2017 and 2018

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

Common stock

 

 

Paid-in

 

 

Accumulated

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2016

 

 

2,529,680

 

 

 

2,529

 

 

 

70,619

 

 

 

(131,296 )

 

 

(58,148 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

13,818

 

 

 

13,818

 

Balance at March 31, 2017

 

 

2,529,680

 

 

 

2,529

 

 

 

70,619

 

 

 

(117,478 )

 

 

(44,330 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(27,975 )

 

 

(27,975 )

Balance at March 31, 2018

 

 

2,529,680

 

 

$ 2,529

 

 

$ 70,619

 

 

$ (145,453 )

 

$ (72,305 )

 

The accompanying notes are an integral part of these financial statements

 

 
F-5
 
Table of Contents

 

INTELLISENSE SOLUTIONS INC.

STATEMENTS OF CASH FLOWS

 

 

 

For the year

ended

March 31, 2018

 

 

For the year

ended

March 31, 2017

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income (loss)

 

$ (27,975 )

 

$ 13,818

 

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilites

 

 

4,654

 

 

 

(18,052 )

Accounts payable to related party

 

 

464

 

 

 

1,205

 

Due to related party

 

 

(650 )

 

 

(2,435 )

Net cash used in operating activities

 

 

(23,507 )

 

 

(5,464 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from notes payable

 

 

31,000

 

 

 

-

 

Net cash provided by financing activities

 

 

31,000

 

 

 

-

 

 

 

 

 

 

 

 

 

 

NET CHANGE IN CASH

 

 

7,493

 

 

 

(5,464 )

CASH AT BEGINNING OF PERIOD

 

 

2,660

 

 

 

8,124

 

CASH AT END OF PERIOD

 

$ 10,153

 

 

$ 2,660

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

 

 

 

 

 

 

 

 

Cash paid for:

 

 

 

 

 

 

 

 

Interest

 

$ -

 

 

$ -

 

Income taxes

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

NONCASH INVESTING AND FINANCIAL ACTIVITIES

 

 

 

 

 

 

 

 

Due to related party

 

$ -

 

 

$ 650

 

 

The accompanying notes are an integral part of these financial statements

 

 
F-6
 
Table of Contents

 

INTELLISENSE SOLUTIONS INC.

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2018 AND 2017

 

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION

 

Intellisense Solutions Inc. (the “Company”) was incorporated under the laws of the State of Nevada on March 22, 2013. The Company was initially engaged in the business of developing web portals to allow companies and individuals to engage in the purchase and sales of vegetarian food products over the Internet. However, the Company never achieved commercial sales or developed any significant operations and is pursuing acquiring or merging with an entity with significant operations in order to create a viable business model and value for our shareholders.

 

On December 11, 2015, the Company entered into a merger agreement with Dotz Nano Ltd. (“Dotz”), a private Israeli-based company, and Intellisense (Israel) Ltd. (“Merger Sub”), an Israeli company and direct wholly owned subsidiary of the Company. On May 17, 2016, the Company entered into a Termination Agreement with Dotz and Merger Sub whereby the contemplated transaction with Dotz was terminated (See Note 6).

 

Basis of Presentation

 

The accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for financial information and in accordance with Securities and Exchange Commission’s Regulation S-X.

  

NOTE 2 – GOING CONCERN AND MANAGMENT’S PLAN

 

As of March 31, 2018, the accompanying audited financial statements have been presented on the basis that it is a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has an accumulated deficit of $145,453 and negative working capital of $72,305. Presently, the Company does not have sufficient cash resources to meet its plans in the twelve months following March 31, 2018. In view of these matters, recoverability of any asset amounts shown in the accompanying audited financial statements is dependent upon the Company's ability to begin operations and to achieve a level of profitability. These factors raise substantial doubt about the Company's ability to continue as a going concern.

 

The Company has financed its activities principally from the sale of equity securities. The Company intends on financing its future development activities and its working capital needs largely from loans and the sale of public equity securities with some additional funding from other traditional financing sources until such time that funds provided by operations are sufficient to fund working capital requirements.

 

Accordingly, the accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and the satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the consolidated financial statements do not necessarily represent realizable or settlement values. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

  

 
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NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES

 

This summary of significant accounting policies is presented to assist the reader in understanding and evaluating the Company’s financial statements. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.

 

Cash and Cash Equivalents

 

Cash and cash equivalents as of March 31, 2018 and 2017 included cash on-hand. Cash equivalents are considered all accounts with an original maturity date within 90 days.

 

Use of Estimates

 

The preparation of the financial statements in conformity with US GAAP 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. The current economic environment has increased the degree and uncertainty inherent in these estimates and assumptions.

 

Income Tax Provision

 

The Company uses the liability method of accounting for income taxes under the asset and liability method prescribed under ASC 740, Income Taxes (“ASC 740”). The liability method measures deferred income taxes by applying enacted statutory rates in effect at the balance sheet date to the differences between the tax basis of assets and liabilities and their reported amounts on the financial statements. The resulting deferred tax assets or liabilities have been adjusted to reflect changes in tax laws as they occur. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized.

 

The Company expects to recognize the financial statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a “more-likely-than-not” threshold, the amount to be recognized in the financial statements will be the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. As of March 31, 2018, the Company had no uncertain tax positions. The Company recognizes interest and penalties, if any, related to uncertain tax positions as general and administrative expenses. The Company currently has no federal tax examinations, nor has it had any federal income tax penalties since its inception.

 

Net Income (Loss) Per Share

 

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted-average common shares outstanding during the period using the treasury stock method or the two-class method, whichever is more dilutive. The Company had no potentially dilutive securities. Therefore, basic and dilutive net income (loss) per share were the same.

 

Related Party Transactions

 

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

 

Recent Accounting Pronouncements

 

Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

 

 
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NOTE 4 – NOTES PAYABLE

 

Notes payable – Short-term consisted of the following as of:

 

 

 

March 31,

2018

 

 

March 31,

2017

 

 

 

 

 

 

 

 

Note payable, 12% interest per annum, due on August 8, 2016. Note is in default and unsecured.

 

$ 10,000

 

 

$ 10,000

 

Note payable, 12% interest per annum, due on August 27, 2016. Note is in default and unsecured.

 

 

10,000

 

 

 

10,000

 

Note payable, 8% interest per annum, due on May 18, 2018. Note is unsecured

 

 

10,000

 

 

 

-

 

Note payable, 8% interest per annum, due on June 30, 2018. Note is unsecured.

 

 

11,000

 

 

 

-

 

Note payable, 12% interest per annum, due on July 10, 2018. Note is unsecured.

 

 

10,000

 

 

 

 

 

 

 

$ 51,000

 

 

$ 20,000

 

 

During the year ended March 31, 2018, the Company borrowed $31,000 under promissory notes from an unaffiliated lender, under terms set forth in the table above. Proceeds from the borrowings are to further fund ongoing operational expenses.

 

In 2015, the Company borrowed $20,000 under promissory notes from two unaffiliated lenders (“Lenders”) to fund ongoing operational expenses. These notes are due immediately upon the Company’s receipt of any financing of $250,000 or more, or upon written demand by the Lenders, or not later than August 8, 2016 and August 27, 2016, respectively (the “Maturity Date”). As of March 31, 2018, these notes were in default and accruing interest at 15% per annum pursuant to the terms of the notes. As of March 31, 2018, the notes have not been paid. On June 26, 2018, the Company paid off one of the existing defaulted notes for $10,000, including accrued interest of $3,321. 

 

NOTE 5 – RELATED PARTY TRANSACTIONS

 

Effective June 15, 2015, Neil Reithinger was appointed as President, Treasurer, Secretary and a director. Mr. Reithinger is the Founder and President of Eventus Advisory Group, LLC, a private, CFO-services firm, and Eventus Consulting, P.C., a registered CPA firm (collectively “Eventus”). Commencing on June 15, 2015, Eventus was engaged to provide accounting and advisory services to the Company in connection with audit coordination, financial statement preparation and SEC filings. During the years ended March 31, 2018 and 2017, the Company incurred fees of $10,967 and $17,978 due to Eventus, respectively and has $3,530 and $3,066 in related party accounts payable on the accompanying balance sheets as of March 31, 2018 and 2017, respectively. In addition, Eventus paid certain expenses of the Company and was owed $650 recorded as due to related party on the accompanying balance sheet as of March 31, 2017. The office space used by the Company is provided by Eventus at no charge.

 

NOTE 6 – INCOME TAXES

 

The Company provides for income taxes under ASC 740 which requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect currently. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. Effective December 21, 2017, the corporate income tax rate decreased from 35% to 21% effective for tax years beginning after December 31, 2017, and those are rate changes are recognized in the Company’s gross deferred tax assets.

 

As of March 31, 2018, the Company has $30,545 in gross deferred tax assets resulting from net operating loss carryforwards. A valuation allowance has been recorded to fully offset these deferred tax assets because the Company's management believer future realization of the related income tax benefits is uncertain. Accordingly, the net provision for income taxes is zero for the year ended March 31, 2018. As of March 31, 2018, the Company has federal net operating loss carry forwards of $145,453 available to offset future taxable income through 2031.

 

As of March 31, 2017, the Company has $39,943 in gross deferred tax assets resulting from net operating loss carryforwards. A valuation allowance has been recorded to fully offset these deferred tax assets because the Company's management believes future realization of the related income tax benefits is uncertain. Accordingly, the net provision for income taxes is zero for the year ended March 31, 2017.

 

 
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NOTE 7 – MERGER AGREEMENT WITH DOTZ NANO LTD. AND SUBSEQUENT TERMINATION AND CANCELLATION

 

On December 11, 2015, the Company entered into a merger agreement with Dotz Nano Ltd. (“Dotz”), a private Israeli-based company, and Intellisense (Israel) Ltd. (“Merger Sub”), an Israeli company and direct wholly-owned subsidiary of the Company. Pursuant to the merger agreement, the Merger Sub was to merge with and into Dotz and Dotz was to continue as the surviving corporation. On May 17, 2016, the Company entered into a Termination Agreement with Dotz and Merger Sub (“TA”) whereby the contemplated transaction with Dotz shall be terminated, cancelled, annulled and of no further force. Pursuant to the terms of the TA, the Company recognized a termination fee of $50,000 which has been paid and is recorded as other income during the year ended March 31, 2017. Upon execution of the TA, we delivered ownership of all the shares of the Merger Sub, via a Share Transfer Deed.

 

NOTE 8 – SUBSEQUENT EVENTS

 

On June 6, 2018, the Company entered into promissory notes with four investors, Amir Uziel, Lavi Krasney, L.I.A. Pure Capital Ltd and Yaad Consulting & Management Services (1995) Ltd, for $15,000 each, totaling $60,000. The notes accrue interest at a rate of 8% per annum and are each due on December 5, 2018. As part of entering into such notes, on May 16, 2018, Neil Reithinger resigned as the Company’s Secretary. As of such date, he remained as the Company’s President, Treasurer and as a director. On that same date, the Company appointed Eyal Ben Ami to the Board of Directors and Oded Gilboa as Secretary. Each of these individuals was identified by the note holders. Mr. Ben Ami and Mr. Reithinger are now the Company’s only two directors. Mr. Gilboa also was granted signature rights to the Company’s bank accounts. These note holders are considered to be related parties due to their influence. On June 26, 2018, the Company paid off one of the existing defaulted notes for $10,000, including accrued interest of $3,321.

 

On May 15, 2018, the Company entered into a first amendment to the convertible promissory note agreement with Trius Holdings Limited. This agreement will become due and payable in whole on or before May 17, 2019.

 

 

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