Quarterly Report for Quarter Ending September 30, 2024 (Form 10-Q)

nexscient_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2024

☐ 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 333-274532

NEXSCIENT, INC.

(Exact name of registrant as specified in its charter)

Delaware		7372		92-2915192
(State or other jurisdiction of incorporation or organization)		(Primary Standard Industrial Classification Code Number)		(I.R.S. Employer Identification Number)

2029 Century Park East, Suite 400

Los Angeles, California 90067

(Address of principal executive offices, including ZIP code)

(310) 494-6620

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act: None

Title of each class	Trading Symbol	Name of exchange on which registered
---		---		---

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 ☐ No ☒.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ No ☐.

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	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 ☐ No ☒.

As of November 13, 2024, there were 20,421,312 shares of common stock issued and outstanding, par value, $0.001 per share.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information included in this Quarterly Report on Form 10-Q and other filings of the Registrant under the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as well as information communicated orally or in writing between the dates of such filings, contains or may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements in this Quarterly Report on Form 10-Q, including without limitation, statements related to our plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from expected results. Among these risks, trends and uncertainties are the availability of working capital to fund our operations, the competitive market in which we operate, the efficient and uninterrupted operation of our computer and communications systems, our ability to generate a profit and execute our business plan, the retention of key personnel, our ability to protect and defend our intellectual property, the effects of governmental regulation, and other risks identified in the Registrant's filings with the Securities and Exchange Commission from time to time.

In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms or other comparable terminology. Although the Registrant believes that the expectations reflected in the forward-looking statements contained herein are reasonable, the Registrant cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither the Registrant, nor any other person, assumes responsibility for the accuracy and completeness of such statements. The Registrant is under no duty to update any of the forward-looking statements contained herein after the date of this Quarterly Report on Form 10-Q.

NEXSCIENT, INC.

FORM 10-Q

FOR THE QUARTER ENDED SEPTEMBER 30, 2024

TABLE OF CONTENTS

		Page
Part I - Financial Information	F-1
Item 1.	Financial Statements (Unaudited)	F-1
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operation	3
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	5
Item 4.	Controls and Procedures	5
Part II - Other Information
Item 1.	Legal Proceedings	7
Item 1A.	Risk Factors	7
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	7
Item 3.	Defaults Upon Senior Securities	7
Item 4.	Mine Safety Disclosures	7
Item 5.	Other Information	7
Item 6.	Exhibits	8
Signatures	9
Certifications

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NEXSCIENT, INC.

BALANCE SHEETS

(unaudited)

		September 30, 2024			June 30, 2024
ASSETS
Current Assets
Cash		$	151,445			$	75,804
Prepaid expenses			12,000				24,000
Total current assets			163,445				99,804
Right of use asset			20,155				24,579
TOTAL ASSETS		$	183,600			$	124,383
LIABILITIES AND STOCKOLDERS' EQUITY (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities		$	29,271			$	18,000
Right of use liability, current portion			18,546				18,203
Total current liabilities			47,817				36,203
Convertible debentures			180,000				-
Right of use liability			1,609				6,376
TOTAL LIABILITIES		$	229,426			$	42,579
Commitments and Contingencies (Note 6)
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred Stock 10,000,000 shares authorized, $0.001 par value, 0 shares issued and outstanding at September 30, 2024 and June 30, 2024, respectively		$	-			$	-
Common Stock 75,000,000 shares authorized, $0.001 par value, 20,421,312 shares issued and outstanding at September 30, 2024 and June 30, 2024, respectively			20,421				20,421
Additional paid-in capital			1,092,741				1,092,741
Accumulated deficit			(1,158,988	)			(1,031,358	)
TOTAL STOCKHOLDERS' EQUITY/(DEFICIT)		$	(45,826	)		$	81,804
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)		$	183,600			$	124,383

The accompanying notes are an integral part of these financial statements

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NEXSCIENT, INC.

STATEMENTS OF OPERATIONS

(unaudited)

		September 30, 2024			September 30, 2023
REVENUES		$	-			$	-
OPERATING EXPENSES
Research and development			69,864				15,000
General and administrative			57,766				228,118
TOTAL OPERATING EXPENSES		$	127,630			$	243,118
NET LOSS		$	(127,630	)		$	(243,118	)
BASIC AND DILUTED LOSS PER COMMON SHARE		$	(0.01	)		$	(0.01	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED			20,421,312				19,534,993

The accompanying notes are an integral part of these financial statements.

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NEXSCIENT, INC.

STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

(unaudited)

		Preferred Stock Shares			Preferred Stock			Common Stock Shares			Common Stock			Additional Paid-In Capital			Subscriptions Receivable			Accumulated Deficit			Total Stockholders' Equity (Deficit)
Balance, June 30, 2023			-			$	-				16,528,000			$	16,528			$	404,837			$	(154,500	)		$	(93,766	)		$	173,099
Stock issued for services			-				-				1,500,000				1,500				148,500				-				-				150,000
Stock issued for cash			-				-				1,927,980				1,928				190,870				154,500				-				347,298
Net loss			-				-				-																(243,118	)			(243,118	)
Balance, September 30, 2023			-			$	-				19,955,980			$	19,956			$	744,207			$	-			$	(336,884	)		$	427,279
Balance, June 30, 2024			-			$	-				20,421,312			$	20,421			$	1,092,741			$	-			$	(1,031,358	)		$	81,804
Net loss			-				-				-																(127,630	)			(127,630	)
Balance, September 30, 2024			-			$	-				20,421,312			$	20,421			$	1,092,741			$	-			$	(1,158,988	)		$	(45,826	)

The accompanying notes are an integral part of these financial statements

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NEXSCIENT, INC.

STATEMENTS OF CASH FLOWS

(unaudited)

		September 30, 2024			September 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period		$	(127,630	)		$	(243,118	)
Amortization of prepaid stock-based compensation			12,000				-
Adjustments to reconcile net loss to net cash used in operating activities
Shares issued for services			-				150,000
Changes in operating assets and liabilities:
Accounts payable			11,271				8,849
Accounts payable - related party			-				(28,860	)
NET CASH USED IN OPERATING ACTIVITIES			(104,359	)			(113,129	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of advance from related party			-				(500	)
Proceeds from shares issued for cash			-				192,798
Proceeds from notes issued for cash			180,000				-
Proceeds from subscriptions receivable			-				154,500
NET CASH PROVIDED BY FINANCING ACTIVITIES			180,000				346,798
NET INCREASE IN CASH			75,641				233,669
CASH AT BEGINNING OF THE PERIOD			75,804				202,459
CASH AT END OF THE PERIOD		$	151,445			$	436,128

The accompanying notes are an integral part of these audited financial statements

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NEXSCIENT, INC.

NOTES TO FINANCIAL STATEMENTS

(unaudited)

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Nexscient, Inc. (the "Company") was incorporated in the State of Delaware on March 14, 2023. The Company is developing a subscription-based, condition monitoring solution for maintaining and protecting industrial equipment. The Company's objective is to exploit Industrial Internet-of-Things (IIoT), artificial intelligence (AI), and Cloud-computing technologies to offer a continuous, remote machine health monitoring service that provides actionable insights to manufacturers and continuous process facilities seeking an effective yet affordable predictive maintenance solution to help reduce equipment failures, avoid unscheduled downtimes, decrease equipment maintenance costs, and improve overall equipment efficiencies. The Company's head office is at 2029 Century Park East, Suite 400, Los Angeles, CA 90067.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Unaudited Interim Financial Information

The unaudited interim financial statements and related notes have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information, within the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements and in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the results for the interim period presented and of the financial condition as of the date of the interim balance sheet. The financial data and the other information disclosed in these notes to the interim financial statements related to the three-month period is unaudited. Unaudited interim results are not necessarily indicative of the results for the full fiscal year.

The accompanying unaudited interim condensed financial statements should be read in conjunction with the Company's audited financial statements and the notes thereto for the year ended June 30, 2024 included in the Company's Annual Report filed on Form 10-K filed with the SEC.

Use of Estimates

In preparing financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and accounts receivable. As of September 30, 2024, substantially all of the Company's cash was held by major financial institutions located in the United States, which management believes are of high credit quality.

Cash

The Company considers all highly liquid investments with original or remaining maturities of three months or less on the purchase date to be cash equivalents. Cash and cash equivalents carrying value approximate fair value and consist primarily of bank deposits and money market funds.

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Leases

The Company determines if an arrangement is a lease at inception. Operating and financing right-of-use assets and lease liabilities are included on the balance sheet. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, based on the information available at the commencement date, in determining the present value of future lease payments. Right-of-use assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred.

Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset. The lease terms may include options to extend or terminate the lease if it is reasonably certain the Company will exercise that option.

Fair Value of Financial Instruments

Accounting Standards Codification ("ASC") 820 "Fair Value Measurements and Disclosures", adopted January 1, 2008, defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The Company's financial instruments include cash, current receivables and payables. These financial instruments are measured at their respective fair values. The three levels are defined as follows:

	·	Level 1 - inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
	·	Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.
	·	Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value.

For cash, accounts payable, and due to related parties, it is management's opinion that the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their stated interest rate approximates current rates available.

Research and Development

Research and development costs include costs to develop and refine technological processes used to carry out business operations. Research and development costs charged to expense for the three months ended September 30, 2024 and 2023 were $69,864 and $15,000, respectively.

Earnings (Loss) per Share

Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. If applicable, diluted earnings (loss) per share assume the conversion, exercise or issuance of all common stock instruments unless the effect is to reduce a loss or increase earnings (loss) per share. The Company had no dilutive securities for the period ended September 30, 2024.

Recently Issued Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

NOTE 3 - GOING CONCERN

The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future.

The Company has generated no revenues since inception and incurred losses since inception resulting in an accumulated deficit of $1,158,988, as of September 30, 2024 and further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the Company's ability to continue as a going concern.

The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the twelve months with existing cash on hand and loans from directors, private placement of common stock, and/or a registered offering of its common stock.

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NOTE 4 - CONVERTIBLE DEBENTURES

During the three months ended September 30, 2024, the Company issued convertible debentures in the aggregate principal amount of $180,000 each in exchange for cash. The convertible debt is unsecured, bears interest at 9% per annum compounded on the basis of a 365-day year and actual days lapsed due at maturity, and is convertible at the lower of $0.75 per share or 20% below the average VWAP (Volume Weighted Average Price) per share of common stock for the ten (10) days prior to the date of conversion, with a minimum price of the common stock at $0.50 per share. The debentures have a maturity date of two years from date of issuance and is convertible at the option of the holder.

NOTE 5 - STOCKHOLDERS' EQUITY (DEFICIT)

The Company's authorized capital consists of eighty-five million (85,000,000) shares, comprised of: (i) seventy-five million (75,000,000) shares of Common Stock, par value $0.001 per share (the "Common Stock"); and (ii) 10,000,000 shares of blank check Preferred Stock, par value $0.001 per share (the "Preferred Stock").

NOTE 6 - COMMITMENTS AND CONTINGENCIES

Lease Commitments

In May 2024, the Company entered into a lease agreement for office space. The lease commenced on May 1, 2024 and expires on October 31, 2025 with monthly lease expense of $1,609 throughout the lease term. The Company recognized a right of use asset and liability of $27,482 upon the commencement of the lease, using a discount rate of 7.5%.

Contingencies

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition or results of operations.

NOTE 7 - SUBSEQUENT EVENTS

During October 2024, the Company issued its convertible debentures in return for total cash proceeds of $55,000. The terms of the convertible debentures are disclosed in Note 4.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q.

Overview

We were incorporated in the State of Delaware on March 14, 2023. We intend to offer a continuous, remote condition-based monitoring solution for manufacturers and continuous production facilities seeking to implement a Predictive Maintenance (PdM) program. Our platform leverages the latest IIoT technology with edge processing, machine-learning/AI algorithms, and Cloud computing infrastructure to collect, diagnose and transmit critical information about machine health and performance. Unlike other condition-monitoring programs on the market today, we take a unique approach by offering a remote, continuous monitoring solution that is autonomous and machine agnostic with no equipment purchase requirement. Designed as a scalable, stand-alone solution, our solution does not depend on integration with any control or IT system for its data source. Our design uses a mesh network of data collection nodes that are externally mounted to the outer casing of the equipment being monitored and data is collected via three on-board sensors, including acoustic, vibration and temperature. Compatible with virtually all rotating machinery, regardless of age, make, model or condition, the nodes collect and securely transmit pertinent data from the on-board sensors via a secure gateway to our Cloud-based analytics platform for processing and diagnosis.

Results of Operations for the three months ended September 30, 2024 and September 30, 2023

The Company, which was incorporated on March 14, 2023 and has a June 30 fiscal year-end, has limited comparable history.

Revenues

We are in our development stage and have not generated revenues for the three months ended September 30, 2024 and September 30, 2023.

Operating Expenses

For the three months ended September 30, 2024, we incurred operating expenses of $127,630. Of the total, $69,864 was attributed to research and development activities related to the Company's SaaS platform, while the balance of these expenses incurred was related to general and administrative expenses, which include legal and accounting, travel and lodging, and consulting fees. When compared to operating expenses of $243,118 incurred during the same period last year, for the period ended September 30, 2023, we note a decrease of 48% due to a reduction of expenses related stock-based compensation.

Net Loss

For the three months ended September 30, 2024, we incurred a net loss of $127,630, compared to $243,118 for the three months ended September 30, 2023, primarily as a result of changes to operating expenses described above, while not generating any revenues in either period.

Liquidity and Capital Resources

As of September 30, 2024, the Company has $151,445 cash on hand, an accumulated net loss of $1,158,988, and no revenue to cover its operating costs. Our burn rate is approximately $27,500 per month. Presently, our operations are being funded by funds previously raised and we believe our currently available capital resources are sufficient to sustain our operations for a minimum of four (4) months. The Company intends to fund future operations through its registered offering of common stock and other public offerings or private financing arrangements. The ability of the Company to realize its business plan is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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Cash Flow from Operating Activities

For the three months ended September 30, 2024, the cash flows used in the Company's operating activities was $104,359, primarily used to fund development costs and general and administrative expenses. For the same three-month period ended September 30, 2023, the cash flows used in operating activities totaled $113,129, representing a 8% decrease compared to the same period last year.

Cash Flow from Investing Activities

For the three months ended September 30, 2024 and 2023, the Company did not record any cash transactions from investing activities.

Cash Flow from Financing Activities

For the three months ended September 30, 2024, the net cash provided by financing activities by the Company was $180,000, as a result of proceeds received from the issuance of convertible debentures. During the same period last year, for the three months ended September 30, 2023, net cash provided from financing activities total $346,798, which was related to proceeds received from the sale of our common stock.

Contractual Obligations

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Future Financings

We will continue to rely on equity sales of our common shares and debt proceeds in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities.

Expected Purchase or Sale of Significant Equipment

We do not anticipate the purchase or sale of any significant equipment, as such items are not required by us at this time or in the next twelve months.

Off-Balance Sheet Arrangements

We have no significant 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 are material to stockholders.

Disagreements with Accountants on Accounting and Financial Disclosure

In connection with the review of the financial statements of the Company for the three months ended September 30, 2024, there were no disagreements on any matter of accounting principles or practices, financial statement disclosures, or scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with dbbmckennon's opinion to the subject matter of the disagreement.

In connection with the financial statements of the Company for the three months ended September 30, 2024, there have been no reportable events with the Company as set forth in Item 304(a)(1)(v) of Regulation S-K.

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Critical Accounting Policies

This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of the Company's management, who are responsible for their integrity and objectivity. These accounting policies conform to the United States of America ("US GAAP") and have been consistently applied in the preparation of the financial statements.

Stock-Based Compensation

Stock-based compensation is accounted for in accordance with ASC Topic 718-10 "Compensation-Stock Compensation" ("ASC 718-10"). The Company measures all equity-based awards granted to employees, independent contractors and advisors based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award.

The Company classifies equity-based compensation expense in its statement of operations in the same manner in which the award recipient's payroll or contractor costs are classified or in which the award recipient's service payments are classified.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We conducted an evaluation, under the supervision and with the participation of our management, of the effectiveness of the design and operation of our disclosure controls and procedures. The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended ("Exchange Act"), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures also include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our principal executive and principal financial officers concluded as of September 30, 2024, that our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses in our internal controls over financial reporting discussed immediately below.

Identified Material Weakness

A material weakness in our internal control over financial reporting is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected. Management identified the following material weakness during its assessment of internal controls over financial reporting, which are primarily due to the size of the Company and available resources:

Personnel: There are limited personnel to assist with the accounting and financial reporting function, which results in: (i) a lack of segregation of duties and (ii) controls that may not be adequately designed or operating effectively. Despite the existence of material weaknesses, the Company believes the financial information presented herein is materially correct and fairly presents the financial position and operating results of the three months ended September 30, 2024, in accordance with GAAP. The Company intends to seek qualified accounting staff to expand its internal accounting and reporting functions.

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Audit Committee: We do not yet have an audit committee, and we lack a financial expert. Over the next few months, the Board expects to appoint an Audit Committee and to identify a committee Chairman who is an "audit committee financial expert" as defined by the Securities and Exchange Commission ("SEC") and as adopted under the Sarbanes-Oxley Act of 2002.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting subsequent to the fiscal quarter ended September 30, 2024, which were identified in connection with our management's evaluation required by paragraph (d) of rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The Company is not required by current SEC rules to include, and does not include, an auditor's attestation report. The Company's registered public accounting firm has not attested to Management's reports on the Company's internal control over financial reporting.

Limitations of the Effectiveness of Disclosure Controls and Internal Controls

Our management, including our Principal Executive Officer and Principal Financial Officer, does not expect that our disclosure controls and internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the 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 a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control.

The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving our stated goals under all potential future conditions; over time, a control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company may become subject to various legal proceedings that are incidental to the ordinary conduct of its business. Although the Company cannot accurately predict the amount of any liability that may ultimately arise with respect to any of these matters, it makes provision for potential liabilities when it deems them probable and reasonably estimable. These provisions are based on current information and legal advice and may be adjusted from time to time according to developments.

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest.

Item 1A. Risk Factors

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

N/A

Item 5. Other Information

None.

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Item 6. Exhibits

Exhibit Number		Description
	3.1		Certificate of Incorporation filed with the Delaware Secretary of State on March 14, 2023 (1)
	3.2		Amended and Restated Certificate of Incorporation dated May 9, 2023 (1)
	3.3		Bylaws (1)
	10.1		Bookkeeping Services Agreement with David E. Tannous, dated March 23, 2023 (2)
	10.2		Board Member Consulting Agreement Eric Manlunas, dated May 17, 2023 (2)
	10.3		Consulting Agreement with MJP Consulting, LLC, dated June 1, 2023 (2)
10.4		Software Development Agreement with CORSAC Technologies dated October 2, 2023(2)
	10.5		Consulting Agreement with Craig Truempi, dated January 10, 2024 (3)
	31.1		Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002(¥)
	31.2		Certification of the Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (¥)
	32.1		Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (¥)
	32.2		Certification of the Principal Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (¥)
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(1)	Previously filed as an exhibit to Registration Statement on Form S-1 filed with SEC on September 21, 2023, incorporated herein by reference.
(2)	Previously filed as an exhibit to Registration Statement, as amended, on Form S-1/A filed with the SEC on October 19, 2023, incorporated herein by reference.
(3)	Previously filed as an exhibit to Annual Report on Form 10-K for the fiscal year ended June 30, 2024 filed with the SEC on October 1, 2024, incorporated herein by reference.
(¥)	This exhibit is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall such exhibit be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, except as otherwise stated in such filing.

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Nexscient, Inc.
Date: November 13, 2024	By:	/s/ Fred E. Tannous
	Fred E. Tannous
	Chief Executive Officer (Principal Executive Officer)

Date: November 13, 2024	By:	/s/ Michael J. Portera
	Michael J. Portera
	Chief Financial Officer (Principal Accounting Officer)

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