# EDGAR Filing Document

**Accession Number:** 0001683892
**File Stem:** 0001683892-25-000005
**Filing Date:** 2025-6
**Character Count:** 154796
**Document Hash:** b530dc8e27e019d7ee75858be44c63db
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001683892-25-000005.hdr.sgml**: 20250603

**ACCESSION NUMBER**: 0001683892-25-000005

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 4

**FILED AS OF DATE**: 20250603

**DATE AS OF CHANGE**: 20250603

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** New Sapience, Inc.
- **CENTRAL INDEX KEY:** 0001683892

**ORGANIZATION NAME:**
- **EIN:** 462884939
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-35968
- **FILM NUMBER:** 251017556

**BUSINESS ADDRESS:**
- **STREET 1:** 1997 ANNAPOLIS EXCHANGE PARKWAY
- **STREET 2:** SUITE 300 #121
- **CITY:** ANNAPOLIS
- **STATE:** MD
- **ZIP:** 21401
- **BUSINESS PHONE:** 844-443-4500

**MAIL ADDRESS:**
- **STREET 1:** 1997 ANNAPOLIS EXCHANGE PARKWAY
- **STREET 2:** SUITE 300 - #121
- **CITY:** ANNAPOLIS
- **STATE:** MD
- **ZIP:** 21401

### Attached PDF Documents

**Attachment 1:** `NewSapience_FormC.pdf`

Offering Memorandum: Part II of Offering Document (Exhibit A to Form C)

New Sapience, Inc.
1997 Annapolis Exchange Parkway
Suite 300 #121
Annapolis, MD 21401
newsapience.com

Up to $2,500,000.00 in Shares of Class B Non-Voting Common Stock at $6.00 per share, including the Investor Transaction Fee
and up to 458,319 Bonus Shares of Non-Voting Series B Common Stock.
Minimum Target Amount: $12,000.00

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.

In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

Company:

Company: New Sapience, Inc.
Address: 1997 Annapolis Exchange Parkway
Suite 300 #121
Annapolis, MD 21401
State of Incorporation: DE
Date Incorporated: March 13, 2015
Website Address: newsapience.com

Terms:

Equity

Target Offering Amount (aggregate): $12,003.00 | up to 1,988* shares of Class B Non-Voting Common Stock

Offering Maximum (aggregate): $2,500,000.00 | 416,654* shares of Class B Non-Voting Common Stock

Type of Security Offered: Shares of Class B Non-Voting Common Stock

Purchase Price of Security Offered: $6.00 per share

Minimum Investment Amount (per investor): $1,050.60**

Deadline to reach Offering Maximum: March 31, 2026

* Maximum number of shares offered is subject to adjustment for bonus shares and Investor Transaction Fee. See Investment Incentives below.

**This is inclusive of a purchase of 170 shares at $6.00 per share and an investor processing fee of 3%

The offer made hereby is subject to modification, prior sale, and withdrawal at any time. Investors will be required to pay an Investor Transaction Fee to the Company equal to three percent (3.0%) of the investment amount up to a maximum Investor Ancillary Fee of $75.00, which represents the fee for a $2,500.00 investment. The Investor Transaction Fee is counted towards the Offering Minimum and Maximum, which alters the number of shares that may be issued in each case. The Investor Transaction Fee also is applied to the limit each investor may invest pursuant to Regulation Crowdfunding. The Investor Transaction fee is charged in addition to the $1,020 Minimum Investment Amount per investor, so with each minimum share purchase a fee of $30.60 will be included.

If the total amount of investment commitments does not meet or exceed the Target Offering Amount by the offering deadline, no securities will be sold in the offering. In such case, all investment commitments will be cancelled and all committed funds will be returned to investors.

If subscriptions for this offering exceed the Target Offering Amount, the Issuer will determine, in its sole discretion, how to allocate securities among investors. The Issuer may allocate oversubscriptions on a pro-rata basis, on a first-come, first-served basis, or by any other method it deems appropriate. The Issuer is not obligated to allocate oversubscriptions in any particular manner and may accept or reject subscriptions in whole or in part at its discretion.

The Offering is being made through DealMaker Securities LLC (CRD #315324, SEC 008-70756, CIK 0001872856) (the "Intermediary"). The Intermediary will be entitled to receive fees related to the purchase and sale of the Securities. Purchasers of the Securities must complete the purchase process through the Intermediary. All committed funds will be held in escrow with Enterprise Bank &amp; Trust, a Missouri chartered trust company with banking powers (the "Escrow Agent") until the Target Offering Amount has been met or exceeded and one or more closings occur. Prior to each closing, you will have the opportunity to cancel up to 48 hours beforehand. If your investment had not yet been accepted by the Company, you may cancel an investment commitment until up to 48 hours prior to 11:59 pm Eastern Daylight Time on March 31, 2026 (3:59 am Coordinated Universal Time on April 1, 2026)] (the "Offering Deadline"), or such earlier time as the Company designates, pursuant to

Regulation CF, using the cancellation mechanism provided by the Intermediary. The Intermediary has the ability to reject any investment commitment and may cancel or rescind the Company’s offer to sell the Offered Shares at any time for any reason.

## Eligibility

The Company has certified that all of the following statements are TRUE for the Company and the Co-Issuer in connection with this Offering:

1. Is organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia;
2. Is not subject to the requirement to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) (15 U.S.C. 78m or 78o(d));
3. Is not an investment company, as defined in Section 3 of the Investment Company Act of 1940 (the “Investment Company Act”) (15 U.S.C. 80a-3), or excluded from the definition of investment company by Section 3(b) or Section 3(c) of the Investment Company Act (15 U.S.C. 80a-3(b) or 80a-3(c));
4. Is not ineligible to offer or sell securities in reliance on Section 4(a)(6) of the Securities Act of 1933 (the “Securities Act”) (15 U.S.C. 77d(a)(6)) as a result of a disqualification as specified in § 227.503(a);
5. Has filed with the SEC and provided to investors, to the extent required, any ongoing annual reports required by law during the two years immediately preceding the filing of this Form C; and
6. Has a specific business plan, which is not to engage in a merger or acquisition with an unidentified company or companies.

## Investment Incentives

As detailed below, each investor will receive additional bonus shares at no cost (i.e., in addition to the shares the investor purchases for $6.00 per share) if such investor makes an investment in shares within the timeframes and/or in the amounts set forth below and/or if such investor is a current stockholder of Company common stock as of the day prior to the commencement of this offering or initiated but did not complete an investment in the Company’s prior Regulation CF offering that closed on March 27, 2025.

Note that (i) investors in this offering are eligible to receive Time-Based bonus shares and Amount-Based bonus shares and, if the investor is a current stockholder of Company common stock as of the day prior to the commencement of this offering, Current Stockholder bonus shares or, if the investor initiated but did not complete an investment in the Company’s prior Regulation CF offering that closed on March 27, 2025, Prospective Investor bonus shares; (ii) bonus share percentages are cumulative (with the exception that any investor meeting the criteria for both Current Stockholder status and Prospective Investor status shall receive bonus shares only for their Current Stockholder status and not for their Prospective Investor status); and (iii) the investor’s applicable cumulative bonus share percentage will be multiplied by the number of shares that the investor purchased for $6.00 per share.

## Time-Based *

| Tier 1 | Invest by the end of Day 30 of the offering and receive 25% bonus shares |
| --- | --- |
| Tier 2 | Invest between Day 30 and Day 60 of the offering and receive 15% bonus shares |
| Tier 3 | Invest between Day 60 and Day 90 of the offering and receive 5% bonus shares |

* Time-based Perks begin on the day this offering is launched (the “Launch Date”) through 11:59 pm Eastern Daylight Time (“EDT”) on the 30th day (03:59 am Coordinated Universal Time (“UTC”) on the 31st day) following the Launch Date for Tier 1.

Tier 2 begins at the end of Tier 1 and concludes at 11:59 pm EDT on the 60th day (03:59 am UTC on the 61st day) following the Launch Date.

Tier 3 begins at the end of Tier 2 and concludes at 11:59 pm EDT on the 90th day (03:59 am UTC on the 91st day) following the Launch Date.

The bonus issuances described above will be classified as received based on the signature date/time on the investment commitment by the investor.

## Amount-Based

Invest $5,000+ and receive 5% bonus shares

Invest $10,000+ and receive 10% bonus shares

Invest $25,000+ and receive 15% bonus shares

Invest $50,000+ and receive 20% bonus shares

Invest $100,000+ and receive 25% bonus shares

Invest $250,000+ and receive 35% bonus shares

## Current Stockholder

Current Stockholders receive 50% bonus shares

## Prospective Investor

Prospective investors who initiated but did not complete an investment in the Company’s prior Regulation CF offering that closed on March 27, 2025, receive 50% bonus shares.

## Bonus Aggregation

Bonuses will be aggregated (with the exception that any investor meeting the criteria for both Current Stockholder status and Prospective Investor status shall receive bonus shares only for their Current Stockholder status and not for their Prospective Investor status) and assigned at each closing based on the investor meeting the criteria presented.

# The Company and its Business

## Company Overview

New Sapience, Inc. was initially organized as Cruse Technologies LLC, a Maryland Limited liability company, on October 5, 2011, and converted to a newly formed Delaware corporation on March 13, 2015.

New Sapience has developed what we believe to be a unique technology that is supported by an issued patent: a compact and scalable system and methodology for reproducing commonsense and expert knowledge curated directly from human minds, in digital devices.

We refer to a digital device endowed with knowledge, an internal model of external reality as a "sapiens". Programmed to reason about incoming information such as natural language to extend their baseline knowledge, it is our vision that sapiens will learn through language and conversation in a manner that is virtually indistinguishable from humans. We believe this new kind of learning in machines that is cognitive rather than neural transforms them from mere computers of data and information into long-awaited thinking machines. Our technology is designed to provide sapiens for its users.

We believe that sapiens technology finally achieves what has always been the goal of Artificial Intelligence (AI): to provide humans with a tool that can acquire and apply knowledge to change the world as we envision, and do it better than, we can. From the first wave of AI to the second wave of machine learning, our sapiens technology may be considered an unprecedented third branch of AI. However, from the standpoint of first principles, sapiens technology is not AI at all. AI from its earliest beginnings is focused on emulating features of natural human intelligence in machines, whereas sapiens technology is different.

New Sapience has made no attempt to mimic brains, but instead we believe we have invented a way to create thinking machines by processes that are not found in nature. The term for this is Synthetic Intelligence, as opposed to Artificial Intelligence. Six decades of AI have given us the illusion of intelligence in the same sense that an imitation diamond presents the same appearance as a real diamond, but without a real diamond's desirable properties. Synthetic diamonds are like real diamonds but are created through engineered processes.

New Sapience has always believed that intelligence, real intelligence, is not one thing in an organic mind and something else in a digital one. This approach has proven to be incredibly powerful: with a tiny fraction of the resources that have been lavished on AI, we believe the Company can already demonstrate cognitive thinking and language comprehension in machines that, in our view, do not exist anywhere else. We believe our roadmap to human level intellectual performance and beyond to be clear and we anticipate it can be realized in just a few years.

We have created a software platform for synthetic intelligence applications that we envision will enable human knowledge of any scope or complexity to be efficiently curated and transcribed for sapiens. We plan to use our platform to develop product lines of specialized sapiens for both businesses and consumers and license our platform to others to ensure the technology proliferates as rapidly as possible.

We are planning on offering our products and licenses as Software as a Service (SaaS) on a monthly subscription basis. We anticipate establishing an ecology of supporting applications developed by the company and our licensees, all integrated on the sapiens common core. We believe we have vast addressable markets in which we can ultimately achieve excellent gross margins.

# Competitors and Industry

## Competitors

New Sapience has created new technology and a platform that we believe will lead to innumerable new products, spanning multiple vertical markets, many of which we believe currently do not exist. We believe our competitive stance is comparable to steam power technology at the beginning of the 19th century, which disrupted markets as disparate as horse-drawn transport, sailing ships and water-driven mills, with similar success. New Sapience is a technology within the market of automated machines, with competitors such as Amazon's Alexa, Google Assistant, Apple's Siri, and large language models such as Google's, Meta's, OpenAI's, and X's offerings among others. However, we believe our technology is unlike these competitors' technologies in significant ways.

From the broadest perspective, we believe we can compare ourselves to any automation solution. Today's automation software, whether based on machine learning, symbolic rules, or conventional programming, is, in our view, narrow and brittle and subject to total failure when confronted with a problem that lies outside the anticipated scope of the program; or, in the case of large language models, prone to confabulation. Development of automation software has accelerated in recent years; however, we believe no competitor has introduced a technology that operates anything like ours at its core.

Where the cost of failure is high, as with transportation systems or network management, humans must be kept in the loop, a less-than-optimal solution. We believe our platform, which is intended to provide a cost-effective means to transfer knowledge from human minds into computers, will achieve orders of magnitude increases in automation for orders of magnitude less cost. We believe this because human knowledge is general and abstract and can be applied to solve many problems. This generality is the "G" in the term Artificial General Intelligence (AGI). We believe New Sapience is the first to achieve it.

On a narrower scope, we believe achieving knowledge in machines is the key to genuine comprehension of natural human languages. We are aware that our technology and many of our products may inevitably be compared to today's applications such as digital personal assistants or machine learning language models. We believe this demonstrates the superiority of our approach. Our technology, unlike anything we have seen from our competitors, has a compact internal cognitive world model independent from words and grammar and can decode language generally. We believe our competitors can't begin to match the language comprehension that New Sapience has achieved, and that they will become our customers.

## Industry

Automation technology is relevant to any industry where computing plays an essential role. Here is a summary of size and growth statistics of industries where sapiens technology is expected to make major penetrations:

**Natural Language Processing**: This is the market for chatbots and voice interfaces of all kinds. It was $9.9 billion in 2020 and projected to be $27.6 billion by 2026. Source: Business Insider

**Industrial Automation Market**: Valued at $140.39 billion globally in 2021 and is projected to reach $233.94 billion by 2028 at an estimated CAGR of 7.6%. Source: The Insight Partners, Cision PR Newswire

**Business Process Automation (BPA) market**: Valued at $9.6 billion in 2020 and projected

to be $19.6 billion by 2026. Source: Markets and Markets

Revenue in the Robotics market is projected to reach US $6.68 billion in 2022. Source: Statista

Industrial Robots market expected to hit USO $35.68 billion by 2029 | At 11.4% CAGR. Source: Global NewsWire

Consumer Robots and Robotic devices market was $5.17 billion in 2020 and projected to grow to $41.7 billion by 2028. Source: VerifiedMarket Research

Summary: The estimated total addressable market for sapiens technology, as estimated by reliable sources currently stands at over $200 billion and is expected to grow substantially over the next 5 years. These estimates are based on existing automation technology. We anticipate that sapiens technology will make new levels of automation possible and create new markets that cannot yet be quantified.

## Current Stage and Roadmap

### Current Stage

As of Q1 2025, the Company has a software platform that we believe will soon be ready to support consumer and commercial product development. On this platform, our core world model, curated from human knowledge of the commonsense world, has now progressed to a point where it demonstrates the potential and scalability of our technology in what we believe to be the most challenging of all automation markets, comprehension of natural language.

### Future Roadmap

We believe we will soon reach what we consider the “tipping point” capability in our core model build-out.

At this level, we believe sapiens may be able to comprehend, remember, and answer questions about virtually anything they are told within the scope of everyday human concerns and activities. We believe that when this milestone is reached, we will no longer have to explain how our technology works, because at that point, ideally anyone can see that it works.

At that point, supported by a public relations campaign and marketing, we anticipate putting sapiens online for public interaction. Our hope is that this event would be our public reveal of thinking machines that can understand what we say to them and have the intelligence to understand what we ask.

We believe this event will position the company to attract the additional capital and talent required for additional growth.

We plan on incorporating the core technology that underlies this milestone into every sapiens product and application going forward. From that point, provided we have sufficient funding, we expect to focus on the development and release of our first product. We believe this product, the Companion Sapiens, will be the vanguard of our consumer product line.

At initial release, it may require little more than the basic language understanding it had at the tipping point milestone to provide a utility we believe no other product has ever had.

We believe it will serve as auxiliary or out-board personal memory, able to understand, remember, and answer queries about every personal detail the user shares with it in perpetuity.

We believe the initial total addressable market for the Companion could be equal to the

number of English-speaking users of mobile devices (with more languages anticipated to follow quickly). Offered as SaaS with large gross margins, our financial projections anticipate the company becoming profitable within months.

We believe our Pro-Sapiens product lines will add market-specific expert knowledge to the common core for each vertical.

## The Team

Currently the Company is served by four full-time employees, six part-time and full-time contractors, and the directors listed below.

## Officers and Directors

**Name:** Bryant George Cruse

Bryant George Cruse’s current primary role is with the Issuer.

**Positions and offices currently held with the issuer:**

- **Position:** Founder &amp; CEO
- **Annual Salary:** Mr. Cruse’s current salary is $225,000 per year, but currently he is being compensated at the rate of $160,000 per year in cash with the remaining $65,000 per year accruing as equity to be awarded as options at the end of 2025.
- **Company Equity:** 7.21% prior to commencement of this offering
- **Dates of Service:** March 13, 2015 - Present
- **Responsibilities:** Articulates Company vision and mission; directs operations and finance.

- **Position:** President
- **Dates of Service:** March 13, 2015 - Present
- **Responsibilities:** Direct responsibility for corporate matters

- **Position:** Chief Technical Officer
- **Dates of Service:** March 13, 2015 - Present
- **Responsibilities:** Leads technology development

- **Position:** Chairman of the Board of Directors
- **Dates of Service:** March 15, 2022 - Present
- **Responsibilities:** Leads the Board of Directors; schedules and presides over meetings of the Board of Directors.

**Name:** William Robert Bandy

William Robert Bandy’s current primary role is with Matrix 2. William Robert Bandy currently provides services approximately 16 hours per week in his role with the Company.

**Positions and offices currently held with the issuer:**

- **Position:** Chief Intellectual Property Officer

Annual Compensation: Mr. Bandy’s current salary is $20,000 per year, but currently he is being compensated at the rate of $0 per year in cash with the remaining $20,000 per year accruing as equity to be awarded as options at the end of 2025.

Company Equity: 6.48% prior to commencement of this offering
Dates of Service: March 13, 2015 - Present
Responsibilities: Manages patent portfolio

- Position: Secretary
Dates of Service: March 13, 2015 - Present
Responsibilities: Corporate Secretary

- Position: Member, Board of Directors
Dates of Service: March 13, 2015 - Present
Responsibilities: Provides guidance and advice to the management team.

Other business experience in the past three years:

- Employer: Matrix 2 Title: Board Member
Dates of Service: November 01, 2016 - Present
Responsibilities: Provides guidance and direction to management team

Name: Thomas William Loveland

Thomas William Loveland’s current primary role is with Mind Over Machines, Inc. Thomas William Loveland currently provides services approximately 16 hours per week in his role with the Company.

Positions and offices currently held with the issuer:

- Position: Chief Administrative Officer,
Annual Salary: Mr. Loveland’s current salary is $100,000 per year, but currently the majority of this is accruing as unpaid compensation to be paid in cash at the discretion of management.

Company Equity: 2.69% (prior to commencement of this offering)
Dates of Service: February 01, 2022 - Present
Responsibilities: Assists CEO in all administrative matters

- Position: Board Member
Dates of Service: December 09, 2021 - Present
Responsibilities: Board Member

Other business experience in the past three years:

- Employer: Mind Over Machines, Inc. Title: CEO
Dates of Service: April 05, 1989 - Present
Responsibilities: Strategic Vision

Name: William Francis Readdy

William Francis Readdy’s current primary role is with American Pacific Corp. William

Francis Readdy currently provides services approximately 10 hours per week in his role with the Company.

Positions and offices currently held with the issuer:

- **Position**: Chief Partnerships Officer
- **Annual Salary**: Mr. Readdy’s current salary is $20,000 per year, but currently he is being compensated at the rate of $0 per year in cash with the remaining $20,000 per year accruing as equity to be awarded as options at the end of 2025.
- **Company Equity**: 0.45% (prior to commencement of this offering)
- **Dates of Service**: December 1, 2022 - Present
- **Responsibilities**: Chief Partnerships Officer

- **Position**: Board Member
- **Dates of Service**: December 1, 2022 - Present
- **Responsibilities**: Board Member

Other business experience in the past three years:

- **Employer**: NASA - National Aeronautics and Space Administration
- **Title**: Vice Chairman, International Space Station (ISS) Advisory Committee
- **Dates of Service**: January 1994 - Present
- **Responsibilities**: Deputy to Chairman of NASA Advisory Committee. Review NASA ISS program status and issues and advise NASA on courses of action.

Other business experience in the past three years:

- **Employer**: Discovery Partners International, LLC
- **Title**: Managing Partner
- **Dates of Service**: October 2005 - Present
- **Responsibilities**: Founder and sole partner of aerospace consultancy. Manage clients, deliverables, and finances on matters related to aerospace and technology.

Other business experience in the past three years:

- **Employer**: York Space Systems, LLC.
- **Title**: Advisory Board Member
- **Dates of Service**: April 2014 - Present
- **Responsibilities**: Aerospace/Satellite Technical Advice

Other business experience in the past three years:

- **Employer**: Aerojet Rocketdyne Corp
- **Title**: Strategic Advisory Group Member
- **Dates of Service**: May 2014 - September 2023
- **Responsibilities**: Aerospace/Launch Vehicle Technical Advice

Other business experience in the past three years:

- **Employer**: Helicity Space Corp
- **Title**: Advisory Board Member
- **Dates of Service**: November 2019 - Present
- **Responsibilities**: Aerospace/Spaceflight Technical Advice

Other business experience in the past three years:

- Employer: STARS Technology Corp.
Title: Advisory Board Member
Dates of Service: April 2021 - Present
Responsibilities: Aviation Industry Technical Advice

# Risk Factors

The SEC requires the Company to identify risks that are specific to its business and its financial condition. The Company is still subject to all the same risks that all companies in its industry, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events, and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

These are the risks that relate to the Company:

# Uncertain Risk

An investment in the Company (also referred to as “we”, “us”, “our”), involves a high degree of risk and should only be considered by those who can afford the loss of their entire investment. Furthermore, the purchase of any of the shares should only be undertaken by persons whose financial resources are sufficient to enable them to indefinitely retain an illiquid investment. Each investor in the Company should consider all the information provided to such potential investor regarding the Company as well as the following risk factors, in addition to the other information listed in this Form C. The following risk factors are not intended, and shall not be deemed to be, a complete description of the commercial and other risks inherent in the investment in the Company.

# Our business projections are only projections

There can be no assurance that the Company will meet our projections. There can be no assurance that the Company will be able to find sufficient demand for our product, that people believe our product is a better option than a competing product, or that we will be able to provide the service at a level that allows the Company to earn revenue and make a profit.

# Any valuation at this stage is difficult to assess

The valuation for the offering was established by the Company. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment.

# Our valuation and our offering price have been established internally and are difficult to assess.

The company has set the price of its Class B Non-Voting Common Stock at $6.00 per share, plus a 3% Investor Transaction Fee, see “Terms” for further details on this fee. This fee is intended to offset transaction costs and though this fee is counted towards the amount the company is seeking to raise under Regulation Crowdfunding and the limit each investor may invest pursuant to Regulation Crowdfunding, we did not value it in determining our valuation. Including this fee will increase our valuation for which you are paying for shares in our company accordingly. Valuations for companies at this stage are generally purely speculative. Our valuation has not been validated by any independent third party and may decrease precipitously in the future. It is a question of whether you, the investor, are willing

to pay this price for a percentage ownership of a start-up company. The issuance of additional shares of Common Stock, or additional option grants may dilute the value of your holdings.

## The transferability of the Securities you are buying is limited

Any shares purchased through this crowdfunding campaign are subject to transfer restrictions set forth in the Company's stockholders' agreement and the restrictions imposed by applicable securities laws. You will not be able to control the timing of your liquidation of your investment in the shares.

## Your investment could be illiquid for a long time

You should be prepared to hold this investment for several years or longer. All voluntary and involuntary transfers of the securities you receive are subject to restrictions set forth in the Company's stockholders' agreement. More importantly, there is no established market for these shares and there may never be one. As a result, if you decide to sell these securities in the future, you may not be able to find a buyer, and even if you find a buyer, you may be restricted from transferring them to a buyer.

## If the Company cannot raise sufficient funds, it will not succeed

The Company might not sell enough securities in this or other offerings to meet its operating needs and fulfill its plans, in which case it will cease operating, and you will get nothing. Even if the Company raises all the funds it seeks to raise now, it may need to raise more funds in the future, and if it cannot raise those funds for whatever reason, including reasons relating to the Company itself or the broader economy, it may not survive. Even if the Company completes successful offerings in the future, the terms of those offerings might result in your investment in the Company being worth less, because later investors might get better terms.

## Operating capital could be difficult and expensive to find and raise

We may not have enough capital and may need to raise more. We anticipate needing access to credit in order to support our working capital requirements as we grow. It may be difficult for us to obtain credit on favorable terms for reasons relating to the Company itself or the broader economy. If we cannot obtain credit when we need it, we could be forced to raise additional equity capital, modify our growth plans, or take some other action. Issuing more equity may require bringing on additional investors. Securing these additional investors could require pricing our equity below its current price. If so, your investment could lose value because of this additional dilution. In addition, even if the equity is not priced lower, your ownership percentage would be decreased with the addition of more investors. If we are unable to find additional investors willing to provide capital, then it is possible that we will choose to cease our sales activity. In that case, the only asset remaining to generate a return on your investment could be our intellectual property, and there is no guarantee we will be able to find a buyer for it. Even if we are not forced to cease our sales activity, the unavailability of credit could result in the Company performing below expectations, which could adversely impact the value of your investment.

## Terms of subsequent financings may adversely impact your investment

We will likely need to engage in common equity, debt, or preferred stock financing in the future, which may reduce the value of your investment in our Common Stock.

Interest on debt securities could increase costs and negatively impact operating results. Preferred stock could be issued in series from time to time with such designation, rights, preferences, and limitations as needed to raise capital. The terms of preferred stock could be

more advantageous to those investors than to the holders of Common Stock. In addition, if we need to raise more equity capital from the sale of Common Stock, we may offer bonus shares which will increase your dilution and may result in a lower effective purchase price per share than your investment, and institutional or other investors may negotiate terms that are likely to be more favorable than the terms of your investment, and possibly a lower purchase price per share.

**The Investor Transaction Fee may not count toward your cost basis for tax purposes.** The IRS and/or another relevant tax authority may consider the price of the share before including the Investor Transaction Fee as the cost basis for determining any gain or loss at a realization event. You should discuss with your tax advisor the appropriate way to determine the relevant tax obligation.

**Management Discretion as to Use of Proceeds**

Our success will be substantially dependent upon the discretion and judgment of our management team with respect to the application and allocation of the proceeds of this Offering. The use of proceeds described below is an estimate based on our current business plan. However, we may find it necessary or advisable to re-allocate portions of the net proceeds reserved for one category to another, and we will have broad discretion to do so.

**Projections: Forward Looking Information**

Any projections or forward-looking statements regarding our anticipated financial or operational performance are hypothetical and are based on management's best estimate of the probable results of our operations and will not have been reviewed by our independent accountants. These projections will be based on assumptions which management believe are reasonable. Some assumptions invariably will not materialize due to unanticipated events and circumstances beyond management's control. Therefore, actual results of operations will vary from such projections, and such variances may be material. Any projected results cannot be guaranteed.

**The amount raised in this offering may include investments from Company insiders or immediate family members**

Officers, directors, executives, and existing owners with a controlling stake in the company (or their immediate family members) may make investments in this offering. Any such investment will be included in the amount raised reflected on the campaign page.

**Minority Holder; Securities with No Voting Rights**

The shares that an investor is buying have no voting rights attached to them. This means that you will have no rights in dictating how the Company will be run. You are trusting in management and controlling voting stockholder discretion in making wise business decisions that will increase your investments. Furthermore, in the event of a liquidation of our company, you will only be paid out if there is any cash remaining after all Company creditors have been paid in full.

**You are trusting that management will make the best decision for the Company**

You are trusting in management discretion. You are buying securities as a minority holder and therefore must trust the management of the Company to make good business decisions that grow your investment.

**This offering involves "rolling closings" which may mean that earlier investors may not have the benefit of information that later investors have**

Once we meet our target minimum amount for this offering, we may instruct the escrow agent to disburse offering funds to us. At that point, investors whose subscription agreements have been accepted will become our investors. All early-stage companies are subject to numerous risks and uncertainties, and it is not uncommon for material changes to be made to the offering terms, or to companies' businesses, plans or prospects, sometimes on short notice. When such changes happen during an offering, we must file an amendment to our Form C with the SEC, and investors whose subscriptions have not yet been accepted will have the right to withdraw their subscriptions and get their money back. Investors whose subscriptions have already been accepted, however, will already be our investors and will have no such right.

## Our products could fail to achieve the sales projections we expected

Our growth projections assume that with an increased advertising and marketing budget our products will be able to gain traction in the marketplace at a faster rate than without that budget. It is possible that our products will fail to gain market acceptance for any number of reasons. If our products fail to achieve significant sales and acceptance in the marketplace, this could materially and adversely impact the value of your investment.

## We are an early-stage company and have not yet generated any profits

New Sapience was formed on March 13, 2015, and has been in research and development mode ever since. Accordingly, the Company has a limited history upon which an evaluation of its performance and prospects can be made. Our current and proposed operations are subject to all business risks associated with new enterprises. These include likely fluctuations in operating results as the Company reacts to developments in its market, managing its growth, and the entry of competitors into the market. We will only be able to pay dividends on any shares if and when our directors determine that we are financially able to do so, and it is possible that no distributions will ever be made. New Sapience has incurred a net loss and has generated limited revenues since inception. There is no assurance that we will ever be profitable or generate sufficient revenues to pay dividends to the holders of the shares.

## We are an early-stage company and have limited revenue and operating history

The Company has a short history, few customers, and effectively no revenue. We have never turned a profit and there is no assurance that we will ever be profitable.

## We have an existing patent that we might not be able to protect properly

We believe one of the most valuable assets of the Company is our intellectual property. The Company owns one patent (with more patent applications planned) and maintains trade secrets. Competitors may attempt to misappropriate or violate the rights owned by the Company. The Company intends to continue to protect its intellectual property portfolio from such violations. It is important to note that unforeseeable costs associated with such practices may erode the capital of the Company.

## Our trademarks, copyrights and other intellectual property could be unenforceable or ineffective

Intellectual property is a complex field of law in which few things are certain. It is possible that competitors will be able to design around our intellectual property, find prior art to invalidate it, or render the patents unenforceable through some other mechanism. If competitors are able to bypass our patent, trademark, or copyright protection without obtaining a sublicense, it is likely that the Company's value will be materially and adversely impacted. This could also impair the Company's ability to compete in the marketplace. Moreover, if our patent(s), trademark(s), or copyright(s) are deemed unenforceable, or our

intellectual property is deemed to infringe on others' intellectual property, the Company will almost certainly lose potential revenue it might otherwise be able to raise by entering into sublicenses. This would cut off a significant potential revenue stream for the Company.

## The cost of enforcing our intellectual property could prevent us from enforcing them

Intellectual property litigation has become extremely expensive. Even if we believe that a competitor is infringing on one or more of our patent(s), trademark(s) or copyright(s) or other intellectual property, we might choose not to file suit because we lack the cash to successfully prosecute a multi-year litigation with an uncertain outcome; or because we believe that the cost of enforcing our trademark(s) or copyright(s) or other intellectual property outweighs the value of winning the suit in light of the risks and consequences of losing it; or for some other reason. Choosing not to enforce our patent(s), trademark(s) or copyright(s) or other intellectual property rights could have adverse consequences for the Company, including undermining the credibility of our intellectual property, reducing our ability to enter into sublicenses, and weakening our attempts to prevent competitors from entering the market. As a result, if we are unable to enforce our patent(s), trademark(s) or copyright(s) or other intellectual property because of the cost of enforcement, your investment in the Company could be significantly and adversely affected.

## The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business

To be successful, the Company requires capable people to run its day-to-day operations. As the Company grows, it will need to attract and hire additional employees in sales, marketing, design, development, operations, finance, legal, human resources, and other areas. Depending on the economic environment and the Company's performance, we may not be able to locate or attract qualified individuals for such positions when we need them. We may also make hiring mistakes, which can be costly in terms of resources spent in recruiting, hiring and investing in the incorrect individual and in the time delay in locating the right employee fit. If we are unable to attract, hire and retain the right talent or make too many hiring mistakes, it is likely our business will suffer from not having the right employees in the right positions at the right time. This would likely adversely impact the value of your investment.

## The Company is vulnerable to hackers and cyberattacks

As an internet-based business, we may be vulnerable to hackers who may access the data of our investors and the issuer companies that utilize our platform. A cyberattack could be devastating to the Company. Further, any significant disruption in service on New Sapience or in its computer systems could reduce the attractiveness of the platform and result in a loss of investors and companies interested in using our platform. Further, we may rely on third-party technology providers to provide some or all our hosting and/or back-up technology. Any disruptions of services or cyberattacks either on our technology provider(s) or on the Company directly could harm our reputation and materially negatively impact our financial condition and business.

## Contrarian Technical Approach

Artificial Intelligence has become a pre-eminent technological focus of our time. Machine Learning has become nearly synonymous with AI, in the media at least. There are currently unprecedented levels of hype, exaggeration, and downright deception in the field of AI. New Sapience does not use machine learning and, in fact, has attempted to take a completely contrarian approach to all previous technologies known to the Company. This requires New Sapience to invest extra effort to distinguish itself from what others are doing. This will require the Company to expend significant resources, and the Company may never be

successful in distinguishing itself as an attractive technology.

## Data privacy leaks

Although New Sapience does not use machine learning technologies, elements of sapiens technology may be connected to the Internet and thus may accumulate and store personal data and information. Any identification and tracking of a person could come with a risk of data privacy exploitation and misuse. While New Sapience does not, and does not intend, to use, share, or sell this tracking information for marketing purposes, a data privacy leak could occur which would threaten the integrity of the Company. If a data leak occurs, this could harm the Company's reputation and negatively impact the Company's financial condition and future growth.

There is also a risk that a data leak could violate federal and state privacy laws. A violation of data privacy laws could result in significant fines, lawsuits, civil penalties, and criminal prosecution which would materially harm the Company's financial situation, reputation, and growth.

## Regulatory and legislative developments regarding artificial intelligence and machine learning

The regulatory framework for machine learning technology, artificial intelligence, and automated decision making is evolving. While we believe our technology is distinguishable from other AI and machine learning technologies, it is possible that new laws and regulations regulating our technology will be adopted in the United States, the European Union, and other non-U.S. jurisdictions, or that existing laws and regulations may be interpreted in ways that would affect the operation of our platforms and technological approach. For example, the European Parliament recently drafted legislation that will categorize AI applications by a "risk" level category. Each risk level has corresponding rules, with the most stringent rules for the highest risk levels. The legislative requirements include pre-market testing mandates, risk mitigation systems, standards surrounding the datasets used to train AI systems, and additional requirements for human oversight. Other regulations are expected to be adopted, both in the U.S. and abroad, but given that the development of the regulatory framework is in the very early stage, these regulations' ultimate impact on our business is not certain. These regulations could place restrictions on the design or use of our software and pose material impediments to our business model. The cost of complying with such laws or regulations could be significant and would decrease our operating expenses, which could adversely affect our business, financial condition, and results of operations. In addition, these regulations may affect our ability to provide and improve our services, which could result in compliance costs and potential increases in civil claims against us, which could adversely affect our business, operations, and financial situation.

# Ownership and Capital Structure; Rights of the Securities

## Ownership

The following table sets forth information regarding beneficial ownership of the company’s holders of 20% or more of any class of voting securities as of the date of this Offering Statement filing.

| Stockholder Name | Number of Securities Owned | Type of Security Owned | Percentage |
| --- | --- | --- | --- |
| Valkeir Corporation* | 8,000,000 | Class A Voting Common Stock | 31.49% |

* Valkeir Corporation is controlled by Bryant Cruse, the founder and CEO of New Sapience.

## The Company’s Securities

The Company has authorized Class A Voting Common Stock and Class B Non-Voting Common Stock.

### Class A Voting Common Stock

12,000,000 shares are authorized with a total of 11,428,572 shares outstanding. Each share of Class A Voting Common Stock has ten (10) votes, but no material rights.

### Class B Non-Voting Common Stock

48,000,000 shares are authorized with a total of 14,017,909 shares outstanding. Shares of Class B Non-Voting Common Stock have neither voting rights nor material rights.

### Stock Options &amp; Warrants

The total amount outstanding includes 4,136,285 shares that are currently stock options outstanding, 1,125,555 shares to be issued pursuant to stock options reserved but unissued, and 266,026 shares to be issued pursuant to outstanding warrants.

## What it means to be a minority holder

As a minority holder of Class B Non-Voting Common Stock shares of the Company, you will have limited rights regarding the corporate actions of the Company, including additional issuances of securities, Company repurchases of securities, a sale of the company or its significant assets, or company transactions with related parties. Further, investors in this offering may have lesser rights than those of other investors and will have limited influence on the corporate actions of the Company. All investors will be required to execute the Company’s stockholders’ agreement, which contains transfer restrictions and other covenants related to the ownership of the shares.

## Dilution

Investors should understand the potential for dilution. The investor’s stake in a company could be diluted due to the company issuing additional shares, including without limitation through the issuance of any bonus shares. In other words, when the company issues more

shares, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowdfunding round, a venture capital round, angel investment), employees exercising stock options, or by conversion of certain instruments (e.g. convertible bonds, preferred shares, or warrants) into stock. If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the company offers dividends, and most early-stage companies are unlikely to offer dividends, preferring to invest any earnings into the company).

## Immediate Dilution

An early-stage company typically sells its shares (or grants options over its shares) to its founders and early employees at a very low cash cost, because they are, in effect, putting their "sweat equity" into the company. When the company seeks cash investments from outside investors, like you, the new investors typically pay a much larger sum for their shares than the founders or earlier investors, which means that the cash value of your stake is diluted because all the shares are worth the same amount, and you paid more than earlier investors for your shares.

The following table demonstrates the dilution that new investors purchasing the Company's Class B Non-Voting Common Stock will experience upon investment in the Company. This table uses the Company's self-reported book value of -$360,701 as of March 31, 2025, which is derived from the net equity of the Company as of March 31, 2025.

The following table presents two scenarios for the convenience of the reader:

- a $2,500,000 raise from this offering;
- a $2,500,000 raise from this offering combined with a $4,545,000 remaining maximum raise from the Company's concurrent Regulation D fundraising campaign, for a total maximum raise of $7,045,000.

Note that the following table EXCLUDES any bonus shares to be issued in the offering. See "Investment Incentives" for more information on bonus shares.

Regulation CF campaign

| Price per Share | $ | 6.00 | $ | 6.00 |
| --- | --- | --- | --- | --- |
| Shares Issued (1) |  | 416,654 |  | 416,654 |
| Capital Raised (2) | $ | 2,499,924 | $ | 2,499,924 |
| Less: Offering Costs (3) | $ | 249,494 | $ | 249,494 |
| Net Offering Proceeds | $ | 2,250,430 | $ | 2,250,430 |

Regulation D campaign

| Price per Share | $ | $ | 4.00 |
| --- | --- | --- | --- |
| Shares Issued (1) |  | 0 | 1,136,250 |
| Capital Raised | $ | 0 | $4,545,000 |
| Less: Offering Costs (4) | $ |  | $213,525 |
| Net Offering Proceeds | $ | 0 | $4,331,475 |

| Net Tangible Book Value Pre-financing as of March 31, 2025 | $ -360,704 | $ -360,704 |
| --- | --- | --- |
| Net Tangible Book Value Post-financing | $1,889,726 | $6,221,201 |

| Shares issued and outstanding pre-financing as of March 31, 2025 | 25,446,481 | 25,446,481 |
| --- | --- | --- |
| Post-Financing Shares Issued and Outstanding | 25,863,135 | 26,999,385 |
| Net tangible book value per share prior to offering | $ -0.0142 | $ -0.0142 |
| Increase/(Decrease) per share attributable to new investors | $0.0872 | $0.2446 |
| Net tangible book value per share after offering | $0.0731 | $0.2304 |
| Dilution per share to new investors ($) | $5.9269 | $5.7696 |
| Dilution per share to new investors (%) | 98.7822 | 96.1597 |

(1) Excludes any bonus shares to be issued in the offering. See "Investment Incentives" for more information on bonus shares.

(2) Investor transaction fees are counted toward the Offering Minimum and Maximum, reducing the number of shares that may be issued and thus the amount of capital that can be raised under this offering. For the purposes of this table, we assume one investor and thus the minimum possible aggregate investor transaction fees to illustrate the maximum possible shares issued and associated dilution.

(3) Includes 8.5% commission on the dollar amount of securities sold in the Offering, a $17,000 one-time activation fee, and a $4,000 monthly fee, all payable to DealMaker Securities LLC. For the purposes of this table, we assume 5 months of the monthly fee for a $2,500,000 raise.

(4) Includes transaction fees between 1.0% and 4.5% on the dollar amount of securities sold in the Offering and a $500 monthly fee, payable to DealMaker Securities LLC. For the purposes of this table, we assume a 4.5% fee on all securities sold and 12 months of the monthly fee.

# Transferability of securities

All investors will be required to execute the Company’s stockholders’ agreement, which contains transfer restrictions and other covenants related to the ownership of the shares.

Subject to restrictions, the securities can only be resold or transferred:

- In an IPO or tender offer;
- To the company;
- To a spouse, child, stepchild or adopted child of the purchaser, or to a trust created for the benefit of the Stockholder or a spouse, child, stepchild or adopted child of the Stockholder.

# Recent Offerings of Securities

We have made the following issuances of securities within the last three years:

- Name: Common Stock
- Type of security sold: Equity (Class B Non-Voting Common Stock)
- Final amount sold: $1,113,479.25
- Number of Securities Sold: 406,392 (includes bonus shares awarded)
- Price Per Share: $3.25
- Use of proceeds: technology development, working capital, advertising
- Date: October 28, 2022
- Offering exemption relied upon: Regulation Crowdfunding

- Name: Common Stock
- Type of security sold: Equity (Class B Non-Voting Common Stock)
- Final amount sold: N/A - campaign is currently active; $455,000 sold through April 30, 2025
- Number of Securities Sold: 196,188 through April 30, 2025 (includes bonus shares awarded)
- Price Per Share: $4.00
- Use of proceeds: technology development, working capital, advertising
- Date: January 21, 2024
- Offering exemption relied upon: Section 4(a)(2)

- Name: Common Stock
- Type of security sold: Equity (Class B Non-Voting Common Stock)
- Final amount sold: $2,483,882.80
- Number of Securities Sold: 292,014 (includes bonus shares awarded)
- Price Per Share: $4.00
- Use of proceeds: technology development, working capital, advertising
- Date: April 12, 2024
- Offering exemption relied upon: Regulation Crowdfunding

# Financial Condition and Results of Operations

Financial Condition

You should read the following discussion and analysis of our financial condition and results of our operations together with our financial statements and related notes appearing at the end of this Offering Memorandum. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to numerous factors, including those discussed in the section entitled “Risk Factors” and elsewhere in this Offering Memorandum.

## Results of Operations

### How long can the business operate without revenue:

From its inception through April 2025, the Company operated almost entirely on capital contributions ($8.4M) with negligible revenue generation (&lt;$100,000.) The bulk of these funds have come from “friends and family” and crowdfunding investors. The period of December 31, 2024, closed another period much like the previous year. Both periods show evidence of the need for capital contributions and raises to support the Company’s expenses.

While this kind of fundraising requires considerable time devoted to sales, networking, and marketing, we believe the past ten years have demonstrated that the Company can balance fundraising and technical development to maintain its small full-time staff while making significant progress toward technical milestones. We are confident we can continue in this mode indefinitely, if necessary. However, there is no guaranty that we will be successful in raising capital in the future.

### Foreseeable major expenses based on projections:

Our financial projections identify expenses for marketing and advertising and the usual legal and administrative expenses. We plan to operate without physical offices for the foreseeable future. These expenses are expected to be minimal compared to wages paid to employees and consultants.

### Future operational challenges:

To date, we have raised capital from multiple private investors rather than from institutions. This means funds are received by the Company in smaller amounts over time instead of as large tranches. This will continue under Regulation CF and Regulation D equity offerings. Thus, our key challenge is to throttle staff expansion to match our rate of funding. Future challenges related to capital resources:

- Raising capital up to now has been a challenge for several reasons that we believe we understand. Venture capital has largely moved away from seed funding, and venture capital still active in seed funding consistently follows current trends. In artificial intelligence, that trend is machine learning which has become synonymous with AI. Our technology has nothing to do with machine learning and thus runs counter to the current trend.
- We don’t fit the traditional model. We believe our approach is so radically different from any current approach to artificial intelligence that technical due diligence is a problem for institutional investors since it requires them to do a deep dive most seem unwilling to pursue into technology they are unfamiliar with. For this reason, we have concentrated on, and plan to continue, marketing to individuals who can invest their own money based on their own judgement.
- Though we have had a good success rate when we pitch to individuals, here too the uniqueness of our technology creates challenges. Many people, before investing in technology, like to seek input from people with more expertise in the field. There are

plenty of “AI experts” today, but to most of them AI is synonymous with data science, thus they are the last people one should ask about our technology. That is why we put together our New Sapience 101 course, so people can educate themselves. However, we understand that not every prospective investor is willing to spend hours watching our videos on YouTube.

- Another downside has been the time it takes to identify potential investors, which, with our small staff, takes away from technology development.

To the extent these factors persist, fundraising will remain challenging. However, the difficulty innovative companies have raising seed funding is one reason crowdfunding exists.

## Future milestones and events:

While we have made much progress refining our message, we have seen that as our technical demonstrations have become more compelling, explaining our technology and how it works becomes less important.

Currently, our technical efforts are focused on reaching what we call the “Tipping Point” milestone. We are targeting a level of general conversational language comprehension and articulation that will reduce the need to justify our “new and strange” approach and explain how our technology works, because we believe it so clearly does work.

Our first milestone toward this tipping point will be a private beta test program leading toward an initial consumer product. We plan to begin the program this year and invite existing investors with iPhones to participate. Over the course of the test program, we will upgrade the sapiens’ capabilities to enhance its utility and broaden its user appeal.

## Liquidity and Capital Resources

What capital resources are currently available to the Company? (Cash on hand, existing lines of credit, stockholder loans, etc...)

As of April 30, 2025, the Company has capital resources available in the form of $291,036 cash on hand.

How do the funds of this campaign factor into your financial resources? (Are these funds critical to your company operations? Or do you have other funds or capital resources available?)

We believe the funds of this campaign are not critical to our company operations because we expect to be able to continue raising funds via our existing and growing network of family and friends and our active Regulation D 506(b) fundraising campaign. However, additional capital is critical to accelerate the business plan. Please note that currently we are generating no revenue, and all our funding is from investments.

Are the funds from this campaign necessary to the viability of the company?

We believe the funds from this campaign are not necessary to the viability of the Company. However, currently we prefer individual investors over institutional investment for the reasons described above.

How long will you be able to operate the company if you raise your minimum?

The Company currently operates at a base monthly burn rate of $125,000. We have been operating near this level for a year, and at roughly a quarter to half this level for many years thanks to ongoing investor support and, as pointed out above, we anticipate being able to continue doing so indefinitely, and can adjust our staffing level as necessary. Further, to the

degree that our equity fundraising campaign(s) exceed our burn rate, we believe we will be able to accelerate technical progress toward our tipping point, because we will be able to devote additional time and talent to technical work. If we raise the minimum $12,000, that will allow us to fund expenses for less than one week.

## How long will you be able to operate the company if you raise your maximum funding goal?

If we raise our maximum funding goal from this crowdfunding campaign, we anticipate increasing our monthly burn rate and being able to operate for approximately one year solely on the funds raised. We are also currently running a Regulation D 506(b) fundraising campaign with a maximum funding goal of $5,000,000. If we raise the maximum funding goal from that campaign, we anticipate increasing our monthly burn rate even more and being able to operate for approximately two to three years. Further, we anticipate our maximum funding goal from this crowdfunding campaign or a similar amount from our Reg D 506(b) campaign will provide sufficient funds to take our product to the tipping point milestone described above, whereupon we anticipate being able to raise additional capital, if needed, to fund further product development and go-to-market initiatives, which in turn we anticipate will take the Company to profitability.

## Are there any additional future sources of capital available to your company?

We have no guaranteed sources of capital. However, if we are able to reach the tipping point milestone described above, we anticipate we will be able to raise additional capital from additional fundraising campaigns and/or from traditional capital markets at favorable valuations.

## Indebtedness

- Creditor: Fitch, Even, Tabin &amp; Flannery
- Amount Owed: $13,579.96
- Interest Rate: 0.0%
- Maturity Date: Currently due and payable

- Creditor: Lockwood Software
- Amount Owed: $49,836.40
- Interest Rate: 12.68%
- Maturity Date: Currently due and payable

- Creditor: Valkeir Corporation
- Amount Owed: $29,892.06
- Interest Rate: 0.0%
- Maturity Date: Currently due and payable

- Creditor: Sean Reineke
- Amount Owed: $457,122.00
- Interest Rate: 0.0%
- Maturity Date: Currently due and payable

- Creditor: Tractal LLC
Amount Owed: $125,000.00
Interest Rate: 0.0%
Maturity Date: Currently due and payable

- Creditor: AiPi
Amount Owed: $8,000.00
Interest Rate: 0.0%
Maturity Date: Currently due and payable

## Related Party Transactions

- Name of Entity: Bryant G. Cruse
Relationship to Company: Officer
Nature/amount of interest in the transaction: Through February 29, 2024, Bryant G. Cruse has personally loaned $82,616 to the Company.
Material Terms: Amount: $82,616
Interest rate: 0%
Maturity date: Currently due and payable

# Valuation

Pre-Money Valuation: $152,678,886.00

## Valuation Details:

The Company determined its pre-money valuation based on an analysis of multiple factors including a Discounted Cash Flow Model and comparable company analyses. Investors should be aware that the Company recently received an independent 409(A) valuation of the Company's Class B Non-Voting Common Stock (the "409A Valuation") to support the strike prices assigned to options to purchase Class B Non-Voting Common Stock issued by the Company. After discounts were applied, the 409(A) assigned only nominal value to each share of Class B Non-Voting Common Stock. This offering assumes a $6.00 per share sales price for Class B Non-Voting Common Stock, which far exceeds the value of the shares determined by the 409(A) Valuation.

Finding a reasonable and conservative valuation for New Sapience as it exists today requires thoughtful analysis, particularly in the finding of comparable companies in comparable markets.

Most early-stage companies are either product companies with a product that fills a market niche overlooked by others or are platform companies that utilize existing technology such as the Internet to facilitate products and services by others. We believe New Sapience fits both categories as we plan both to license our core technology for third parties to develop products and services and to develop multiple product lines of our own.

Compared to other product companies, we believe New Sapience is unique in that we can field products across a wide range of markets on the same common core. We believe we need only add specific or expert knowledge and, in some cases, integrate with hardware and/or software provided by others, to field what amounts to an entirely new product. This means that our costs of goods sold, already very low due to the inherent scalability of our approach, are predicted to get continuously lower as, first, we improve the power and efficiency of our knowledge curation tools and, second, the sapiens core gets more and more knowledgeable and intelligent.

## Discounted Cash Flow Assumptions &amp; Model

Because there are no direct comparables, we use the discounted cash flow method to determine our pre-money valuation.

Because product sales are not anticipated to commence before month 18, we project five years from the conclusion of the current offering to include three-plus years of revenue. We plan on the Companion Sapiens being our first product to launch, which we hope will start generating license revenue. Our Pro-Sapiens line of business may ultimately exceed our consumer business by orders of magnitude but will take somewhat longer to develop, and we may choose to finance it from our consumer product line revenues rather than going to the capital markets. Its product sales are anticipated to commence in month 42.

Finally, we plan on the sapiens software being incorporated into an integrated circuit which will be the "brains" for robotic applications. Revenue from those is anticipated to commence at month 50. Because we believe that Companion Sapiens will be our dominant product during our first five years in the market, we need a reasonable prediction of the number of subscribers to it. The closest product to our Companion Sapiens in terms of market size and customer appeal is probably Facebook. Like Facebook, our TAM is everyone who has access to the Internet, and like Facebook we expect our product will directly impact how people

connect with the world through digital devices. Facebook was first offered to the public at the end of 2006 and had 350 million users three years later, an extremely impressive growth rate since, as a totally unprecedented product, it was largely creating a new market rather than entering an existing one.

Sapiens, as what we believe will be one of the first digital entities that offer actual language comprehension, will also be creating a new market, but in our case the Big Tech companies have already conditioned the market somewhat in that people already expect to be able to use natural language as they interact with their devices.

However, since Siri, Alexa, ChatGPT, and the others have no real language comprehension, to a large degree they have created a market for a capability we believe they cannot meet. We believe sapiens will give people the user experience they have been looking for. While this belief might lead us to predict an even greater market penetration than Facebook's, we must take into consideration that Facebook is free, and any fee for our product will affect adoption significantly. Thus, for our analysis, we reduce the Facebook number of user stated above by a factor of 10 giving us 35 million subscriptions at the end of year five, three years after market introduction.

For five years the discounted cash flow (DCF) formula is:

$$
\mathrm {D C F} = \mathrm {C F l} / (1 + \mathrm {r}) ^ {1} + \mathrm {C F 2} / (1 + \mathrm {r}) ^ {2} + \mathrm {C F 3} / (1 + \mathrm {r}) ^ {3} + \mathrm {C F 4} / (1 + \mathrm {r}) ^ {4} + \mathrm {C F 5} / (1 + \mathrm {r}) ^ {5}
$$

The value CF1 is the year 1 cash flow, CF2 is the year 2 cash flow, etc.

Finally, risk factors are discussed in the Risk Factors section above where we describe some risks related to being contrarian and original in the otherwise crowded field of companies that self-identify as AI companies. We have done much to mitigate these risks. Nonetheless, in the interest of conservatism, we use a high r-factor (discount rate) of 1.23 with the result:

Approximate Calculated Valuation = $170 million

## Comparable Competitors

We believe our technology is the first to offer true language comprehension, giving it generality, the ability to provide automation to any digital application. This generality is the "G" in Artificial General Intelligence (AGI) and thus makes identifying comparable companies for valuation purposes difficult. However, our business plan focuses in the near term on our consumer product, Companion Sapiens, and on building a platform to allow third parties to develop applications based on sapiens. Since the primary user interface for Companion Sapiens applications is natural language, we anticipate Companion Sapiens will compete with today's Natural Language Processing (NLP) applications.

Hugging Face, a company in this space founded in 2016, has a number of parallels to New Sapiens. Its initial product was a social chatbot for teenagers, banking on novelty and entertainment rather than utility. The company later pivoted, open sourcing their chatbot engine to become a machine learning platform company in the NLP market and now also in the AI market.

We believe our Companion Sapiens will have both utility and novelty, and the Company plans to offer our development platform as soon as toolkits are ready.

Hugging Face completed six funding rounds in as many years:

- Mar 2017 Angel Round - $1.2M
- May 2018 Seed Round - $4M
- Dec 2019 Series A - $15M
- Mar 2021 Series B - $40M
- May 2022 Series C - $100M
- Oct 2023 Series D - $235M

Valuation data is not available for the earlier rounds, but Crunchbase and other sources estimate that the Series C round closed with a valuation of $1.9 billion, and the Series D round closed with a valuation of $4.3 billion. Hugging Face illustrates the appetite of capital markets for technology in this space. If one visualizes a typical hockey stick valuation curve for Hugging Face with the last two points at $1.9 billion and $4.3 billion, a valuation around $150 million at its formative phase, which is where New Sapience is today, seems reasonable.

A more recent comparison directly in the AGI space is Safe Superintelligence (SSI), an AGI startup founded in June 2024 by OpenAI’s co-founder and former chief scientist, Ilya Sutskever. In April 2025, SSI raised an additional $2 billion in funding at a $32 billion valuation.

SSI remains pre-revenue like New Sapience and, according to press reports, has “one goal and one product: a safe superintelligence.” SSI plans to build its “safe superintelligence” using large language models (LLMs), which we believe is inherently impossible because LLMs at their core are designed simply to predict the next word or token with absolutely no comprehension of the material they are processing and generating, and thus they regularly generate false and problematic output with no awareness that they are doing so. We believe such a foundation can never support, and should never be relied on as, a “safe” intelligence. Nonetheless, $32 billion is a significant valuation. It makes a valuation around $150 million for an AGI company in its formative phase - particularly one with what we believe is a unique technology that avoids the fundamental flaws of LLMs - which is where New Sapience is today, seem eminently reasonable.

## Disclaimers

The Company set its valuation internally without a formal-third party independent evaluation. The pre-money valuation has been calculated on a fully diluted basis. In making this calculation we have assumed: (i) all Voting Common stock is converted to common stock; (ii) all outstanding options, warrants, and other securities with a right to acquire shares are exercised; (iii) any shares reserved for issuance under a stock plan are issued; and (iv) all shares offered and the maximum allowable bonus shares possible under the Company’s current Regulation D 506(b) equity offering are issued; however, the company did not include any restricted stock awards in its valuation calculation.

# Use of Proceeds

We will use investment funds principally to increase our platform’s natural language comprehension in order to improve user experience and drive toward the “tipping point” we describe in our roadmap. The values listed below are estimates.

| Use of Proceeds | Offering Minimum: $12,000 | Offering Maximum: $2,500,000 |
| --- | --- | --- |
| Research & Development | 0% | 50% |
| Working Capital * | 0% | 25% |
| Advertising | 92.5% | 16.5% |
| Commission | 8.5% | 8.5% |

* Working Capital includes but is not limited to payroll for non-R&amp;D personnel, cloud services and software subscriptions, equipment purchases, office fees, marketing expenses, and legal, accounting, and insurance expenses.

The Company reserves the right to change the intended use of proceeds if its officers believe it is in the best interests of the Company to do so.

# Intermediary Compensation

As compensation for the services provided by DealMaker Securities LLC (“Intermediary”), the Company has agreed to compensate the Intermediary a fee consisting of eight- and one-half percent (8.5%) commission based on the dollar amount of the securities sold in the Offering and paid upon disbursement of funds from escrow at the time of a closing, as well as additional usage fees. The commission is paid in cash. In addition, there are other fees associated with the Offering that were paid or to be paid to Intermediary and/or its affiliates consisting of an $17,000 one-time activation fee and monthly fees of $4,000.

# Investment Process

In order to purchase the Securities, you must make a commitment to purchase by completing the subscription process hosted by the Intermediary, including complying with the Intermediary’s know your customer (KYC) and anti-money laundering (AML) policies. If an Investor makes an investment commitment under a name that is not their legal name, they may be unable to redeem their Security indefinitely, and neither the Intermediary nor the Company are required to correct any errors or omissions made by the Investor.

Investor funds will be held in escrow with the Escrow Agent until the Target Offering Amount has been met or exceeded and one or more closings occur. Investors may cancel an investment commitment until up to 48 hours prior to the Offering Deadline, or such earlier time as the Company designates pursuant to Regulation CF, using the cancellation mechanism provided by the Intermediary. If an investor does not cancel an investment commitment before the 48-hour period prior to the Offering Deadline, the funds will be

released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment.

The Company will notify Investors when the Target Offering Amount has been reached. If the Company reaches the Target Offering Amount prior to the Offering Deadline, it may close the Offering early provided (i) the expedited Offering Deadline must be twenty-one (21) days from the time the Offering opened, (ii) the Company must provide at least five (5) business days' notice prior to the expedited Offering Deadline to the Investors and (iii) the Company continues to meet or exceed the Target Offering amount on the date of the expedited Offering Deadline.

## Investment Cancelations

Investors will have up to 48 hours prior to the end of the offering period to change their minds and cancel their investment commitments for any reason. Once the offering period is within 48 hours of ending, investors will not be able to cancel for any reason, even if they make a commitment during this period.]

## Notifications

Investors will receive periodic notifications regarding certain events pertaining to this Offering, such as the Company reaching its Target Offering Amount, the Company making an early closing, the Company making material changes to its Form C, and the Offering closing at its target date.

## Material Changes

Material changes to an offering include but are not limited to:

- A change in the Target Offering Amount, change in security price, change in management, etc. If an issuing company makes a material change to the offering terms or other information disclosed, including a change to the Offering Deadline, investors will be given five business days to reconfirm their investment commitment. If investors do not reconfirm, their investment will be cancelled, and the funds will be returned.

## Rolling and Early Closings

The Company may elect to undertake rolling closings, or an early closing after it has received investment interests for its Target Offering Amount. During a rolling closing, those investors that have committed funds will be provided five days' notice prior to acceptance of their subscriptions, release of funds to the company, and issuance of securities to the investors. During this time, the Company may continue soliciting investors and receiving additional investment commitments. Investors should note that if investors have already received their securities, they will not be required to reconfirm upon the filing of a material amendment to the Form C. In an early closing, the Offering will terminate upon the new target date, which must be at least five days from the date of the notice.

## Investor Limitations

Investors are limited in how much they can invest on all crowdfunding offerings during any 12-month period. The limitation on how much they can invest depends on their net worth (excluding the value of their primary residence) and annual income. If either their annual income or net worth is less than $124,000, then during any 12-month period, they can invest up to the greater of either $2,500 or 5% of the greater of their annual income or Net worth. If both their annual income and net worth are equal to or more than $124,000, then during any 12-month period, they can invest up to 10% of annual income or net worth, whichever is

greater, but their investments cannot exceed $124,000. If the investor is an “accredited investor” as defined under Rule 501 of Regulation D under the Securities Act, as amended, no investment limits apply.

## Regulatory Information

### Disqualification

No disqualifying event has been recorded in respect to the company or its officers or directors.

No disqualifying event that would have triggered disqualification but occurred prior to May 16, 2016, has been recorded in respect to the company or its officers or directors.

### Compliance Failure

The company has not previously failed to comply with the requirements of Regulation Crowdfunding.

### Ongoing Reporting

The Company will file a report electronically with the SEC annually and post the report in the Investors section of its website (www.newsapience.com/investor-page) no later than April 30 of each calendar year (120 days after Fiscal Year End).

The Company must continue to comply with the ongoing reporting requirements until:

- it is required to file reports under Section 13(a) or Section 13(d) of the Exchange Act;
- it has filed at least one (1) annual report pursuant to Regulation Crowdfunding and has fewer than three hundred (300) holders of record and has total assets that do not exceed $10,000,000;
- it has filed at least three (3) annual reports pursuant to Regulation Crowdfunding;
- it or another party repurchases all the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or it liquidates or dissolves its business in accordance with state law.

### Updates

The Company will file an amendment to its Form C (Form C-U) with the Securities and Exchange Commission within five business days after reaching 50% of the Target Amount and again upon reaching 100% of the Target Amount.

## ADDITIONAL INFORMATION

The summaries of, and references to, various documents in this Form C do not purport to be complete and in each instance reference should be made to the copy of such document which is either an appendix to this Form C or which will be made available to Investors and their professional advisors upon request.

Prior to making an investment decision regarding the Securities described herein, prospective Investors should carefully review and consider this entire Form C. The Company is prepared to furnish, upon request, a copy of the forms of any documents referenced in this Form C.

The Company’s representatives will be available to discuss with prospective Investors and their representatives and advisors, if any, any matter set forth in this Form C or any other matter relating to the Securities described in this Form C, so that prospective Investors and their representatives and advisors, if any, may have available to them all information, financial and otherwise, necessary to formulate a well-informed investment decision. Additional information and materials concerning the Company will be made available to prospective Investors and their representatives and advisors, if any, at a mutually convenient location upon reasonable request.

EXHIBIT B TO FORM C

FINANCIAL STATEMENTS (AUDITED) AND INDEPENDENT AUDITOR'S REPORT FOR New Sapience, Inc.

![img-0.jpeg](img-0.jpeg)

# new sapience

New Sapience, Inc. (the "Company") a Delaware Corporation

Financial Statements (Audited) and Independent Auditor's Report

Years ended December 31, 2024 &amp; 2023

M

Mongio &amp;

Associates CPAs LLC

Tax - Accounting - Advisory

Saving Tax, Money &amp; Stocks

# INDEPENDENT AUDITOR'S REPORT

To Management

New Sapience, Inc.

We have audited the accompanying statements of financial position of New Sapience, Inc. as of December 31, 2024 and 2023, and the related statements of operations and comprehensive loss, statement of changes in stockholders' equity (deficit), and statements of cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above, present fairly, in all material respects, the financial position of New Sapience, Inc. as of December 31, 2024 and 2023, 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

As discussed in Note 8, certain conditions indicate that the Company may be unable to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs. Our opinion is not modified with respect to this matter.

On behalf of Mongio and Associates CPAs, LLC

Vince Mongio, CPA, EA, CIA, CFE, MACC

Miami, FL

May 20, 2025

Vincenzo Mongio

NEW SAPIENCE, INC.
STATEMENTS OF FINANCIAL POSITION (AUDITED)

|  | As of December 31, |  |
| --- | --- | --- |
|  | 2024 | 2023 |
| Assets |  |  |
| Current Assets: |  |  |
| Cash and Cash Equivalents | $95,721 | $147,571 |
| Prepaid Expenses | 3,144 | 11,580 |
| Payroll Tax Receivable | 5,380 | 19,673 |
| Other Receivable | 14,824 | 16,187 |
| Total Current Assets | 119,069 | 195,011 |
| Other Assets: |  |  |
| Equipment, net of Accumulated Depreciation | 2,473 | 3,886 |
| Deferred Offering Costs | 11,586 | 11,586 |
| Total Other Assets | 14,059 | 15,472 |
| Total Assets | $133,128 | $210,483 |
| Liabilities and Stockholders' Deficit |  |  |
| Liabilities |  |  |
| Current Liabilities: |  |  |
| Accounts Payable | $44,431 | $54,960 |
| Accrued Interest on Accounts Payable | 31,181 | 24,199 |
| Accrued Expenses | 100,750 | 14,781 |
| Accrued Salary | 437,122 | 437,122 |
| Convertible Notes - Related Parties | 115,000 | - |
| Accrued Interest on Convertible Notes - Related Parties | 1,419 | - |
| Notes Payable - Related Party | 52,508 | 152,508 |
| Total Current Liabilities | 782,411 | 683,570 |
| Total Liabilities | 782,411 | 683,570 |
| Commitments and Contingencies (Note 4) |  |  |
| Stockholders' Equity (Deficit) |  |  |
| Class A Voting Common Stock, 12,000,000 Authorized at Par Value of $0.00001, 11,428,572 Shares Issued and Outstanding as of December 31, 2024 and 2023 | 114 | 114 |
| Class B Non-Voting Common Stock, 48,000,000 Authorized at Par Value of $0.00001, 8,072,217 and 7,584,015 Shares Issued and Outstanding as of December 31, 2024 and 2023, respectively | 79 | 74 |
| Additional Paid in Capital | 10,230,054 | 9,471,856 |
| Accumulated Deficit | (10,879,530) | (9,945,131) |
| Total Stockholders' Equity (Deficit) | (649,283) | (473,087) |
| Total Liabilities and Stockholders' Equity (Deficit) | $133,128 | $210,483 |

NEW SAPIENCE, INC.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (AUDITED)

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2024 | 2023 |
| Revenues: |  |  |
| Revenue | $ - | $ - |
| Total Revenues | $ - | $ - |
| Cost of Revenue: |  |  |
| Cost of Revenue | $ - | $ - |
| Total Cost of Revenue | $ - | $ - |
| Gross Profit | $ - | $ - |
| Operating Expenses: |  |  |
| Advertising and Marketing | $1,375 | $110,540 |
| General and Administrative | 647,383 | 237,865 |
| Research & Development | 232,312 | 161,137 |
| Stock-Based Compensation | 40,000 | 1,938,630 |
| Depreciation | 1,413 | 353 |
| Total Operating Expenses | $922,483 | $2,448,626 |
| Other (Income) Expense: |  |  |
| Interest Expense | $8,401 | $9,730 |
| Other Expense | 3,515 | 2,140 |
| Other Income | - | (22,024) |
| Total Other (Income) Expense | $11,916 | $(10,164) |
| Loss from Continuing Operations Before Income Taxes | $(934,399) | $(2,438,371) |
| Provision for Income Tax Expense/(Benefit) | - | - |
| Net Income (loss) | $(934,399) | $(2,438,371) |
| Comprehensive Loss | $(934,399) | $(2,438,371) |

NEW SAPIENCE, INC.
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (AUDITED)
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

|  | Class A Voting Common Stock |  | Class B Non-Voting Common Stock |  | Additional Paid-in Capital, Net of Offering Costs | Accumulated Deficit |
| --- | --- | --- | --- | --- | --- | --- |
|  | Shares | Amount | Shares | Amount |  |  |
| Balance on December 31, 2022 | 11,428,572 | $114 | 7,199,993 | $70 | $5,760,442 | $(7,506,760) |
| Stock-Based Compensation - Options | - | - | - | - | 1,938,630 | - |
| Stock-Based Compensation - Options Prior Period | - | - | - | - | 1,025,897 | - |
| Common Shares Issued for Cash | - | - | 373,596 | 4 | 745,887 | - |
| Common Shares Issued as Compensation | - | - | 10,426 | - | 1,000 | - |
| Net Loss | - | - | - | - | - | (2,438,371) |
| Balance on December 31, 2023 | 11,428,572 | $114 | 7,584,015 | $74 | $9,471,856 | $(9,945,131) |
| Stock-Based Compensation - Options | - | - | - | - | 40,000 | - |
| Common Shares Issued for Cash | - | - | 488,202 | 5 | 718,198 | - |
| Net Loss | - | - | - | - | - | (934,399) |
| Balance on December 31, 2024 | 11,428,572 | $114 | 8,072,217 | $79 | $10,230,054 | $(10,879,530) |

NEW SAPIENCE, INC.
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (AUDITED) (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

|  | Total Stockholders' Deficit |
| --- | --- |
| Balance on December 31, 2022 | $(1,740,134) |
| Stock-Based Compensation - Options | 1,918,830 |
| Stock-Based Compensation - Options Prior Period | 1,025,897 |
| Common Shares Issued for Cash | 745,891 |
| Common Shares Issued as Compensation | 1,000 |
| Net Loss | (2,438,371) |
| Balance on December 31, 2023 | $(473,087) |
| Stock-Based Compensation - Options | 40,000 |
| Common Shares Issued for Cash | 718,203 |
| Net Loss | (934,399) |
| Balance on December 31, 2024 | $(649,283) |

NEW SAPIENCE, INC.
STATEMENTS OF CASH FLOWS (AUDITED)

|  | Year Ended December 31, |  |
| --- | --- | --- |
|  | 2024 | 2023 |
| OPERATING ACTIVITIES |  |  |
| Net Income (Loss) | $(934,399) | $(2,438,371) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Stock Based Compensation - Options | $40,000 | $2,964,527 |
| Proceeds from Common Stock Issued for Services | - | 1,000 |
| Depreciation | 1,413 | 353 |
| Deferred Offering Costs | - | (11,586) |
| Accrued Interest On Convertible Notes | 1,419 | - |
| Accrued Interest On Accounts Payable | 6,982 | 6,196 |
| Changes in operating assets and liabilities: |  |  |
| Payroll Tax Credit Receivable | 14,293 | (15,134) |
| Prepaid Expenses | 8,436 | (10,931) |
| Other Receivables | 1,363 | (16,187) |
| Accounts Payable | (10,529) | (27,384) |
| Accrued Expenses | 85,969 | (1,011,159) |
| Net Cash provided by (used in) Operating Activities | $(789,093) | $(998,676) |
| INVESTING ACTIVITIES |  |  |
| Purchase Equipment | $ - | $(4,239) |
| Net Cash provided by (used by) Investing Activities | $ - | $(4,239) |
| FINANCING ACTIVITIES |  |  |
| Proceeds from the Sale of Common Stock | $1,414,810 | $1,074,866 |
| Offering Costs | (696,607) | (328,975) |
| Proceeds from Convertible Notes | 115,000 | - |
| Proceeds from Note Payable - Related Party | - | 220,008 |
| Repayment of Notes Payable - Related Party | (100,000) | (313,803) |
| Net Cash provided by (used in) Financing Activities | $733,203 | $692,996 |
| Cash at the beginning of period | $147,971 | $98,390 |
| Net Cash increase (decrease) for period | (51,850) | 89,181 |
| Cash at end of period | $99,721 | $147,971 |

New Sapience, Inc.
Notes to the Audited Financial Statements
December 31st, 2024 and 2023
SUSD

## NOTE 1 - ORGANIZATION AND NATURE OF ACTIVITIES

New Sapience, Inc. (“the Company”) was originally formed in the State of Maryland on October 5th, 2011 under the name of Cruse Technologies, LLC prior to its conversion to a Delaware Corporation on March 13th, 2015. The Company has not commenced principal business operating activities and is currently in research and development. It plans to generate revenue from the artificial intelligence software that it is currently researching and developing.

The Company has conducted several rounds of investments to raise operating capital and plans to continue raising capital via investors to fund its development and go to market strategies.

## NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

### Basis of Presentation

Our financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Our fiscal year ends on December 31. The Company has no interest in variable interest entities and no predecessor entities.

### Use of Estimates and Assumptions

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.

### Cash and Cash Equivalents

Cash and cash equivalents include all cash balances, and highly liquid investments with maturities of three months or less when purchased.

### Fair Value of Financial Instruments

ASC 820 “Fair Value Measurements and Disclosures” establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

These tiers include:

- Level 1: defined as observable inputs such as quoted prices in active markets;
- Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable;
- and
- Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

### Concentrations of Credit Risks

The Company’s financial instruments that are exposed to concentrations of credit risk primarily consist of its cash and cash equivalents. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

New Sapience, Inc.
Notes to the Audited Financial Statements
December 31st, 2024 and 2023
SUSD

# NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

## Revenue Recognition

The Company recognizes revenue from the sale of products and services in accordance with ASC 606, “Revenue Recognition” following the five steps procedure:

- Step 1: Identify the contract(s) with customers
- Step 2: Identify the performance obligations in the contract
- Step 3: Determine the transaction price
- Step 4: Allocate the transaction price to performance obligations
- Step 5: Recognize revenue when or as performance obligations are satisfied

The Company will identify and analyze its performance obligations with respect to customer contracts once the first contract is signed.

## Property and Equipment

Property and equipment are recorded at cost. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to expense. When equipment is retired or sold, the cost and related accumulated depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income. Depreciation is provided using the straight-line method, based on useful lives of the assets.

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition, and other economic factors. Based on this assessment there was no impairment for December 31, 2024.

A summary of the Company’s property and equipment is below:

| Property Type | Useful Life in Years | Cost | Accumulated Depreciation | Disposals | Book Value as of 12/31/24 |
| --- | --- | --- | --- | --- | --- |
| Equipment | 3 | 13,154 | (10,681) | - | 2,473 |
| Grand Total | - | 13,154 | (10,681) | - | 2,473 |

## Accounts Payable

Included within the Company’s total accounts payable balance are unpaid invoice balances owed to its software consulting firm in the total amount of $30,851. The Company entered into an agreement with this service provider in which it accrues interest at a rate of 12.00% per year on the balance of unpaid invoices. This resulted in an interest payable balance of $31,181 and $24,199 as of December 31, 2024 and 2023, respectively.

## Advertising Costs

Advertising costs associated with marketing the Company’s products and services are generally expensed as costs are incurred.

New Sapience, Inc.
Notes to the Audited Financial Statements
December 31st, 2024 and 2023
SUSD

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

General and Administrative

General and administrative expenses consist of payroll and related expenses for employees and independent contractors involved in general corporate functions, including accounting, finance, tax, legal, business development, and other miscellaneous expenses.

Equity Based Compensation

Stock Options

In 2015, the Company has authorized its New Sapience, Inc. 2015 Stock Incentive Plan (“the Plan”) for the purposes of attracting and retaining key personnel. A total of 9M shares of Class B Non-Voting Common Stock have been allocated towards this Plan to be granted as Stock Options and Restricted Stock Awards.

The Company accounts for stock options issued to employees and nonemployees alike under ASC 718 (Stock Compensation). Under ASC 718, share-based compensation cost to employees is measured at the grant date, based on the estimated fair value of the award, and is recognized as an item of expense ratably over the employee's requisite vesting period. The Company has elected early adoption of ASU 2018-07, which permits measurement of stock options at their intrinsic value, instead of their fair value. An option’s intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the exercise price of an option. In certain cases, this means that option compensation granted by the Company may have an intrinsic value of $0.

The Company has elected to implement the intrinsic value method and uses recent market sales of stock to determine the fair market value of stock and use it to measure the intrinsic value of option grants.

The following is an analysis of options to purchase shares of the Company's stock issued and outstanding:

|  | Total Options | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) |
| --- | --- | --- | --- | --- |
| Total options outstanding, January 1, 2023 | 2,941,563 | $0.01 | $ - | 4 |
| Granted | 918,670 | $0.03 | $ - | 9 |
| Exercised | - | $ - | $ - | - |
| Expired/cancelled | - | $ - | $ - | - |
| Total options outstanding, December 31, 2023 | 3,860,233 | $0.01 | $ - | 5 |
| Granted | 276,052 | $0.03 | $ - | 10 |
| Exercised | - | $ - | $ - | - |
| Expired/cancelled | - | $ - | $ - | - |
| Total options outstanding, December 31, 2024 | 4,136,285 | $0.01 | $ - | 5 |
| Options exercisable, December 31, 2024 | 4,054,972 | $0.01 | $ - | 5 |

# New Sapience, Inc.
## Notes to the Audited Financial Statements
### December 31st, 2024 and 2023
#### $USD

The following is an analysis of nonvested options to purchase shares of the Company’s stock:

|  | Nonvested Options | Aggregate Intrinsic Value |
| --- | --- | --- |
| Nonvested options outstanding, January 1, 2023 | - | $ - |
| Granted | 916,670 | $ - |
| Vested | (907,670) | $ - |
| Forfeited | - | $ - |
| Nonvested options outstanding, December 31, 2023 | 9,000 | $ - |
| Granted | 276,052 | $ - |
| Vested | (203,739) | $ - |
| Forfeited | - | $ - |
| Nonvested options outstanding, December 31, 2024 | 81,313 | $ - |

## Warrants

The Company accounts for stock warrants as either equity instruments, derivative liabilities, or liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity (ASC 480), depending on the specific terms of the warrant agreement. The warrants below do not have cash settlement provisions or down round protection; therefore, the Company classifies them as equity. Management considers the equity-based compensation expense for 2023 to be negligible and, accordingly, none was recognized. There were no issuances during 2023 or 2024. Warrants for 173,999 shares of Class B Non-Voting Common stock were due to expire in 2024 and the Company authorized and directed that the expiration dates of these warrants be extended by five (5) years.

The following table summarizes information with respect to outstanding warrants to purchase common stock of the Company, all of which were exercisable, at December 31,

| Exercise Price | Number Outstanding | Expiration Date |
| --- | --- | --- |
| 1.75 | 64,430 | 3/18/2029 |
| 1.75 | 56,854 | 7/12/2029 |
| 1.75 | 35,572 | 11/7/2029 |
| 1.75 | 17,143 | 12/10/2029 |
| 1.75 | 6,858 | 3/7/2025 |
| 1.75 | 2,858 | 4/2/2025 |
| 1.75 | 11,429 | 4/5/2025 |
| 1.75 | 6,858 | 4/6/2025 |
| 1.75 | 5,000 | 4/17/2025 |
| 1.75 | 32,734 | 1/7/2026 |
| 1.75 | 8,572 | 5/11/2026 |
| 1.75 | 5,716 | 6/28/2026 |
| 1.75 | 2,858 | 7/16/2026 |
| 1.75 | 2,286 | 1/27/2027 |
|  | 256,168 |  |

New Sapience, Inc.
Notes to the Audited Financial Statements
December 31st, 2024 and 2023
$USD

A summary of the warrant activity for the year ended December 31, 2024 is as follows:

|  | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value in $ |
| --- | --- | --- | --- | --- |
| Outstanding at January 1, 2023 | 259,168 | $1.75 | 5.31 | - |
| Assets | - | - | - | - |
| Bassized | - | - | - | - |
| Canceled | - | - | - | - |
| Outstanding at January 1, 2023 | 259,168 | $1.75 | 5.31 | - |
| Assets | - | - | - | - |
| Bassized | - | - | - | - |
| Canceled | - | - | - | - |
| Outstanding at December 31, 2024 | 259,168 | $1.75 | 3.23 | - |
| Vested and expected to rent at December 31, 2024 | 259,168 | $1.75 | 3.23 | - |
| Bassizable at December 31, 2024 | 259,168 | $1.75 | 3.23 | - |

## Income Taxes

The Company is subject to corporate income and state income taxes in the state it does business. We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company does not have any uncertain tax provisions. The Company's primary tax jurisdiction is the United States. The Company's primary deferred tax assets are its net operating loss (NOL) carryforwards which approximates its retained earnings as of the date of these financials. A deferred tax asset as a result of NOLs have not been recognized due to the uncertainty of future positive taxable income to utilize the NOL. The Company is no longer subject to U.S. federal, state and local, tax examinations by tax authorities for years before 2019.

## Recent Accounting Pronouncements

The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact on our financial statements.

New Sapience, Inc.
Notes to the Audited Financial Statements
December 31st, 2024 and 2023
SUSD

## NOTE 3 - RELATED PARTY TRANSACTIONS

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

Since 2016, the Company has accrued salaries for its CEO and a former executive. The portion of this accrual owed to the Company’s CEO was converted into equity in the amount of 406,548 shares of Class B Non-Voting Common Stock during 2022. The remaining balance of $437,122 is still owed to the Company’s aforementioned former executive as of December 31, 2024 and 2023.

During 2015, the Company entered into an unsecured, non-interest bearing loan agreement with a former executive and a corporation owned by the Company’s current CEO. Those notes are due upon demand. The remaining loan balances totaled $20,000 and $29,892 for each respective related party, for 2024 and 2023.

In August 2018, the Company entered into an unsecured, non-interest bearing loan agreement with its CEO for $250,000 and this loan is due upon demand. The total ending balance of this loan was $2,616 and $102,616 as of December 31, 2024 and 2023.

In 2024, the Company entered into convertible promissory notes with an aggregate principal balance of $115,000. The notes accrue simple interest at a rate of 10% per annum and mature on May 31, 2025. Upon a Qualified Financing resulting in at least $5,000,000 of gross proceeds (excluding proceeds from the conversion of the notes or other indebtedness), the outstanding principal and accrued interest automatically convert into the securities issued in the financing at the lower of (i) a 50% discount to the price paid by new investors or (ii) a price based on a $100,000,000 valuation cap. Repayments are made first to accrued interest and thereafter to principal. If not earlier converted, all outstanding amounts are payable in full on the Maturity Date. The Company had accrued interest of $1,419 related to these convertible notes.

## NOTE 4 - COMMITMENTS, CONTINGENCIES, COMPLIANCE WITH LAWS AND REGULATIONS

We are currently not involved with or know of any pending or threatening litigation against the Company or any of its officers. Further, the Company is currently complying with all relevant laws and regulations. The Company does not have any long-term commitments or guarantees.

## NOTE 5 - LIABILITIES AND DEBT

From 2015 through 2018, the Company entered into unsecured, non-interest bearing notes payable which are due upon demand. Those loans were entered into with related parties and are outstanding as of December 31, 2024 and 2023. Refer to Note 3 for the details on these loans.

During 2024, the Company entered into convertible notes bearing interest at 10% and mature in 2025. The notes were entered into with related parties and are outstanding as of December 31st, 2024 and 2023. Refer to Note 3 for the details on these notes.

# New Sapience, Inc.
## Notes to the Audited Financial Statements
### December 31st, 2024 and 2023
#### $USD

## Debt Summary

| Debt Instrument Name | Principal Amount | Interest Rate | Maturity Date | For the Year Ended December 2024 |  |  |  | For the Year Ended December 2023 |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  | Current Portion | Non-Current Portion | Total Indebtedness | Accrued Interest | Current Portion | Non-Current Portion | Total Indebtedness | Accrued Interest |
| Convertible Notes - Related Parties | 115,000 | 10% | May 31st, 2023 | 115,000 | - | - | 1,419 | - | - | - | - |
| Notes Payable - Related Parties | 152,508 | N/A | Upon Demand | 52,508 | - | 52,508 | - | 152,508 | - | 152,508 | - |
| Total |  |  |  | 167,508 | - | 52,508 | 1,419 | 152,508 | - | 152,508 | - |

## Debt Principal
### Maturities 6 Years
#### Subsequent to 2024

| Year | Amount |
| --- | --- |
| 2025 | 167,508 |
| 2026 | - |
| 2027 | - |
| 2028 | - |
| 2029 | - |
| Thereafter | - |

## NOTE 6 - EQUITY

### Capital Structure

Upon incorporation, the Company initially authorized 18M shares of Common Stock at a par value of $0.00001 per share of which 12,000,000 were designated as Class A Voting Common Stock, and 6,000,000 were designated as Class B Non-Voting Common Stock. Following a subsequent amendment in August of 2022, the Company increased the number of authorized shares of Class A Voting and Class B Non-Voting Common Stock to 12,000,000 and 48,000,000, respectively.

A total of 11,428,572 shares of Class A Voting Common Stock were issued and outstanding as of December 31, 2024 and 2023.

**Voting:** Holders of Class A Voting Common Stock are entitled to ten (10) votes per share.

**Dividends:** Holders of Class A Common Stock are entitled to receive dividends when and if declared by the Board of Directors.

A total of 8,072,217 and 7,584,015 shares of Class B Non-Voting Common Stock were issued and outstanding as of December 31, 2024 and 2023, respectively.

**Voting:** Holders of Class B Non-Voting Common Stock are not entitled to vote.

**Dividends:** Holders of Class B Non-Voting Common Stock are entitled to receive dividends when and if declared by the Board of Directors.

New Sapience, Inc.
Notes to the Audited Financial Statements
December 31st, 2024 and 2023
SUSD

## NOTE 6 - EQUITY (CONTINUED)

### Stock Issuances

During 2023, the Company sold shares of its Class B Non-Voting Common Stock at $3.25 per share. A total of 373,596 shares were sold for total proceeds of $1,041,978 and the Company incurred a total of $328,975 in offering costs. Further, the Company issued 10,426 shares of Class B Non-Voting Common Stock in exchange for services totaling valued at $33,884.

In January 2024, the Company launched a Regulation D 506(b) fundraising campaign at a price of $4.00 per share with bonus shares available to existing shareholders and to investors who meet certain time-based and amount-based investment incentives for a total issuance of 196,188 shares of Class B Non-Voting Common Stock. The Company received total proceeds of $455,000.

In April 2024, the Company launched a Regulation CF fundraising campaign at a price of $4.00 per share with bonus shares available to existing shareholders and to investors who meet certain time-based and amount-based investment incentives for a total issuance of 292,014 shares of Class B Non-Voting Common Stock. Throughout 2024, the Company received total proceeds of $957,310 and incurred a total of $696,606 in offering costs.

### Stock-Based Compensation

The Company issued stock options to several employees and nonemployees as compensation for services. During 2022, the Company issued stock options to purchase 751,523 shares of Class B Non-Voting Common Stock with a strike price of $0.01 to employees for a total stock-based compensation of $922,512. Additionally, the Company issued stock options to purchase 10,000 shares of Class B Non-Voting Common Stock with a strike price of $0.01 to a nonemployee as payment for services. A stock-based compensation expense of $47,400 was recognized by the Company. Lastly, during 2022, the Company issued shares payable for stock-based compensation from previous periods and those resulted in a stock-based compensation expense of $359,202.

During 2023, the Company issued stock options to purchase 770,602 shares of Class B Non-Voting Common Stock with a strike price of $0.01 to employees for a total stock-based compensation of $1,613,813. Additionally, the Company issued stock options to purchase 148,068 shares of Class B Non-Voting Common Stock with a strike price of $0.01 to a nonemployee as payment for services. A stock-based compensation expense of $324,817 was recognized by the Company. Lastly, during 2023, the Company issued shares payable for stock-based compensation from previous periods and those resulted in a stock-based compensation expense of $1,025,897.

During 2024, the Company issued stock options to purchase 276,052 shares of Class B Non-Voting Common Stock with a strike price of $0.027 to employees for a total stock-based compensation of $40,000.

## NOTE 7 - SUBSEQUENT EVENTS

The Company has evaluated events subsequent to December 31, 2024 to assess the need for potential recognition or disclosure in this report. Such events were evaluated through May 20, 2025, the date these financial statements were available to be issued.

On March 14 and March 27, 2025, the Company issued convertible promissory notes in the principal amount of $100,000 and $30,000 to an investor. The notes bear simple interest at a rate of 10% per annum and mature on April 30, 2025. Interest and principal are payable in full on the maturity date. At the option of the holder, provided notice is given at least five days prior to maturity, the outstanding principal and accrued interest may be converted into shares of the Company’s common stock at a fixed conversion price of $2.00 per share.

New Sapience, Inc.
Notes to the Audited Financial Statements
December 31st, 2024 and 2023
$USD

NOTE 7 - SUBSEQUENT EVENTS (CONTINUED)

In March 2025, the Company issued two convertible promissory notes to investors with an aggregate principal amount of $95,000. The first note, in the amount of $30,000, was issued on March 27, 2025, and the second, in the amount of $65,000, was issued on March 28, 2025. Both notes bear simple interest at a rate of 10% per annum and mature on April 30, 2025. Interest and principal are due and payable in full on the maturity date. At the election of the respective holders, provided notice is given at least five days prior to maturity, the outstanding principal and any unpaid accrued interest may be converted into shares of the Company’s common stock at a fixed conversion price of $2.00 per share.

From January 1st, through March 31st, 2025, the Company received total gross proceeds of $962,777 through Regulation Crowdfunding (“Reg CF”) offerings.

The Company incurred additional issuance costs of $903,483.

NOTE 8 - GOING CONCERN

The accompanying balance sheet has been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The entity has not commenced principal operations and will likely realize losses prior to generating positive working capital for an unknown period of time. During the next twelve months, the Company intends to finance its operations with funds from capital investment. The Company’s ability to continue as a going concern in the next twelve months following the date the financial statements were available to be issued is dependent upon its ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such to produce profitable operating results. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs. No assurance can be given that the Company will be successful in these efforts. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities.

EXHIBIT C TO FORM C

NEW SAPIENCE, INC. REGULATION OF CAMPAIGN LANDING PAGE

EXHIBIT D TO FORM C

NEW SAPIENCE, INC. REGULATION OF CAMPAIGN VIDEO TRANSCRIPT

**Attachment 2:** `NewSapience_VideoTranscript.pdf`

# New Sapience, Inc. Regulation CF Campaign Video Transcript

0:01: Jack Frassanito: I would say that 95% of everything that you've read about artificial intelligence is different than what New Sapience is doing.

0:12: Karsten Huneycutt: People still have the idea that artificial intelligence is a computer that can understand you the way it is, but that's not what is currently being called artificial intelligence.

0:24: Bryant Cruse: ChatGPT is a parrot! It's a really good parrot. But it can't think generally. It's not really a thinking machine.

0:31: Podcast Host 1: Bryant Cruse is the Founder of New Sapience.

0:34: Podcast Host 2: New Sapience is the only company truly putting intelligence in machines.

0:38: Bryant Cruse: What New Sapience has is a new way of programming computers; not just with data, but with knowledge itself.

0:48: Jack Frassanito: What they have now is what I would call a disruptive technology. No one sees New Sapience coming, as in my experience, no one saw the personal computer was going to take over computing.

1:02: Jack Frassanito: And they're going to change the world!

**Attachment 3:** `NewSapience_LandingPage.pdf`

New Sapience, Inc. Regulation CF Campaign Landing Page

new sapience

Solution Roadmap Perks Team FAQ Discussion

Invest Now

# Invest in the AI That Never Hallucinates

Today's AI feels smart but only scratches the surface. It lacks true comprehension and wastes huge resources. We believe machines should truly understand and empower people, enabling smarter, safer, and more human-centered technology.

- Backed by the Co-Inventor of the Desktop Computer, a true visionary who shaped computing's past and future
- $350M in team exits (1990s dollars), proving our ability to create monumental value
- Deploying a unique, contrarian approach that disrupts today's AI paradigms and redefines intelligence itself

Claim your stake in New Sapience's groundbreaking revolution.

![img-0.jpeg](img-0.jpeg)

![img-1.jpeg](img-1.jpeg)

Invest Now

Form C

Offering Circular

Investor Education

Includes a 3% investor processing fee. Fee is capped at $75.

![img-2.jpeg](img-2.jpeg)

![img-3.jpeg](img-3.jpeg)

![img-4.jpeg](img-4.jpeg)

![img-5.jpeg](img-5.jpeg)

Our Team Associations

# What Sets New Sapience Apart?

Unlike traditional AI models that rely on pattern prediction and massive data consumption, New Sapience builds intelligence from the ground up - combining human comprehension with unmatched operational efficiency.

Here's how we compare to one of today's most popular AI systems:

#

#

1

C

ChatGPT

Learns and comprehends like a human1

Understands the contextual meaning of language2

Has common sense and human-curated knowledge3

Free from IP infringement risk4

Designed to avoid bias and harm5

Minimises misinformation6

Minimal hardware requirements7

Daily operational costs8

Click here for sources

![img-6.jpeg](img-6.jpeg)

OUR UNIQUE SOLUTION

# Solving AGI: The Core Breakthrough in the $300 Billion AI Industry

## Cognitive Chemistry

Breaking knowledge into its fundamental building blocks - the "atoms" of understanding.

![img-7.jpeg](img-7.jpeg)

Just like physical matter is made of atoms, knowledge is made of smaller parts called "cognitive atoms." These are the basic units of thought and understanding. We studied how these pieces fit together to form complex ideas-uncovering the hidden structure behind knowledge itself. This lets us build AI that thinks deeply instead of just guessing based on patterns in their datasets.

## Digital DNA

Creating the blueprint that guides how knowledge building blocks combine to think, learn, and understand.

![img-8.jpeg](img-8.jpeg)

We took the basic building blocks of knowledge-the "cognitive atoms"-and arranged them into a detailed digital blueprint. This blueprint acts like the system's "DNA," defining how it processes information, learns from experience, reasons logically, and understands the world. This architecture lets our AI develop true comprehension efficiently and adaptably, unlike costly brute-force models.

## World Model

Mapping everyday human knowledge and commonsense to give AI real-world understanding.

![img-9.jpeg](img-9.jpeg)

We built a detailed model of everyday knowledge and common sense-the things people intuitively understand about the world around them. This "world model" helps the AI make sense of language, context, and meaning so it can communicate naturally and think accurately. By grounding AI in this model of reality, we ensure its responses are useful, natural, and are common-sensical.

OUR PRODUCTS

# Meet Sapiens

Sapiens combine human knowledge and comprehension with the speed and data power of computers, creating truly intelligent AI that understands context and meaning.

Constantly evolving through regular updates, sapiens are designed to grow smarter over time, meeting and surpassing human intellectual capacity while staying aligned with user needs.

With built-in safety guardrails, sapiens act only on user direction, ensuring control, transparency, and trust in every interaction.

![img-10.jpeg](img-10.jpeg)

INVESTMENT CATALYSTS

# Transforming Every Interaction Between Humans and Technology

Today's technology falls short of genuine understanding, limiting how people engage with computers. New Sapience is pioneering machines that think, learn, and communicate with human knowledge and comprehension, transforming interactions and creating vast social and economic value. With the AI market poised for explosive growth, this breakthrough offers investors a rare opportunity for significant financial returns.

Invest Now

# Download Your Investor Deck

Dive into our commercialization strategy by downloading our investor deck!

Your Need Address

Download Deck

BUSINESS MODEL

# Easy-to-adopt technology with built-in annual revenue

## 1 Companion Sapiens

Configured for individuals. Licensed on a subscription basis. Every smartphone owner is a potential customer.

## 2 Pro Sapiens

Configured for organizations, with domain knowledge, e.g., healthcare, space systems, customer support, etc. Every organization is a potential customer.

## 3 Development Platform

Licensed to individuals and organizations to develop their own internal or commercial sapiens-based knowledge applications.

## 4 Knowledge Store

Commission-based marketplace where developers and users can sell and purchase curated knowledge that sapiens can embed into their knowledge base.

# Get Exclusive Investor Benefits

Being an early investor has its perks. And you won't find offers like these on the public markets. We're offering bonus shares to shareholders who invest at different levels. All bonuses are aggregated. Plus, anyone who invests $10,000 or more will get a free lifetime subscription for their Companion Sapiens.

**Invest Now**

| Invest $5,000+ = 5% Bonus Shares | Invest $10,000+ = 10% Bonus Shares | Invest $25,000+ = 15% Bonus Shares |
| --- | --- | --- |
| Invest $50,000+ = 20% Bonus Shares | Invest $100,000+ = 25% Bonus Shares | Invest $250,000+ = 35% Bonus Shares |

# Invest Early and Receive Bonus Shares

Investors who commit earlier in our offering window are eligible to receive early investor bonus shares. All bonuses are aggregated.

| Days 1 - 30 25% Bonus Shares | Days 31 - 60 15% Bonus Shares | Days 61 - 90 5% Bonus Shares |
| --- | --- | --- |

Existing Investors

existing investors

If you invested before April 2024, or you initiated but did not complete an investment in our Reg CF offering that closed on March 27, 2025, invest now and receive bonus shares. All bonuses are aggregated, except that investors meeting both criteria shall receive bonus shares for their Current Stockholder status only.

50%

Bonus Shares

# Our Visionary Team

Our team of extraordinary individuals is on a mission to revolutionize the world of Synthetic Intelligence. Two of us are rocket scientists. One of us has over 100 patents. And we've done this before, pioneering new technologies into products, then companies, then exits exceeding $350M.

![img-11.jpeg](img-11.jpeg)
Bryant Cruse
Founder &amp; CEO
Space Systems Engineer • Chief Architect Hubble AI Mission Ops System • Johns Hopkins University • Lockheed AI Center • 2x Exited Founder

![img-12.jpeg](img-12.jpeg)
William F. Readdy
Director, Chief Partnerships Officer
Fighter Pilot • Astronaut • Shuttle Commander • Assoc. Administrator NASA HQ Ofc of Space Flight • Aerospace Consultant • US Naval Academy

![img-13.jpeg](img-13.jpeg)
Thomas Loveland
Director, Chief Administrative Officer
University of Washington Honors College, St. John's College (Annapolis), University of Chicago

![img-14.jpeg](img-14.jpeg)
William Robert Bandy
Director, Chief Intellectual Property Officer
NSA Senior Physicist • Founding

![img-15.jpeg](img-15.jpeg)
Karsten Huneycut
Chief Software Architect
Co-author of co's core patent • Fluent in 4 Human and 13 Computer languages

Program Mgrof $500M DARPA semiconductor consortium • Ph.D. Physics • 2+ Exited Founder • 100+ patents

• BSc in Computer Science and Russian, Duke University

# FAQs

| What's your share price? | ↓ | How do you plan to use the proceeds from this funding round? | ↓ |
| --- | --- | --- | --- |
| What is the minimum investment size? | ↓ | How do I get a return on my investment? | ↓ |
| Why should I invest? | ↓ | How many investors do you have already? | ↓ |
| How will New Sapience make money? | ↓ | When will I receive my shares? | ↓ |
| How do I know people will buy this solution? | ↓ | Are there higher fees if you invest via credit card vs. ACH? | ↓ |
| Why didn't a bigger company do this already? | ↓ | Will you be paying out dividends to investors? | ↓ |
| Why invest in startups? | ↓ | Exceptions to limitations on selling shares during the one-year lockup period | ↓ |
| How much can I invest? | ↓ | What happens if a company does not reach their funding target? | ↓ |
| How do I calculate my net worth? | ↓ | How can I learn more about a company's offering? | ↓ |
| What are the tax implications of an equity crowdfunding investment? | ↓ | What if I change my mind about investing? | ↓ |
| Who can invest in a Regulation CF Offering? | ↓ | How do I keep up with how the company is doing? | ↓ |
| What do I need to know about early-stage investing? Are these investments risky? | ↓ | What relationship does the company have with DealMaker Securities? | ↓ |
| When will I get my investment back? | ↓ |  |  |

Can I sell my shares?

# Join the Discussion

100 Comments

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![img-16.jpeg](img-16.jpeg)

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Ricardo

a year ago

Would love to try it before investing...

6 0 Reply Share&gt;

Nancy Reid Newton

6 months ago

As others have noted, you are very selective in the questions you answer. Is this avoidance of some questions an indication that this is basically a scam? It seems that important questions go unanswered, while some the less important queries have responses. Why can't you respond to every inquiry? Hiding something? Perhaps all responses are AI-generated and haven't yet "learned" how to respond in certain questions. Do you think that is a good indicator or performance? Either answer all questions or shut down the site and leave everyone wondering, because that's what most of us are doing now...wondering, since we can't get answers.

↓ 4 0 Reply Share&gt;

New Sapience

6 months ago

↑ → Nancy Reid Newton

Hi Nancy,

Thanks for your comment. I'm not sure which comments you're referring to in terms of being selective of answering, but do not fret, we aim to answer every question with truth and rigour especially surrounding investments. There's nothing to hide as all our courses and articles are available for free on YouTube or our site, able to be viewed at length and in-depth by anyone. I hope this helps. If you have any question about the technology, company, market, or investment, feel free to reach out again.

↓ 2 1 Reply Share&gt;

Raddaddyo

6 months ago

↑ → Nancy Reid Newton

Who is your competition? Of all the logos you display (NASA, DARPA, etc) are they all currently using your product or are they "co-developers"?

↓ 2 0 Reply Share&gt;

New Sapience

5 months ago

↑ → Radzaddyo

Great question. Our competition is every AI company, and also no AI company.

Every AI company has a product that tries to imitate general intelligence but fails at doing so - because they aren't generally intelligent. ChatGPT and Gemini are great examples of this. They offer solutions that sound intelligent and people perceive to be generally intelligent.

In the same breath, no AI company is our competition since no AI company has our theory of knowledge and intelligence, meaning they have no path to actual general intelligence. Synthetic Intelligence is its own market / industry, and we are the only company in this space.

NASA, DARPA, and others are the workplaces and institutions of our Board and team. They will all (hopefully) be using our products very soon.

↓ 0 0 Reply Share&gt;

Potential Investor

5 months ago

↑ → Potential Investor

Why not offer a free version like ChatGPT to gain a following? I will invest if you do that.

↓ 1 0 Reply Share&gt;

New Sapience

↑ → Potential Investor

5 months ago

When the technology is ready for mass adoption, we definitely plan to offer a free one- or two-month trial to anyone who wants to try out our sapiens. ChatGPT did something very smart in offering a powerful application for free, but remember, it only got there after having a great many versions.

↓ 1 0 Reply Share&gt;

Marinvia Mishlav

↑

5 months ago

I posted once before and my comment has been deleted (with no response). I invested early this month and have so far received NOTHING from you to proved I've invested. I want a refund.

1 ☐ 0 Reply Share

New Sapience 3" → Marjorie Mobley

5 months ago

Hi Marjorie,

Thanks for reaching out. I'm looking through the pending / deleted comments, and I unfortunately do not see your question listed. If you could post it again, I'd be happy to answer.

With regards to your current question, the email communications for the investment portal are handled by Dealmaker. Here's a more comprehensive explanation:

Investments are closed-out approximately every thirty days (depending on when your investment was received within the issuance closing cycle). Once the close-out has been completed, you will receive an email advising that your Subscription Agreement has been countersigned by our CEO (which is why your investment is currently noted as "Pending Review", as it is awaiting the countersignature by our CEO) and can be accessed on your investor dashboard (on DealMaker's Engage Portal).

In addition to your Subscription Agreement, your Holdings Statement will be posted to your investor dashboard approximately two weeks post-closing, which reflects purchased shares &amp; bonus shares in the total number of shares awarded. The Holdings Statement can be downloaded from your investor dashboard.

Please note that bonus shares are manually added to your account and are reflected on your Holdings Statement.

Please let me know if I may support further.

1 ☐ 0 Reply Share

Marjorie Mobley 3" → New Sapience

5 months ago

IF ITS STILL UNDER REVIEW, WHY HAVE YOU CHARGED ME FOR IT?????????????????????????????

1 ☐ 0 Reply Share

New Sapience 3" → Marjorie Mobley

5 months ago

Hi Marjorie,

I hope you're well. Someone from our team should have reached out to offer a resolution. I hope this matter has been taken care of. If not, feel free to reply to this comment. I do hope you resubmit the comment that you had originally intended, as I'd be happy to answer it. Have a great weekend.

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All2human 3"

7 months ago

I'm invested, but beginning to have concerns since no one is responding to posts.

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New Sapience 3" → All2human

7 months ago

Thanks for your patience, we have just resumed our CF campaign after a little pause to complete an audit. Now we're back on track. Did you have any questions about the technology, the company, the campaign, or something else? Happy to answer.

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Bob Smith

7 months ago

As of 11-4-24 Form C shows your a net loss larger than the prior period and a current ration of a .22%. How are you coming up with a value of 98M? That would have to be a huge nonindustrial factor based on a net loss of $733,000.

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Mike

a year ago

I'm skeptical that this is a good investment because you don't reply to any messages here and your website doesn't look like it's from a high tech company. The video doesn't even play! It says you've been around since 2015, just like Open AI, but you look like you just created your website. Have you actually been doing any business for the last 9 years?!

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Spencer Fisher

a year ago

What's the name of new sapience on Robinhood?

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New Sapience 3" → Spencer Fisher

7 months ago

We are not on Robinhood.

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jen pleasants

2 months ago

Where are the women on your team? How can you claim to be next level sapient AI without having nurturing empathy input.

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New Sapience 3" → jen pleasants

2 months ago

We actually have women on our team already, and their input is invaluable. We believe in a collaborative approach that incorporates diverse perspectives, including the nurturing empathy and emotional intelligence that women bring to the table. It's important to me that we continue fostering an inclusive environment where everyone's voice is heard, and their contributions are central to our success.

☐ 0 ☐ 0 Reply Share »

jen pleasants

2 months ago

Where are the women on your team? How can you claim to be next level thinking with out a woman's nurturing empathy input?

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New Sapience 2+ → jen pleasants

2 months ago

We already have women on our team, and their input is invaluable. We believe in a collaborative approach that incorporates diverse perspectives, including the nurturing empathy and emotional intelligence that women bring to the table. It's important to me that we continue fostering an inclusive environment where everyone's voice is heard, and their contributions are central to our success.

☐ 0 ☐ 0 Reply Share »

PJ 2+

2 months ago

Can the investment be made in an IRA or ROTH type of account?

☐ 0 ☐ 0 Reply Share »

New Sapience 2+ → PJ

2 months ago

Hi PJ,

Here is a link to the Dealmaker portal for help: https://help.dealmaker.tech..

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C M Clark

2 months ago

Others can develop and market the same type of technologies in the future so there will be competition, right?

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New Sapience 2+ → C M Clark

2 months ago

Hi CM,

Yes, we believe there will be competition in the future, but we're confident that it wouldn't be a real issue. Since we're so far ahead in terms of modelling and such, any company would take many years to catch up. This isn't like training data / data centres, where all the data is available on the internet and infrastructure is simply a question of location and money. Our tech requires epistemological engineering, or knowledge engineering, which requires philosophical experience and understanding, and intensive training. Even if Big Tech got their hands on our core and threw all the money in the world at it, we'd still be far ahead and they wouldn't be able to catch up.

But they actually don't need to compete with us to use our tech. We plan to license our tech to Big Tech as soon as possible, so they would be customers, not competitors. This ensures that everyone can use our technology easily and seamlessly.

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Tim Lee

2 months ago

Hi, are you not taking investment from people in the UK? Only the "my data" accets the UK as a country, but does not accept England as a state. How do I proceed?

☐ 0 ☐ 0 Reply Share »

New Sapience 2+ → Tim Lee

2 months ago

Hi Tim,

If you could email in@newsapience.com, we could sort it out there. The reason being that we want to help by sending screenshots and guiding you through the process, but this platform doesn't allow pictures in the replies. If you email the address listed, we could sort it out for you quickly!

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Joe Mattioni 2+

2 months ago

Is there a working prototype at this point?

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New Sapience 2+ → Joe Mattioni

2 months ago

Yes there is.

☐ 0 ☐ 0 Reply Share »

Stella

2 months ago

What development milestones have been met since startup, within the last 5 years, within the last year?

What deadlines will be met in 2025, and in the next 5 years?

☐ 0 ☐ 0 Reply Share »

New Sapience 2+ → Stella

2 months ago

Hi Stella,

We recorded a podcast to answer these questions, since the answers are pretty long and detailed. We hope you like it: https://youtu.be/tUaSSCitLJc

# Captain

2 months ago

I have seen this passionate sales pitch many years ago and invested. I was led to believe that things were just about to take off and that it was the last chance to invest. There was a potential contract with NASA and I was told I would even receive a demo of NS within the year. Even indicated I might be able to play a role in its development. These did not happen.

But over the years I have seen many investment rounds and emails depicting "last chance to invest" a few times.

I watch online videos and view the website (agreed that it doesn't present as a company leading the way in technology) and I still get the same passionate sales pitch in every direction I look. The dream is great.

But what I'm looking for is real advancement.

Proof that I made the right choice.

I certainly want to believe. I believe in the CEO's passion, the company's mission, and (tbh) hope for personal gain for myself and my children one day.

Please guide me to where I can find more than the dream I already invested in.

What business strategies and accomplishments have taken place in the last 5 years. What differentiates now from then. What deadlines are to come. What proof is there that I have made a right decision and that I didn't just line someone's pocket who will forever dilute my shares and ride the crowdfunding for as long as possible?

R/S Concerned Investor/Father

# New Sapience

2 months ago

Hi Captain,

These are all very important questions, and thus, we recorded a podcast to answer all of them. They overlapped with questions other investors had, so we thought to compile basically everything in one video and share it: https://youtu.be/tUaSSCitLJc

# Phil

2 months ago

I hope someone from New Sapience answers these questions and concerns of this investor.

I have been considering investing in New Sapience for the past few weeks. I am familiar with the sprint that various individuals and companies have been making in pursuit of AGI. I watched the webinar recently which presented a very promising timeline. I am, however, highly concerned about sentiments expressed from previous investors such as this that have not been addressed. This gravely concerns me and certainly makes me reticent in investing here.

# New Sapience

2 months ago

Hi Phil,

We recorded this podcast to answer all those questions people have had in this thread, and more: https://youtu.be/tUaSSCitLJc

# Kimley Armour

3 months ago

My experience with AI over the past two years has given me a strong appreciation for transformative technologies. New Sapience, discovered through Facebook, distinguished itself by demonstrating a clear commitment to exploring advancements that extend beyond traditional AI frameworks.

# New Sapience

2 months ago

Thank you Kimley!

# Ryan

3 months ago

Do you have a date or tentative date range for IPO?

# Reply Share

# New Sapience

2 months ago

Not at the moment.

# Reply Share

# Jahn

3 months ago

Do you need to be an accredited investor to invest?

# Reply Share

# New Sapience

2 months ago

Not for our RegCF campaign.

# Reply Share

# Werner Grimbeek

3 months ago

Is investment limited to the US?

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New Sapience

3 months ago

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Hi Werner,

Investment is not limited to the US.

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# Sean Lauren

3 months ago edited

I am very interested but I'm not sure how you're different, just that you state you are. How do you train without stealing others intellectual property? Will it learn like a real human learns with real experiences or something? But then how will it avoid the pitfalls of human learning to avoid all the negative checks in your chart that ChatGPT suffers? Even as humans we can't tell what's real, what heuristic will keep the Sapience intellectually honest? And how the heck is it $0 operating costs? I'm an engineer so I'm curious about the "how" to know there's some legitimacy to this. I'm ready to invest if I get some good answers :-) .

I saw in another comment you mention an NDA. I'd be all about that if you can send the details. Thanks!

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# New Sapience

3 months ago

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Hi Sean, these are great questions. Have you taken a look at our site, newsapience.com? We got into far more detail in our portals, tackling each one of your questions. But no matter, you asked great questions, I will provide (hopefully) great answers.

How do we train without stealing others intellectual property? How will it avoid all the negatives that ChatGPT suffers from? - We don't use training data or require data centres! It's totally and utterly not an LLM. This is why its $0 in operating costs, and can run locally on your phone. The natural followup question, then, is "What is it?" Synthetic Intelligence is a new theory of intelligence, based on how humans actually think. It delves into epistemology (philosophical school of knowledge) and constructs "atoms of thought" that, when put into a machine, give it a world model. Sapiens get smarter as we add more knowledge into them. Adding knowledge is the job of our Epistemological Engineer, and the process is quite intensive but highly curated. This means that sapiens gets a completely unbiased, grounded-in-reality world model. This also answers your question of how we keep our sapiens intellectually honest. We have prime and secondary directives embedded in the code, making sure that sapiens only help and serve their principals (hopefully, you!) and do not infringe on others' rights to privacy and freedom.

Feel free to follow up on this!

1 0 Reply Share

# Albert Malkasian

3 months ago

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since sapience was introduced what was the cost per share opposed to todays $4.00 cost and % increase

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# New Sapience

3 months ago

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Hi Albert,

Are you referring to how the share price has risen since New Sapience was first introduced?

0 0 Reply Share

# Albert Malkasian

3 months ago

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yes can you send me my purchase information

0 0 Reply Share

# New Sapience

3 months ago

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Have you emailed our inginewsapience.com email? That's the only way we'll be able to send it. Emails here are not able to be seen by admin.

0 0 Reply Share

# Dada Fey

4 months ago

What is the URL to view and login into my dashboard?

0 0 Reply Share

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1970 Annapolis Exchange

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Maryland 21401 US

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Discussion

© 2025 New Sapience | All rights reserved

Disclaimer | Privacy Policy | Sources

Equity crowdfunding investments in private placements, and start-up investments in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment through equity crowdfunding tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns.

Forward looking statements were included here that the Company believes to be accurate given the current information. They involve known and unknown risks, uncertainties and other important factors which if changed may affect the outcome(s).

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Contact information is provided for investors to make inquiries and requests to DealMaker Securities LLC regarding Regulation CF in general, or the status of such investor's submitted documentation, specifically DealMaker Securities LLC may direct investors to specific sections of the Offering Circular to locate information or answers to their inquiry but does not opine or provide guidance on issuer related matters.

Forward looking statements were included here that the Company believes to be accurate given the current information. They involve known and unknown risks, uncertainties and other important factors which if changed may affect the outcome(s).

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** New Sapience, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 03-13-2015

**Physical Address:** 1997 ANNAPOLIS EXCHANGE PARKWAY, ANNAPOLIS, MD, 21401

**Issuer Website:** www.newsapience.com

**Is there a Co-Issuer?:** No

**Intermediary Name:** DEALMAKER SECURITIES LLC

**Intermediary CIK:** 0001872856

**Intermediary File Number:** 008-70756

**Intermediary CRD Number:** 000315324

### Offering Information

**Compensation to Intermediary:** 8.5% commission based on the dollar amount of the securities sold in the Offering, plus an $18,000 one-tiand monthly fees of $17,000.

**Financial Interest in Issuer:** 8.5% commission based on the dollar amount of the securities sold in the Offering, plus an $18,000 one-time activation fee of $17,000 and monthly fees of $4,000.

**Type of Security Offered:** Common Stock

**Number of Securities Offered:** 1988

**Price per Security:** $6.00

**Method for Determining Price:** Discounted Cash Flow Model and comparable company analyses

**Target Offering Amount:** $12,003.00

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** First-come, first-served basis

**Maximum Offering Amount:** $2,500,000.00

**Deadline to Reach Target Amount:** 03-31-2026

### Annual Report Disclosure Requirements

**Current Number of Employees:** 10.00

**Total Assets (Most Recent Fiscal Year):** $119,000.00

**Total Assets (Prior Fiscal Year):** $195,011.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $95,721.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $147,571.00

**Accounts Receivable (Most Recent Fiscal Year):** $14,824.00

**Accounts Receivable (Prior Fiscal Year):** $16,187.00

**Short-Term Debt (Most Recent Fiscal Year):** $782,411.00

**Short-Term Debt (Prior Fiscal Year):** $683,570.00

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $-934,399.00

**Net Income (Prior Fiscal Year):** $-2,438,371.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, ALBERTA, BRITISH COLUMBIA, MANITOBA, NEW BRUNSWICK, NEWFOUNDLAND, NOVA SCOTIA, ONTARIO, PRINCE EDWARD ISLAND, QUEBEC, SASKATCHEWAN, YUKON TERRITORY, ISRAEL

### Signatures

**Issuer:** New Sapience, Inc.

**Signature:** Thomas W. Loveland

**Title:** Chief Administration Officer

---

**Signature:** Thomas W. Loveland

**Title:** Chief Administration Officer, Director

**Date:** 06-03-2025

---

**Signature:** Bryant G. Cruse

**Title:** Chief Executive Officer, Director

**Date:** 06-03-2025

---

**Signature:** William R. Bandy

**Title:** Chief Innovation Officer, Director

**Date:** 06-03-2025

---

**Signature:** William F. Readdy

**Title:** Chief Partnerships Officer, Director

**Date:** 06-03-2025