# EDGAR Filing Document

**Accession Number:** 0001496383
**File Stem:** 0000000000-23-001774
**Filing Date:** 2023-2
**Character Count:** 58495
**Document Hash:** 889f12b36b64979a0e1b0dbffaea6d3c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-001774.hdr.sgml**: 20241025

**ACCESSION NUMBER**: 0000000000-23-001774

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230222

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Ilustrato Pictures International Inc.
- **CENTRAL INDEX KEY:** 0001496383
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLES & PASSENGER CAR BODIES [3711]
- **ORGANIZATION NAME:** 04 Manufacturing
- **IRS NUMBER:** 272450645
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** UPLOAD
- **SEC FILE NUMBER:** 000-56487

**BUSINESS ADDRESS:**
- **STREET 1:** 26 BROADWAY
- **STREET 2:** SUITE 934
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10004
- **BUSINESS PHONE:** 917-522-3202

**MAIL ADDRESS:**
- **STREET 1:** 26 BROADWAY
- **STREET 2:** SUITE 934
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10004

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Superior Venture Corp
- **DATE OF NAME CHANGE:** 20100712
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001663577-22-000600

## Text-Extract

```

United States securities and exchange commission logo

                              February 22, 2023

       Nicolas Link
       Chief Executive Officer
       Ilustrato Pictures International, Inc.
       26 Broadway, Suite 934
       New York, NY 10004

                                                        Re: Ilustrato Pictures
International, Inc.
                                                            Amendment No. 2 to
Registration Statement on Form 10-12G
                                                            Filed February 1,
2023
                                                            File No. 000-56487

       Dear Nicolas Link:

              We have reviewed your filing and have the following comments. In
some of our
       comments, we may ask you to provide us with information so we may better
understand your
       disclosure.

              Please respond to these comments within ten business days by
providing the requested
       information or advise us as soon as possible when you will respond. If
you do not believe our
       comments apply to your facts and circumstances, please tell us why in
your response.

            After reviewing your response and any amendment you may file in
response to these
       comments, we may have additional comments. Unless we note otherwise, our
references to prior
       comments are to comments in our January 5, 2023 letter.

       Amendment No. 2 to Registration Statement on Form 10-12G filed February
1, 2023

       Organizational Structure, page 2

   1.                                                   We note your response
to prior comment 1. Please tell us with specificity where you filed
                                                        the share purchase
agreements regarding the entities acquired on March 25, 2022 and May
                                                        28, 2022 mentioned in
the table on page 3.
   2.                                                   Please revise the
disclosure in the eleventh bullet point on page 3 to clarify whether the
                                                        company currently
trades on the OTC Market under the ticker QIND.
       Legal Proceedings, page 24

   3.                                                   We note your response
to prior comment 4. Please tell us, with a view to disclosure, why
                                                        you deleted the
disclosure that "Larson Elmore has been misleading the company and its
 Nicolas Link
FirstName   LastNameNicolas    Link
Ilustrato Pictures International, Inc.
Comapany22,
February    NameIlustrato
              2023          Pictures International, Inc.
February
Page  2 22, 2023 Page 2
FirstName LastName
         shareholders on various matters including but not limited to
liabilities, company
         commitments and due diligence items presented by Larson Elmore during
the takeover
         process" that appeared on page 20 of your prior amendment. Also, tell
us, with a view to
         disclosure, why you have not included a risk factor concerning the
disclosure on page F-
         27 that "We lack many information and evidence to support the
assertions of financial
         statements and there are chances that preceding management of the
company might have
         missed compliances for which we are not aware. Thus, company may have
to bear
         consequences for that from authorities. We cannot reasonably ascertain
amount for those
         contingencies."
Corporate History, page 25

4.       We note your response to prior comment 24. Please file as an exhibit
the agreement with
         FB Fire Technologies Ltd. for the conversion of debt mentioned in the
seventh paragraph
         on page 26.
Risk Factors, page 27

5.       We note your response to prior comment 21. Please disclose the extent
to which you have
         not been able to service your debt obligations. For example, it is
unclear if the $2 million
         promissory note due February 4, 2023 has been repaid.
6.       We note that many of the risk factors in this section could apply to
other companies.
         Please ensure that you include risk factors relevant to your current
business. For example,
         we note the disclosure on page 45 about your "newly formed Defense
subsidiary." As
         another example, please ensure that you have included risk factors
relevant to a company
         "engaged in the industrial, oil & gas, and manufacturing sectors" as
you have disclosed on
         page 3 and elsewhere in your document.
7.       Please revise to clarify which officers and directors reside outside
the United States.
         Please include a separate    Enforceability of Civil Liabilities
section which discloses the
         difficulty of bringing actions and enforcing judgements against these
individuals. In this
         regard, we note the disclosure on page 49 about the addresses outside
of the United States
         of your officers and directors.
Our ability to generate the significant amount of cash, page 28

8.       We note your response to prior comment 2. Please revise the disclosure
to explain how
         you plan to fund the cash obligations in connection with the
acquisitions of Quality
         International Co Ltd FCZ and Petro Line FZ-LLC.
Our long-term success depends, in part, on our ability to operate and expand,
page 32

9.       We note your response to prior comment 8. Please quantify the
significance of the
         international operations to the company, such as the percentage of
revenues from
         international operations.
 Nicolas Link
FirstName   LastNameNicolas    Link
Ilustrato Pictures International, Inc.
Comapany22,
February    NameIlustrato
              2023          Pictures International, Inc.
February
Page  3 22, 2023 Page 3
FirstName LastName
Our largest shareholder, officer, director, Nicolas Link holds substantial
control, page 38

10.      We note your response to prior comment 5. Please quantify the extent
to which Nicolas
         Link holds substantial control or significant influence.
The issuance of shares of our common stock upon conversion or exercise, page 40

11.      We note your response to prior comment 6. Please quantify the number
of shares of your
         common stock issuable upon conversion or exercise of your outstanding
preferred stock,
         warrants and convertible notes.
Recent Developments and Plan of Operations - Second Half of 2022, page 45

12.      We note your disclosure that you completed seven acquisitions in 2022.
Please reconcile
         your disclosure to the list of acquisitions on pages 26 and 27 that
only show four
         acquisitions being consummated in 2022. Please revise, or advise us.
Recent Developments and Plan of Operations, page 45

13.      Please ensure that the disclosure in your amended document is
consistent with the material
         outside of your amended document. In this regard, we note your
February 6, 2023 press
         release that "ILUS Summarizes Its Progress and Projections Following
Its 2nd Annual
         Shareholder Meeting" and the presentation to investors on January 27,
2023. There were
         several projections in the materials. For example, we note the
reference in the materials to
         "Upwards of $200 million in revenue forecasted for current group
companies" for 2023.
         Please disclose any underlying assumptions, whether you have
independent support for
         your projections and any uncertainties and limitations on your
projections. As another
         example, we note the reference in the materials to "ILUS maintains
substantial holding
         (50-80%) in all spinoffs" is not mentioned in your amended document.
Results of Operations, page 46

14.      We note that you attribute the changes in your revenues and operating
expenses primarily
         to your acquired subsidiaries. Please revise your discussion
throughout to provide a more
         detailed and meaningful discussion of the factors that resulted in
changes in your results
         of operation during the reported periods. For example, identify the
business or businesses
         and when they were acquired, describe their operations during the
related period and how
         those operations were similar to or differed from businesses that
operated in the
         comparable prior period, and quantify how they impacted the particular
line item on your
         statements of operations.
15.      To enhance an investor's understanding of your results of operations,
please revise to
         clearly discuss how each group of businesses, or your divisions
identified on page 2,
         namely - (i) Emergency & Response, (ii) Industrial & Manufacturing and
(iii) Mining
         & Renewable Energy, contributed to your revenues and impacted your
costs and expenses
         during the reported periods. Clearly explain to investors how the
operations of each
 Nicolas Link
FirstName   LastNameNicolas    Link
Ilustrato Pictures International, Inc.
Comapany22,
February    NameIlustrato
              2023          Pictures International, Inc.
February
Page  4 22, 2023 Page 4
FirstName LastName
         acquisition during the reported period impacted results of your
different divisions.
16.      Revise your discussions of non-operating income and non-operating
expenses in all
         reported periods to describe the transactions that resulted in the
amounts reported. As
         applicable, describe the reasons for any changes in the amounts of
these transactions
         between reported periods.
17.      We note that on page 46 you disclose General and administrative
expense, Total operating
         expenses and Non-operating expenses of $1,106,533, $1,165,229 and
$463,886,
         respectively, for the year ended December 31, 2021. These amounts do
not agree with the
         amounts presented on your statement of operations for the same period
on page F-14.
         Please revise the filing throughout to eliminate these and other
inconsistencies.
Liquidity and Capital Resources, page 47

18.      You disclose that net cash provided by operating activities after
considering convertible
         notes was $10,423,828 for the nine months ended September 30, 2022.
Please reconcile
         this disclosure with the $9,405,665.67 net cash used in operating
activities presented on
         the statement of cash flows for the related period on page F-4, or
revise the filing as
         appropriate.
19.      Revise to also provide a robust comparative discussion of your
liquidity and capital
         resources for the years ended December 31, 2021 and 2020,
respectively. Your
         discussions of both interim and annual periods should provide
investors with a good
         understanding of your ability to generate and obtain adequate amounts
of cash to meet
         your requirements and your plans for cash over the next 12 months from
the most recent
         fiscal period end and, separately, in the long-term. Further, identify
any known trends or
         any known demands, commitments, events or uncertainties that will
result in or that are
         reasonably likely to result in your liquidity increasing or decreasing
in any material way.
         Refer to the more detailed guidance in Item 303(b)(1) of Regulation
S-K.
20.      Further, revise the discussions for both the interim and annual
periods to
         analyze material cash requirements from known contractual and other
obligations.
         Describe your material cash requirements, including commitments for
capital
         expenditures, as of the end of the latest fiscal period, the
anticipated source of funds
         needed to satisfy such cash requirements and the general purpose of
such requirements.
         Specify each type of obligation and the relevant time period for the
         related cash requirements. In this regard, we note, for example, from
page 45 that you are
         in the process of launching a project in Serbia, which is planned to
be your main
         production hub for vehicles and equipment outside of the United
States. As applicable,
         please include the required disclosure related to this project. Refer
to the more detailed
         guidance provided in Item 303(b)(1) of Regulation S-K.
Net Income/Net Loss, page 47

21.      Revise your discussion to correctly disclose net income for the nine
months ended
 Nicolas Link
FirstName   LastNameNicolas    Link
Ilustrato Pictures International, Inc.
Comapany22,
February    NameIlustrato
              2023          Pictures International, Inc.
February
Page  5 22, 2023 Page 5
FirstName LastName
         September 30, 2021 as $13,035,618.70, as disclosed on your statement
of operations for
         the same period on page F-2. Please describe the transaction(s) that
resulted in non-
         operating income of $12,026,143 you recorded in the period.
Employment Agreements, page 53

22.      We note your response to prior comment 16. As previously requested,
please tell us, with
         a view to disclosure, why common shares in QIND will be issued to your
officers and
         directors as disclosed on pages 53-58.
Certain Relationships and Related Transactions, and Director Independence, page
59

23.      We note your response to prior comment 22. Please tell us, with a view
to disclosure,
         why this section does not mention the issuance of shares of preferred
class F to Daniel
         Link disclosed on page 65.
Index to Financial Statements, page 70

24.      We note the discussion relating to your various acquired businesses
during the reported
         periods in the Business section, including the list provided on pages
26 and 27. Please tell
         us your consideration of the requirements to provide financial
statements of the acquired
         business and related pro forma financial information in this
registration statement pursuant
         to Rules 8-04 and 8-05 of Regulation S-X. Provide us with your
significance calculations
         for each acquisition listed on pages 26 and 27, as well as any
probable or consummated
         acquisitions through the date of your next amendment. As applicable,
revise the filing to
         include any required financial statements and related pro forma
financial information.
25.      Please revise your financial statements to provide the disclosures
required by ASC 805-
         10-50 relating to your business acquisitions that occurred during the
reported periods, and
         through the date on which your financial statements were issued.
Clearly describe how
         you accounted for each of these acquisitions. As applicable, pursuant
to ASC 855-10-50,
         include subsequent events notes to the financial statements that
clearly describe the
         material terms of any probable business acquisitions still pending at
the date of your
         next amendment.
26.      Revise to clearly label the interim financial statements as
unaudited.    Include that label
         on each of the primary financial statements and the first page of the
notes to financial
         statements. In addition, correct the footnote at the bottom of pages
F-1 through F-4 to
         state that the accompanying notes are an integral part of these
unaudited    consolidated
         financial statements.
27.      Revise the unaudited interim as well as the audited financial
statements to disclose
         accounts receivable, inventory, goodwill and accounts payable on the
face of your balance
         sheets and provide appropriate disclosure about the items in the notes
to financial
         statements. Disclose your basis of accounting for inventory (e.g.,
lower of cost or net
         realizable value) and your policy for evaluating and recording
inventory impairments.
 Nicolas Link
Ilustrato Pictures International, Inc.
February 22, 2023
Page 6
         Refer to ASC 330-10-50-1 and ASC 350-20-45.
28.      To facilitate the usefulness of the unaudited interim financial
statements as of and for the
         three and nine months ended September 30, 2022 and 2021, respectively,
including their
         comparability with your annual financial statements, please revise the
balance sheet on
         page F-1 to present the components of stockholders' equity similar to
the disclosures
         presented on the audited annual financial statements. Similarly,
revise the statements of
         cash flows on page F-4 to present the activities that resulted in the
net cash flows used in
         investing and net cash flows provided by financing activities. Lastly,
revise the unaudited
         interim financial statements throughout to present dollar amounts
rounded to the closest
         whole dollar, consistent with the audited annual financial statements.
Refer to Rule 8-
         03(a)(4) of Regulation S-X.
29.      Further, revise the unaudited interim financial statements to include
notes to the financial
         statements that disclose in tabular form the material components of
Other Current
         Assets and Other Current Liabilities at September 30, 2022 and
December 31, 2021. In
         addition, in tabular form, disclose the material components of
operating expenses for each
         reported period. Include notes to the financial statements that
clearly describe the
         transactions that resulted in the non-operating expenses and
non-operating
         income reported in each reported period. Refer to Rule 8-03(b)(1) of
Regulation S-X.
30.      Revise the financial statements and filing throughout to present all
basic and diluted
         earnings (loss) per share amounts rounded to the nearest cent (i.e.,
only two decimal
         points), in order not to imply a greater degree of precision than
exists. Further, revise the
         statements of operations for the three and nine months ended September
30, 2022, and
         2021, respectively, to disclose basic and diluted earnings (loss) per
share for each reported
         period on the face of the statements, as required by ASC 260-10-45,
and to provide the
         disclosures required by ASC 260-10-50 in a note to the unaudited
interim financial
         statements.
Consolidated Statements of Cash Flows for nine months ended September 30, 2022,
and 2021,
page F-4

31.      Please revise to begin your reconciliation of cash flows from
operating activities for the
         nine months ended September 30, 2021 with your net profit as required
by ASC 230-10-
         45-2, and not with your profit from operations, as currently
presented. In addition, revise
         to present the amounts on the correct statement of cash flows caption.
Note 3. Notes Payable, page F-8
FirstName LastNameNicolas Link
32.     Please revise to clearly describe how you accounted for the convertible
notes issued
Comapany    NameIlustrato
       during  the reported Pictures
                            periods, International, Inc.references to the
accounting guidance on
                                     with appropriate
       which
February      you relied.
          22, 2023  Page 6
FirstName LastName
 Nicolas Link
FirstName   LastNameNicolas    Link
Ilustrato Pictures International, Inc.
Comapany22,
February    NameIlustrato
              2023          Pictures International, Inc.
February
Page  7 22, 2023 Page 7
FirstName LastName
Note 6. Warrants, page F-9

33.      Please revise to disclose how you accounted for the Common Share
Purchase Warrant
         issued to Discover Growth Fund, LLC on February 4, 2022, in
conjunction with
         its $2,000,000 convertible promissory note. Include appropriate
references to the
         accounting guidance on which you based your accounting.
Note 9. Subsequent Events, page F-10

34.      You disclose that there were no subsequent events. However, we note
disclosure
         elsewhere in the filing of significant events that occurred after the
period end, including
         the acquisitions consummated in December 2022 and January 2023 and the
issuance of
         material amounts of debt and a warrant to AJB Capital Investment LLC
in December
         2022. Please revise to disclose all material subsequent events, or
explain to us why the
         disclosures are not required. In addition, revise to disclose the date
through which
         you evaluated subsequent events. Refer to ASC 855-10-50.
Report of Independent Registered Public Accounting Firm, page F-12

35.      Please have your auditor include signed audit reports that meet the
requirements of
         Rule 2-02 of Regulation S-X. Refer to Item 302 of Regulation S-T for
guidance on
         providing signatures in electronic submissions.
36.      The audit reports on pages F-11 and F-12 indicate that no
confirmations or documents
         were available for the audit of year ended December 31, 2020 (CY 2020)
and, as a result,
         such balances for CY 2020 were written off. Further, although you
disclose that
         unsubstantiated balances were written off, you disclose on page F-20
and elsewhere that
         certain unsupported balances, like goodwill, have been carried forward
in the year 2020
         and thus in 2021 also. Please have your auditors explain to us why its
inability to confirm
         and to obtain support for balances did not represent a limitation on
the scope of the audit
         since it appears that the auditor was unable to perform all the
procedures required by
         professional standards to support the expression of an opinion. Refer
to SAB Topic 1E.2.
37.      The audit reports on pages F-11 and F-12 both refer to Note 20 to the
financial statements
         regarding restatements of the 2020 and 2021 financial statements.
However, Note 20
         currently discloses going concern matters. Similarly, the audit report
on page F-12 refers
         to Note 18 to the consolidated financial statements regarding the
consolidation of two
         entities on a basis of common management control. However, Note 18
does not appear to
         address that matter. Please revise the notes to include the relevant
disclosures and have
         your auditor revise the references in its reports, as appropriate.
Consolidated Statements of Operations for the years ended December 31, 2021,
and 2020, page
F-14

38.      Revise to include a note to the financial statements that clearly
describes the transaction(s)
         that gave rise to non-operating income of $11,835,500 for the year
ended December 31,
 Nicolas Link
Ilustrato Pictures International, Inc.
February 22, 2023
Page 8
         2021. Clearly disclose if and how the transaction related to the
unrealized loss on assets
         amounts presented on pages F-16 and F-21.
39.      We note from Note 17 and here that in spite of the loss reported for
the year ended
         December 31, 2020, you have reflected the conversion of your Class A
and Class D
         preferred stock when calculating diluted EPS for that reported period.
Please tell us how
         you considered, in your presentation, the guidance in ASC
260-10-45-41, which says that
         such conversions shall not be assumed if the effect would be
antidilutive. Otherwise,
         revise your presentation throughout the filing to comply.
4. Stock Based Compensation , page F-18

40.      You disclose on pages F-6 and F-18 that you account for stock-based
payments to non-
         employees in accordance with ASC 505-50. Please revise your accounting
and disclosures
         for stock-based payments with non-employees to comply with the
guidance in ASC 718,
         which superseded the former guidance through ASU 2018-07.
Note 2: Summary of Significant Accounting Policies
1. Revenue Recognition, page F-18

41.      We note that you disclose a revenue recognition policy on pages F-5
and F-18 that is
         based on ASC 605-10-S99-1. Please revise your financial statements for
all applicable
         periods to conform to the guidance in ASC 606, which superseded the
former
         guidance. Please ensure your accounting policy conforms with the
applicable
         requirements, and that you provide the disclosures required by ASC
606-10-50 and 606-
         10-65.
11. Business Segment, page F-19

42.      Please revise your discussions of segments on pages F-7 and F-19 to
clearly and
         consistently disclose your operating and reportable segments as of
September 30,
         2022 and December 31, 2021 and 2020, respectively. Provide all
disclosures required by
         ASC 280-10-50, including the factors used to identify your reportable
segments. Explain
         how you considered the three operating divisions you describe on page
2 as well as their
         operating subsidiaries in determining your operating and reportable
segments. To the
         extent that you aggregate any operating segments in determining your
reportable
         segments, please provide appropriate disclosure.
Note 4: Other Current Assets, page F-20

43.    Please revise to describe the terms and circumstances surrounding the
'Intercompany loan
FirstName LastNameNicolas Link
       given' outstanding at December 31, 2021. Similarly, revise to disclose
the material terms
Comapany    NameIlustrato
       of the arrangement Pictures  International,
                           that resulted            Inc. current accounts'
outstanding at
                                         in the 'Director's
       December
February  22, 202331, 2021.
                   Page  8
FirstName LastName
 Nicolas Link
FirstName   LastNameNicolas    Link
Ilustrato Pictures International, Inc.
Comapany22,
February    NameIlustrato
              2023          Pictures International, Inc.
February
Page  9 22, 2023 Page 9
FirstName LastName
Note 5: Goodwill, page F-20

44.      Revise to disclose your policy for accounting for goodwill, and to
describe how and when
         you assess your goodwill for impairment. Refer to ASC 350-20-35. In
addition, please
         provide the disclosures required by ASC 350-20-50 relating to
allocation, changes and any
         impairment of goodwill in the reported periods.
45.      Describe to us in detail the circumstances surrounding your inability
to obtain any
         information or supporting evidence for goodwill at December 31, 2020.
Discuss your
         conclusion that it was appropriate to present this unsupported
goodwill balance on your
         balance sheet at December 31, 2020 and to carry forward the amount
into 2021.
Note 6: Capital Advances, page F-21

46.      We note that you list FB Fire Technologies Ltd. as a subsidiary on
Exhibit 21. Describe
         to us in detail how you accounted for your June 2020 and January 2021
transactions with
         the owners of FB Fire Technologies Ltd. Please tell us your percentage
ownership of FB
         Fire Technologies Ltd. as of December 31, 2021, and how you accounted
for that entity in
         your financial statements. To the extent that FB Fire Technologies
Ltd. is a consolidated
         subsidiary, please explain to us how you considered the guidance in
ASC 810 in
         concluding that the Investment in FB Fire Technology Ltd. would not be
eliminated in
         consolidation.
Note 13: Other Current Liabilities, page F-24

47.      Please revise the note to provide appropriate disclosure of the terms
and circumstances
         relating to the Intercompany loans payable of $2,578,225 outstanding
at December 31,
         2021.
Note 14: Common stock and Preferred Stock, page F-24

48.      You disclose that Preferred Class E shares are redeemable at $1.00 per
share and that
         2.25% must be redeemed per quarter. Revise to clearly disclose the
redemption terms of
         these shares in more detail, including whether your Preferred Class E
shares are
         redeemable at the option of the holder, at a fixed date at fixed
price, or redemption is
         otherwise beyond your control. Please tell us how you considered the
guidance in SAB
         Topic 3C and ASC 480-10-S99-3A when accounting for and classifying the
Preferred
         Class E shares on your balance sheet. Specifically address why
classification outside of
         permanent equity, or mezzanine equity, would not be appropriate.
Note 16: General, Administration and Other expenses, page F-25

49.      Total General, Administrative and Other expense for the year ended
December 31, 2020
         of $90,897 presented here does not agree with the amount presented on
the audited
         statement of operations for the same period on page F-14. In a related
matter, in the
         discussion immediately following the table, you disclose that, other
than compensation
 Nicolas Link
Ilustrato Pictures International, Inc.
February 22, 2023
Page 10
       expense, there were no other employee benefits expenses incurred during
the year ending
       December 31, 2020. However, the table includes $10,712 of employee
benefit expense.
       Please revise to eliminate these inconsistencies, or advise us.
Note 20: Going Concern, page F-27

50.    Please update the disclosure to also address the company's ability to
continue as a going
       concern as of December 31, 2021.
Exhibit 23 - Consent of Independent Registered Public Accounting Firm, page
X-23

51.    Please have your auditor revise its consent to indicate the dates of its
reports and to
       identify the financial statements to which each relates (e.g., our
report dated December 9,
       2022, relating to the financial statements of Ilustrato Pictures
International, Inc. as of and
       for year ended December 31, 2021), and to consent to all references to
the firm included
       in the registration statement.
Exhibits

52.    Please tell us with specificity where you filed as an exhibit the
agreement with Larson
       Elmore as requested in prior comment 23.
General

53.    Please tell us with specificity where you revised the disclosure in
response to prior
       comments 27 and 29.
       You may contact Stephany Yang at 202-551-3167 or Martin James at
202-551-3671 if
you have questions regarding comments on the financial statements and related
matters. Please
contact Thomas Jones at 202-551-3602 or Jay Ingram at 202-551-3397 with any
other questions.

                                                               Sincerely,
FirstName LastNameNicolas Link
                                                               Division of
Corporation Finance
Comapany NameIlustrato Pictures International, Inc.
                                                               Office of
Manufacturing
February 22, 2023 Page 10
cc:       Scott Doney, Esq.
FirstName LastName

```

### Attached PDF Documents

**Attachment 1:** `filename1`

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

DIVISION OF
CORPORATION FINANCE

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

February 22, 2023

Nicolas Link
Chief Executive Officer
Ilustrato Pictures International, Inc.
26 Broadway, Suite 934
New York, NY 10004

**Re: Ilustrato Pictures International, Inc.**
**Amendment No. 2 to Registration Statement on Form 10-12G**
**Filed February 1, 2023**
**File No. 000-56487**

Dear Nicolas Link:

We have reviewed your filing and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to these comments within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response.

After reviewing your response and any amendment you may file in response to these comments, we may have additional comments. Unless we note otherwise, our references to prior comments are to comments in our January 5, 2023 letter.

Amendment No. 2 to Registration Statement on Form 10-12G filed February 1, 2023

Organizational Structure, page 2

1. We note your response to prior comment 1. Please tell us with specificity where you filed the share purchase agreements regarding the entities acquired on March 25, 2022 and May 28, 2022 mentioned in the table on page 3.
2. Please revise the disclosure in the eleventh bullet point on page 3 to clarify whether the company currently trades on the OTC Market under the ticker QIND.

Legal Proceedings, page 24

3. We note your response to prior comment 4. Please tell us, with a view to disclosure, why you deleted the disclosure that "Larson Elmore has been misleading the company and its

Nicolas Link
Ilustrato Pictures International, Inc.
February 22, 2023
Page 2

shareholders on various matters including but not limited to liabilities, company commitments and due diligence items presented by Larson Elmore during the takeover process" that appeared on page 20 of your prior amendment. Also, tell us, with a view to disclosure, why you have not included a risk factor concerning the disclosure on page F-27 that "We lack many information and evidence to support the assertions of financial statements and there are chances that preceding management of the company might have missed compliances for which we are not aware. Thus, company may have to bear consequences for that from authorities. We cannot reasonably ascertain amount for those contingencies."

Corporate History, page 25

4. We note your response to prior comment 24. Please file as an exhibit the agreement with FB Fire Technologies Ltd. for the conversion of debt mentioned in the seventh paragraph on page 26.

Risk Factors, page 27

5. We note your response to prior comment 21. Please disclose the extent to which you have not been able to service your debt obligations. For example, it is unclear if the $2 million promissory note due February 4, 2023 has been repaid.
6. We note that many of the risk factors in this section could apply to other companies. Please ensure that you include risk factors relevant to your current business. For example, we note the disclosure on page 45 about your "newly formed Defense subsidiary." As another example, please ensure that you have included risk factors relevant to a company "engaged in the industrial, oil & gas, and manufacturing sectors" as you have disclosed on page 3 and elsewhere in your document.
7. Please revise to clarify which officers and directors reside outside the United States. Please include a separate "Enforceability of Civil Liabilities" section which discloses the difficulty of bringing actions and enforcing judgements against these individuals. In this regard, we note the disclosure on page 49 about the addresses outside of the United States of your officers and directors.

Our ability to generate the significant amount of cash, page 28

8. We note your response to prior comment 2. Please revise the disclosure to explain how you plan to fund the cash obligations in connection with the acquisitions of Quality International Co Ltd FCZ and Petro Line FZ-LLC.

Our long-term success depends, in part, on our ability to operate and expand, page 32

9. We note your response to prior comment 8. Please quantify the significance of the international operations to the company, such as the percentage of revenues from international operations.

Nicolas Link
Ilustrato Pictures International, Inc.
February 22, 2023
Page 3

Our largest shareholder, officer, director, Nicolas Link holds substantial control, page 38

10. We note your response to prior comment 5. Please quantify the extent to which Nicolas Link holds substantial control or significant influence.

The issuance of shares of our common stock upon conversion or exercise, page 40

11. We note your response to prior comment 6. Please quantify the number of shares of your common stock issuable upon conversion or exercise of your outstanding preferred stock, warrants and convertible notes.

Recent Developments and Plan of Operations - Second Half of 2022, page 45

12. We note your disclosure that you completed seven acquisitions in 2022. Please reconcile your disclosure to the list of acquisitions on pages 26 and 27 that only show four acquisitions being consummated in 2022. Please revise, or advise us.

Recent Developments and Plan of Operations, page 45

13. Please ensure that the disclosure in your amended document is consistent with the material outside of your amended document. In this regard, we note your February 6, 2023 press release that "ILUS Summarizes Its Progress and Projections Following Its 2nd Annual Shareholder Meeting" and the presentation to investors on January 27, 2023. There were several projections in the materials. For example, we note the reference in the materials to "Upwards of $200 million in revenue forecasted for current group companies" for 2023. Please disclose any underlying assumptions, whether you have independent support for your projections and any uncertainties and limitations on your projections. As another example, we note the reference in the materials to "ILUS maintains substantial holding (50-80%) in all spinoffs" is not mentioned in your amended document.

Results of Operations, page 46

14. We note that you attribute the changes in your revenues and operating expenses primarily to your acquired subsidiaries. Please revise your discussion throughout to provide a more detailed and meaningful discussion of the factors that resulted in changes in your results of operation during the reported periods. For example, identify the business or businesses and when they were acquired, describe their operations during the related period and how those operations were similar to or differed from businesses that operated in the comparable prior period, and quantify how they impacted the particular line item on your statements of operations.

15. To enhance an investor's understanding of your results of operations, please revise to clearly discuss how each group of businesses, or your divisions identified on page 2, namely - (i) Emergency & Response, (ii) Industrial & Manufacturing and (iii) Mining & Renewable Energy, contributed to your revenues and impacted your costs and expenses during the reported periods. Clearly explain to investors how the operations of each

Nicolas Link
Ilustrato Pictures International, Inc.
February 22, 2023
Page 4

acquisition during the reported period impacted results of your different divisions.

16. Revise your discussions of non-operating income and non-operating expenses in all reported periods to describe the transactions that resulted in the amounts reported. As applicable, describe the reasons for any changes in the amounts of these transactions between reported periods.

17. We note that on page 46 you disclose General and administrative expense, Total operating expenses and Non-operating expenses of $1,106,533, $1,165,229 and $463,886, respectively, for the year ended December 31, 2021. These amounts do not agree with the amounts presented on your statement of operations for the same period on page F-14. Please revise the filing throughout to eliminate these and other inconsistencies.

Liquidity and Capital Resources, page 47

18. You disclose that net cash provided by operating activities after considering convertible notes was $10,423,828 for the nine months ended September 30, 2022. Please reconcile this disclosure with the $9,405,665.67 net cash used in operating activities presented on the statement of cash flows for the related period on page F-4, or revise the filing as appropriate.

19. Revise to also provide a robust comparative discussion of your liquidity and capital resources for the years ended December 31, 2021 and 2020, respectively. Your discussions of both interim and annual periods should provide investors with a good understanding of your ability to generate and obtain adequate amounts of cash to meet your requirements and your plans for cash over the next 12 months from the most recent fiscal period end and, separately, in the long-term. Further, identify any known trends or any known demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in your liquidity increasing or decreasing in any material way. Refer to the more detailed guidance in Item 303(b)(1) of Regulation S-K.

20. Further, revise the discussions for both the interim and annual periods to analyze material cash requirements from known contractual and other obligations. Describe your material cash requirements, including commitments for capital expenditures, as of the end of the latest fiscal period, the anticipated source of funds needed to satisfy such cash requirements and the general purpose of such requirements. Specify each type of obligation and the relevant time period for the related cash requirements. In this regard, we note, for example, from page 45 that you are in the process of launching a project in Serbia, which is planned to be your main production hub for vehicles and equipment outside of the United States. As applicable, please include the required disclosure related to this project. Refer to the more detailed guidance provided in Item 303(b)(1) of Regulation S-K.

Net Income/Net Loss, page 47

21. Revise your discussion to correctly disclose net income for the nine months ended

Nicolas Link
Illustrato Pictures International, Inc.
February 22, 2023
Page 5

September 30, 2021 as $13,035,618.70, as disclosed on your statement of operations for the same period on page F-2. Please describe the transaction(s) that resulted in non-operating income of $12,026,143 you recorded in the period.

Employment Agreements, page 53

22. We note your response to prior comment 16. As previously requested, please tell us, with a view to disclosure, why common shares in QIND will be issued to your officers and directors as disclosed on pages 53-58.

Certain Relationships and Related Transactions, and Director Independence, page 59

23. We note your response to prior comment 22. Please tell us, with a view to disclosure, why this section does not mention the issuance of shares of preferred class F to Daniel Link disclosed on page 65.

Index to Financial Statements, page 70

24. We note the discussion relating to your various acquired businesses during the reported periods in the Business section, including the list provided on pages 26 and 27. Please tell us your consideration of the requirements to provide financial statements of the acquired business and related pro forma financial information in this registration statement pursuant to Rules 8-04 and 8-05 of Regulation S-X. Provide us with your significance calculations for each acquisition listed on pages 26 and 27, as well as any probable or consummated acquisitions through the date of your next amendment. As applicable, revise the filing to include any required financial statements and related pro forma financial information.
25. Please revise your financial statements to provide the disclosures required by ASC 805-10-50 relating to your business acquisitions that occurred during the reported periods, and through the date on which your financial statements were issued. Clearly describe how you accounted for each of these acquisitions. As applicable, pursuant to ASC 855-10-50, include subsequent events notes to the financial statements that clearly describe the material terms of any probable business acquisitions still pending at the date of your next amendment.
26. Revise to clearly label the interim financial statements as “unaudited.” Include that label on each of the primary financial statements and the first page of the notes to financial statements. In addition, correct the footnote at the bottom of pages F-1 through F-4 to state that the accompanying notes are an integral part of these “unaudited” consolidated financial statements.
27. Revise the unaudited interim as well as the audited financial statements to disclose accounts receivable, inventory, goodwill and accounts payable on the face of your balance sheets and provide appropriate disclosure about the items in the notes to financial statements. Disclose your basis of accounting for inventory (e.g., lower of cost or net realizable value) and your policy for evaluating and recording inventory impairments.

Nicolas Link
Ilustrato Pictures International, Inc.
February 22, 2023
Page 6

Refer to ASC 330-10-50-1 and ASC 350-20-45.

28. To facilitate the usefulness of the unaudited interim financial statements as of and for the three and nine months ended September 30, 2022 and 2021, respectively, including their comparability with your annual financial statements, please revise the balance sheet on page F-1 to present the components of stockholders' equity similar to the disclosures presented on the audited annual financial statements. Similarly, revise the statements of cash flows on page F-4 to present the activities that resulted in the net cash flows used in investing and net cash flows provided by financing activities. Lastly, revise the unaudited interim financial statements throughout to present dollar amounts rounded to the closest whole dollar, consistent with the audited annual financial statements. Refer to Rule 8-03(a)(4) of Regulation S-X.

29. Further, revise the unaudited interim financial statements to include notes to the financial statements that disclose in tabular form the material components of Other Current Assets and Other Current Liabilities at September 30, 2022 and December 31, 2021. In addition, in tabular form, disclose the material components of operating expenses for each reported period. Include notes to the financial statements that clearly describe the transactions that resulted in the non-operating expenses and non-operating income reported in each reported period. Refer to Rule 8-03(b)(1) of Regulation S-X.

30. Revise the financial statements and filing throughout to present all basic and diluted earnings (loss) per share amounts rounded to the nearest cent (i.e., only two decimal points), in order not to imply a greater degree of precision than exists. Further, revise the statements of operations for the three and nine months ended September 30, 2022, and 2021, respectively, to disclose basic and diluted earnings (loss) per share for each reported period on the face of the statements, as required by ASC 260-10-45, and to provide the disclosures required by ASC 260-10-50 in a note to the unaudited interim financial statements.

Consolidated Statements of Cash Flows for nine months ended September 30, 2022, and 2021, page F-4

31. Please revise to begin your reconciliation of cash flows from operating activities for the nine months ended September 30, 2021 with your net profit as required by ASC 230-10-45-2, and not with your profit from operations, as currently presented. In addition, revise to present the amounts on the correct statement of cash flows caption.

Note 3. Notes Payable, page F-8

32. Please revise to clearly describe how you accounted for the convertible notes issued during the reported periods, with appropriate references to the accounting guidance on which you relied.

Nicolas Link
Ilustrato Pictures International, Inc.
February 22, 2023
Page 7

Note 6. Warrants, page F-9

33. Please revise to disclose how you accounted for the Common Share Purchase Warrant issued to Discover Growth Fund, LLC on February 4, 2022, in conjunction with its $2,000,000 convertible promissory note. Include appropriate references to the accounting guidance on which you based your accounting.

Note 9. Subsequent Events, page F-10

34. You disclose that there were no subsequent events. However, we note disclosure elsewhere in the filing of significant events that occurred after the period end, including the acquisitions consummated in December 2022 and January 2023 and the issuance of material amounts of debt and a warrant to AJB Capital Investment LLC in December 2022. Please revise to disclose all material subsequent events, or explain to us why the disclosures are not required. In addition, revise to disclose the date through which you evaluated subsequent events. Refer to ASC 855-10-50.

Report of Independent Registered Public Accounting Firm, page F-12

35. Please have your auditor include signed audit reports that meet the requirements of Rule 2-02 of Regulation S-X. Refer to Item 302 of Regulation S-T for guidance on providing signatures in electronic submissions.

36. The audit reports on pages F-11 and F-12 indicate that no confirmations or documents were available for the audit of year ended December 31, 2020 (CY 2020) and, as a result, such balances for CY 2020 were written off. Further, although you disclose that unsubstantiated balances were written off, you disclose on page F-20 and elsewhere that certain unsupported balances, like goodwill, have been carried forward in the year 2020 and thus in 2021 also. Please have your auditors explain to us why its inability to confirm and to obtain support for balances did not represent a limitation on the scope of the audit since it appears that the auditor was unable to perform all the procedures required by professional standards to support the expression of an opinion. Refer to SAB Topic 1E.2.

37. The audit reports on pages F-11 and F-12 both refer to Note 20 to the financial statements regarding restatements of the 2020 and 2021 financial statements. However, Note 20 currently discloses going concern matters. Similarly, the audit report on page F-12 refers to Note 18 to the consolidated financial statements regarding the consolidation of two entities on a basis of common management control. However, Note 18 does not appear to address that matter. Please revise the notes to include the relevant disclosures and have your auditor revise the references in its reports, as appropriate.

Consolidated Statements of Operations for the years ended December 31, 2021, and 2020, page F-14

38. Revise to include a note to the financial statements that clearly describes the transaction(s) that gave rise to non-operating income of $11,835,500 for the year ended December 31,

Nicolas Link  
Ilustrato Pictures International, Inc.  
February 22, 2023  
Page 8

2021. Clearly disclose if and how the transaction related to the unrealized loss on assets amounts presented on pages F-16 and F-21.

39. We note from Note 17 and here that in spite of the loss reported for the year ended December 31, 2020, you have reflected the conversion of your Class A and Class D preferred stock when calculating diluted EPS for that reported period. Please tell us how you considered, in your presentation, the guidance in ASC 260-10-45-41, which says that such conversions shall not be assumed if the effect would be antidilutive. Otherwise, revise your presentation throughout the filing to comply.

#### 4. Stock Based Compensation, page F-18

40. You disclose on pages F-6 and F-18 that you account for stock-based payments to non-employees in accordance with ASC 505-50. Please revise your accounting and disclosures for stock-based payments with non-employees to comply with the guidance in ASC 718, which superseded the former guidance through ASU 2018-07.

#### Note 2: Summary of Significant Accounting Policies

##### 1. Revenue Recognition, page F-18

41. We note that you disclose a revenue recognition policy on pages F-5 and F-18 that is based on ASC 605-10-S99-1. Please revise your financial statements for all applicable periods to conform to the guidance in ASC 606, which superseded the former guidance. Please ensure your accounting policy conforms with the applicable requirements, and that you provide the disclosures required by ASC 606-10-50 and 606-10-65.

##### 11. Business Segment, page F-19

42. Please revise your discussions of segments on pages F-7 and F-19 to clearly and consistently disclose your operating and reportable segments as of September 30, 2022 and December 31, 2021 and 2020, respectively. Provide all disclosures required by ASC 280-10-50, including the factors used to identify your reportable segments. Explain how you considered the three operating divisions you describe on page 2 as well as their operating subsidiaries in determining your operating and reportable segments. To the extent that you aggregate any operating segments in determining your reportable segments, please provide appropriate disclosure.

##### Note 4: Other Current Assets, page F-20

43. Please revise to describe the terms and circumstances surrounding the 'Intercompany loan given' outstanding at December 31, 2021. Similarly, revise to disclose the material terms of the arrangement that resulted in the 'Director's current accounts' outstanding at December 31, 2021.

Nicolas Link
Illustrato Pictures International, Inc.
February 22, 2023
Page 9

Note 5: Goodwill, page F-20

44. Revise to disclose your policy for accounting for goodwill, and to describe how and when you assess your goodwill for impairment. Refer to ASC 350-20-35. In addition, please provide the disclosures required by ASC 350-20-50 relating to allocation, changes and any impairment of goodwill in the reported periods.

45. Describe to us in detail the circumstances surrounding your inability to obtain any information or supporting evidence for goodwill at December 31, 2020. Discuss your conclusion that it was appropriate to present this unsupported goodwill balance on your balance sheet at December 31, 2020 and to carry forward the amount into 2021.

Note 6: Capital Advances, page F-21

46. We note that you list FB Fire Technologies Ltd. as a subsidiary on Exhibit 21. Describe to us in detail how you accounted for your June 2020 and January 2021 transactions with the owners of FB Fire Technologies Ltd. Please tell us your percentage ownership of FB Fire Technologies Ltd. as of December 31, 2021, and how you accounted for that entity in your financial statements. To the extent that FB Fire Technologies Ltd. is a consolidated subsidiary, please explain to us how you considered the guidance in ASC 810 in concluding that the Investment in FB Fire Technology Ltd. would not be eliminated in consolidation.

Note 13: Other Current Liabilities, page F-24

47. Please revise the note to provide appropriate disclosure of the terms and circumstances relating to the Intercompany loans payable of $2,578,225 outstanding at December 31, 2021.

Note 14: Common stock and Preferred Stock, page F-24

48. You disclose that Preferred Class E shares are redeemable at $1.00 per share and that 2.25% must be redeemed per quarter. Revise to clearly disclose the redemption terms of these shares in more detail, including whether your Preferred Class E shares are redeemable at the option of the holder, at a fixed date at fixed price, or redemption is otherwise beyond your control. Please tell us how you considered the guidance in SAB Topic 3C and ASC 480-10-S99-3A when accounting for and classifying the Preferred Class E shares on your balance sheet. Specifically address why classification outside of permanent equity, or mezzanine equity, would not be appropriate.

Note 16: General, Administration and Other expenses, page F-25

49. Total General, Administrative and Other expense for the year ended December 31, 2020 of $90,897 presented here does not agree with the amount presented on the audited statement of operations for the same period on page F-14. In a related matter, in the discussion immediately following the table, you disclose that, other than compensation

Nicolas Link
Ilustrato Pictures International, Inc.
February 22, 2023
Page 10

expense, there were no other employee benefits expenses incurred during the year ending December 31, 2020. However, the table includes $10,712 of employee benefit expense. Please revise to eliminate these inconsistencies, or advise us.

Note 20: Going Concern, page F-27

50. Please update the disclosure to also address the company's ability to continue as a going concern as of December 31, 2021.

Exhibit 23 - Consent of Independent Registered Public Accounting Firm, page X-23

51. Please have your auditor revise its consent to indicate the dates of its reports and to identify the financial statements to which each relates (e.g., our report dated December 9, 2022, relating to the financial statements of Ilustrato Pictures International, Inc. as of and for year ended December 31, 2021), and to consent to all references to the firm included in the registration statement.

Exhibits

52. Please tell us with specificity where you filed as an exhibit the agreement with Larson Elmore as requested in prior comment 23.

General

53. Please tell us with specificity where you revised the disclosure in response to prior comments 27 and 29.

You may contact Stephany Yang at 202-551-3167 or Martin James at 202-551-3671 if you have questions regarding comments on the financial statements and related matters. Please contact Thomas Jones at 202-551-3602 or Jay Ingram at 202-551-3397 with any other questions.

Sincerely,

Division of Corporation Finance
Office of Manufacturing

cc: Scott Doney, Esq.