Kinetic Seas Inc
For the period ended Jun 30, 2024. Filed Aug 19, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 19, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-14.
0001683168-24-003401
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-19.
0001683168-24-005863
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 51 previous paragraphs and 60 current paragraphs.
38 unchanged; 12 reworded; 6 added; 1 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
During the three months ended June 30, 2024 the Company incurred $14,723 in other expenses, as compared to $8,490 of other expenses during the three months ended June 30, 2023. In both periods, all of the other expenses consisted of interest expense on outstanding loans. The higher level of interest expense in the 2024 period as compared to the 2023 period was because of a higher level of interest-bearing loans outstanding.
Current report
Revenues
Current report
Operating Expenses
Current report
Other Income (Expense)
Current report
During the six months ended June 30, 2024 the Company incurred $19,273 in other expenses, as compared to $13,086 of other expenses during the six months ended June 30, 2023. In both periods, all of the other expenses consisted of interest expense on outstanding loans. The higher level of interest expense in the 2024 period as compared to the 2023 period was because of a higher level of interest-bearing loans outstanding.
Current report
Net Income (Loss)
Removed paragraphs (1)
Previous report
During the three months ended March 31, 2024 the Company incurred $4,550 in other expenses, as compared to $4,596 of other expenses during the prior three month period ended March 31, 2023. In each three months, other expenses consisted of interest accrued on loans made to the Company by entities affiliated with management.
Reworded paragraphs (12)
Previous wording
In December 2023, following the change to the composition of our Board of Directors on December 14, 2023, we began implementing our business plan. We generated our first consulting revenue in the three months ended March 31, 2024.
Current wording
In December 2023, following the change to the composition of our Board of Directors on December 14, 2023, we began implementing our business plan. We generated our first consulting revenue in the six months ended June 30, 2024.
Previous wording
Comparison of Results of Operations for the Months Ended March 31, 2024 and 2023.
Current wording
Comparison of Results of Operations for the Three Months Ended June 30, 2024 and 2023.
Previous wording
The Company did not generate any revenues during the years ended December 31, 2023 or 2022. During the three months ended March 31, 2024 the Company generated $10,554 in consulting revenue as a result of its recent entry into the AI business. The cost of consulting labor to generate this revenue was $7,841.
Current wording
During the three months ended June 30, 2024 and 2023, the Company generated $61,771 and $0 in consulting revenue as a result of its recent entry into the AI business. During the three months ended June 30, 2024 and 2023, the cost of consulting labor to generate this revenue was $46,418 and $0, respectively.
Previous wording
During the three months ended March 31, 2024 the Company incurred $197,501 in operating expenses compared to $2,726 in operating expenses during the prior three months ended March 31, 2023. Operating expenses for the 2023 fiscal year were primarily comprised of legal and accounting fees, Delaware taxes and other fees associated with being a public shell company, and payroll an dbenefits for new employees. The significantly higher level of operating expenses in three months ended March 31, 2024 as compared to the same three months 2023 is attributable to expenses incurred as part of the Company’s entry into the AI business. The Company expects that operating expenses comprised of selling, general and administrative expenses, professional fees, payroll and benefits and rent, will be trend materially higher in future periods as the Company begins paying regular compensation to existing officers and directors, hires additional employees, and incurs other costs associated with the commencement and expansion of operations.
Current wording
During the three months ended June 30, 2024 the Company incurred $458,213 in operating expenses compared to $22,205 in operating expenses during the prior three months ended June 30, 2023. The significantly higher level of operating expenses in three months ended June 30, 2024 as compared to the three months ended June 30, 2023 is attributable to expenses incurred as part of the Company’s entry into the AI business, whereas the Company was an inactive shell company in the 2023 period. The Company expects that operating expenses comprised of selling, general and administrative expenses, professional fees, payroll and benefits and rent, will be trend materially higher in future periods as the Company begins paying regular compensation to existing officers and directors, hires additional employees, and incurs other costs associated with the commencement and expansion of operations.
Previous wording
As a result of the foregoing, during the three months ended March 31, 2024 the Company incurred a net loss of ($199,338), or ($0.01) per share, as compared to a net loss of ($7,322), or ($0.00) per share, during the three months ended March 31, 2023. The increase in the Company’s net loss in the three months ended March 31, 2024 as compared to the months ended March 31, 2023 is attributable to the factors discussed above.
Current wording
As a result of the foregoing, during the three months ended June 30, 2024 the Company incurred a net loss of ($457,582), or ($0.02) per share, as compared to a net loss of ($30,695), or ($0.01) per share, during the three months ended June 30, 2023. The increase in the Company’s net loss in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 is attributable to the factors discussed above.
Previous wording
As of March 31, 2024, the Company had $1,708 in cash on hand.
Current wording
As of June 30, 2024, the Company had $60,233 in cash on hand.
Previous wording
During the three months ended March 31, 2024 the Company had a net loss of ($199,338).
Current wording
During the six months ended June 30, 2024 the Company had a net loss of ($656,920).
Previous wording
Cash flows used in operating activities were ($182,700) for the three months ended March 31, 2024 compared to cash flows used in operating activities ($4,021) for the three months ended March 31, 2023. The material increase in cash flows used in operating activities for the three months compared to the same three month period in 2023 is primarily attributable to a significantly higher net loss in the three months ended March 31, 2024 .
Current wording
Cash flows used in operating activities were ($440,515) for the six months ended June 30, 2024 compared to cash flows used in operating activities ($26,265) for the six months ended June 30, 2023. The material increase in cash flows used in operating activities for the six months compared to the same six month period in 2023 is primarily attributable to a significant increase in operations due to the Company’s entry into the AI business, whereas in the 2023 period the Company was a non-operating shell company.
Previous wording
Cash flows used in investing activities were ($83,523) for the three months ended March 31, 2024 compared to cash flows used in investing activities of $-0- for the three months ended March 31, 2024. The entire increase in cash flows used in investing activities during the three-month 2024 period, as compared to the same three-month period in 2023, is due to the purchase of equipment to be used in our new business.
Current wording
Cash flows used in investing activities were ($101,852) for the six months ended June 30, 2024 compared to cash flows used in investing activities of $-0- for the six months ended June 30, 2024. The entire increase in cash flows used in investing activities during the six-month 2024 period, as compared to the same six-month period in 2023, is due to the purchase of equipment to be used in our new business.
Previous wording
Cash flows provided by financing activities were $250,000 for the three months ended March 31, 2024 compared to cash flows provided by financing activities of $16,000 for the three months ended March 31, 2023. The increase in cash flows provided by financing activities in the three months ended March 31, 2024 is primarily attributable to $250,000 received from the private placement of common stock compared to $-0- in the same period in 2023, partially offset by $16,000 in related party advances in the 2023 period compared to $-0- in 2024.
Current wording
Cash flows provided by financing activities were $584,669 for the six months ended June 30, 2024 compared to cash flows provided by financing activities of $30,000 for the six months ended June 30, 2023. The increase in cash flows provided by financing activities in the six months ended June 30, 2024 is primarily attributable to $455,200 received from the private placement of common stock compared to $-0- in the same period in 2023, and $150,000 received from the issuance of notes in the six months ended June 30, 2024, compared to $30,000 in the six months ended June 30, 2023. Cash flows from investing were partially offset by $20,531 of related party note repayments of $20,531 on related party notes payable in the six months ended June 30, 2024, compared to $-0- in six months ended June 30, 2023.
Previous wording
The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents.
Current wording
The Company considers all highly liquid temporary cash investments with an original maturity of six months or less to be cash equivalents.
Previous wording
In general, the Company’s income tax returns are subject to examination by the taxing authorities for three years after they were filed. The Company has not filed any tax returns.
Current wording
In general, the Company’s income tax returns are subject to examination by the taxing authorities for six years after they were filed. The Company has not filed any tax returns.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Comparison of Results of Operations for the Six Months Ended June 30, 2024 and 2023.
Current report — wording carried from elsewhere
During the six months ended June 30, 2024 and 2023, the Company generated $72,325 and $0 in consulting revenue as a result of its recent entry into the AI business. During the six months ended June 30, 2024 and 2023, the cost of consulting labor to generate this revenue was $54,259 and $0, respectively.
Current report — wording carried from elsewhere
During the six months ended June 30, 2024 the Company incurred $655,713 in operating expenses compared to $24,931 in operating expenses during the prior six months ended June 30, 2023. The significantly higher level of operating expenses in six months ended June 30, 2024 as compared to the six months ended June 30, 2023 is attributable to expenses incurred as part of the Company’s entry into the AI business, whereas the Company was an inactive shell company in the 2023 period. The Company expects that operating expenses comprised of selling, general and administrative expenses, professional fees, payroll and benefits and rent, will be trend materially higher in future periods as the Company begins paying regular compensation to existing officers and directors, hires additional employees, and incurs other costs associated with the commencement and expansion of operations.
Current report — wording carried from elsewhere
As a result of the foregoing, during the six months ended June 30, 2024 the Company incurred a net loss of ($656,920), or ($0.02) per share, as compared to a net loss of ($38,017), or ($0.01) per share, during the six months ended June 30, 2023. The increase in the Company’s net loss in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 is attributable to the factors discussed above.