Kinetic Seas Inc
For the period ended Sep 30, 2024. Filed Nov 14, 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.
Sep 30, 2024 · Filed Nov 14, 2024
KSEZStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001683168-24-008124
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 60 previous paragraphs and 61 current paragraphs.
38 unchanged; 18 reworded; 4 added; 4 removed; 0 previous and 1 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 (4)
Current report
Other (Expense)
Current report
Net (Loss)
Current report
Other (Expense)
Removed paragraphs (4)
Previous report
Other Income (Expense)
Previous report
Net Income (Loss)
Previous report
Other Income (Expense)
Previous report
Net Income (Loss)
Reworded paragraphs (18)
Previous wording
On December 14, 2023, our Board of Directors approved the appointment of Edward Honour, Jeffrey Lozinski, Joseph Lehman, and Robert Jackson to the Board of Directors of the Company, and appointed Edward Honour as Chairman (the “New Directors”). Erik Nelson remained a director of the Company. At the same time, the Board of Directors approved the issuance of 21,600,000 shares of common stock in the Company’s offering at $0.001 per share, of which 19,950,000 were acquired by the New Directors and the remainder were acquired by new employees. In addition, the Board of Directors also approved a private offering of 10,000,000 shares of common stock at $0.05 per share, and the spouse of a New Director purchased the initial 1,000,000 shares in such offering. As a result of both transactions, the New Directors and their affiliates acquired an aggregate of 20,950,000 Shares of common stock in the Company, which is control of a majority of the issued and outstanding common shares of the Company at the time.
Current wording
On December 14, 2023, our Board of Directors approved the appointment of Edward Honour, Jeffrey Lozinski, Joseph Lehman, and Robert Jackson to the Board of Directors of the Company, and appointed Edward Honour as Chairman (the “New Directors”). Erik Nelson remained a director of the Company. At the same time, the Board of Directors approved the issuance of 21,600,000 shares of common stock in the Company’s offering at $0.001 per share, of which 19,950,000 were acquired by the New Directors and the remainder were acquired by new employees. In addition, the Board of Directors also approved a private offering of 10,000,000 shares of common stock at $0.05 per share, and the spouse of a New Director purchased the initial 1,000,000 shares in such an offering. As a result of both transactions, the New Directors and their affiliates acquired an aggregate of 20,950,000 Shares of common stock in the Company, which is control of a majority of the issued and outstanding common shares of the Company at the time.
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 six months ended June 30, 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 three months ended March 31, 2024.
Previous 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.
Current wording
During the three months ended September 30, 2024 and 2023, the Company generated $64,966 and $-0- in consulting revenue as a result of its recent entry into the AI business. During the three months ended September 30, 2024 and 2023, the cost of consulting labor to generate this revenue was $52,490 and $-0-, respectively.
Previous 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.
Current wording
During the three months ended September 30, 2024 the Company incurred $1,055,870 in operating expenses compared to $17,345 in operating expenses during the prior three months ended September 30, 2023. The significantly higher level of operating expenses in three months ended September 30, 2024 as compared to the three months ended September 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, and $750,000 in non-cash stock-based compensation incurred in the 2024 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
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 wording
During the three months ended September 30, 2024 the Company incurred $10,125 in other expenses, as compared to $10,681 of other expenses during the three months ended September 30, 2023. In both periods, all of the other expenses consisted of interest expense on outstanding loans.
Previous 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.
Current wording
As a result of the foregoing, during the three months ended September 30, 2024 the Company incurred a net loss of $(1,053,518), or $(0.06) per share, compared to a net loss of $(28,027), or $(0.01) per share during the three months ended September 30, 2023. The increase in the Company’s net loss in the three months ended September 30, 2024 compared to the three months ended September 30, 2023 is attributable to the factors discussed above.
Previous wording
Comparison of Results of Operations for the Six Months Ended June 30, 2024 and 2023.
Current wording
Comparison of Results of Operations for the Nine Months Ended September 30, 2024 and 2023.
Previous wording
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 wording
During the nine months ended September 30, 2024 and 2023, the Company generated $137,291 and $-0- in consulting revenue as a result of its recent entry into the AI business. During the nine months ended September 30, 2024 and 2023, the cost of consulting labor to generate this revenue was $106,749 and $-0-, respectively.
Previous wording
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 wording
During the nine months ended September 30, 2024 the Company incurred $1,711,583 in operating expenses compared to $42,227 in operating expenses during the prior nine months ended September 30, 2023. The significantly higher level of operating expenses in the nine months ended September 30, 2024, as compared to the nine months ended September 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, and $752,000 in stock-based compensation incurred in the 2024 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
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 wording
During the nine months ended September 30, 2024 the Company incurred $29,397 in other expenses, as compared to $23,767 of other expenses during the nine months ended September 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.
Previous wording
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.
Current wording
As a result of the foregoing, during the nine months ended September 30, 2024 the Company incurred a net loss of $(1,710,438) or $(0.07) per share, as compared to a net loss of $(66,044), or $(0.01) per share, during the nine months ended September 30, 2023. The increase in the Company’s net loss in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 is attributable to the factors discussed above.
Previous wording
As of June 30, 2024, the Company had $60,233 in cash on hand.
Current wording
As of September 30, 2024, the Company had $13,969 in cash on hand.
Previous wording
During the six months ended June 30, 2024 the Company had a net loss of ($656,920).
Current wording
During the nine months ended September 30, 2024 the Company had a net loss of $(1,730,667).
Previous 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.
Current wording
Cash flows used in operating activities were $(853,954) for the nine months ended September 30, 2024 compared to cash flows used in operating activities $(52,442) for the nine months ended September 30, 2023. The material increase in cash flows used in operating activities for the nine months compared to the same nine 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 ($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.
Current wording
Cash flows used in investing activities were $(100,178) for the nine months ended September 30, 2024 compared to cash flows used in investing activities of -0- for the nine months ended September 30, 2024. The entire increase in cash flows used in investing activities during the nine-month 2024 period, as compared to the same nine-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 $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.
Current wording
Cash flows provided by financing activities were $950,169 for the nine months ended September 30, 2024 compared to $55,000 in cash flows provided by financing activities for the nine months ended September 30, 2023. The increase in cash flows provided by financing activities in the nine months ended September 30, 2024 is primarily attributable to $786,050 received from the private placement of common stock compared to $-0- in the same period in 2023, and $200,000 received from the issuance of notes in the nine months ended September 30, 2024, compared to $-0- in the nine months ended September 30, 2023, offset by principal reductions of some notes.
Previous wording
The Company considers all highly liquid temporary cash investments with an original maturity of six months or less to be cash equivalents.
Current wording
The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents.
Previous wording
Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by ASC Topic 260, “Earnings per Share.” Basic earnings per common share calculations are determined by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income (loss) by the weighted average number of common shares and dilutive common share equivalents outstanding. As of June 30, 2024 there were no common stock equivalents that were dilutive.
Current wording
Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by ASC Topic 260, “Earnings per Share.” Basic earnings per common share calculations are determined by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income (loss) by the weighted average number of common shares and dilutive common share equivalents outstanding. As of
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
September 30, 2024 there were no common stock equivalents that were dilutive.