Kinetic Seas Inc.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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, 2025 · Filed Aug 14, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001683168-25-003702
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001683168-25-006167
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 53 previous paragraphs and 64 current paragraphs.
43 unchanged; 10 reworded; 6 added; 0 removed; 0 previous and 5 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, 2025, and 2024, we generated $-0- and $61,771 in consulting revenue from the AI business. During the three months ended June 30, 2025, we did not generate any revenue because we were transitioning to offer a new type of AI consulting service to address the rapidly change AI marketplace. We believes that we will begin generating revenue from this new AI consulting service offering. However, there can be no assurance that we will be successful in doing so. Since we remain in start-up mode, the amount of revenues will vary from period to period.
Current report
Revenues
Current report
During the six months ended June 30, 2025, and 2024, we generated $67,871 and $72,325 in consulting revenue from the AI business. During the three months ended June 30, 2025, we did not generate any revenue because we were transitioning to offer a new type of AI consulting service to address the rapidly changing AI marketplace. We believes that we will begin generating revenue from this new AI consulting service offering. However, there can be no assurance that we will be successful in doing so. Since we remain in start up mode, the amount of revenues will vary from period to period.
Current report
Operating Expenses
Current report
Other (Expense)
Reworded paragraphs (10)
Previous wording
On December 14, 2023, the Board of Directors approved a resolution to enter the business of artificial intelligence hosting, research & development, and consulting (collectively, “AI”), and since has entered into a number of contracts and raised a material amount of capital from the private placement of its common stock to capitalize the business. As a result, the Company believes it no longer qualifies as a shell company.
Current wording
On December 14, 2023, the Board of Directors approved a resolution to enter the business of artificial intelligence hosting, research & development, and consulting (collectively, “AI”), and since has entered into several contracts and raised a material amount of capital from the private placement of its common stock to capitalize the business. As a result, the Company believes it no longer qualifies as a shell company.
Previous wording
We have identified five basic segments of our AI business: technical consulting; GPU infrastructure and rental (Kinetic Cloud); open source software and libraries; software and platform as a service (SaaS/PaaS); and education and training. We are focusing our initial efforts on our education and training segment, which is targeted toward educating and training existing non-AI businesses in how they incorporate AI technology to optimize the performance of their existing business. We believe that developing a respected education and training business will create a natural sales channel for our other segments, such as consulting and GPU hosting and rental. Secondarily, we are marketing our consulting and implementation services to the growing body of AI startups who may lack the in-house expertise to implement their AI business.
Current wording
We have identified five basic segments of our AI business: technical consulting; GPU infrastructure and rental (Kinetic Cloud); open source software and libraries; software and platform as a service (SaaS/PaaS); and education and training. We are focusing our initial efforts on our education and training segment, which is targeted toward educating and training existing non-AI businesses in how they incorporate AI technology to optimize the performance of their existing business. We believe that developing a respected education and training business will create a natural sales channel for our other segments, such as consulting and GPU hosting and rental. Secondarily, we are marketing our consulting and implementation services to the growing body of AI startups that may lack the in-house expertise to implement their AI business.
Previous wording
During the three months ended March 31, 2025, and 2024, the Company generated $67,871 and $10,554 in consulting revenue as a result of its recent entry into the AI business. During the three months ended March 31, 2025, and 2024, the cost of consulting labor to generate this revenue was $57,162 and $7,841, respectively.
Current wording
During the three months ended June 30, 2025, and 2024, the cost of consulting labor was $12,977 and $46,418, respectively.
Previous wording
During the three months ended March 31, 2025, the Company incurred $204,352 in operating expenses compared to $197,501 in operating expenses during the same three months ended March 31, 2024. The Company expects that operating expenses comprised of selling, general and administrative expenses, professional fees, payroll and benefits, and rent, will be trending 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, 2025, we incurred $965,044 in operating expenses compared to $458,213 in operating expenses during the same three months ended June 30, 2024. Operating expense in the 2025 period include $880,499 in non-cash, stock based compensation for services compared to $2,000 in the 2024. We expects that operating expenses comprised of selling, general and administrative expenses, professional fees, payroll and benefits, and rent, will be trending materially higher in future periods as we begin 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 March 31, 2025, the Company incurred $30,247 in other expenses, as compared to $4,550 in other expenses during the three months ended March 31, 2024. In both periods, all of the other expenses consisted of interest expense on outstanding loans. The increase in interest expense is attributable to higher levels of borrowing in 2025.
Current wording
During the three months ended June 30, 2025, we incurred $40,757 in other expenses, as compared to $14,723 in other expenses during the three months ended June 30, 2024. In both periods, all of the other expenses consisted solely of interest expense on outstanding loans. The increase in interest expense is attributable to higher levels of borrowing in 2025.
Previous wording
As a result of the foregoing, during the three months ended March 31, 2025, the Company incurred a net loss of $(223,891), or $(0.01) per share, compared to a net loss of $(199,338), or $(0.01) per share during the three months ended March 31, 2024.
Current wording
As a result of the foregoing, during the three months ended June 30, 2025, we incurred a net loss of $(1,018,777), or $(0.02) per share, compared to a net loss of $(457,582), or $(0.02) per share during the three months ended June 30, 2024.
Previous wording
During the three months ended March 31, 2025, the Company had a net loss of $(223,891).
Current wording
During the six months ended June 30, 2025, the Company had a net loss of $(1,242,668).
Previous wording
Cash flows used in operating activities were $(90,423) for the three months ended March 31, 2025, compared to cash flows used in operating activities $(182,700) for the three months ended March 31, 2024. The decrease in cash flows used in operating activities for the three months ended March 31, 2025, compared to the same three-month period in 2024 is primarily attributable to changes in assets and liabilities.
Current wording
Cash flows used in operating activities were $(189,112) for the six months ended June 30, 2025, compared to cash flows used in operating activities $(440,515) for the six months ended June 30, 2024. The decrease in cash flows used in operating activities for the six months ended June 30, 2025, compared to the same six-month period in 2024, is primarily attributable to changes in assets and liabilities, and a reduction in the operating loss, net of stock-based compensation in 2025.
Previous wording
Cash flows used in investing activities were $-0- for the three months ended March 31, 2025, compared to cash flows used in investing activities of ($83,523) 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 2024, is due to the purchase of equipment in the 2024 period.
Current wording
Cash flows used in investing activities were $-0- for the six months ended June 30, 2025, compared to cash flows used in investing activities of ($101,852) for the six months ended June 30, 2024. The entire increase in cash flows used in investing activities during the six month period 2024, as compared to the same six month period in 2024, is due to the purchase of equipment in the 2024 period.
Previous wording
Cash flows provided by financing activities were $85,476 for the three months ended March 31, 2025, compared to $250,000 in cash flows provided by financing activities for the three months ended March 31, 2024. The decrease in cash flows provided by financing activities in the three months ended March 31, 2025, is primarily attributable to $21,502 in proceeds from related party notes and $65,750 in proceeds for notes payable during the 2025 period compared to $250,000 in proceeds from the sale of common stock during the 2024 period.
Current wording
Cash flows provided by financing activities were $184,166 for the six months ended June 30, 2025, compared to $584,669 in cash flows provided by financing activities for the six months ended June 30, 2024. The decrease in cash flows provided by financing activities in the six months ended June 30, 2025, is primarily attributable to a reduction of $405,200 in proceeds from the sale of common stock and the reduction of loans of $70,560, offset by an increase in related party loans of $54,726 during the six months ended June 30, 2025.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Comparison of Results of Operations for the Six Months Ended June 30, 2025 and 2024.
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, and 2024, the cost of consulting labor to generate this revenue was $70,139 and $54,259, respectively.
Current report — wording carried from elsewhere
During the six months ended June 30, 2025, we incurred $1,169,397 in operating expenses compared to $655,714 in operating expenses during the same three months ended June 30, 2024. Operating expense in the 2025 period include $880,499 in non-cash stock based compensation for services compared to $2,000 in the 2024. We expects that operating expenses comprised of selling, general and administrative expenses, professional fees, payroll and benefits, and rent, will be trending materially higher in future periods as we begin 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
During the six months ended June 30, 2025, we incurred $71,003 in other expenses, as compared to $19,273 in other expenses during the three months ended June 30, 2024. In both periods, all of the other expenses consisted solely of interest expense on outstanding loans. The increase in interest expense is attributable to higher levels of borrowing in 2025.
Current report — wording carried from elsewhere
As a result of the foregoing, during the six months ended June 30, 2025, we incurred a net loss of $(1,242,668), or $(0.03) per share, compared to a net loss of $(656,920), or $(0.01) per share during the six months ended June 30, 2024.