Kinetic Seas Inc.
For the period ended Sep 30, 2025. Filed Dec 10, 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.
Sep 30, 2025 · Filed Dec 10, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-12-10.
0001683168-25-009033
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 64 previous paragraphs and 64 current paragraphs.
40 unchanged; 6 reworded; 18 added; 16 removed; 2 previous and 0 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 (18)
Current report
Revenues and Cost of sales consulting labor
Current report
During the three months ended September 30, 2025 and 2024, we generated $91,537 and $64,966, respectively, in consulting revenue. The increase in revenue during the 2025 period reflects execution of AI consulting engagements following the strategic repositioning of our service model and the proportional share of the license agreement for Skilliks valued at $2,000,000 over a 5 year term. While we anticipate continued revenue generation from these client engagements, there can be no assurance that future revenue levels will be consistent or that growth will occur. As we remain in early-stage operational development, revenue may fluctuate materially from period to period.
Current report
During the three months ended September 30, 2025 and 2024, cost of consulting labor was $0 and $52,490, respectively. The additional costs of the license agreement will be realized as further development is allocated to the long-term project. During the three months ended September 30, 2024, the Company recognized consulting revenue relating to services that were performed and invoiced under net-30 terms. The related consulting labor was incurred and expensed during the prior quarter ended June 30, 2025, resulting in zero cost of sales associated with this revenue in the current quarter.
Current report
During the three months ended September 30, 2025, we incurred $249,831 in operating expenses, as compared to $1,055,870 during the same period in 2024. The 2024 operating expenses were materially higher due to professional fees and start-up related activities, including consulting and legal costs associated with business formation and market entry. In future periods, operating expenses, including sales, general and administrative expenses, payroll and benefits, and professional fees, may increase as we expand operations, hire personnel, and grow our service delivery capacity.
Current report
Revenues and Cost of sales consulting labor
Current report
During the nine months ended September 30, 2025 and 2024, we generated $159,408 and $137,291 in consulting revenue, respectively. The increase year-over-year reflects a ramp-up in commercial activity following the refinement of our AI consulting service model. However, because we are still in early operational stages, revenue levels may vary significantly in future periods and there is no assurance that revenue growth will continue.
Current report
During the nine months ended September 30, 2025, we incurred $1,419,228 in operating expenses, compared to $1,711,583 for the same period in 2024, The 2024 operating expenses were higher due to professional fees and start-up related activities.
Current report
We expect operating expenses including compensation, professional services, and administrative overhead to continue to increase in future reporting periods as the Company expands its operational footprint, executes strategic growth initiatives, and scales personnel resources.
Current report
During the nine months ended September 30, 2025, we incurred $118,821 in other expenses, compared to $29,397 for the same period in 2024. In both periods, other expense consisted entirely of interest expense. The increase year-over-year is attributable to higher outstanding note balances and the continued accrual of interest during 2025.
Current report
As a result of the foregoing, we recorded a net loss of $(1,448,780) for the nine months ended September 30, 2025, compared to a net loss of $(1,710,438) for the nine months ended September 30, 2024. Basic and diluted loss per share was $(0.03) and $(0.07) respectively.
Current report
During the nine months ended September 30, 2025, the Company recorded a net loss of $(1,448,780).
Current report
Cash flows used in operating activities were $(338,129) for the nine months ended September 30, 2025, compared to $(853,954) for the nine months ended September 30, 2024. The reduced operating cash burn in 2025 was primarily driven by changes in working capital, including increases in accounts payable, accrued interest, accrued liabilities, and stock issued in lieu of cash compensation.
Current report
Cash flows used in investing activities were $0 for the nine months ended September 30, 2025, compared to $(100,178) during the nine months ended September 30, 2024, which consisted solely of equipment purchases in the prior year.
Current report
Cash flows provided by financing activities totaled $333,182 for the nine months ended September 30, 2025, compared to $950,169 for the nine months ended September 30, 2024. The reduction reflects lower stock issuance proceeds and decreased borrowing levels during the 2025 period.
Current report
Management intends to fund operations through external financing, including potential future issuances of equity and/or debt securities. Working capital requirements are expected to increase as operational activity scales, revenue development advances, and headcount expands.
Current report
Based on current operating conditions, the Company does not have sufficient liquidity to sustain operations through the next 12 months. Continued losses, limited cash resources, and dependence on external funding raise substantial doubt regarding the Company’s ability to continue as a going concern. Additional capital will be required, and there is no assurance that financing will be available on acceptable terms, or at all. Any completed financing may be dilutive to existing shareholders or include rights senior to common equity.
Current report
Future issuances of equity or convertible instruments will result in shareholder dilution and may contain features that adversely impact existing holders. If the Company is unable to secure additional financing as needed, its ability to execute its business plan, support growth initiatives, and maintain operations may be materially impaired.
Current report
We expect operating losses to continue over the next twelve months. Successful execution of the business model will require raising capital, increasing revenue generation, expanding personnel, and scaling operations effectively. Failure to achieve these objectives may materially affect financial results, liquidity, and overall business viability.
Removed paragraphs (16)
Previous report
Revenues
Previous 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.
Previous report
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 report
Revenues
Previous 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.
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
During the six months ended June 30, 2025, the Company had a net loss of $(1,242,668).
Previous report
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 report
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 report
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.
Previous report
Management intends to fund our working capital requirements through a combination of our existing funds and future issuances of debt or equity securities. Our working capital requirements are expected to increase in line with the implementation of our business plan and commencement of operations.
Previous report
Based on our current operations, we do not have sufficient working capital to fund our operations over the next 12 months. The Company needs substantial capital to carry out its current business, and there is no assurance that the Company will be able to raise additional capital or that the terms of any capital raise are not dilutive to current shareholders or carry other terms that are unfavorable to the Company and its shareholders.
Previous report
Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences, or privileges senior to our Common Stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.
Previous report
We anticipate that we will incur operating losses in the next 12 months. Our prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in their early stage of development. Such risks for us include, but are not limited to, an evolving and unpredictable business model, recognition of revenue sources, and the management of growth. To address these risks, we must, among other things, develop, implement, and successfully execute our business and marketing strategy, respond to competitive developments, and attract, retain, and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so could have a material adverse effect on our business prospects, financial condition, and results of operations.
Reworded paragraphs (6)
Previous 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.
Current wording
During the three months ended September 30, 2025, we incurred $47,817 in other expenses, compared to $10,125 during the three months ended September 30, 2024. In both periods, other expense consisted solely of interest expense on outstanding loans. The increase in 2025 is attributable to a higher balance of notes payable and related interest accruals.
Previous 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.
Current wording
As a result of the foregoing, during the three months ended September 30, 2025, we incurred a net loss of $(206,111), or <$(0.01) per share, compared to a net loss of $(1,053,518), or $(0.06) per share for the three months ended September 30, 2024.
Previous wording
Comparison of Results of Operations for the Six Months Ended June 30, 2025 and 2024.
Current wording
Comparison of Results of Operations for the Nine Months Ended September 30, 2025 and 2024
Previous wording
During the three months ended June 30, 2025, and 2024, the cost of consulting labor was $12,977 and $46,418, respectively.
Current wording
During the nine months ended September 30, 2025 and 2024, the cost of consulting labor was $70,139 and $106,749, respectively.
Previous wording
As of June 30, 2025, the Company had no cash on hand.
Current wording
As of September 30, 2025, the Company reported no cash on hand and a cash overdraft of $(864).
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
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 September 30, 2025, there were no common stock equivalents that were dilutive.
Rearranged previous paragraphs (2)
Previous report — wording carried 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.
Previous report — wording carried elsewhere
June 30, 2025, there were no common stock equivalents that were dilutive.