Kinetic Seas Inc.
For the period ended Dec 31, 2025. Filed May 29, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed May 29, 2026
KSEZStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-04-24.
0001683168-25-002782
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-05-29.
0001683168-26-004391
Item 7. 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 52 current paragraphs.
36 unchanged; 9 reworded; 7 added; 6 removed; 0 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 (7)
Current report
During the year ended December 31, 2025, the Company generated total revenues of $417,768, consisting of $71,268 in consulting revenue and $346,500 in product sales, compared to $210,584 in consulting revenue during the year ended December 31, 2024. The increase in revenues in fiscal 2025 was attributable to the Company’s continued expansion of its AI-related consulting and technology operations, as well as the commencement of product sales activities.
Current report
Cost of sales for consulting labor was $66,749 during the year ended December 31, 2025, compared to $157,776 during the year ended December 31, 2024. Gross profit increased to $351,019 during fiscal 2025, compared to gross profit of $52,808 during fiscal 2024. The improvement in gross margin was primarily attributable to higher revenue levels, increased operational efficiencies, and the addition of higher-margin product sales during fiscal 2025.
Current report
During the year ended December 31, 2025, the Company incurred operating expenses of $1,553,681, compared to $3,820,014 in operating expenses during the year ended December 31, 2024. Operating expenses for fiscal 2025 were primarily comprised of selling, general and administrative expenses, professional fees, payroll and benefits, investor relations, legal and accounting fees, and costs associated with operating as a public company and expanding the Company’s AI business initiatives.
Current report
The decrease in operating expenses during fiscal 2025 as compared to fiscal 2024 was primarily attributable to lower professional fees, reduced stock-based and startup-related expenses, and management’s continued efforts to control operating costs while scaling operations.
Current report
During the year ended December 31, 2025, the Company recorded total other expense of $32,565, compared to other expense of $129,916 during the year ended December 31, 2024. Other income and expense during fiscal 2025 consisted primarily of $110,502 in interest expense offset by $65,540 of investment income and the gain on debt extinguishment of $12,396. In fiscal 2024, other expense consisted primarily of interest accrued on loans made to the Company by entities affiliated with management. The decrease in net other expense during fiscal 2025 was primarily attributable to lower financing costs and the recognition of investment income and gain on debt extinguishment.
Current report
Cash flows used in operating activities were $(553,929) for the year ended December 31, 2025, compared to cash flows used in operating activities of $(1,072,139) for the year ended December 31, 2024. The decrease in cash flows used in operating activities during fiscal 2025 was primarily attributable to $2,387,000 in non-cash stock-based compensation expense, partially offset by the Company’s net loss of $(1,235,227) and decreases in accrued liabilities of $(1,483,047). Additional changes in operating assets and liabilities included decreases in deferred revenue of $(346,500), prepaid expenses of $(43,750), and accounts payable of $(18,191), partially offset by increases in other non-current liabilities of $71,900 and accrued interest of $21,731.
Current report
Cash flows provided by financing activities were $556,749 for the year ended December 31, 2025, compared to cash flows provided by financing activities of $1,159,333 for the year ended December 31, 2024. Cash flows provided by financing activities during fiscal 2025 consisted primarily of $255,000 in proceeds from the issuance of common stock for cash, $252,858 in proceeds from notes payable, and $56,501 in proceeds from related party notes, partially offset by repayments of related party notes of $(15,682). The decrease in financing cash flows during fiscal 2025 compared to fiscal 2024 was primarily attributable to lower proceeds received from equity financings.
Removed paragraphs (6)
Previous report
Comparison of Results of Operations for Years Ended December 31, 2024 and 2023.
Previous report
During the year ended December 31, 2024 the Company emerged from shell status and generated $210, 584 in consulting revenue compared to $-0- during the year ended December 31, 2023. Cost of sales for consulting labor was $157,776 for the year ended December 31, 2024 compared to $-0- in 2023. All of our revenue for the year ended December 31, 2024 came from one customer. Loss of this customer could have a material adverse impact on the Company’s operations.
Previous report
During the year ended December 31, 2024 the Company incurred $3,820,014 in operating expenses compared to $121,538 in operating expenses during the prior year ended December 31, 2023. Operating expenses for the 2024 fiscal year were primarily comprised of legal and accounting fees, investor relation services, salaries, Delaware taxes and other fees associated with being a public company. The higher level of operating expenses in fiscal 2024 as compared to fiscal 2023 is attributable to expenses incurred as part of the Company’s entry into the Ai business. The Company expects that operating expenses 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 of operations.
Previous report
During the year ended December 31, 2024 the Company incurred $129,916 in other expenses, as compared to $39,424 of other expenses during the prior year ended December 31, 2023. In each year, other expenses consisted of interest accrued on loans made to the Company by entities affiliated with management. The higher level of interest expense in fiscal 2024 as compared to fiscal 2023 is attributable to higher loan balances in 2023 as the Company borrowed money to finance its ongoing general and administrative expenses.
Previous report
Cash flows used in operating activities were ($1,072,140) for the year ended December 31, 2024 compared to cash flows used of ($133,719) for the year ended December 31, 2023. The increase in cash flows used in operating activities for fiscal 2024 compared to fiscal 2023 is primarily attributable to a higher net loss in fiscal 2024.
Previous report
Cash flows provided by financing activities were $1,159,334 for the year ended December 31, 2024 compared to cash flows provided by financing activities of $163,600 for the year ended December 31, 2023. The increase in cash flows provided by financing activities during the year ended December 31, 2024 compared to December 31, 2023 is primarily attributable to $911,050 received from the private placement of common stock and $231,164 in the 2024 period compared to $71,600 in proceeds from common stock issued for cash and $92,000 in advances by related parties in the 2023 period.
Reworded paragraphs (9)
Previous wording
During the year ended December 31, 2024 the Company incurred a net loss of $(3,897,122) or ($0.18) per share, as compared to a net loss of $160,962, or ($0.03) per share, during the prior year ended December 31, 2023. The increase in the Company’s net loss in fiscal 2024 as compared to fiscal 2023 is attributable to the factors discussed above.
Current wording
During the year ended December 31, 2025, the Company incurred a net loss of $(1,235,227), or $(0.05) per share, compared to a net loss of $(3,897,121), or $(0.18) per share, during the year ended December 31, 2024. The decrease in the Company’s net loss during fiscal 2025 was primarily attributable to increased revenues, improved gross margins, lower operating expenses, and reduced net financing costs compared to the prior year.
Previous wording
As of December 31, 2024, the Company had $4,947 in cash on hand.
Current wording
As of December 31, 2025, the Company had a cash on hand of $7,767 compared to cash on hand of $4,947 as of December 31, 2024.
Previous wording
During the year ended December 31, 2024 the Company had a net loss of ($3,897,122).
Current wording
During the year ended December 31, 2025, the Company had a net loss of $(1,235,227).
Previous wording
Cash flows used in investing activities were ($100,178) for the year ended December 31, 2024 compared to cash flows used in investing activities of $13,326 for the year ended December 31, 2023. The entire increase during the fiscal 2024 period compared to fiscal 2023 in cash flows used by investing activities is due to the purchase of equipment to be used in our new of business.
Current wording
Cash flows used in investing activities were $0 for the year ended December 31, 2025, compared to cash flows used in investing activities of $(100,178) for the year ended December 31, 2024. There were no significant investing activities during fiscal 2025.
Previous wording
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 a business plan and commencement of operations.
Current wording
Management intends to fund our working capital requirements through a combination of revenues generated from operations and future issuances of debt or equity securities. Our working capital requirements are expected to increase in line with the continued implementation of our business plan, expansion of operations, and growth of the Company’s AI and technology-related business activities.
Previous wording
Based upon 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 carryout 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.
Current wording
Based upon our current operations, we may require additional working capital to fund operations over the next 12 months. The Company requires substantial capital to carry out its current business plan, and there can be no assurance that additional capital will be available on acceptable terms, if at all. Any future capital raises may be dilutive to existing shareholders or contain terms unfavorable to the Company and its shareholders.
Previous wording
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.
Current wording
Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities may 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 business opportunities, which could materially and adversely affect our business operations.
Previous wording
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.
Current wording
We anticipate that we may continue to incur operating losses as we expand our operations and invest in the growth of our business. Our prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in their growth and development stage. Such risks for us include, but are not limited to, an evolving and unpredictable business model, recognition of revenue sources, management of growth, competition, and the ability to attract and retain qualified personnel. There can be no assurance that we will be successful in addressing such risks, and failure to do so could have a material adverse effect on our business prospects, financial condition, and results of operations.
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 August 31, 2021 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.