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Kinetic Seas Inc.

CIK: 19456192 Annual ReportsLatest: 2025-04-24

10-K / April 24, 2025

Revenue:$210,584
Income:-$3,897,122

10-K / April 10, 2024

Revenue:N/A
Income:-$160,962

10-K / April 24, 2025

Kinetic Seas Incorporated - Company Overview

Industry Focus

Kinetic Seas Incorporated is an Artificial Intelligence (AI) consulting, research and development (R&D), software, and infrastructure company. The firm primarily focuses on delivering practical, locally deployed AI solutions to help businesses integrate AI into their operations.

Business Model

The company's business model is structured around several interconnected service areas:

  1. Consulting Services: Offering strategic consulting, project execution, and infrastructure planning. They do not provide staff augmentation but instead focus on delivering fully integrated solutions that are scalable and sustainable.

  2. Training and Education: Providing training opportunities, including both free and paid learning resources, to engage with clients and form long-term relationships.

  3. Product Development: Building AI software powered by locally deployed models, emphasizing supervised fine-tuning and advanced prompt engineering, which ensures applications are user-friendly and accessible to non-technical staff.

  4. Partnerships and Incubation Services: Assisting early-stage AI companies with consulting, infrastructure guidance, and go-to-market strategies.

Customers

As of December 31, 2024, the company has one primary customer. This reliance on a single client poses risks as the loss of this customer could significantly impact its operational stability and revenue.

Employees

Kinetic Seas employs a minimal workforce. As of April 24, 2024, it had only two employees, both serving in executive roles. The company may consider hiring additional employees as it expands its operations.

Financial Overview

Revenue

In the fiscal year ended December 31, 2024, Kinetic Seas generated:

  • Consulting Revenue: $210,584
  • Cost of Sales (Consulting Labor): $157,776
  • Gross Margin: $52,808

Operating Expenses

For the same period, the company incurred significant operating expenses:

  • Total Operating Expenses: $3,820,014, primarily consisting of legal and accounting fees, investor relations services, salaries, and taxes associated with public company status.

Net Income (Loss)

The company reported a net loss of:

  • Net Loss for 2024: $(3,897,122), which translates to a loss of ($0.18) per share.
  • For comparison, the net loss in the prior year (2023) was $(160,962) or ($0.03) per share.

Liquidity

As of December 31, 2024, Kinetic Seas had:

  • Cash on Hand: $4,947
  • Total Liabilities: $2,212,497, with a working capital deficit of $2,125,977.

The company relies heavily on external funding to support operations and may face challenges in generating sufficient cash flow to sustain its business model sustainably.

Conclusion

Kinetic Seas Incorporated is currently navigating the transition from a shell company to a viable business in the AI space amid ongoing investments and development efforts. The firm recognizes the significant risks stemming from its current reliance on one customer and its financial precariousness. Moving forward, successful capital raising and client diversification will be crucial for the company's sustainability and growth in the rapidly evolving AI sector.