Kinetic Seas Reports Q1 2025 Financial Results with Increased Revenue but Net Loss

Kinetic Seas Incorporated reported its financial results for the first quarter of 2025, revealing a consulting revenue of $67,871, a significant increase from $10,554 in the same period of 2024. The cost of consulting labor also rose to $57,162 from $7,841 year-over-year, resulting in a gross margin of $10,708 compared to $2,713 in the prior year. Despite the increase in revenue, the company incurred a net loss of $223,891, slightly higher than the $199,338 loss reported in the first quarter of 2024. The loss per share remained consistent at $(0.01) for both periods.

The company experienced notable changes in its financial position compared to the previous fiscal period. Total assets decreased to $165,676 as of March 31, 2025, down from $190,417 at the end of 2024. Current liabilities also saw a reduction, totaling $1,349,148 compared to $2,212,497 at the end of the previous year. The stockholders' deficit improved to $(1,183,472) from $(2,022,081), reflecting a shift in the company's capital structure following a series of stock issuances and conversions.

Strategically, Kinetic Seas has undergone significant organizational changes, including a merger with Oncology Med, Inc. in January 2025, which has positioned the company to focus on artificial intelligence (AI) consulting and GPU cloud hosting. The company appointed new directors and issued a substantial number of shares to them and new employees, which has resulted in a shift in control. The company is now concentrating on five segments within the AI space, with an emphasis on education and training to facilitate the integration of AI technologies into existing businesses.

Operationally, Kinetic Seas reported a decrease in cash flow used in operating activities, amounting to $(90,423) for the first quarter of 2025, compared to $(182,700) in the same period of 2024. The company had no cash on hand as of March 31, 2025, and is actively seeking additional funding to support its operations. The total employee headcount has increased as the company expands its workforce to support its new business model. The company anticipates that operating expenses will trend higher as it hires additional personnel and incurs costs associated with its growth strategy.

Looking ahead, Kinetic Seas acknowledges the need for substantial capital to fund its operations and growth initiatives. The company plans to explore various financing options, including private placements of common stock and loans, to address its working capital requirements. However, management has expressed uncertainty regarding the availability of additional financing on acceptable terms, which could impact the company's ability to execute its business plan and achieve profitability in the future.