Kinetic Seas Incorporated reported its financial results for the first quarter of 2026, revealing a total revenue of $545,645, a significant increase from $67,871 in the same period of 2025. This growth was driven by $519,750 in product sales, marking the company's first revenue from product sales, alongside $25,895 in consulting revenue. The gross margin for the quarter was $545,645, compared to $10,708 in the prior year, reflecting a shift in the company's operational focus and the successful launch of new product lines.
The company's net loss for the quarter was $1,375,608, or $(0.03) per share, which is a notable increase from a net loss of $223,891, or $(0.01) per share, in the first quarter of 2025. The increase in net loss was primarily attributed to a non-cash loss on debt extinguishment amounting to $1,602,602, as well as higher operating expenses related to professional fees and public company compliance costs. Operating expenses rose to $363,246 from $204,352 year-over-year, driven by increased costs associated with the company's growth initiatives.
Kinetic Seas has undergone significant strategic changes, including a shift in its business model to focus on artificial intelligence (AI) consulting and software development. The company appointed a new board of directors in December 2023, which has since facilitated the acquisition of capital through private placements and the launch of its Skilliks™ platform. This platform is designed to assist clients in evaluating their software development needs and implementing AI solutions, thereby enhancing operational efficiency.
Operationally, Kinetic Seas has made strides in expanding its customer base and geographic reach. The company is collaborating with Sagtec Global Limited to develop AI solutions for the Southeast Asian market, which serves over 13,000 food and beverage locations. This partnership is expected to enhance the adoption of Kinetic Seas' AI-enabled solutions and contribute to its market share in the region. As of March 31, 2026, the company had 57,145,926 shares of common stock outstanding, an increase from 52,789,000 shares at the end of 2025, reflecting ongoing capital-raising efforts.
Looking ahead, Kinetic Seas anticipates continued operating losses as it invests in technology development and growth initiatives. The company has acknowledged that it does not currently generate sufficient cash flow to fund its operations over the next twelve months and will need to secure additional financing. Management plans to pursue various funding avenues, including private placements and strategic partnerships, to support its operational and growth objectives. However, there is no assurance that such financing will be available on acceptable terms, which could impact the company's ability to execute its business strategy effectively.
About Kinetic Seas Inc.
Kinetic Seas Incorporated specializes in AI consulting, research, and software development, focusing on practical, locally deployed AI solutions for businesses of all sizes. Its offerings include strategic consulting, training, custom AI software powered by fine-tuned local Large Language Models, and incubation services for early-stage AI companies. The company emphasizes secure, private AI applications with user-friendly interfaces, targeting enterprises seeking scalable, integrated AI adoption without reliance on cloud platforms.
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