Kinetic Seas Reports Significant Financial Losses and Revenue Decline in Latest Quarter

Kinetic Seas Incorporated reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no consulting revenue during the quarter, a stark decline from $61,771 in the same period last year. For the six months ending June 30, 2025, total consulting revenue was $67,871, down from $72,325 in the prior year. The company attributed the lack of revenue to a transition in its service offerings aimed at addressing the evolving artificial intelligence (AI) market.

The financial performance of Kinetic Seas showed a net loss of $1,018,777 for the three months ended June 30, 2025, compared to a loss of $457,582 in the same quarter of 2024. For the six-month period, the net loss increased to $1,242,668 from $656,920 year-over-year. Operating expenses surged to $965,044 in the second quarter of 2025, up from $458,213 in the previous year, largely due to increased professional fees and stock-based compensation, which accounted for $880,499 in the latest quarter.

In terms of strategic developments, Kinetic Seas underwent a significant organizational change with the appointment of new directors in December 2023, which included a shift in focus towards AI consulting and infrastructure. The company has identified five segments within its AI business, with an emphasis on education and training as a primary market entry point. This strategic pivot aims to leverage the growing demand for AI solutions among non-AI businesses.

Operationally, Kinetic Seas reported a total of 48,829,000 shares of common stock outstanding as of June 30, 2025, a substantial increase from 16,329,000 shares at the end of 2024. The company’s total assets rose to $233,694, compared to $190,417 at the end of the previous fiscal year, while total liabilities decreased significantly from $2,212,497 to $1,312,693. The reduction in liabilities was primarily due to a decrease in accrued liabilities, which fell from $1,483,587 to $139,459.

Looking ahead, Kinetic Seas faces substantial challenges in securing the necessary capital to fund its operations, as it currently has no cash on hand and an accumulated deficit of $6,257,588. The company is exploring various financing options, including private placements and loans, to support its business model and operational needs. Management anticipates continued operating losses in the coming year, emphasizing the need for effective execution of its business strategy to navigate the competitive landscape of the AI industry.