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Kinetic Seas Inc. (KSEZ0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing consulting revenue of $64,966, with a cost of consulting labor of $52,490. This marks the company's entry into the AI business.
Operating expenses for the quarter were $1,055,870, compared to $17,345 in the same quarter the previous year. This increase is attributed to the company's transition from a shell company to an active AI business.
The company reported a net loss of $1,053,518 for the quarter, or $0.06 per share, compared to a net loss of $28,027, or $0.01 per share, in the previous year.
Cash used in operating activities was $853,954 for the nine months ended September 30, 2024, compared to $52,442 in the same period of 2023. This increase is due to heightened operations following the company's entry into the AI sector.
Cash provided by financing activities was $950,169 for the nine months ended September 30, 2024, primarily from private placement of common stock and issuance of notes.
Kinetic Seas had $13,969 in cash as of September 30, 2024. The company acknowledges substantial doubt about its ability to continue as a going concern without additional financing.
The filing also details related party transactions, including loans from Coral Investment Partners and a $50,000 loan from a director's spouse.
Kinetic Seas issued 19,400 shares of Series A Preferred Stock and 5,500 shares of Series B Preferred Stock during the quarter.
The company plans to focus on AI consulting, GPU infrastructure, software services, and education and training as part of its business strategy.
Management has identified material weaknesses in internal controls, specifically the lack of written documentation of internal control policies and procedures.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kinetic Seas Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.