Thu, Apr 24, 8:06 PM (29 days ago)
**Kinetic Seas Incorporated (KSEZ) 2024 Annual Report Summary** **Company Overview:** Kinetic Seas Incorporated (KSEZ) is an AI consulting, research, and development company. The company was formed in 2015 and has undergone several name changes and reorganizations. The current management team was appointed in December 2023, marking the company's entry into the AI sector. **Financial Performance (in thousands):** - **Revenue:** $210,584 from consulting services. - **Net Income:** $(3,897,122) or $(0.18) per share. - **Operating Expenses:** $3,820,014, primarily legal, accounting, and administrative costs. - **Cash on Hand:** $4,947 as of December 31, 2024. - **Cash Flows:** $(1,072,140) used in operating activities, $(100,178) used in investing activities, and $1,159,334 provided by financing activities. **Strategic Overview:** - **Mission:** Empower businesses to adopt AI through tailored products, education, and consulting. - **Vision:** Lead the evolution of practical AI, making it accessible and meaningful for every organization. - **Products:** Focus on locally deployed AI models, intuitive GUIs, and consulting services. **Future Outlook:** - **Growth Strategy:** Expand AI consulting, training, and product development. - **Market Position:** Aim to build long-term relationships with customers as AI adoption grows. - **Regulatory Environment:** Monitor evolving regulations in AI and ML, which may impact business operations. **Risk Factors:** - **Technological Risks:** Dependence on AI and ML technologies, rapid technological changes, and potential obsolescence. - **Market Risks:** Competition, pricing pressures, and economic downturns. - **Operational Risks:** Dependence on key personnel, cybersecurity threats, and supply chain disruptions. - **Financial Risks:** Need for additional financing, potential dilution of shareholder value, and going concern risks. **Financial Condition:** - **Liquidity:** Insufficient working capital to fund operations over the next 12 months. - **Capital Requirements:** Need substantial capital to carry out business plans and may face challenges in raising additional funds. - **Market Position:** Quoted on the OTC Pink Market with limited trading volume and market value. **Market Position Changes:** - **Stock Performance:** Volatile trading price, with significant fluctuations in response to various factors. - **Shareholder Concentration:** Insiders control approximately 74.5% of outstanding common shares, which may limit minority shareholder influence. **Conclusion:** Kinetic Seas Incorporated is in the early stages of its AI business, facing significant risks and uncertainties. The company's success will depend on its ability to execute its business plan, manage risks, and secure additional financing. The strategic focus on practical AI solutions and long-term customer relationships positions the company for potential growth, but the competitive landscape and regulatory environment present challenges that must be navigated carefully.