Mon, Aug 19, 12:01 PM (26 days ago)
Kinetic Seas Incorporated's Q2 2024 report reveals significant operational changes following its transition from a shell company to an active AI consulting firm. For the quarter ending June 30, 2024, the company reported consulting revenues of $61.8K, marking its first revenue generation, with a gross margin of $15.4K. However, operating expenses surged to $458.2K, primarily due to the costs associated with entering the AI sector, leading to a net loss of $457.6K, compared to a loss of $30.7K in Q2 2023. Cash flow analysis indicates a net cash increase of $42.3K, with $584.7K generated from financing activities, including a private placement of common stock. The company maintains a cash position of $60.2K. Despite this, a working capital deficit of $488.2K raises concerns about its ability to sustain operations without additional funding. The report emphasizes uncertainties related to future financing and operational viability, highlighting the need for strategic capital raises to support continued growth in the AI market.