Bellatora, Inc. (now Kinetic Seas Incorporated) reported significant financial developments in its latest 10-Q filing for the third quarter of 2024. The company, which focuses on artificial intelligence consulting and related services, generated its first consulting revenue of $64.966 million for the quarter, a notable increase from $0 in Q3 2023. For the nine months ended September 30, 2024, total consulting revenue reached $137.291 million, compared to no revenue in the same period last year.

Despite the revenue growth, the company faced substantial operating losses. Total operating expenses surged to $1.056 million in Q3 2024, up from $17,345 in Q3 2023, primarily due to the costs associated with entering the AI business and $750,000 in non-cash stock-based compensation. The net loss for Q3 2024 was $(1.054 million), compared to a loss of $(28,027) in Q3 2023. For the nine months ended September 30, 2024, the net loss totaled $(1.710 million), significantly higher than the $(66,044) loss reported for the same period in 2023.

The company’s financial position showed a dramatic increase in total assets, which rose to $151.810 million as of September 30, 2024, from $31.072 million at the end of 2023. This increase was largely attributed to the issuance of new shares and capital raised through private placements. Total current liabilities also increased significantly to $487.207 million from $226.584 million at the end of the previous fiscal year, contributing to a total stockholders' deficit of $(335,397) as of September 30, 2024, compared to $(195,512) at the end of 2023.

Cash and cash equivalents decreased to $13.969 million as of September 30, 2024, down from $17.931 million at the end of 2023. The company reported net cash used in operating activities of $(853,954) for the nine months ended September 30, 2024, compared to $(52,442) for the same period in 2023. However, net cash provided by financing activities increased significantly to $950,169 from $55,000 in the prior year, indicating a reliance on external funding to support operations.

Strategically, the company underwent a significant leadership change with the appointment of four new directors in December 2023, who acquired a majority of the issued and outstanding shares. The company has also identified five segments within its AI business and plans to focus on education and training to assist non-AI businesses in adopting AI technologies. Despite these developments, management acknowledged the need for substantial capital to support ongoing operations and anticipates continued operating losses in the coming year.