Kinetic Group Acquires AI Firm Binnops, Faces Profitability Hurdles

TL;DR

KINETIC GROUP's acquisition of BINNOPS is a high-stakes bet on AI, but their history of losses and minimal operations make it a speculative play.

AI Summary

KINETIC GROUP INC., a Nevada corporation formed in June 2014, is a technology holding company focused on digital transformation through AI. For the fiscal year ended September 30, 2024, the company reported an accumulated deficit of $-467,616, indicating a history of losses and a limited operating history. A significant strategic move occurred on November 23, 2023, when KINETIC finalized the acquisition of BINNOPS Technologies US LLC, a profitable AI company specializing in customizable AI solutions like Digital Twins and predictive analytics. KINETIC expects to consolidate Binnops' financials in the second half of 2025. The company has only two employees, Ana Maria Mendez (President and Chairwoman) and Roberto Mora (CFO), and has spent no funds on research and development to date. KINETIC GROUP INC. is classified as an "emerging growth company" and a "smaller reporting company," allowing for reduced disclosure requirements, and had an aggregate market value of voting stock held by non-affiliates of $50,207,900 as of September 26, 2024.

Why It Matters

KINETIC GROUP's acquisition of BINNOPS Technologies US LLC is a pivotal move, signaling a shift from a development-stage entity to an operational AI solutions provider. This could significantly impact investors by introducing a revenue-generating asset, potentially improving the company's historical profitability issues. For employees, particularly the two current executives, the acquisition means a substantial expansion of business scope and operational complexity. Customers of BINNOPS will now be under the KINETIC GROUP umbrella, potentially benefiting from broader strategic direction. In the competitive AI market, this acquisition positions KINETIC GROUP as an early entrant in offering customizable AI solutions, competing with larger, more established tech firms.

Risk Assessment

Risk Level: high — The company has an accumulated deficit of $-467,616 as of September 30, 2024, and explicitly states, "We lack an operating history. There is no assurance our future operations will result in profitable revenues." This, combined with reliance on future financing and only two employees, indicates substantial operational and financial risk.

Analyst Insight

Investors should approach KINETIC GROUP with extreme caution, recognizing its speculative nature. Monitor the consolidation of BINNOPS' financials in H2 2025 for concrete evidence of revenue generation and profitability, as this acquisition is critical to the company's viability.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$0

total Debt

$0

net Income

$-467,616

eps

N/A

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $-467,616 — Accumulated Deficit (As of September 30, 2024, reflecting a history of losses.)
• $50,207,900 — Market Value of Non-Affiliate Voting Stock (As of September 26, 2024, indicating current market valuation.)
• 2 — Number of Employees (As of September 30, 2024, highlighting minimal operational staff.)
• 100% — Ownership Stake (KINETIC's ownership of BINNOPS Technologies US LLC post-acquisition.)
• 26,420,200 — Shares Outstanding (As of August 27, 2025, indicating total common stock shares.)

Key Players & Entities

• KINETIC GROUP INC. (company) — technology holding company
• BINNOPS Technologies US LLC (company) — acquired profitable AI company
• Ana Maria Mendez (person) — President and Chairwoman of KINETIC GROUP INC.
• Roberto Mora (person) — Chief Financial Officer of KINETIC GROUP INC.
• Nevada (regulator) — state of incorporation
• $50,207,900 (dollar_amount) — aggregate market value of non-affiliate voting stock as of September 26, 2024
• September 30, 2024 (date) — fiscal year end
• November 23, 2023 (date) — acquisition finalization date for BINNOPS
• June 6, 2014 (date) — company formation date
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Development Stage Company Status [medium — operational]: Kinetic Group Inc. is classified as a Development Stage Company, meaning it is still devoting substantially all of its efforts to establishing the business. While it has elected to early adopt ASU No. 2014-10 to remove specific reporting requirements, this status implies a limited operating history and ongoing development activities.
• Emerging Growth Company Status [low — regulatory]: As an 'emerging growth company' under the JOBS Act, Kinetic Group benefits from reduced disclosure requirements. However, there is uncertainty whether these reduced requirements will make its common stock less attractive to investors.
• Accumulated Deficit [medium — financial]: The company reported an accumulated deficit of $-467,616 as of September 30, 2024. This indicates a history of losses and a need for continued funding to support operations and growth initiatives.
• Limited Operational Staff [medium — operational]: The company currently has only two employees, Ana Maria Mendez (President and Chairwoman) and Roberto Mora (CFO). This minimal staffing could pose challenges for scaling operations and managing complex business activities.
• No Research and Development Expenditure [low — operational]: To date, Kinetic Group has not reported any funds spent on research and development. This lack of R&D investment may impact its ability to innovate and maintain a competitive edge in the technology sector.

Industry Context

Kinetic Group operates within the rapidly evolving digital transformation and AI technology sector. This industry is characterized by intense innovation, with companies focusing on solutions like AI-driven analytics, digital twins, and smart asset management to enhance enterprise productivity and decision-making. The competitive landscape includes established tech giants and agile startups, all vying to provide cutting-edge AI solutions to both private and public sectors.

Regulatory Implications

As an 'emerging growth company' and 'smaller reporting company,' Kinetic Group benefits from reduced disclosure requirements under the JOBS Act. However, this status may also lead to investor uncertainty regarding the depth of information available. The company's development stage status also influences its financial reporting practices.

What Investors Should Do

1. Monitor the consolidation of BINNOPS Technologies US LLC's financials in H2 2025 for a clearer picture of the combined entity's revenue and profitability.
2. Evaluate the company's strategy for generating revenue post-acquisition, given the current lack of R&D spending and minimal operational staff.
3. Assess the impact of the 'emerging growth company' status on investor perception and potential future capital raising activities.
4. Observe any future R&D investments or operational expansions that could signal growth and competitive positioning.

Key Dates

• 2014-06-06: Company Formation — Marks the inception of Kinetic Group Inc. as a Nevada corporation.
• 2023-04-18: MOU Signed with AI Company — Indicates a strategic move towards acquiring an AI company, signaling a shift in business focus.
• 2023-11-23: Acquisition of BINNOPS Technologies US LLC Finalized — A pivotal event that brought a profitable AI company into Kinetic Group's portfolio, expected to drive future revenue.
• 2024-09-26: Market Value of Non-Affiliate Voting Stock Determined — Establishes the market's valuation of the company's publicly traded shares at $50,207,900.
• 2024-09-30: Fiscal Year End — Reporting period end, with an accumulated deficit of $-467,616 noted.
• 2025-01-01: Expected Consolidation of BINNOPS Financials — The company anticipates integrating BINNOPS' financial results into its own statements in the latter half of 2025, which will significantly impact reported figures.

Glossary

Development Stage Company

A company that has begun its business operations but has not yet generated significant revenue or established a profitable business. Such companies often have limited operating history and are focused on development. (Kinetic Group Inc. is classified as such, impacting its financial reporting and disclosures.)

Emerging Growth Company

A company that has had total annual gross revenues of less than $1 billion during its most recently completed fiscal year. These companies are eligible for certain regulatory and disclosure accommodations under the JOBS Act. (Kinetic Group qualifies for this status, allowing for reduced reporting requirements.)

Accumulated Deficit

The cumulative net losses of a company since its inception, minus any cumulative net gains. It represents the total losses that have not been offset by profits. (Kinetic Group has an accumulated deficit of $-467,616 as of September 30, 2024, indicating a history of net losses.)

Digital Twins

A virtual representation of a physical object, process, or system that is updated with real-time data. They are used for monitoring, analysis, simulation, and prediction. (This is one of the customizable AI solutions offered by BINNOPS Technologies US LLC, a key acquisition for Kinetic Group.)

Predictive Analytics

The use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. (Another core AI solution offered by BINNOPS, contributing to the company's digital transformation focus.)

ASU No. 2014-10

Accounting Standards Update issued by the FASB that eliminates certain financial reporting requirements for development stage entities. (Kinetic Group has elected to early adopt this update, affecting how its financial statements are presented.)

Year-Over-Year Comparison

Information for comparison to a previous filing is not available in the provided text. The current filing details the company's formation in 2014, its recent acquisition of BINNOPS in late 2023, and its status as a development stage and emerging growth company with an accumulated deficit of $-467,616 as of September 30, 2024. Key metrics like revenue growth, margin changes, and specific risks would require comparative data from a prior period.

Key Financial Figures

• $1 billion — s total annual revenues equal or exceed $1 billion (subject to adjustment for inflation),
• $700 million — large accelerated filer" (with at least $700 million in public float) under the Securities a
• $75 million — ny and have a public float of less than $75 million and annual revenues of less than $50 mi
• $50 million — illion and annual revenues of less than $50 million during the most recently completed fisc

Filing Documents

• knit_10k.htm (10-K) — 513KB
• knit_ex311.htm (EX-31.1) — 13KB
• knit_ex312.htm (EX-31.2) — 11KB
• knit_ex321.htm (EX-32.1) — 5KB
• knit_ex322.htm (EX-32.2) — 5KB
• knit_10kimg3.jpg (GRAPHIC) — 12KB
• knit_10kimg5.jpg (GRAPHIC) — 7KB
• knit_10kimg2.jpg (GRAPHIC) — 3KB
• 0001477932-25-006306.txt ( ) — 2119KB
• knit-20240930.xsd (EX-101.SCH) — 22KB
• knit-20240930_lab.xml (EX-101.LAB) — 120KB
• knit-20240930_cal.xml (EX-101.CAL) — 22KB
• knit-20240930_pre.xml (EX-101.PRE) — 97KB
• knit-20240930_def.xml (EX-101.DEF) — 35KB
• knit_10k_htm.xml (XML) — 185KB

Risk factors

Risk factors 3 Item 1B. Unsolved Staff Comments 9 Item 2.

Properties

Properties 10 Item 3. Legal Proceedings. 10 Item 4. Mine Safety Disclosures. 10 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 11 Item 6.

Selected Financial Data

Selected Financial Data. 12 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 12 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 14 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 15 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 16 Item 9 A.

Controls and Procedures

Controls and Procedures. 16 Item 9B Other Information 16 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 16 PART III Item 10. Directors, Executive Officers and Corporate Governance. 17 Item 11.

Executive Compensation

Executive Compensation 18 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 19 Item 13. Certain Relationships and Related Transactions, and Director Independence. 20 Item 14. Principal Accounting Fees and Services. 20 PART IV Item 15. Exhibits, Financial Statement Schedules. 21 Item 16. Form 10-K Summary 22

SIGNATURES

SIGNATURES 23 i KINETIC GROUP INC.

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS This Annual Report contains forward-looking statements. Forward-looking statements are projections of events, revenues, income, future economic performance or management's plans and objectives for our future operations. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors" and the risks set out below, any of which may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks include, by way of example and not in limitation: the uncertainty of profitability based upon our history of losses; risks related to failure to obtain adequate financing on a timely basis and on acceptable terms to continue as going concern; risks related to our international operations and currency exchange fluctuations; and other risks and uncertainties related to our business plan and business strategy. This list is not an exhaustive list of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Although we believe that the expectations reflected in the forward-looking statemen

BUSINESS

Item 1. BUSINESS Our Business Kinetic Group Inc., a Nevada corporation, (the "Company") was formed under the laws of the State of Nevada on June 6, 2014. Kinetic Group Inc. ("KNIT" or "Company") is a technology holding company, offering digital transformation through AI technology to enterprises looking to improve strategic and operational decision making. KNIT accelerates the digital transformation of companies by converting property, plants and equipment into Smart Assets which enhance productivity. The Company will generate revenue from acquisitions and operations in Latin America and the USA. On April 18, 2023, The Company announced that it has signed a formal Memorandum of Understanding with an profitable AI Company. On November 23, 2023, KINETIC finalized the terms of the acquisition of BINNOPS Technologies US LLC a profitable technology company focused on digital transformation solutions to enterprises. As a result of this acquisition, KINETIC will own 100% of an early entrant AI company offering customizable AI solutions to businesses to improve their decision making, reduce risk and improve operations. Customized solutions, including Digital Twins, Smart Assets, AI predictive analytics and Metaverse engagement are designed to produce significant productivity improvements. BINNOPS is an early mover in offering a suite of AI business solutions to both the private and public sectors. We expect to consolidate Binnops' financials in second half 2025. 1 Table of Contents In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The amendments in this Update remove the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reportin

RISK FACTORS

Item 1A. RISK FACTORS Kinetic Group Inc. is a "Development Stage Company". The Company has elected to early adopt Accounting Standards Update No.2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the Company to remove the inception to date information and all references to the development Stage from its financial statements. Kinetic Group Inc. is a Development Stage Company as defined by section 915-10-20 of the FASB Accounting Standards Codification. Although the Company has recognized nominal amounts of revenue, it is still devoting substantially all of its efforts to establishing the business. All losses accumulated since Inception (June 6, 2014) have been considered as part of the Company's development Stage activities. In June 2014, the FASB issued ASU No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. The amendments in this update remove the definition of Development Stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between Development Stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for Development Stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a Development Stage entity, (3) disclose a description of the Development Stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a Development Stage entity that in prior years it had been in the Development Stage. For public business entities, those amendments are effective for annual reporting periods beginning after December 15, 2014, and interim

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