Kinetic Seas Incorporated secured $135,000 in gross proceeds by issuing an unsecured promissory note with a principal amount of $148,500 to LABRYS FUND II, L.P. on February 23, 2026. The note includes an original issue discount (OID) of $13,500 and bears an 8% one-time interest charge, totaling $11,880, which was earned in full as of the issuance date. The note matures on February 23, 2027, and requires scheduled amortization payments of $16,038.00 each, beginning May 22, 2026, with the final balance due at maturity. The holder has the right to convert the outstanding principal and interest into common stock after 180 days from the issue date at a conversion price equal to 85% of the lowest closing bid price during the 10 trading days preceding conversion. Upon an event of default, the outstanding amount, including accrued interest, becomes immediately due and payable at a premium of 150% of the outstanding principal and interest, and bears a default interest rate of 22% per annum. The company must reserve a sufficient number of shares for conversion, specifically the greater of 10,000,000 shares or two times the full conversion amount. The note contains various covenants, including restrictions on distributions, asset sales, business changes, and future dilutive issuances without the holder's written consent.