KULR Technology Group, Inc 10-Q for FY2025 Q2

KULR Technology Group, Inc. (KULR)

10-Q 2025-08-14 For: 2025-06-30

Added on April 10, 2026

About this 10-Q

KULR Technology Group, Inc filed this 10-Q on August 14, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $3.97M; up 63.4% from $2.43M a year earlier
Net income: $8.14M; compared with a net loss of $5.89M a year earlier
Diluted EPS: $0.22; compared with -$0.26 a year earlier

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Delaware		81-1004273
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

555 Forge River Road, Webster, Texas		77598
(Address of principal executive offices)		(Zip Code)

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock	KULR	NYSE American LLC

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

		Page
PART I – FINANCIAL INFORMATION

	Item 1. Financial Statements.	4

	Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024	4

	Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024	5

	Unaudited Condensed Consolidated Statement of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2025.	6

	Unaudited Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficit) for the Three and Six Months Ended June 30, 2024	7

	Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024	8

	Notes to Unaudited Condensed Consolidated Financial Statements	10

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	30

	Item 3. Quantitative and Qualitative Disclosures About Market Risk.	44

	Item 4. Controls and Procedures.	45

PART II - OTHER INFORMATION

	Item 1. Legal Proceedings.	46

	Item 1A. Risk Factors.	46

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	63

	Item 3. Defaults Upon Senior Securities.	63

	Item 4. Mine Safety Disclosures.	63

	Item 5. Other Information.	63

	Item 6. Exhibits.	64

	SIGNATURES	65


	June 30,		December 31,
	2025		2024
	(unaudited)
Assets
Current Assets:
Cash	$	20,570,108	$	29,831,858
Accounts receivable billed, current portion		3,872,267		1,984,518
Accounts receivable unbilled, current portion		286,785		660,672
Inventory		772,123		545,467
Inventory deposits		198,604		—
Prepaid expenses and other current assets		5,347,946		1,141,540
Total Current Assets		31,047,833		34,164,055
Digital assets		99,489,102		20,281,184
Equity investments		3,325,045		—
Accounts receivable billed, non-current portion		—		1,446,489
Accounts receivable unbilled, non-current portion		1,425,404		—
Property and equipment, net		3,519,508		3,676,544
Equipment deposits		77,340		1,355,174
Security deposits		48,158		48,158
Intangible assets, net		505,951		577,099
Operating lease right-of-use assets		1,637,559		1,216,772
Finance lease right-of-use asset, net		6,215		6,215
Deferred financing costs		381,097		155,497
Total Assets	$	141,463,212	$	62,927,187

Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	1,812,700	$	2,061,266
Accrued expenses and other current liabilities		1,231,467		1,160,446
Accrued issuable equity		182,970		420,427
Operating lease liabilities, current portion		490,556		493,468
Finance lease liability, current portion		2,505		2,463
Notes payable, net of discount, current portion		—		494,796
Deferred revenue		23,641		32,768
Total Current Liabilities		3,743,839		4,665,634
Operating lease liabilities, non-current portion		1,267,068		818,750
Finance lease liability, non-current portion		2,589		3,852
Other non-current liabilities		—		10,966
Total Liabilities		5,013,496		5,499,202

Commitments and contingencies (Note 13)

Stockholders’ Equity
Preferred stock, $0.0001 par value, 20,000,000 shares authorized
Series A Preferred Stock, 1,000,000 shares designated; 1,000,000 and 730,000 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively;		100		73
Series B Convertible Preferred Stock, 31,000 shares designated; none issued and outstanding at June 30, 2025 and December 31, 2024		—		—
Series C Preferred Stock, 400 shares designated; none issued and outstanding at June 30, 2025 and December 31, 2024		—		—
Series D Preferred Stock, 650 shares designated; none issued and outstanding at June 30, 2025 and December 31, 2024		—		—
Common stock, $0.0001 par value, 500,000,000 shares authorized; 39,475,214 and 39,453,292 shares issued and outstanding at June 30, 2025, respectively; 33,100,207 and 33,083,812 shares issued and outstanding at December 31, 2024, respectively		3,948		3,310
Additional paid-in capital		231,315,144		141,532,047
Treasury stock, at cost; 21,922 and 16,395 shares held at June 30, 2025 and December 31, 2024, respectively.		(393,744)		(296,222)
Accumulated deficit		(94,475,732)		(83,811,223)
Total Stockholders’ Equity		136,449,716		57,427,985
Total Liabilities and Stockholders’ Equity	$	141,463,212	$	62,927,187


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Revenue	$	3,972,997	$	2,432,005	$	6,421,603	$	4,181,109
Cost of revenue		3,259,287		1,859,377		5,501,548		3,097,692
Gross Profit		713,710		572,628		920,055		1,083,417
Operating Expenses
Research and development		2,436,754		1,305,186		4,886,654		2,259,811
Selling, general, and administrative		6,941,599		4,594,500		13,573,072		8,807,401
Impairment expense		786,397		—		1,355,174		—
Total Operating Expenses		10,164,750		5,899,686		19,814,900		11,067,212
Loss From Operations		(9,451,040)		(5,327,058)		(18,894,845)		(9,983,795)

Other Income (Expense)
Change in fair value of digital assets		17,367,660		—		7,619,060		—
Interest income		168,975		—		337,399		—
Change in fair value of accrued issuable equity		58,678		(2,737)		319,276		(15,739)
Interest expense		(2,124)		(33,534)		(12,521)		(166,236)
Amortization of debt discount		—		(527,199)		(82,878)		(702,276)
Gain (loss) on debt extinguishment, net		—		—		50,000		(31,358)
Total Other Income (Expense), net		17,593,189		(563,470)		8,230,336		(915,609)
Net Income (Loss)	$	8,142,149	$	(5,890,528)	$	(10,664,509)	$	(10,899,404)

Net Loss Per Share
Basic	$	0.22	$	(0.26)	$	(0.30)	$	(0.54)
Diluted	$	0.22	$	(0.26)	$	(0.30)	$	(0.54)

Weighted Average Number of Common Shares Outstanding
Basic		37,273,766		22,683,408		36,103,775		20,239,329
Diluted		37,590,336		22,683,408		36,103,775		20,239,329


	FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025
	Series A						Additional							Total
	Preferred Stock			Common Stock			Paid-In		Treasury Stock			Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Capital		Shares	Amount		Deficit		Equity
Balance - January 1, 2025	730,000	$	73	33,100,207	$	3,310	$	141,532,047	16,395	$	(296,222)	$	(83,811,223)	$	57,427,985
Preferred stock issued for no consideration	270,000		27	—		—		(27)	—		—		—		—
Shares returned to treasury for employee payroll tax obligations	—		—	—		—		—	3,442		(63,332)		—		(63,332)
Common stock issued upon the exercise of options	—		—	1,063		—		7,565	—		—		—		7,565
Common stock issued for at the market offering⁽¹⁾	—		—	2,425,959		243		49,642,687	—		—		—		49,642,930
Shares withheld for employee payroll tax obligations	—		—	(12,483)		(1)		(145,790)	—		—		—		(145,791)
Stock-based compensation:
Common stock issued for services	—		—	7,625		1		82,039	—		—		—		82,040
Common stock issued upon vesting of restricted stock units	—		—	62,610		6		(6)	—		—		—		—
Amortization of restricted common stock	—		—	—		—		1,518,895	—		—		—		1,518,895
Amortization of stock options	—		—	—		—		15,604	—		—		—		15,604
Net loss	—		—	—		—		—	—		—		(18,806,658)		(18,806,658)
Balance - March 31, 2025	1,000,000		100	35,584,981		3,559		192,653,014	19,837		(359,554)		(102,617,881)		89,679,238
Common stock issued upon the exercise of options	—		—	625		—		3,250	—		—		—		3,250
Common stock issued for at the market offering⁽²⁾	—		—	3,832,456		383		37,249,626	—		—		—		37,250,009
Shares returned to treasury for employee payroll tax obligations	—		—	—		—		—	2,085		(34,190)		—		(34,190)
Shares withheld for employee payroll tax obligations	—		—	(11,625)		(1)		(114,548)	—		—		—		(114,549)
Stock-based compensation:
Common stock issued for services	—		—	1,375		—		13,530	—		—		—		13,530
Common stock issued upon vesting of restricted stock units	—		—	67,341		7		(7)	—		—		—		—
Amortization of restricted common stock	—		—	—		—		1,498,937	—		—		—		1,498,937
Amortization of stock options	—		—	—		—		11,342	—		—		—		11,342
Effect of reverse stock split	—		—	61		—		—	—		—		—		—
Net loss	—		—	—		—		—	—		—		8,142,149		8,142,149
Balance - June 30, 2025	1,000,000	$	100	39,475,214	$	3,948	$	231,315,144	21,922	$	(393,744)	$	(94,475,732)	$	136,449,716


	For the Six	For the Three and Six
	Months Ended	Months Ended
	June 30, 2025	June 30, 2024
Unvested restricted stock awards	7,812	81,250
Unvested restricted stock units	1,170,065	603,139
Options	33,937	87,840
Warrants	88,905	339,323
Total	1,300,719	1,111,552


	Digital Assets
Beginning balance at December 31, 2024	$	20,281,184
Additions - purchased		69,900,009
Additions - mined		1,688,849
Dispositions		—
Change in fair value		7,619,060
Balance, June 30, 2025	$	99,489,102


	For the Six Months Ended
	June 30, 2025
Beginning balance at January 1, 2025	$	420,427
Additions		151,319
Gain from mark-to-market		(319,276)
Shares issued in satisfaction of accrued issuable equity		(69,500)
Fair value at June 30, 2025	$	182,970


Year	Operating Lease		Financing Lease		Total
7/1/25 to 12/31/25	$	393,540	$	1,318	$	394,858
2026		496,224		2,636		498,860
2027		511,772		1,318		513,090
2028		527,319		—		527,319
2029		180,092		—		180,092
Thereafter		—		—		—
Total future minimum lease payments		2,108,947		5,272		2,114,219
Less: amount representing imputed interest		(351,323)		(178)		(351,501)
Present value of lease liabilities		1,757,624		5,094		1,762,718
Less: current portion		(490,556)		(2,505)		(493,061)
Lease liabilities, non current portion	$	1,267,068	$	2,589	$	1,269,657


	Notes		Debt
	Payable		Discount		Total
Outstanding, January 1, 2025	$	577,674	$	(82,878)	$	494,796
Repayments in cash		(577,674)		—		(577,674)
Amortization of debt discount		—		82,878		82,878
Total notes payable as of June 30, 2025		—		—		—


Warrants Outstanding			Warrants Exercisable
			Weighted
		Outstanding	Average	Exercisable
Exercise		Number of	Remaining Life	Number of
Price		Warrants	In Years	Warrants
$	8.00	66,667	0.5	66,667
$	10.00	22,238	0.5	22,238
		88,905	0.5	88,905


Options Outstanding		Options Exercisable
		Weighted
Range of	Outstanding	Average	Exercisable
Exercise	Number of	Remaining Term	Number of
Prices	Options	In Years	Options
$2.24 - $7.92	13,937	3.4	2,845
$9.68 - $12.00	2,500	2.3	1,563
$12.40 - $15.92	7,500	1.8	4,375
$16.40 - $19.52	10,000	1.8	8,438
	33,937	2.1	17,221


	June 30,		December 31,
	2025		2024
Raw materials	$	501,403	$	363,224
Finished goods		270,720		182,243
Total inventory	$	772,123	$	545,467


	June 30,		December 31,
	2025		2024
Bitcoin mining lease	$	3,443,531	$	—
Deferred expenses		528,625		405,463
Research and development		363,000		—
Professional fees		346,232		40,142
Marketing and advertising		250,000		285,000
Compensation costs		125,000		275,000
Rent		62,224		—
Insurance		62,086		—
Security deposits		50,213		50,213
Board compensation		23,750		—
Vendor receivables		7,386		7,386
Dues and subscriptions		—		25,355
Other		85,899		52,981
Total prepaid expenses and other current assets	$	5,347,946	$	1,141,540


	For the Six Months Ended
	June 30,
	2025			2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating lease	$	246,446		$	130,838
Repayment of finance lease liability	$	1,221			N/A
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	691,852		$	1,575,919
Financing leases		N/A			N/A
Weighted Average Remaining Lease Term (Years)
Operating leases		3.54	years		3.77	years
Financing leases		2.00	years		N/A
Weighted Average Discount Rate
Operating leases		10.0	%		10.0	%
Financing leases		10.0	%		N/A


		Weighted		Weighted
		Average		Average
	Number of	Exercise		Remaining	Intrinsic
	Options	Price		Term (Yrs)	Value
Outstanding, January 1, 2025	40,938	$	11.88
Granted	6,250		9.60
Forfeited	(11,563)		12.12
Exercised	(1,688)		6.48
Outstanding, June 30, 2025	33,937	$	11.65	3.7	$	28,881

Exercisable, June 30, 2025	17,221	$	14.00	2.1	$	7,477


		Weighted Average
	Shares of Restricted	Grant Date
	Common Stock	Fair Value
Non-vested RSAs, January 1, 2025	9,375	$	16.48
Granted	—		—
Vested	(1,563)		16.64
Forfeited	—		—
Non-vested RSAs, June 30, 2025	7,812	$	16.45


	As of
	June 30, 2025								December 31, 2024
	Energy								Energy
	Management		Bitcoin		Corporate &				Management		Bitcoin		Corporate &
	Platform		Mining		Other		Total		Platform		Mining		Other		Total
Segment Assets
Cash	$	20,570,108	$	—	$	—	$	20,570,108	$	29,831,858	$	—		—	$	29,831,858
Digital assets		—		—		99,489,102		99,489,102		—		—		20,281,184		20,281,184
All other assets		21,404,002		—		—		21,404,002		12,814,145		—		—		12,814,145
Total Assets	$	41,974,110	$	—	$	99,489,102	$	141,463,212	$	42,646,003	$	—	$	20,281,184	$	62,927,187


				Weighted
				Average
	Digital Assets⁽¹⁾		Bitcoin Held	Per Bitcoin
Fair value as of December 31, 2024	$	20,281,184	217.18	$	93,384
Digital assets purchased		69,900,009	693.81		100,748
Digital assets mined		1,688,849	17.29		97,678
Change in fair value of digital assets		7,619,060
Fair value as of June 30, 2025	$	99,489,102	928.28	$	107,176

Exhibit No.		Description
3.1		Form of Certificate of Amendment (previously filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the SEC on June 27, 2025, and incorporated herein by reference)

10.1		Sales Agreement, dated June 9, 2025, by and among the Company, Cantor Fitzgerald & Co. and Craig-Hallum Capital Group LLC (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the SEC on June 9, 2025, and incorporated herein by reference)

10.2		Master Loan Agreement, dated July 1, 2025, between KULR Technology Group, Inc., Coinbase Credit, Inc. and Coinbase, Inc. (previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the SEC on July 8, 2025, and incorporated herein by reference)

31.1		Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

31.2		Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

32.1		Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

101.INS		Inline XBRL Instance*

101.SCH		Inline XBRL Taxonomy Extension Schema*

101.CAL		Inline XBRL Taxonomy Extension Calculation*

101.DEF		Inline XBRL Taxonomy Extension Definition*

101.LAB		Inline XBRL Taxonomy Extension Labels*

101.PRE		Inline XBRL Taxonomy Extension Presentation*

104		Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101)*

Dated: August 14, 2025	By:	/s/ Michael Mo
		Michael Mo
		Chief Executive Officer
		(Principal Executive Officer)

Dated: August 14, 2025	By:	/s/ Shawn Canter
		Shawn Canter
		Chief Financial Officer
		(Principal Financial and Accounting Officer)