KULR Technology Group, Inc 10-Q for FY2026 Q2

KULR Technology Group, Inc. (KULR)

10-Q 2026-08-13 For: 2026-06-30

Added on August 14, 2026

About this 10-Q

KULR Technology Group, Inc filed this 10-Q on August 13, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.08M; down 43.0% from $3.65M a year earlier
Net loss: $21.97M; compared with net income of $8.14M a year earlier
Diluted EPS: -$0.47; compared with $0.22 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.		3

	Condensed Consolidated Balance Sheets as of June 30, 2026 (unaudited) and December 31, 2025		3

	Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2026 and 2025		4

	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2026		5

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

	Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025		7

	Notes to Unaudited Condensed Consolidated Financial Statements		9

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

	Item 3. Quantitative and Qualitative Disclosures About Market Risk.		39

	Item 4. Controls and Procedures.		39

PART II – OTHER INFORMATION

	Item 1. Legal Proceedings.		40

	Item 1A. Risk Factors.		40

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.		40

	Item 3. Defaults Upon Senior Securities.		40

	Item 4. Mine Safety Disclosures.		40

	Item 5. Other Information.		40

	Item 6. Exhibits.		41

	SIGNATURES		42


		June 30,			December 31,
		2026			2025
		(unaudited)
Assets
Current Assets:
Cash		$	12,783,933		$	13,300,188
Restricted cash			142,025			—
Accounts receivable, net of allowance for credit losses of $2,005,492 and $1,450,000 as of June 30, 2026 and December 31, 2025, respectively			1,859,668			2,076,556
Grant receivable			640,682			1,886,376
Inventory			1,511,313			581,156
Inventory deposits			440,035			839,644
Digital assets			30,839,860			—
Digital assets, pledged as collateral			33,083,010			—
Auto-Vibe assets			—			5,046,759
Prepaid expenses and other current assets			3,373,794			1,825,849
Total Current Assets			84,674,320			25,556,528
Digital assets, non-current			—			93,995,256
Restricted cash, non-current			142,025			—
Accounts receivable, non-current, net of allowance for credit losses of $717,397 and $0 as of June 30, 2026 and December 31, 2025, respectively			49,020			998,772
Auto-Vibe assets, non-current, net of allowance for credit losses of $500,000 and $0 as of June 30, 2026 and December 31, 2025, respectively			4,521,759			—
Property and equipment, net			7,314,800			5,482,743
Equipment deposits			17,119			806,000
Security deposits			106,980			39,430
Intangible assets, net			304,931			370,925
Operating lease right-of-use assets			2,668,447			1,338,657
Deferred financing costs			276,690			276,690
Other non-current assets			—			102,703
Total Assets		$	100,076,091		$	128,967,704

Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable		$	1,557,625		$	3,173,813
Accrued expenses and other current liabilities			2,818,004			2,628,914
Loan payable			20,000,000			—
Operating lease liabilities, current portion			341,724			366,937
Deferred revenue			358,345			107,267
Total Current Liabilities			25,075,698			6,276,931
Operating lease liabilities, non-current portion			2,426,016			1,078,575
Total Liabilities			27,501,714			7,355,506

Commitments and contingencies (Note 11)

Stockholders’ Equity
Preferred stock, $0.0001 par value, 20,000,000 shares authorized
Series A Voting Preferred Stock, 1,000,000 shares designated; 1,000,000 shares issued and outstanding at June 30, 2026 and December 31, 2025;			100			100
Series B Convertible Preferred Stock, 31,000 shares designated; none issued and outstanding at June 30, 2026 and December 31, 2025			—			—
Series C Convertible Preferred Stock, 400 shares designated; none issued and outstanding at June 30, 2026 and December 31, 2025			—			—
Series D Convertible Preferred Stock, 650 shares designated; none issued and outstanding at June 30, 2026 and December 31, 2025			—			—
Common stock, $0.0001 par value, 500,000,000 shares authorized; 46,293,969 and 46,272,047 shares issued and outstanding at June 30, 2026, respectively; 46,063,172 and 46,041,250 shares issued and outstanding at December 31, 2025, respectively			4,629			4,606
Additional paid-in capital			269,665,057			267,712,241
Treasury stock, at cost; 21,922 shares held at June 30, 2026 and December 31, 2025			(393,744)			(393,744)
Accumulated deficit			(196,701,665)			(145,711,005)
Total Stockholders’ Equity			72,574,377			121,612,198
Total Liabilities and Stockholders’ Equity		$	100,076,091		$	128,967,704


		For the Three Months Ended						For the Six Months Ended
		June 30,						June 30,
		2026			2025			2026			2025
Revenue		$	2,080,177		$	3,652,471		$	6,026,607		$	6,101,077
Cost of revenue			2,719,110			2,938,761			6,148,248			5,181,022
Gross Profit (Loss)			(638,933)			713,710			(121,641)			920,055
Operating Expenses
Research and development			2,985,659			2,436,754			4,756,159			4,886,654
Selling, general, and administrative			6,307,097			6,941,599			12,839,066			13,573,072
Credit losses on accounts receivable			1,272,889			—			1,272,889			—
Credit losses on R&D activity			—			—			500,000			—
Impairment expense			—			786,397			—			1,355,174
Total Operating Expenses			10,565,645			10,164,750			19,368,114			19,814,900
Loss From Operations			(11,204,578)			(9,451,040)			(19,489,755)			(18,894,845)

Other Income (Expense)
Change in fair value of digital assets			(10,591,667)			17,367,660			(31,359,380)			7,619,060
Interest income			47,476			168,975			85,963			337,399
Miscellaneous income			7,000			—			7,000			—
Interest expense			(229,047)			(2,124)			(234,488)			(12,521)
Change in fair value of accrued issuable equity			—			58,678			—			319,276
Amortization of debt discount			—			—			—			(82,878)
Gain on debt extinguishment, net			—			—			—			50,000
Total Other Income (Expense)			(10,766,238)			17,593,189			(31,500,905)			8,230,336
Net Income (Loss)		$	(21,970,816)		$	8,142,149		$	(50,990,660)		$	(10,664,509)

Net Income (Loss) Per Share
Basic		$	(0.47)		$	0.22		$	(1.10)		$	(0.30)
Diluted		$	(0.47)		$	0.22		$	(1.10)		$	(0.30)

Weighted Average Number of Common Shares Outstanding
Basic			46,303,656			37,273,766			46,275,080			36,103,775
Diluted			46,303,656			37,590,336			46,275,080			36,103,775


		FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026
		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, 2026		1,000,000		$	100		46,063,172		$	4,606		$	267,712,241		21,922		$	(393,744)		$	(145,711,005)		$	121,612,198
Shares withheld for employee payroll tax obligations		—			—		(112,824)			(11)			(375,987)		—			—			—			(375,998)
Stock-based compensation:
Common stock issued upon vesting of restricted stock units		—			—		328,739			33			(33)		—			—			—			—
Amortization of restricted common stock		—			—		—			—			1,446,613		—			—			—			1,446,613
Amortization of stock options		—			—		—			—			12,865		—			—			—			12,865
Net loss		—			—		—			—			—		—			—			(29,019,844)			(29,019,844)
Balance - March 31, 2026		1,000,000		$	100		46,279,087		$	4,628		$	268,795,699		21,922		$	(393,744)		$	(174,730,849)		$	93,675,834
Shares withheld for employee payroll tax obligations		—			—		(10,117)			(1)			(38,685)		—			—			—			(38,686)
Stock-based compensation:
Common stock issued upon vesting of restricted stock units		—			—		24,999			2			(2)		—			—			—			—
Amortization of restricted common stock		—			—		—			—			900,080		—			—			—			900,080
Amortization of stock options		—			—		—			—			7,965		—			—			—			7,965
Net loss		—			—		—			—			—		—			—			(21,970,816)			(21,970,816)
Balance - June 30, 2026		1,000,000		$	100		46,293,969		$	4,629		$	269,665,057		21,922		$	(393,744)		$	(196,701,665)		$	72,574,377


	Energy Management Platform
	Revenue								Accounts Receivable
	For the Three Months Ended				For the Six Months Ended				As of		As of
	June 30,				June 30,				June 30,		December 31,
	2026		2025		2026		2025		2026		2025
Customer A	*		*		29	%	*		*		*
Customer B	30	%	*		17	%	*		16	%	*
Customer C	12	%	*		11	%	*		22	%	*
Customer D	26	%	*		*		*		13	%	*
Customer E	*		26	%	*		14	%	*		46	%
Customer F	*		*		*		*		18	%	17	%
Customer G	*		11	%	*		13	%	*		20	%
Customer H	*		*		*		*		14	%	*
Customer I	*		12	%	*		13	%	*		*
Customer J	*		*		*		11	%	*		*
Customer K	*		*		*		11	%	*		*
Total	68	%	49	%	57	%	62	%	83	%	83	%


	Mining of Digital Assets
	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Vendor A	63	%	*		63	%	*
Vendor B	37	%	*		37	%	*
Vendor C	*		100	%	*		100	%
	100	%	100	%	100	%	100	%


	For the Three and Six		For the Six
	Months Ended		Months Ended
	June 30, 2026		June 30, 2025
Unvested restricted stock awards	3,125		7,812
Unvested restricted stock units	1,339,959		1,170,065
Options	25,000		33,937
Warrants	—		88,905
Total	1,368,084		1,300,719


		For The Three Months Ended March 31, 2026
		As Originally Reported			Adjustment			As Revised
Condensed Consolidated Statements of Operations:
Revenue		$	4,846,430		$	(900,000)		$	3,946,430
Gross profit		$	1,417,292		$	(900,000)		$	517,292
Net loss		$	(28,119,844)		$	(900,000)		$	(29,019,844)
Net loss per share, basic and diluted		$	(0.61)		$	(0.02)		$	(0.63)


	As of March 31, 2026
Condensed Consolidated Balance Sheets:
Grant receivable	$	3,254,612	$	(900,000)	$	2,354,612
Total current assets	$	16,806,075	$	(900,000)	$	15,906,075
Total assets	$	105,508,841	$	(900,000)	$	104,608,841
Total stockholders’ equity	$	94,575,834	$	(900,000)	$	93,675,834


	Digital Assets and
	Digital Assets Pledged
	As Collateral
Beginning balance at January 1, 2026	$	93,995,256
Additions - purchased		—
Additions - mined		1,268,293
Received as downtime credits		18,701
Change in fair value		(31,359,380)
Balance, June 30, 2026	$	63,922,870

Less: Digital assets, pledged as collateral		(33,083,010)
Digital assets, net	$	30,839,860


	Auto-Vibe Assets
	June 30,		December 31,
	2026		2025
Receivables – gross	$	5,015,785	$	1,837,097
Credit loss reserve on Auto-Vibe receivables		(500,000)		—
Receivables – net		4,515,785		1,837,097
Vehicles owned		—		2,269,649
Deposits in segregated account		5,974		940,013
Total Auto-Vibe assets	$	4,521,759	$	5,046,759


		June 30,			December 31,
		2026			2025
Raw materials		$	1,184,910		$	237,661
Finished goods			326,403			343,495
Total inventory		$	1,511,313		$	581,156


		June 30,			December 31,
		2026			2025
Deferred grant expenses		$	1,019,665		$	484,344
Prepaid research and development expenses			1,007,500			—
Insurance			492,662			323,850
Deferred labor costs			297,750			216,874
Bitcoin mining leases			292,416			206,625
Dues and subscriptions			148,072			22,512
Professional fees			65,645			378,109
Rent			—			58,150
Security deposit			—			50,213
Other			50,084			85,172
Total prepaid expenses and other current assets		$	3,373,794		$	1,825,849


Year		Operating Lease
7/1/26 to 12/31/26		$	193,185
2027			802,450
2028			828,171
2029			484,373
2030			304,281
2031			304,281
Thereafter			709,990
Total future minimum lease payments			3,626,731
Less: amount representing imputed interest			(858,991)
Present value of lease liabilities			2,767,740
Less: current portion			(341,724)
Lease liabilities, non current portion		$	2,426,016


				Weighted		Weighted
				Average		Average
		Number of		Exercise		Remaining	Intrinsic
		Options		Price		Term (Yrs)	Value
Outstanding, January 1, 2026		27,188		$	11.33
Granted		—			—
Forfeited		(2,188)			15.41
Exercised		—			—
Outstanding, June 30, 2026		25,000		$	10.98	3.4	$	9,594

Exercisable, June 30, 2026		15,782		$	12.77	2.1	$	4,798


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		5,625		3.0		2,813
$9.60 - $12.00		8,125		5.2		2,969
$12.40 - $15.92		5,000		1.1		3,750
$16.40 - $18.48		6,250		0.8		6,250
		25,000		2.1		15,782


			Weighted Average
	Shares of Restricted		Grant Date
	Common Stock		Fair Value
Non-vested RSAs, January 1, 2026	4,687		$	16.48
Granted	—			—
Vested	(1,562)			16.64
Forfeited	—			—
Non-vested RSAs, June 30, 2026	3,125		$	16.40


	As of
	June 30, 2026								December 31, 2025
	Energy								Energy
	Management		Mining of		Corporate &					Management	Mining of		Corporate &
	Platform		Digital Assets		Other		Total		Platform		Digital Assets		Other		Total
Segment Assets
Cash and Restricted Cash	$	13,067,983	$	—	$	—	$	13,067,983	$	13,300,188	$	—	$	—	$	13,300,188
Digital assets		—		—		63,922,870		63,922,870		—		—		93,995,256		93,995,256
All other assets		23,085,238		—		—		23,085,238		21,672,260		—		—		21,672,260
Total Assets	$	36,153,221	$	—	$	63,922,870	$	100,076,091	$	34,972,448	$	—	$	93,995,256	$	128,967,704


	For the Three Months Ended
	June 30, 2026				Gross Profit (Loss)
	Revenue		COGS		$		%
Gross Margins
Product sales	$	650,163	$	974,664	$	(324,501)	(50)	%
Contract services		355,080		689,099		(334,019)	(94)	%
Grant revenue		468,952		—		468,952	100	%
Mining of digital assets		605,982		1,055,347		(449,365)	(74)	%
Total	$	2,080,177	$	2,719,110	$	(638,933)	(31)	%


	For the Three Months Ended
	June 30,				Variances
	2026		2025		$		%
Operating Expenses
Research and development	$	2,985,659	$	2,436,754	$	548,905	23	%

Exhibit No.		Description

31.1		Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

31.2		Certification of the Principal Financial and Accounting Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, 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 13, 2026	By:	/s/ Michael Mo
		Michael Mo
		Chief Executive Officer
		(Principal Executive Officer)

Dated: August 13, 2026	By:	/s/ Michael Kimel
		Michael Kimel
		Chief Financial Officer
		(Principal Financial and Accounting Officer)