KULR Technology (US:KULR)2025-11-18 21:15Energy Storage and Robotics - KULR Technology Group reported a focus on energy storage systems and robotics, with the KULR ONE® platform as the strategic core of its business[142] - The KULR ONE® platform includes various offerings such as K1 Space, K1 Guardian, K1 Max, and K1 Air, targeting sectors like aerospace, defense, and energy storage[144] - KULR's battery management system (kBMS) is designed for both space and terrestrial applications, emphasizing safety and performance under extreme conditions[157] - The KULR ONE® Max platform is engineered for grid energy storage and AI data center backup, meeting UL 9540/9540A safety standards[151] - KULR has expanded into low-volume production of custom lithium-ion batteries, enhancing capabilities for the commercial space and defense sectors[177] - The company acquired intellectual property from Vibetech International to enhance its energy management solutions, focusing on reducing energy loss from vibrations[178] - KULR's kBMS will integrate with Nvidia Jetson to create KULR Core™, enabling AI capabilities for battery management and mission autonomy[160] - KULR's testing capabilities for cells and batteries have been significantly expanded over the last three years, focusing on abuse, electrical, and environmental testing[175] - KULR VIBE technology demonstrated a 23% increase in battery life and a 45% lift increase in a mission-critical drone application[179] - KULR's SafeCASE technology addresses the battery recycling market, which is expected to reach over $77 billion by 2034[185] - KULR's thermal management solutions are critical for the aerospace and defense industries, which are projected to be worth nearly $3 trillion in 30 years[186] Financial Performance - Total revenue for the three months ended September 30, 2025, was $6,884,840, representing an increase of $3,699,062 or 116% compared to $3,185,778 in the same period of 2024[209] - Revenue from product sales during the three months ended September 30, 2025, increased by $859,728 or 112% compared to the same period in 2024, driven by a new client base generating more significant revenue per contract[210] - Revenue from mining digital assets for the three months ended September 30, 2025, was $4,396,603, with a total of 55.70 bitcoin earned from mining operations since the initial contract on March 7, 2025[216] - Research and development expenses for the three months ended September 30, 2025, were $2,323,010, an increase of $1,090,677 or 89% compared to the same period in 2024, due to planned increases in R&D services and new hires[223] - Selling, general and administrative expenses for the three months ended September 30, 2025, were $6,263,803, representing an increase of $3,528,384 or 129% compared to $2,735,419 in the same period of 2024[227] - Gross profit for the three months ended September 30, 2025, was $628,880, a decrease of $1,628,572 or 72% compared to $2,257,452 in the same period of 2024, with gross profit margins dropping from 71% to 9%[220] - Bad debt expenses for the three and nine months ended September 30, 2025, were $780,643, attributed to the write-off of accounts receivable associated with the company's Investee[229] - Impairment of equipment deposits for the nine months ended September 30, 2025, was $1,355,174, with no impairment expenses recorded in the same period of 2024[230] - Other income for the three months ended September 30, 2025, was $1,764,661, an increase of $2,058,125 compared to $(293,464) in the same period of 2024, primarily due to a $6,837,563 unrealized gain on Bitcoin holdings[231] - For the nine months ended September 30, 2025, other income increased by $11,204,070, primarily due to a $14,456,623 unrealized gain on Bitcoin holdings[232] Bitcoin and Mining Operations - KULR has deployed 3,570 Bitmain S19 XP 140T Bitcoin mining machines, increasing operational capacity to 750 petahash per second (PH/s)[201] - The company purchased 783.81 Bitcoin at an average cost of $101,683 per Bitcoin, totaling $79,700,002 during the nine months ended September 30, 2025[190] - KULR entered into a Master Loan Agreement with Coinbase for a revolving credit facility of up to $20 million[199] - The company issued 9,420,337 shares of common stock for aggregate gross proceeds of $107,311,618 during the nine months ended September 30, 2025[193] - KULR's Xero Vibe fan technology aims to improve cooling efficiency and reduce power consumption in server and data centers[182] - The company has adopted Bitcoin as its primary treasury reserve asset and plans to continue accumulating Bitcoin without a specific target[233] - As of September 30, 2025, the company held Bitcoin valued at $120,523,261, compared to $20,281,184 as of December 31, 2024, representing a significant increase[237] - Net cash used in operating activities for the nine months ended September 30, 2025, was $31,039,539, compared to $12,498,818 for the same period in 2024[238] - Net cash used in investing activities during the nine months ended September 30, 2025, was $85,499,202, primarily related to investments in digital assets of $79,700,002[239] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $107,295,479, significantly higher than $12,427,476 in 2024, mainly due to proceeds from ATM equity financings[241] - The company entered into multiple lease agreements for Bitcoin mining machines, with total lease costs amounting to $8,556,045[234] - The average value of Bitcoin earned through machine lease agreements was $109,254, with a total of 55.70 Bitcoin mined[234] - As of September 30, 2025, cash balances were $20,588,596, down from $29,831,858 as of December 31, 2024[237] - The company repaid the remaining balance of the loan payable on October 15, 2025, improving its liquidity position[243] Partnerships and Collaborations - The company has partnered with Lockheed Martin and Leidos to develop technologies for hypersonic vehicles and other defense systems[188] - The company aims to convert early design partnerships into long-term production contracts, reinforcing its core mission of delivering safe and high-performance energy solutions[166]