KULR Technology Group, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2025 2024 ​ ​ (unaudited) ​ ​ ​ Assets ​ ​ Current Assets: ​ ​ Cash ​ $ 24,449,297 ​ $ 29,831,858 Accounts receivable billed, current portion ​ 2,943,151 ​ 1,984,518 Accounts receivable unbilled, current portion ​ ​ 196,695 ​ ​ 660,672 Inventory ​ 485,791 ​ 545,467 Inventory deposits ​ ​ 787,626 ​ ​ — Prepaid expenses and other current assets ​ 1,903,824 ​ 1,141,540 Total Current Assets ​ 30,766,384 ​ 34,164,055 Digital assets ​ ​ 55,281,690 ​ ​ 20,281,184 Accounts receivable, non-current portion ​ ​ 1,402,960 ​ ​ 1,446,489 Property and equipment, net ​ 3,654,320 ​ 3,676,544 Equipment deposits ​ ​ 883,335 ​ ​ 1,355,174 Security deposits ​ ​ 48,158 ​ ​ 48,158 Intangible assets, net ​ ​ 541,525 ​ ​ 577,099 Operating lease right-of-use assets ​ ​ 1,097,295 ​ ​ 1,216,772 Finance lease right-of-use asset, net ​ ​ 6,603 ​ ​ 6,215 Deferred financing costs ​ ​ 121,800 ​ ​ 155,497 Total Assets ​ $ 93,804,070 ​ $ 62,927,187 ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders’ Equity ​ ​ ​ Current Liabilities: ​ ​ ​ Accounts payable ​ $ 1,212,108 ​ $ 2,061,266 Accrued expenses and other current liabilities ​ 1,511,775 ​ 1,160,446 Accrued issuable equity ​ ​ 180,658 ​ ​ 420,427 Operating lease liabilities, current portion ​ ​ 419,227 ​ ​ 493,468 Finance lease liability, current portion ​ ​ 2,484 ​ ​ 2,463 Notes payable, net of discount, current portion ​ ​ — ​ ​ 494,796 Deferred revenue ​ ​ 21,141 ​ ​ 32,768 Total Current Liabilities ​ 3,347,393 ​ 4,665,634 Operating lease liabilities, non-current portion ​ ​ 769,036 ​ ​ 818,750 Finance lease liability, non-current portion ​ ​ 3,223 ​ ​ 3,852 Other non-current liabilities ​ ​ 5,180 ​ ​ 10,966 Total Liabilities ​ ​ 4,124,832 ​ ​ 5,499,202 ​ ​ ​ ​ Commitments and contingencies (Note 10) ​ ​ ​ ​ ​ 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 March 31, 2025 and December 31, 2024, respectively; ​ ​ 100 ​ ​ 73 Series B Convertible Preferred Stock, 31,000 shares designated; none issued and outstanding at March 31, 2025 and December 31, 2024 ​ — ​ — Series C Preferred Stock, 400 shares designated; none issued and outstanding at March 31, 2025 and December 31, 2024 ​ ​ — ​ ​ — Series D Preferred Stock, 650 shares designated; none issued and outstanding at March 31, 2025 and December 31, 2024 ​ ​ — ​ ​ — Common stock, $ 0.0001 par value, 500,000,000 shares authorized; 284,679,792 and 284,521,094 shares issued and outstanding at March 31, 2025, respectively; 264,801,650 and 264,670,488 shares issued and outstanding at December 31, 2024, respectively ​ 28,468 ​ 26,480 Additional paid-in capital ​ ​ 192,628,105 ​ ​ 141,508,877 Treasury stock, at cost; 158,698 and 131,162 shares held at March 31, 2025 and December 31, 2024, respectively. ​ ​ ( 359,554 ) ​ ​ ( 296,222 ) Accumulated deficit ​ ( 102,617,881 ) ​ ( 83,811,223 ) Total Stockholders’ Equity ​ 89,679,238 ​ 57,427,985 Total Liabilities and Stockholders’ Equity ​ $ 93,804,070 ​ $ 62,927,187 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 3 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ 2025 2024 Revenue ​ $ 2,448,606 ​ $ 1,749,104 Cost of revenue ​ 2,242,261 ​ 1,238,315 Gross Profit ​ 206,345 ​ 510,789 ​ ​ ​ ​ ​ Operating Expenses ​ ​ ​ ​ Research and development ​ 2,449,900 ​ 954,625 Selling, general, and administrative ​ 7,200,250 ​ 4,212,898 Total Operating Expenses ​ 9,650,150 ​ 5,167,523 Loss From Operations ​ ( 9,443,805 ) ​ ( 4,656,734 ) ​ ​ ​ ​ ​ Other (Expense) Income ​ ​ ​ ​ Interest expense ​ ( 10,397 ) ​ ( 132,702 ) Interest income ​ ​ 168,424 ​ ​ — Amortization of debt discount ​ ​ ( 82,878 ) ​ ​ ( 175,080 ) Gain (loss) on debt extinguishment, net ​ ​ 50,000 ​ ​ ( 31,358 ) Change in fair value of accrued issuable equity ​ ​ 260,598 ​ ​ ( 13,002 ) Change in fair value of digital assets ​ ​ ( 9,748,600 ) ​ ​ — Total Other Expense, net ​ ( 9,362,853 ) ​ ( 352,142 ) Net Loss ​ $ ( 18,806,658 ) ​ $ ( 5,008,876 ) ​ ​ ​ ​ ​ ​ ​ Net Loss Per Share ​ ​ ​ ​ - Basic and Diluted ​ $ ( 0.07 ) ​ $ ( 0.04 ) ​ ​ ​ ​ ​ Weighted Average Number of Common Shares Outstanding ​ ​ ​ ​ - Basic and Diluted ​ 279,373,293 ​ 142,361,999 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 4 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FOR THE THREE MONTHS ENDED MARCH 31, 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 ​ $ 73 264,801,650 ​ $ 26,480 ​ $ 141,508,877 ​ 131,162 ​ $ ( 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 ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ 27,536 ​ ​ ( 63,332 ) ​ ​ — ​ ​ ( 63,332 ) Common stock issued upon the exercise of options ​ — ​ ​ — ​ 8,500 ​ ​ 1 ​ ​ 7,564 ​ — ​ ​ — ​ ​ — ​ ​ 7,565 Common stock issued for at the market offering (1) ​ — ​ ​ — ​ 19,407,622 ​ ​ 1,941 ​ ​ 49,640,989 ​ — ​ ​ — ​ ​ — ​ ​ 49,642,930 Common stock issued upon vesting of restricted stock units ​ — ​ ​ — ​ 500,877 ​ ​ 50 ​ ​ ( 50 ) ​ — ​ ​ — ​ ​ — ​ ​ — Shares withheld for employee payroll tax obligations ​ — ​ ​ — ​ ( 99,857 ) ​ ​ ( 10 ) ​ ​ ( 145,781 ) ​ — ​ ​ — ​ ​ — ​ ​ ( 145,791 ) Stock-based compensation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock issued for services ​ — ​ ​ — ​ 61,000 ​ ​ 6 ​ ​ 82,034 ​ — ​ ​ — ​ ​ — ​ ​ 82,040 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 ​ 284,679,792 ​ $ 28,468 ​ $ 192,628,105 ​ 158,698 ​ $ ( 359,554 ) ​ $ ( 102,617,881 ) ​ $ 89,679,238 (1) Represents gross proceeds of $ 51,152,353 , less issuance costs of $ 1,509,423 . ​ The accompanying notes are an integral part of these condensed consolidated financial statement ​ 5 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FOR THE THREE MONTHS ENDED MARCH 31, 2024 ​ ​ Series A ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ Preferred Stock ​ Common Stock ​ Paid-In ​ Treasury Stock ​ Accumulated ​ Stockholders’ ​ Shares Amount Shares Amount Capital Shares Amount Deficit Equity (Deficit) Balance - January 1, 2024 — ​ $ — ​ 134,031,669 ​ $ 13,403 ​ $ 64,387,717 ​ 131,162 ​ $ ( 296,222 ) ​ $ ( 66,287,594 ) ​ $ ( 2,182,696 ) Preferred stock issued for no consideration ​ 730,000 ​ ​ 73 ​ — ​ ​ — ​ ​ ( 73 ) ​ — ​ ​ — ​ ​ — ​ ​ — Common stock issued for the repayment of prepaid advance liability and related interest accrual pursuant to Advance Notices (1) — ​ ​ — ​ 21,798,830 ​ 2,180 ​ ​ 6,052,650 ​ — ​ ​ — ​ — ​ 6,054,830 Common stock issued for cash pursuant to Advance Notices (2) ​ — ​ ​ — ​ 19,228,351 ​ ​ 1,923 ​ ​ 2,904,490 ​ — ​ ​ — ​ ​ — ​ ​ 2,906,413 Stock-based compensation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Restricted stock awards exchanged for restricted stock units ​ — ​ ​ — ​ ( 2,168,508 ) ​ ​ ( 217 ) ​ ​ 217 ​ — ​ ​ — ​ ​ — ​ ​ — Restricted stock units vested and issued — ​ ​ — ​ 384,627 ​ 38 ​ ​ ( 38 ) ​ — ​ ​ — ​ — ​ — Common stock issued for services ​ — ​ ​ — ​ 35,500 ​ ​ 4 ​ ​ 6,386 ​ — ​ ​ — ​ ​ — ​ ​ 6,390 Amortization of restricted common stock ​ — ​ ​ — ​ — ​ ​ — ​ ​ 781,496 ​ — ​ ​ — ​ ​ — ​ ​ 781,496 Amortization of stock options — ​ ​ — ​ — ​ ​ — ​ ​ 32,041 ​ — ​ ​ — ​ — ​ 32,041 Net loss ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ ( 5,008,876 ) ​ ​ ( 5,008,876 ) Balance - March 31, 2024 ​ 730,000 ​ $ 73 ​ 173,310,469 ​ $ 17,331 ​ $ 74,164,886 ​ 131,162 ​ $ ( 296,222 ) ​ $ ( 71,296,470 ) ​ $ 2,589,598 (1) Represents gross proceeds of $ 6,068,407 , less issuance costs of $ 13,577 . (2) Represents gross proceeds of $ 2,910,651 , less issuance costs of $ 4,238 . ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 6 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ 2025 2024 Cash Flows From Operating Activities: ​ ​ ​ Net loss ​ $ ( 18,806,658 ) ​ $ ( 5,008,876 ) Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ ​ ​ Amortization of debt discount ​ ​ 82,878 ​ ​ 175,080 Non-cash operating lease expense ​ ​ 119,477 ​ ​ 115,117 Gain on debt extinguishment ​ ​ ( 50,000 ) ​ ​ 31,358 Depreciation and amortization expense ​ ​ 294,365 ​ ​ 672,867 Write down equipment deposits ​ ​ 568,777 ​ ​ — Change in fair value of accrued issuable equity ​ ( 260,598 ) ​ 13,002 Change in fair value of digital assets ​ ​ 9,748,600 ​ ​ — Stock-based compensation ​ ​ 1,637,368 ​ ​ 845,930 Mining of digital assets ​ ​ ( 249,754 ) ​ ​ — Changes in operating assets and liabilities: ​ ​ ​ ​ Accounts receivable billed ​ ​ ( 254,432 ) ​ ​ ( 81,638 ) Accounts receivable unbilled ​ ​ ( 196,695 ) ​ ​ — Inventory ​ ​ 59,676 ​ ​ 96,623 Inventory deposits ​ ​ ( 787,626 ) ​ ​ — Prepaid expenses and other current assets ​ ( 908,075 ) ​ 124,829 Security deposits ​ — ​ ( 88,143 ) Accounts payable ​ ( 849,157 ) ​ ( 425,563 ) Accrued expenses and other current liabilities ​ ​ 215,485 ​ ​ ( 16,662 ) Operating lease liabilities ​ ( 123,955 ) ​ ( 54,139 ) Deferred revenue ​ ( 11,627 ) ​ ( 307,191 ) Total Adjustments ​ 9,034,707 ​ 1,101,470 Net Cash Used In Operating Activities ​ ​ ( 9,771,951 ) ​ ​ ( 3,907,406 ) ​ ​ ​ ​ ​ ​ ​ Cash Flows From Investing Activities: ​ ​ ​ ​ ​ ​ Equipment deposits ​ ​ ( 96,938 ) ​ ​ — Purchases of property and equipment ​ ​ ( 120,229 ) ​ ​ ( 13,400 ) Purchases of digital assets ​ ​ ( 44,499,352 ) ​ ​ — Net Cash Used In Investing Activities ​ ( 44,716,519 ) ​ ( 13,400 ) ​ ​ ​ ​ ​ ​ ​ Cash Flows from Financing Activities: ​ ​ ​ ​ ​ ​ Proceeds from ATM equity financing ​ ​ 51,152,353 ​ ​ — Issuance costs on ATM equity financing (1) ​ ​ ( 1,280,726 ) ​ ​ — Proceeds from the SEPA ​ ​ — ​ ​ 2,910,651 Proceeds from exercise of stock options ​ ​ 7,565 ​ ​ — Proceeds from notes payable (2) ​ ​ — ​ ​ 1,080,000 Issuance costs on notes payable ​ ​ — ​ ​ ( 116,100 ) Repayments of notes payable ​ ​ ( 577,675 ) ​ ​ ( 349,666 ) Payments for deferred financing costs ​ ​ ( 195,000 ) ​ ​ — Repayment of finance lease liabilty ​ ​ ( 608 ) ​ ​ — Net Cash Provided By Financing Activities ​ ​ 49,105,909 ​ ​ 3,524,885 Net Decrease In Cash ​ ​ ( 5,382,561 ) ​ ​ ( 395,921 ) Cash - Beginning of Period ​ 29,831,858 ​ 1,194,764 Cash - End of Period ​ $ 24,449,297 ​ $ 798,843 (1) Excludes $ 228,697 amortization of deferred financing costs. (2) Face value of $ 1,609,200 , less $ 529,200 original issue discount. The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 7 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, continued (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ 2025 2024 Supplemental Disclosures of Cash Flow Information: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid during the period for: ​ ​ ​ ​ ​ ​ Interest ​ $ 30,221 ​ $ 314,731 Taxes ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ Non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ Deferred financing costs charged to additional paid-in capital ​ $ 228,697 ​ $ 17,815 Shares withheld for employee payroll tax obligations ​ $ 145,791 ​ $ — Accounts payable and accrued expenses for property and equipment ​ $ 116,726 ​ $ 32,765 Common stock issued in satisfaction of accrued issuable equity ​ $ 69,500 ​ $ — Shares returned to treasury for employee payroll tax obligations ​ $ 63,332 ​ $ — Common shares issued for restricted stock units vested ​ $ 50 ​ $ 38 Preferred shares issued for no consideration ​ $ 27 ​ $ — Right-of-use asset for lease liability ​ $ — ​ $ 1,575,919 Restricted stock awards converted to restricted stock units ​ $ — ​ $ 217 Original issue discount on indebtedness ​ $ — ​ $ 529,200 Common stock issued pursuant to Advance Notices in satisfaction of prepaid advance liability and interest ​ $ — ​ $ 6,054,830 Additions to property and equipment included in accrued purchases ​ $ — ​ $ 71,043 Accrued underwriting fees for notes payable ​ $ — ​ $ 18,916 ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 8 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 1 – ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION Organization and Operations KULR Technology Group, Inc., through its wholly-owned subsidiary, KULR Technology Corporation (collectively referred to as “KULR” or the “Company”), develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications. Currently, the Company is focused on targeting both high performance aerospace and Department of Defense (“DOD”) applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, fifth generation (“5G”) communication, cloud computer infrastructure, consumer and industrial devices. During the first quarter of 2025, the Company commenced digital asset mining operations. Risks and Uncertainties The Company operates in a dynamic and highly competitive industry and believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, results of operations, or cash flows: ability to obtain future financing; advances and trends in new technologies and industry standards; regulatory approval and market acceptance of the Company’s products; development of sales channels; certain strategic relationships; litigation or claims against the Company based on intellectual property, patent, product, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. The “Tariff War”, especially with China, Canada and Mexico, could have an adverse effect on the Company’s supply chain potentially causing financial difficulty for the Company’s direct or indirect customers and reduced demand of the Company’s products. A continuation of these conflicts could have adverse changes in international trade policies and relations. Tariffs could increase the cost of the Company’s products and the components that go into making them. These increased costs could adversely impact the gross margin that the Company earns on its products. Tariffs could also make the Company’s products more expensive for customers, which could make the Company’s products less competitive and reduce consumer demand. Changing the Company’s operations in accordance with new or changed trade restrictions can be expensive, time-consuming and disruptive to the Company’s operations. In addition, the Company has invested in Bitcoin, which is a digital asset. Digital assets are loosely regulated and there is no central marketplace for asset exchange. Supply is determined by a computer code, not by a central bank, and prices have been extremely volatile. Certain digital asset exchanges have been closed due to fraud, failure or security breaches. Any of the Company’s digital assets that reside on an exchange that shuts down may be lost. Several factors may affect the price of digital assets, including, but not limited to: supply and demand, investors’ expectations with respect to the rate of inflation, interest rates, currency exchange rates or future regulatory measures (if any) that restrict the trading of digital assets, and the use of digital assets as a form of payment. There is no assurance that digital assets will maintain their long-term value in terms of purchasing power in the future, or that acceptance of digital asset payments by mainstream retail merchants and commercial businesses will continue to grow. As digital assets have grown in popularity and market size, various countries and jurisdictions have begun to develop regulations governing the digital asset industry. To the extent future regulatory actions or policies limit the ability to exchange digital assets or utilize them for payments, the demand for digital assets could be reduced. Furthermore, regulatory actions may limit the ability of end-users to convert digital assets into fiat currency (e.g., U.S. dollars) or use digital assets to pay for goods and services. Such regulatory actions or policies could result in a reduction of demand, and in turn, a decline in the underlying digital asset unit prices. The effect of any future regulatory change on digital assets in general is impossible to predict, but such change could be substantial and adverse to the Company and the value of the Company’s investments in digital assets. Digital assets are not insured or protected under the Federal Deposit Insurance Corporation (“FDIC”) or the Securities Investor Protection Company (“SIPC”). Accordingly, with respect to its Bitcoin investment, the Company does not enjoy the same protection as other assets covered by the FDIC or SIPC. 9 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the unaudited condensed consolidated financial statements of the Company as of March 31, 2025, and for the three months ended March 31, 2025 and 2024. The results of operations for the three months ended March 31, 2025, are not necessarily indicative of the operating results for the full year ending December 31, 2025, or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related disclosures as of December 31, 2024 and for the year then ended, which were filed with the Securities and Exchange Commission (“SEC”) on Form 10-K on March 31, 2025. The accompanying condensed consolidated balance sheet as of December 31, 2024, has been derived from the audited financial statements included in the Form 10-K. ​ NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Since the date of the Annual Report on Form 10-K for the year ended December 31, 2024, there have been no material changes to the Company’s significant accounting policies, except as disclosed in this note. Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the financial statements. The Company’s significant estimates used in these unaudited condensed consolidated financial statements include, but are not limited to, fair value calculations for intangible assets, equity securities, stock-based compensation and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consisted primarily of cash, digital assets and accounts receivable. The Company’s concentrations of credit risk also include concentrations from key customers and vendors. Cash Concentrations A significant portion of the Company’s cash is held at one major financial institution. The Company has not experienced any losses in such accounts. Cash held in US bank institutions is currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at each institution. There were uninsured balances of $ 23,949,297 and $ 29,331,858 as of March 31, 2025 and December 31, 2024, respectively. 10 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Customer and Revenue Concentrations The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue Accounts Receivable ​ ​ For the Three Months Ended ​ As of ​ As of ​ ​ March 31, ​ March 31, December 31, ​ 2025 2024 2025 ​ 2024 Customer A 21 % * ​ * ​ * ​ Customer B 14 % * ​ 11 % * ​ Customer C 13 % 35 % * ​ * ​ Customer D ​ 10 % * ​ 11 % * ​ Customer E ​ 21 % * ​ * ​ * ​ Customer F ​ * ​ 13 % * ​ * ​ Customer G ​ * ​ * ​ * ​ 16 % Customer H * ​ * ​ 30 % 41 % Customer I ​ * ​ * ​ 18 % 25 % Total 79 % 48 % 70 % 82 % * Less than 10% ​ There is no assurance the Company will continue to receive significant revenue from any of these customers. Any reduction or delay in operating activity from any of the Company’s significant customers, or a delay or default in payment by any significant customer, or termination of agreements with significant customers, could materially harm the Company’s business and prospects. As a result of the Company’s significant customer concentrations, its gross profit and results from operations could fluctuate significantly due to changes in political, environmental, or economic conditions, or the loss of, reduction of business from, or less favorable terms with any of the Company’s significant customers. Custody of Digital Assets The Company currently holds and intends to continue to hold all of its digital assets in a custodial account at a U.S. based, institutional-grade custodian (who may hold the Company’s digital assets in the United States or other territories) that has demonstrated records of regulatory compliance and information security. The custodian may also serve as a liquidity provider. If the Company’s custodially-held digital assets were considered to be the property of the custodian’s estates in the event that the custodian were to enter bankruptcy, receivership or similar insolvency proceedings, the Company could be treated as a general unsecured creditor of the custodian, inhibiting the Company’s ability to exercise ownership rights with respect to such digital assets and this may ultimately result in the loss of the value related to some or all of such digital assets. Additionally, the digital assets the Company holds with our custodian and transact with our trade execution partners does not enjoy the same protections as are available to cash or securities deposited with or transacted by institutions subject to regulation by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. 11 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Vendor Concentrations The Company had vendors whose purchases of inventory individually represented 10% or more of the Company’s total purchases of inventory, as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ 2025 2024 Vendor A 26 % * ​ Vendor B 18 % * ​ Vendor C ​ 15 % * ​ Vendor D * ​ 14 % ​ 59 % 14 % * Less than 10% Accounts Receivable Accounts receivable are carried at their contractual amounts, less an estimate for credit losses. As of March 31, 2025 and December 31, 2024, no allowances for credit losses were determined to be necessary. Management estimates the allowance for credit losses based on existing economic conditions, the financial conditions of the customers, and the amount and age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted. Digital Assets In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-08, Intangibles - Goodwill and Other - Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), which provides an update to existing digital asset guidance and requires an entity to measure certain digital assets at fair value. In addition, this guidance requires disclosures related to digital assets once it is adopted. As of January 1, 2024, the Company has adopted ASU 2023-08. The Company reflects digital assets held at fair value on the consolidated balance sheets and consolidated statements of cash flows, the activity from the remeasurement of digital assets at fair value on the consolidated statements of operations, and the required expanded disclosures in Note 3, Digital Assets. There was no cumulative effect adjustment to the Company’s retained earnings balance as a result of the adoption of ASU 2023-08. Digital assets are generally valued using prices as reported on reputable and liquid exchanges and may involve using an average of bid and ask quotes using closing prices provided by such exchanges as of the date and time of determination. Since the digital assets are traded on a 24-hour period, the Company uses the price at 4:00pm Eastern Standard Time (“EST”) to value its digital assets. Mining of Digital Assets The Company leased digital asset mining equipment, which provides hashrates to a mining pool operator. The Company derives a portion of its revenue from its digital asset mining activities by providing hashrates as part of transaction verification services within the digital currency networks of cryptocurrencies, such as bitcoin, commonly termed “cryptocurrency mining.” In consideration for these services, the Company receives digital awards which are recorded as revenue, based on the daily amount of bitcoin earned. The Company’s digital assets are recorded on the balance sheet at their fair value according to the Company’s accounting practices for digital assets. Unrealized gains or losses on the remeasurement of digital assets mined are recorded in the statement of operations. Lease costs associated with the digital asset mining operation are recorded as cost of revenue. 12 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Inventory The Company capitalizes inventory costs associated with products when future commercialization is considered probable, and a future economic benefit is expected to be realized. These costs consist of finished goods, raw materials, manufacturing-related costs, transportation and freight, and other indirect overhead costs. Inventory is comprised of carbon fiber velvet thermal interface solutions and internal short circuit batteries, which are available for sale, as well as raw materials and work in process related primarily to the manufacture of safe cases. Safe cases provide a safe and cost-effective solution to commercially store and transport lithium batteries and mitigate the impacts of cell-to-cell thermal runway propagation. Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. The cost of inventory that is sold to third parties is included within cost of sales and the cost of inventory that is given as samples is included within operating expenses. The Company periodically reviews for slow-moving, excess or obsolete inventories. Products that are determined to be obsolete, if any, are written down to net realizable value. On occasion, the Company pays for inventory prior to receiving the goods. These payments are recorded as inventory deposits until the goods are received and these costs are included in the current asset section of the condensed consolidated balance sheet. Inventory at March 31, 2025 and December 31, 2024 was comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2025 ​ 2024 Raw materials ​ $ 357,131 ​ $ 363,224 Finished goods ​ 128,660 ​ 182,243 Total inventory ​ $ 485,791 ​ $ 545,467 ​ As of March 31, 2025 and December 31, 2024, inventory deposits were $ 787,626 and $ 0 , respectively, which consists of inventory purchases of goods that were paid for but not received as of period end. Finished goods inventory is held on-site at the San Diego, California and Webster, Texas locations. Certain raw materials are held off-site with certain contract manufacturers. Fair Value Measurements The Company measures the fair value of financial assets and liabilities based on the guidance of Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures” (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example, cash flow modeling inputs based on assumptions) The carrying amounts of the Company’s financial assets, such as cash, accounts receivable, accrued expenses and other current liabilities, notes payable and Prepaid Advance Liability approximate fair values due to the short-term nature of these instruments. The carrying amount of the Company’s digital assets are recorded at fair value in accordance with ASC 820, Fair Value Measurement (“ASC 820”), based on quoted prices on the active exchange(s) that the Company has determined is the principal market for such assets (Level I inputs). The cost basis of digital assets is determined using the specific identification of each unit received. Realized and unrealized gains and losses are now recorded to other (expense) income, net in our consolidated statement of operations. 13 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The following five steps are applied to achieve that core principle: ● Step 1: Identify the contract with the customer; ● Step 2: Identify the performance obligations in the contract; ● Step 3: Determine the transaction price; ● Step 4: Allocate the transaction price to the performance obligations in the contract; and ● Step 5: Recognize revenue when the company satisfies a performance obligation. For sales contracts with terms of more than one year, the Company recognizes any significant financing component as revenue over the contractual period using the effective interest method, and the associated interest income is reflected accordingly on the consolidated statements of operations and included in other income. During the three months ended March 31, 2025 and 2024, the Company recognized revenue primarily from the following different types of contracts: ● Product sales – Revenue is recognized at the point in time the customer obtains control of the goods and the Company satisfies its performance obligation, which is generally at the time it ships the product to the customer. For certain product sales contracts, the Company acts as an agent and revenue in connection with these contracts is presented net of the related costs. ● Contract services – Revenue is recognized pursuant to the terms of each individual contract when the Company satisfies the respective performance obligations, which could be recognized at a point in time or over the term of the contract. Contract services revenue that is recognized over time, may be recognized using the input method, based on labor hours expended, or using the output method based on milestones achieved, depending on the contract. ● Mining of digital assets – The Company has entered into a lease agreement with a digital asset mining services company to operate digital asset mining machines on behalf of the Company and provide mining pool operating and hosting services. Pursuant to the agreement, the Company provides computing power to the mining pool operator. The Company is entitled to digital asset awards once it begins to perform hash calculations for the pool operator in accordance with the operator’s specifications. The Company’s fractional share is based on the total blocks expected to be generated on the Bitcoin network for the daily 24-hour period. Revenue from digital assets is considered non-cash consideration. 14 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) The following table summarizes the Company’s revenue recognized in its condensed consolidated statements of operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ 2025 2024 Revenue Recognized at a Point in Time: ​ ​ ​ ​ ​ ​ Product sales ​ $ 1,160,559 ​ $ 615,093 Contract services ​ ​ 865,161 ​ ​ 516,471 Total ​ ​ 2,025,720 ​ ​ 1,131,564 Revenue Recognized Over Time: ​ ​ ​ ​ ​ ​ Mining of digital assets ​ ​ 249,754 ​ ​ — Contract services ​ 173,132 ​ 617,540 Total Revenue ​ $ 2,448,606 ​ $ 1,749,104 ​ Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenues (contract liabilities) on the Consolidated Balance Sheet. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits from our customers resulting in contract liabilities. As of March 31, 2025, the Company had billed accounts receivable of $ 4,346,111 and unbilled accounts receivable of $ 196,695 . As of December 31, 2024, the Company had billed accounts receivable of $ 3,431,007 and unbilled accounts receivable of $ 660,672 . Deferred revenues were $ 21,141 and $ 32,768 as of March 31, 2025 and December 31, 2024, respectively. Net Loss Per Common Share Basic net loss per common share is computed by dividing net loss by the weighted average number of vested common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. ​ The following table presents the computation of basic and diluted net loss per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ ​ 2025 2024 Numerator: ​ ​ Net loss ​ $ ( 18,806,658 ) ​ $ ( 5,008,876 ) ​ ​ ​ ​ ​ ​ ​ Denominator (weighted average quantities): ​ ​ ​ ​ Common shares issued ​ 278,749,777 ​ 143,496,225 Less: Treasury shares purchased ​ ( 153,803 ) ​ ( 131,162 ) Less: Unvested restricted shares ​ ( 75,000 ) ​ ( 1,071,495 ) Add: Accrued issuable equity ​ ​ 102,319 ​ ​ 68,431 Add: Vested unissued restricted stock units ​ ​ 750,000 ​ ​ — Denominator for basic and diluted net loss per share ​ ​ 279,373,293 ​ ​ 142,361,999 ​ ​ ​ ​ ​ Basic and diluted net loss per common share ​ $ ( 0.07 ) ​ $ ( 0.04 ) ​ 15 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2025 2024 Unvested restricted stock awards ​ 75,000 ​ 712,500 Unvested restricted stock units ​ 10,111,365 ​ 4,268,881 Options 349,000 ​ 670,216 Warrants ​ 711,219 ​ 2,524,410 Total 11,246,584 ​ 8,176,007 ​ Reclassifications Certain prior period balances have been reclassified in order to conform to the current period presentation. These reclassifications have no effect on previously reported results of operations or loss per share. Subsequent Events The Company has evaluated subsequent events through the date on which these unaudited condensed consolidated financial statements were issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed in Note 12 – Subsequent Events. Segment Reporting Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by management in deciding how to allocate resources and in assessing performance. Management has determined that the Company has two significant operating segments: Energy Management Platform and Mining of Digital Assets, as discussed more fully in Note 11. In determining the appropriateness of segment definition, the Company considers the criteria of Accounting Standards Codification (“ASC”) 280, Segment Reporting. Recent Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This update also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in ASU 2023 – 09 are effective for annual periods beginning after December 15, 2024, with early adoption permitted. Since this new ASU addresses only disclosures, the Company does not expect the adoption of this ASU to have any material impact on its financial condition, results of operations, or cash flows. The Company is currently evaluating any new disclosures that may be required upon adoption of ASU 2023–09. ​ ​ 16 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 3 – DIGITAL ASSETS ​ The Company’s digital assets are comprised solely of Bitcoin. In accordance with ASC Topic 820, Fair Value Measurement, the Company measures the fair value of its Bitcoin based on the quoted price at 4:00pm EST on the measurement date for a single Bitcoin on an active trading platform, Coinbase. Management has determined that Coinbase, an active exchange market, represents a principal market for Bitcoin and at 4:00pm EST, the price is both readily available and representative of fair value (Level 1 inputs). The following table sets forth the units held, cost basis, and fair value of Bitcoin held, as shown on the consolidated balance sheet as of March 31, 2025 and as of December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Units Cost Basis Fair Value Digital assets held: ​ ​ ​ ​ ​ ​ ​ ​ Digital assets purchased 666.63 ​ $ 65,499,352 ​ $ 55,036,820 Digital assets mined 2.97 ​ 249,754 ​ 244,870 Total 669.60 ​ $ 65,749,106 ​ $ 55,281,690 ​ During the first three months of March 31, 2025, the Company purchased 449.45 Bitcoin at an average cost of $ 99,008 per Bitcoin, inclusive of fees and expenses, for an aggregate cost of $ 44,499,352 . Additionally, on March 7, 2025, the Company entered into a sixty-day lease agreement (the “Machine Lease Agreement”) with a digital asset mining services company to operate digital assets mining machines on KULR’s behalf, at a total lease cost of $ 850,000 . As of March 31, 2025, 2.97 Bitcoin have been earned pursuant to the Machine Lease Agreement, at an average value of $ 84,186 per Bitcoin. During the three months ended March 31, 2025, the Company recognized revenue of $ 249,754 , and recognized a loss of $ 90,237 , in connection with its digital assets mining operations. The following table presents a reconciliation of the fair values of the Company’s Bitcoin as of March 31, 2025: ​ ​ ​ ​ ​ ​ Bitcoin Beginning balance at January 1, 2025 ​ $ 20,281,184 Additions - purchased ​ 44,499,352 Additions - mined ​ 249,754 Dispositions ​ — Unrealized loss, net ​ ( 9,748,600 ) Balance, March 31, 2025 ​ $ 55,281,690 ​ ​ NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS As of March 31, 2025 and December 31, 2024, prepaid expenses and other current assets consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ 2025 2024 Deferred expenses ​ $ 759,779 ​ $ 405,463 Digital assets mining lease ​ ​ 330,000 ​ ​ — Compensation costs ​ ​ 250,000 ​ ​ 275,000 Marketing and advertising ​ ​ 200,000 ​ ​ 285,000 Insurance ​ ​ 130,251 ​ ​ — Professional fees ​ ​ 82,405 ​ ​ 40,142 Security deposits ​ ​ 50,213 ​ ​ 50,213 Vendor receivables ​ ​ 7,386 ​ ​ 7,386 Dues and subscriptions ​ ​ 7,076 ​ ​ 25,355 Other ​ ​ 86,714 ​ ​ 52,981 Total prepaid expenses and other current assets ​ $ 1,903,824 ​ $ 1,141,540 ​ ​ 17 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 5 – ACCRUED EXPENSES AND OTHER LIABILITIES As of March 31, 2025 and December 31, 2024, accrued expenses and other current liabilities consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2025 2024 Payroll and vacation ​ $ 632,305 ​ $ 369,847 Professional fees ​ ​ 489,945 ​ ​ 176,875 Inventory purchases ​ ​ 200,863 ​ ​ 332,094 Sales tax payable ​ ​ 110,909 ​ ​ 111,732 Equipment purchases ​ 29,226 ​ ​ 32,717 Royalties ​ ​ 10,337 ​ ​ 48,402 Research and development ​ — ​ ​ 50,000 Interest payable ​ ​ — ​ ​ 24,102 Other ​ ​ 43,370 ​ ​ 25,643 Total accrued expenses and other liabilities ​ 1,516,955 ​ ​ 1,171,412 Less: current portion ​ ( 1,511,775 ) ​ ​ ( 1,160,446 ) Other non-current liabilities ​ $ 5,180 ​ $ 10,966 ​ ​ NOTE 6 – ACCRUED ISSUABLE EQUITY A summary of the accrued issuable equity activity during the three months ended March 31, 2025 is presented below: ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, 2025 Beginning balance at January 1, 2025 ​ $ 420,427 Additions ​ ​ 90,329 Mark-to-market ​ ​ ( 260,598 ) Shares issued in satisfaction of accrued issuable equity ​ ​ ( 69,500 ) Fair value at March 31, 2025 ​ $ 180,658 ​ During the three months ended March 31, 2025, the Company entered into certain contractual arrangements for services in exchange for a fixed number of shares of common stock of the Company. The estimated fair value of the shares to be issued was an aggregate of $ 90,329 based on the quoted market prices of the shares as of the respective contract dates. During the three months ended March 31, 2025, the Company settled certain of its accrued issuable equity obligations through the issuance of an aggregate of 50,000 of its shares of common stock with an aggregate fair value of $ 69,500 , remeasured as of the date of settlement based on the quoted market prices of the shares. During the three months ended March 31, 2025 and 2024, the Company recorded gains (losses) in the aggregate amount of $ 260,598 and $( 13,002 ), respectively, related to changes in the fair value of accrued issuable equity (see Note 9 – Stockholders’ Equity (Deficit), Stock-Based Compensation for additional details). The fair value of the accrued but unissued shares as of March 31, 2025, was $ 180,658 , based on Level 1 inputs, which consist of quoted prices for the Company’s common stock in active markets. ​ NOTE 7 – LEASES Operating Leases On January 31, 2024, the initial lease for Webster, Texas dated January 18, 2023, expired. On January 27, 2024, the Company entered into a new lease agreement for new office space in Webster, Texas. The initial lease term is 63 months . The lease contains an option to renew for an additional 36 months , which is not reasonably certain to be exercised and therefore is not included in the measurement of the operating lease ROU asset and related lease liability. Monthly rental payments under the new lease are $ 33,818 , which is comprised of $ 22,682 of base rent and $ 11,136 of common area maintenance fees. No cash payments are due for the first three months of the lease. 18 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) The Company determined that the value of the operating lease liability and related right-of-use asset at inception was $ 1,085,498 , using an incremental borrowing rate of 10 %. The Company paid a security deposit of $ 37,930 in connection with the Webster lease agreement which is recorded within the security deposits section of the balance sheet as of March 31, 2025. The Company also leases office space at 4863 Shawline Street, San Diego, CA 92111, pursuant to an operating lease which originally expired May 31, 2024 (the “San Diego Lease”). On January 25, 2024, the Company entered into an amendment to the lease dated April 5, 2021, for the facility located at 4863 Shawline Street, San Diego, CA 92111 (the “First Renewal”). Pursuant to the amendment, the lease was extended for a period of eighteen months commencing June 1, 2024, and terminating November 30, 2025. Monthly rental payments under the amendment are $ 29,337 . The Company determined that the value of the modified operating lease liability and related right-of-use asset to be $ 449,404 , using an incremental borrowing rate of 10 %. The Company paid a security deposit of $ 50,213 in connection with the San Diego lease agreement which is recorded within the prepaid expenses and other current assets section of the balance sheet as of March 31, 2025. During the three months ended March 31, 2025 and 2024, operating lease expense was $ 150,846 and $ 111,902 , respectively. Finance Lease The Company recorded depreciation expense in the amount of $ 388 in connection with ROU assets held under the finance lease during the three months ended March 31, 2025. The Company recorded interest expense of $ 117 during the three months ended March 31, 2025, in connection with its finance lease liability. Maturities of lease liabilities as of March 31, 2025, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Operating Lease Financing Lease Total 4/1/25 to 12/31/25 ​ $ 445,874 ​ $ 1,977 ​ $ 447,851 2026 ​ ​ 280,228 ​ ​ 2,636 ​ ​ 282,864 2027 ​ ​ 289,008 ​ ​ 1,318 ​ ​ 290,326 2028 ​ 297,788 ​ — ​ 297,788 2029 ​ ​ 101,702 ​ ​ — ​ ​ 101,702 Total future minimum lease payments ​ 1,414,600 ​ 5,931 ​ 1,420,531 Less: amount representing imputed interest ​ ​ ( 226,337 ) ​ ​ ( 224 ) ​ ​ ( 226,561 ) Present value of lease liabilities ​ ​ 1,188,263 ​ ​ 5,707 ​ ​ 1,193,970 Less: current portion ​ ​ ( 419,227 ) ​ ​ ( 2,484 ) ​ ​ ( 421,711 ) Lease liabilities, non current portion ​ $ 769,036 ​ $ 3,223 ​ $ 772,259 ​ Supplemental cash flow information related to the leases are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ ​ 2025 2024 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating lease ​ $ 123,955 ​ $ 54,139 ​ Repayment of finance lease liability ​ $ 608 ​ ​ N/A ​ Right-of-use assets obtained in exchange for lease obligations ​ ​ ​ ​ ​ ​ ​ Operating leases ​ $ — ​ $ 1,575,919 ​ Financing leases ​ $ — ​ ​ N/A ​ Weighted Average Remaining Lease Term (Years) ​ ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 3.41 years ​ 3.94 years Financing leases ​ ​ 2.25 years ​ N/A ​ Weighted Average Discount Rate ​ ​ ​ ​ ​ ​ ​ Operating leases ​ ​ 10.0 % ​ 5.0 % Financing leases ​ ​ 10.0 % ​ N/A ​ ​ ​ 19 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 8-NOTES PAYABLE A summary of the notes payable activity during the three months ended March 31, 2025, is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Notes Debt ​ ​ ​ ​ Payable ​ Discount ​ Total Outstanding, January 1, 2025 ​ $ 577,675 ​ $ ( 82,878 ) $ 494,797 Repayments in cash ​ ( 577,675 ) ​ — ​ ( 577,675 ) Amortization of debt discount ​ — ​ 82,878 ​ 82,878 Total notes payable as of March 31, 2025 ​ ​ — ​ ​ — ​ ​ — ​ On July 11, 2024, the Company entered into a merchant cash advance agreement (the “Third Cash Advance Agreement”) whereby the Company received $ 758,850 of cash (net of underwriting fees of $ 40,000 and $ 201,150 used to pay the remaining balance of the first merchant cash advance), with the obligation to repay a total of $ 1,350,000 over forty - three weekly payments of $ 31,395 , beginning July 18, 2024. The difference between the total repayment amount and the net proceeds received was accounted for as debt discount which is amortized over the term of the Third Cash Advance Agreement. The Third Cash Advance Agreement was secured by the Company’s accounts receivable and related cash receipts. The Third Cash Advance was repaid in full on January 8, 2025. NOTE 9 - STOCKHOLDERS’ EQUITY (DEFICIT) Authorized Capital The Company is authorized to issue 500,000,000 shares of common stock, par value of $ 0.0001 per share, and 20,000,000 shares of preferred stock, par value of $0.0001 per share. The holders of the Company’s common stock are entitled to one vote per share. The preferred stock is designated as follows: 1,000,000 shares designated as Series A Preferred Stock, 31,000 shares designated as Series B Convertible Preferred Stock, 400 shares designated as Series C Preferred Stock, and 650 shares designated as Series D Convertible Preferred Stock. Equity Incentive Plan On August 15 and November 5, 2018, the Board of Directors and a majority of the Company’s shareholders, respectively, approved the 2018 Equity Incentive Plan (the “2018 Plan”). Under the 2018 Plan, 15,000,000 shares of common stock of the Company are authorized for issuance. The 2018 Plan provides for the issuance of incentive stock options, non-statutory stock options, rights to purchase common stock, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants of the Company and its affiliates. The 2018 Plan requires the exercise price of stock options to be not less than the fair value of the Company’s common stock on the date of grant. As of March 31, 2025, there were 718,457 shares available for issuance under the 2018 Plan. At the Market Offering On January 24, 2025, the Company increased the maximum aggregate offering amount of the shares of the Company’s common stock issuable under its At the Market Offering agreement (the “ATM Agreement”) by an additional $ 50 million. During the three months ended March 31, 2025, the Company issued a total of 19,407,622 shares of common stock pursuant to the ATM Agreement for aggregate gross proceeds of $ 51,152,353 with cash issuance costs of $ 1,509,423 . Common Stock During the three months ended March 31, 2025, the Company issued an aggregate of 61,000 shares of common stock valued at $ 82,040 for legal and consulting services, of which 50,000 shares valued at issuance at $ 69,500 were accrued at January 1, 2025 for services rendered in prior years. During the three months ended March 31, 2025, the Company issued 8,500 shares of common stock upon the exercise of stock options for gross proceeds of $ 7,565 . 20 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) During the three months ended March 31, 2025, the Company issued 500,877 shares of common stock upon the vesting of restricted stock units previously granted, of which 127,393 shares were withheld to cover payroll tax obligations. See At The Market Offering, above, for share issuances pursuant to the Company’s ATM Agreement. Treasury Stock The Company’s equity-based compensation plan allows for the grant of non-vested stock options, RSUs and RSAs to its employees pursuant to the terms of its equity incentive plan. Under the provision of the plan, unless otherwise elected, participants fulfill their related income tax withholding obligation by having shares withheld at the time of vesting. The shares withheld are then transferred to the Company’s treasury stock at cost. During the three months ended March 31, 2025, the Company withheld 27,536 shares valued at $ 63,332 in connection with the vesting of restricted common stock units during the period. The Company had 158,698 and 131,162 shares held in treasury as of March 31, 2025 and December 31, 2024, respectively, recorded at their cost of $ 359,554 and $ 296,222 , respectively. Preferred Stock On January 16, 2025, the Board of Directors approved the issuance of an additional 270,000 shares of Non-convertible Series A Voting Preferred Stock (“Series A Preferred”) to the CEO, such that the total shares of Series A Preferred held by the CEO as of March 31, 2025 is 1,000,000 shares. The issuance of up to 1,000,000 shares of Non-convertible Series A Voting Preferred Stock to the CEO was previously approved and authorized by a vote of the majority stockholders of the Company, subject to the Board reserving the full and unequivocal right to revoke, rescind, transfer or otherwise cancel the issued Non-convertible Series A Voting Preferred Stock in the event the CEO is removed from any position with the Company or resigns from all positions with the Company. Holders of Non-convertible Series A Voting Preferred Stock shall not be entitled to dividends, shall not convert into another series or class of stock of the Company and have no rights to distributions in the event of any liquidation. Each record holder of Non-convertible Series A Voting Preferred Stock shall have that number of votes (identical in every other respect to the voting rights of the holders of common stock entitled to vote at any regular or special meeting of the shareholders or by written consent) equal to one-hundred ( 100 ) votes per share of Non-convertible Series A Voting Preferred Stock held by such record holder. Warrants A summary of warrants activity during the three months ended March 31, 2025, is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ Number of ​ Exercise ​ Remaining ​ Intrinsic ​ Warrants Price Term (Yrs) Value Outstanding, January 1, 2025 711,219 ​ $ 1.06 ​ Issued — ​ — ​ Exercised — ​ — ​ Expired — ​ — ​ Forfeited — ​ — ​ Outstanding, March 31, 2025 711,219 ​ $ 1.06 0.8 ​ $ 183,119 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable, March 31, 2025 711,219 ​ $ 1.06 0.8 ​ $ 183,119 ​ 21 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) A summary of outstanding and exercisable warrants as of March 31, 2024, is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants Outstanding ​ Warrants Exercisable ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ Outstanding ​ Average ​ Exercisable Exercise ​ Number of ​ Remaining Life ​ Number of Price Warrants In Years Warrants $ 1.25 ​ 177,885 ​ 0.8 ​ 177,885 $ 1.00 ​ 533,334 ​ 0.8 ​ 533,334 ​ ​ ​ 711,219 ​ 0.8 ​ 711,219 ​ Stock-Based Compensation The following table presents information related to stock-based compensation for the three months ended March 31, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months Ended ​ March 31, ​ 2025 2024 Shares issued for legal services ​ $ 12,540 ​ $ 6,390 Accrued issuable equity (common stock) ​ 90,329 ​ 26,003 Amortization of stock options ​ 15,604 ​ ​ 32,041 Amortization of restricted stock awards and units ​ 1,518,895 ​ 781,496 Total ​ $ 1,637,368 ​ $ 845,930 ​ During the three months ended March 31, 2025 and 2024, the Company recognized stock-based compensation expense of $ 1,637,368 and $ 845,930 respectively, of which $ 1,233,235 and $ 808,106 , respectively, are included within selling, general and administrative expenses, and $ 404,133 and $ 37,824 , respectively are included within research and development expenses in the condensed consolidated statements of operations. Stock Options A summary of stock options activity during the three months ended March 31, 2025, is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ Number of ​ Exercise ​ Remaining ​ Intrinsic ​ ​ Options ​ Price ​ Term (Yrs) ​ Value Outstanding, January 1, 2025 327,500 ​ $ 1.49 ​ Granted 50,000 ​ 1.20 ​ Forfeited ( 20,000 ) ​ 0.85 ​ Exercised ​ ( 8,500 ) ​ ​ 0.90 ​ ​ ​ ​ ​ Outstanding, March 31, 2025 349,000 ​ $ 1.49 3.6 ​ $ 74,238 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable, March 31, 2025 156,500 ​ $ 1.89 2.0 ​ $ 8,295 ​ 22 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) The following table presents information related to stock options as of March 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ Options Outstanding ​ Options Exercisable ​ ​ ​ ​ Weighted ​ ​ Range of ​ Outstanding ​ Average ​ Exercisable Exercise ​ Number of ​ Remaining Term ​ Number of Prices Options In Years Options $ 0.28 - $ 0.99 139,000 3.1 16,500 $ 1.21 - $ 1.50 25,000 2.5 12,500 $ 1.55 - $ 1.99 65,000 2.1 40,000 $ 2.05 - $ 2.44 120,000 1.7 87,500 ​ 349,000 2.0 156,500 ​ For the three months ended March 31, 2025 and 2024, the weighted average grant date fair value per share of options was $ 1.06 and $ 0.14 , respectively. The Company has computed the fair value of stock options granted using the Black-Scholes option pricing model. In applying the Black-Scholes option pricing model, the Company used the following range of assumptions: ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months Ended ​ ​ ​ March 31, ​ ​ ​ 2025 2024 ​ Risk free interest rate 4.15 % 4.27 % Expected term (years) 6.3 ​ 3.8 ​ Expected volatility 120 % 109 % Expected dividends 0 % 0 % ​ Option forfeitures are accounted for at the time of occurrence. The expected term used is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of employee option grants. The Company utilizes an expected volatility figure based on the historical volatility of its common stock over a period of time equivalent to the expected term of the instrument being valued. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. As of March 31, 2025, there was $ 141,372 of unrecognized stock-based compensation expense related to the above stock options, which will be recognized over the weighted average remaining vesting period of 2.4 years. Restricted Stock Awards The following table presents information related to restricted stock awards activity during the three months ended March 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ Shares of Restricted ​ Grant Date ​ Common Stock Fair Value Non-vested RSAs, January 1, 2025 75,000 ​ $ 2.06 Granted — ​ — Vested — ​ — Forfeited — ​ — Non-vested RSAs, March 31, 2025 75,000 ​ $ 2.06 ​ As of March 31, 2025, there was $ 108,646 of unrecognized stock-based compensation expense related to restricted stock awards that will be recognized over the weighted average remaining vesting period of 1.4 years. 23 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Restricted Stock Units The following table presents information related to restricted stock units (“RSUs”) activity during the three months ended March 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ Shares of Restricted ​ Grant Date ​ Common Stock Fair Value Non-vested RSUs, January 1, 2025 5,742,611 ​ $ 1.31 Granted 4,919,631 ​ ​ 2.37 Vested ( 500,877 ) ​ ​ 0.88 Forfeited ​ ( 50,000 ) ​ ​ 0.44 Non-vested RSUs, March 31, 2025 ​ 10,111,365 ​ $ 1.92 ​ ​ ​ ​ ​ ​ Vested RSUs undelivered March 31, 2025 ​ 750,000 ​ $ 2.05 ​ To date, RSUs have only been granted to employees and consultants in accordance with the Company’s 2018 Equity Incentive Plan. Pursuant to the terms of the restricted stock unit agreements, the vested but undelivered units are to be settled on January 1, 2026. As of March 31, 2025, there was $ 17,228,607 of unrecognized stock-based compensation expense related to restricted stock units that will be recognized over the weighted average remaining vesting period of 3.5 years. ​ NOTE 10 – COMMITMENTS AND CONTINGENCIES Legal Matters The Company may be involved in litigation and arbitrations from time to time in the ordinary course of business. As of March 31, 2025, the Company was not involved in any ongoing litigation. The Company records legal costs associated with loss contingencies as incurred. Settlements are accrued when, and if, they become probable and estimable. Contingent Loss Equipment deposits at March 31, 2025 and December 31, 2024 primarily includes amounts paid to a vendor as a downpayment for the manufacture of an automated manufacturing system (the “System”). To date, the System has not been delivered and the Company and the vendor are in continuing discussions. In an effort to come to a resolution on the matter, the Company has offered to reduce its original demand for full reimbursement by $ 568,777 , which has not yet been accepted by the counterparty. During the three months ended March 31, 2025, the Company recorded a write-down of $ 568,777 related to the equipment deposits, which is included in selling, general and administrative expense on the accompany unaudited condensed consolidated statement of operations. The carrying value of equipment deposits of $ 883,335 represents the net realizable value of the asset as of March 31, 2025. At this time, an additional loss is not considered probable, but negotiations with the vendor are ongoing and we are unable to estimate the dollar amount of any additional potential loss, if any. ​ NOTE 11 – SEGMENT REPORTING During the first quarter of 2025, the Company expanded on its treasury strategy and began mining digital assets. The Company determined these activities met the criteria of an operating segment. The Company operates as two operating and reporting segments (i) energy management platform, and (ii) mining of digital assets, namely, the development and commercialization of energy management technologies, batteries and other components across a range of applications, and the mining of bitcoin. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The chief operating decision maker (“CODM”), who is the Company’s chief executive officer, reviews profit and loss information on a consolidated basis in order to assess performance, make decisions about the allocation of operating and capital resources, and evaluate pricing strategies related to the energy management platform. The CODM is not regularly provided disaggregated expense information, other than the expense information included in the consolidated statements of operations. The CODM reviews financial information for mining digital assets separately 24 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) from the financial information related to the energy management platform for making decisions, allocating resources and assessing financial performance, as well as making strategic operational decisions and managing the organization. The Company does not have intra-entity sales or transfers. The CODM does not consider gains and losses associated with digital assets when reviewing the results of operations, or allocating resources to the Company’s operating segments. Gains and losses associated with the Company’s digital assets (which is not considered an operating segment) are presented separately from segment net income. Beginning in 2025, the Company has broken out a Corporate & Other category, which is not considered an operating segment, and includes the changes in fair value of the Company’s digital asset holdings. The following table presents the breakout of the operations of the energy management and digital asset mining segments for the three months ended March 31, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, 2025 ​ March 31, 2024 ​ ​ Energy ​ ​ ​ ​ ​ ​ Energy ​ ​ ​ ​ ​ ​ ​ ​ Management Bitcoin Corporate & ​ ​ ​ Management Bitcoin Corporate & ​ ​ ​ ​ Platform Mining Other Total Platform Mining Other Total Revenue ​ $ 2,198,852 ​ $ 249,754 ​ $ — ​ $ 2,448,606 ​ $ 1,749,104 ​ $ — ​ $ — ​ $ 1,749,104 Cost of revenue ​ 1,902,261 ​ 340,000 ​ — ​ 2,242,261 ​ 1,238,315 ​ — ​ — ​ 1,238,315 Gross Profit ​ ​ 296,591 ​ ​ ( 90,246 ) ​ ​ — ​ ​ 206,345 ​ ​ 510,789 ​ ​ — ​ ​ — ​ ​ 510,789 Operating Expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ 2,449,900 ​ — ​ — ​ 2,449,900 ​ 954,625 ​ — ​ — ​ 954,625 Selling, general, and administrative ​ 7,200,250 ​ — ​ — ​ 7,200,250 ​ 4,212,898 ​ — ​ — ​ 4,212,898 Total Operating Expenses ​ 9,650,150 ​ — ​ — ​ 9,650,150 ​ 5,167,523 ​ — ​ — ​ 5,167,523 Segment Net Loss ​ ( 9,353,559 ) ​ ( 90,237 ) ​ — ​ ( 9,443,805 ) ​ ( 4,656,734 ) ​ — ​ — ​ ( 4,656,734 ) Other (Expense) Income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other segment (expense) income (1) ​ 385,747 ​ — ​ — ​ 385,747 ​ ( 352,142 ) ​ — ​ — ​ ( 352,142 ) Change in fair value of digital assets ​ — ​ — ​ ( 9,748,600 ) ​ ( 9,748,600 ) ​ — ​ — ​ — ​ — Total Other Expense, net ​ 385,747 ​ — ​ ( 9,748,600 ) ​ ( 9,362,853 ) ​ ( 352,142 ) ​ — ​ — ​ ( 352,142 ) Consolidated Net Loss ​ $ ( 8,967,812 ) ​ $ ( 90,237 ) ​ $ ( 9,748,600 ) ​ $ ( 18,806,658 ) ​ $ ( 5,008,876 ) ​ $ — ​ $ — ​ $ ( 5,008,876 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ ​ March 31, 2025 ​ December 31, 2024 ​ ​ Energy ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Energy ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Management ​ Bitcoin ​ Corporate & ​ ​ ​ ​ Management ​ Bitcoin ​ Corporate & ​ ​ ​ ​ Platform Mining Other Total Platform Mining Other Total Segment Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash ​ $ 24,449,297 ​ $ — ​ $ — ​ $ 24,449,297 ​ $ 29,831,858 ​ $ — ​ — ​ $ 29,831,858 Digital assets ​ — ​ — ​ 55,281,690 ​ 55,281,690 ​ — ​ — ​ 20,281,184 ​ 20,281,184 All other assets ​ 14,073,083 ​ — ​ — ​ 14,073,083 ​ 12,814,145 ​ — ​ — ​ 12,814,145 Total Assets ​ $ 38,522,380 ​ $ — ​ $ 55,281,690 ​ $ 93,804,070 ​ $ 42,646,003 ​ $ — ​ $ 20,281,184 ​ $ 62,927,187 (1) Other segment expenses and losses include interest income, interest expense, amortization of debt discount, gain (loss) on extinguishment of debt and change in fair value of accrued issuable equity. Geographic Information As of March 31, 2025, the Company’s long-lived assets are located in the U.S. During the three months ended March 31, 2025, $ 1,039,423 of revenue was generated from foreign entities. ​ 25 Table of Contents KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 12 - SUBSEQUENT EVENTS Investment In Preferred Stock On May 7, 2025, the Company purchased Series A7 Preferred Shares (the “GB Preferred Shares”) of German Bionic Systems GMBH for an aggregate purchase price of $ 3.3 million. The GB Preferred Shares rank senior to all outstanding preferred as well as common shares of GB, and are convertible on a 1 :1 basis into common shares of GB at the Company’s option, subject to anti-dilution adjustments. The Company also has the right to one voting advisory board seat and one non-voting observer seat on GB’s advisory board. The GB Preferred Shares have a liquidation preference equal to the purchase price of the shares plus any accrued and unpaid dividends thereon. Lease Amendment On April 15, 2025, the Company amended its original lease dated January 27, 2024 (the “First Amendment”), for the property located at 555 Forge River Road, Webster, TX, to expand the rentable square footage by approximately 13,535 square feet (the “Expansion Premises”) for a total rentable space of 31,095 square feet. The First Amendment is effective May 1, 2025 and shall be coterminous with the original lease and shall expire April 30, 2029. Monthly payments for the Expansion Premises are $ 17,483 , which is comprised of base rent. No cash payments are due for the first two months of the lease. At the Market Offering During the period from April 23, 2025 through May 15, 2025, the Company issued 13,945,241 shares of common stock for gross proceeds of $ 19,827,210 pursuant to the ATM. Digital Assets During the period from April 1, 2025 through May 13, 2025, the Company purchased 42.37 Bitcoin, at an average cost of $ 94,403 per Bitcoin. As of May 13, 2025, the Company has purchased and holds 709 Bitcoin with a current market value of approximately $ 74 million. Bitcoin Mining During the period from April 1, 2025 through May 13, 2025, the Company has earned 4.48 Bitcoin from mining services. As of May 13, 2025, the company holds 7.45 Bitcoin from mining services with a current market value of approximately $ 777,000 . ​ ​ ​ 26 Table of Contents