10-K: KULR Reports Record Revenue Amid Bitcoin Volatility & Losses

KULR Technology Group achieved record annual revenues in 2025, driven by new digital asset mining and product sales, despite significant impairment charges and an unrealized loss on Bitcoin holdings.

Summary

• KULR Technology Group reported record annual revenues of $16.2 million for the fiscal year ended December 31, 2025, a 51% increase from $10.7 million in 2024.
• The company expanded its Bitcoin treasury strategy to include BTC mining operations, generating $7.0 million in revenue from this segment in 2025.
• Product sales increased by 39% to $5.05 million in 2025, despite a decrease in the number of product sales customers.
• The company incurred a net loss of $61.9 million in 2025, significantly higher than the $17.5 million net loss in 2024.
• Operating expenses increased substantially, with Research and Development (R&D) up 127% to $10.75 million and Selling, General and Administrative (SG&A) up 73% to $27.7 million.
• Significant impairment charges totaling $3.1 million were recorded, including for a finance lease right-of-use asset, property and equipment, intangible assets, and equipment deposits.
• An unrealized loss of $13.8 million on digital assets was recognized due to a decline in Bitcoin's market price from $93,384 on December 31, 2024, to $87,502 on December 31, 2025.
• The company fully impaired investments and recognized credit losses totaling $3.3 million and $2.1 million, respectively, related to a private German entity (Investee) that filed for insolvency.
• KULR completed an At-the-Market (ATM) offering, issuing 14,783,401 shares for gross proceeds of $146 million in 2025, and initiated a second ATM offering for up to $300 million, issuing 7,243,562 shares for $39.1 million in 2025.
• A 1-for-8 reverse stock split was effected on June 23, 2025.
• As of December 31, 2025, KULR held 1,074.21 bitcoins with a fair value of $93.99 million, acquired at an average cost of approximately $100,600 per bitcoin (inclusive of fees and expenses).
• The company secured a $20 million credit facility with Coinbase, drawing $8.0 million in July 2025 (repaid in full by December 31, 2025) and an additional $5.0 million on March 27, 2026.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a challenging period marked by significant financial losses and impairments, despite revenue growth. The heavy reliance on capital raises and the volatility of the Bitcoin strategy introduce substantial risk, overshadowing the operational advancements.

Positives

• Record annual revenues of $16.2 million in 2025, a 51% increase from $10.7 million in 2024.
• Successful expansion into Bitcoin mining operations, contributing $7.0 million in revenue in 2025.
• Product sales revenue increased by 39% to $5.05 million in 2025, driven by new clients and increased revenue per contract.
• Secured a $1.1 million minimum guaranteed license and royalty fee for KULR Xero Vibe technology with a Japanese corporation in 2024.
• Entered into a ten-year licensing agreement for CF Cathode Design technology with a Japanese customer for a total contract value of $1.8 million in 2024.
• Received a $1.9 million grant from the Texas Space Commission for R&D of cold-temperature lithium-ion battery solutions for Lunar and Martian missions.
• Maintained effective disclosure controls and procedures and internal control over financial reporting as of December 31, 2025.
• Successfully regained compliance with NYSE American listing standards regarding stockholders' equity and share price performance in 2024.

Negatives

• Net loss significantly widened to $61.9 million in 2025 from $17.5 million in 2024.
• Gross profit margin declined sharply from 51.1% in 2024 to 4.8% in 2025, primarily due to an inventory write-off of approximately $0.7 million and negative margins in contract services and digital asset mining.
• Contract services revenue decreased by 50% to $2.2 million in 2025, with negative gross margins (-33.0%).
• No IP licensing revenue was recognized in 2025, compared to $2.6 million in 2024.
• Digital asset mining segment had negative gross margins (-6.6%) in 2025, with costs exceeding mining revenue during the initial ramp-up and due to declining BTC prices.
• Significant unrealized loss on digital assets of $13.8 million in 2025 due to Bitcoin price decline.
• Full impairment of equity investment ($3.3 million) and credit loss on convertible loan receivable ($2.1 million) due to a German Investee's insolvency.
• Impairment charges totaling $3.1 million in 2025, including a $1.4 million write-off of equipment deposits for an undelivered automated manufacturing system.
• Cash balances decreased from $29.8 million in 2024 to $13.3 million in 2025.
• Working capital decreased from $29.5 million in 2024 to $19.3 million in 2025.
• High customer concentration risk, with two customers accounting for 28% of Energy Management Platform (EMP) revenue and one customer for 100% of Digital Assets mining revenue in 2025.
• Vendor concentration risk in the Mining of Digital Assets segment, with two vendors accounting for 51% and 45% of total purchases.
• Bitcoin market price declined over 20% from approximately $87,500 at December 31, 2025, to under $66,338 as of March 27, 2026, indicating further expected unrealized losses.

Risks

• The company is young with a limited operating history, making it difficult to evaluate the business and investment, and has not yet demonstrated sales at a level capable of covering fixed expenses, potentially hindering profitability.
• Many products are new and not fully tested in commercial settings, and manufacturing operations are not fully scaled, posing risks of complete investment loss and challenges in achieving higher volume production.
• Anticipates incurring operating losses and will need to raise substantial additional capital, which may not be available on acceptable terms, potentially leading to delays, reduced programs, or insolvency.
• Significant disruptions in supply from current or future sources, exacerbated by macroeconomic trends, trade policies, political events, warfare (e.g., Russia-Ukraine, Middle East), and increased tariffs, could affect the ability to meet demand, reduce sales, and impact margins.
• The average sales cycle for products can range from one to five years, with a limited track record of success in completing customer development projects, making future success difficult to evaluate.
• Success is tied to the marketability and adoption of new products by customers and partners, which may not be commercialized timely or at all.
• Reliance on a small number of customers for a significant portion of revenues (28% from two EMP customers, 100% from one Digital Assets mining customer in 2025) poses a risk of significant loss of future revenues if these customers reduce orders or terminate agreements.
• Operates in an advanced technology arena where hypothesized product benefits may not be achieved, or rapid technological change could alter product attractiveness, and faces competition from larger, better-funded companies.
• Cost inflation stemming from geopolitical factors and macroeconomic conditions could increase raw material or energy costs, affecting profit margins if price increases cannot be passed to customers.
• Manufacturing operations are subject to disruption from extreme weather, accidents, strikes, new regulations, civil unrest, war, and other events.
• Development and manufacturing involve hazardous materials (e.g., acetone, lithium-ion batteries), posing risks of accidental contamination or injury, with potential liabilities exceeding resources and no specific insurance.
• Significant disruptions of information technology systems, data security breaches, cyber-attacks, or other incidents could materially adversely affect business, operations, and financial condition, potentially leading to loss of intellectual property, fraud, and regulatory scrutiny.
• Deposits exceeding FDIC limits are uninsured, and failure of a bank or adverse conditions in financial markets could impact operations, liquidity, and financial performance.
• Changes in governmental regulations regarding hazardous substances or new regulations on product toxicity could lead to substantial fines, production suspension, or sales limitations.
• Director and Officer (D&O) insurance coverage may be insufficient, making it difficult to attract and retain qualified personnel or leading to liability beyond coverage limits.
• Changing laws (Sarbanes-Oxley, Dodd-Frank) increase expenses and divert management time from revenue-generating activities.
• Failure to maintain effective internal controls over financial reporting could adversely affect stock price and public disclosures.
• Bitcoin is a highly volatile asset, and significant price fluctuations can lead to sharp declines and losses, with no interest or dividends generated from holdings.
• The ability to acquire Bitcoin depends on obtaining equity financing, which may not be on favorable terms.
• Risk of non-performance by custodians; custodially-held Bitcoin could be considered property of the custodian's estate in bankruptcy, leading to loss of value or delayed access.
• Fair value measurement of Bitcoin holdings increases volatility of financial results and could have adverse tax consequences.
• Evolving and uncertain legal/regulatory landscape for digital assets, potential reclassification of Bitcoin as a security, new laws, or enforcement actions could adversely affect Bitcoin price and the company's strategy.
• Bitcoin markets can have limited liquidity and trading volumes, making it difficult to sell at favorable prices during market instability.
• Risk of partial or total loss of Bitcoin if security breaches or cyberattacks occur, potentially not covered by insurance.
• Entirely dependent on third-party providers for owning, housing, powering, and maintaining leased miners, with limited remedies for failures, cyber-incidents, or insolvency.
• Pre-paid lease fees are fixed, but Bitcoin rewards fluctuate daily; if rewards fall below expectations or value decreases, operations may not be profitable or could suffer substantial losses.
• Receipt of non-cash Bitcoin rewards subject to daily fair-value remeasurement creates earnings volatility and potential liquidity shortfalls.
• A miner's share of block rewards is proportional to its hashrate relative to global network hashrate; rising network difficulty could render leased miners uncompetitive and reduce revenue.
• An active, liquid, and orderly market for common stock may not develop or be sustained, impairing the ability to sell without affecting price.
• Failure to comply with NYSE American listing requirements could lead to delisting, limiting trading and subjecting to additional restrictions.
• Issuance of additional common stock, convertible securities, warrants, or options could dilute book value and percentage ownership.
• No intention to pay cash dividends in the foreseeable future.
• Officers, directors, and affiliates beneficially own approximately 70.45% of voting power, with CEO Michael Mo holding 70.28% (largely from Series A Preferred Stock), allowing significant influence over corporate decisions.
• The Board can issue new series of preferred stock without stockholder approval, potentially adversely affecting common stockholders' rights or deterring change in control.

Future Outlook

The company anticipates that its R&D expenses will increase as it expands future operations. It expects to report additional unrealized losses for the three months ended March 31, 2026, due to the decline in Bitcoin's market price. The company believes its cash on hand, BTC holdings, cash flows from operations, and working capital balances will be sufficient to satisfy obligations over the next 12 months, but no assurance can be provided regarding raising additional capital from ATM offerings. The company has paused ATM transactions through June 30, 2026.

Management Comments

• KULR designs and builds advanced battery systems for autonomous platforms, digital infrastructure, e-mobility and Space – sold as a product or delivered as service subscription. The Company addresses two primary constraints in electrification: thermal management and safety.
• KULR is establishing a fully integrated battery energy storage system design and production infrastructure in Houston, Texas... This full-stack approach enables faster development cycles and rapid transition from prototype to cost-effective volume production.
• We believe that bitcoin is a reliable store of value and a compelling investment given its unique characteristics as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability, currency devaluation and shifts in monetary policy.
• We believe that the growing global acceptance and institutionalization of bitcoin supports our view that bitcoin is a reliable store of value.
• Management determined that participating in mining activities could (i) increase BTC holdings through internally generated production, (ii) provide potential exposure to favorable mining economics, and (iii) enhance long-term treasury value through vertical participation in the bitcoin ecosystem.
• We view our BTC holdings as long term holdings and will continue to assess the merits of accumulating additional BTC.
• As of December 31, 2025, we believe our cash on hand, BTC holdings, cash flows from operations and working capital balances will be sufficient to satisfy our obligations over the next 12 months.

Industry Context

StockSavvy.ai notes that KULR Technology Group operates at the intersection of critical and rapidly expanding industries: advanced battery systems, thermal management, and digital infrastructure. The company's focus on passive propagation resistance and thermal management for high-power and high-energy battery packs aligns with the increasing demand for safety and reliability in aerospace, defense, and e-mobility, where competitors like Saft, LG Chem, and Panasonic are also innovating. The expansion into Bitcoin mining, while a departure from its core thermal management business, reflects a broader trend among some companies to diversify treasury assets into digital currencies, a strategy also seen with MicroStrategy. The company's efforts to establish a fully integrated battery energy storage system design and production infrastructure in Houston, Texas, positions it to capitalize on domestic supply chain initiatives and the growing U.S. market for advanced battery solutions, competing with established players and emerging startups in the battery manufacturing space. The KULR VIBE technology for vibration reduction has broad applications across transportation and renewable energy, indicating potential to address efficiency and longevity challenges in sectors where companies like SKF and Schaeffler offer industrial vibration solutions.

Comparison to Industry Standards

• KULR's thermal management solutions, particularly its Thermal Runaway Shield (TRS) technology, are trusted by NASA for applications on the International Space Station, indicating a high standard of reliability and safety comparable to aerospace-grade requirements met by specialized defense contractors.
• The company's KULR ONE platform, offering modular, cell-agnostic battery architecture for space, defense, aviation, grid, and subsea applications, aims to standardize thermal management and propagation resistance, a comprehensive approach that differentiates it from component-focused suppliers and positions it against integrated battery system providers like Saft (for defense/space) and Tesla (for grid storage).
• The negative gross margins in the digital asset mining segment (-6.6% in 2025) are below industry averages for established mining operations, which typically aim for positive margins, reflecting KULR's early-stage entry and the impact of Bitcoin price volatility and fixed lease costs.
• The significant increase in R&D expenses (127% year-over-year) and SG&A expenses (73% year-over-year) suggests a growth-oriented strategy, but the widening net loss to $61.9 million indicates that these investments have not yet translated into profitability, contrasting with more mature companies in the thermal management or battery sectors that typically demonstrate positive operating income at this revenue scale.
• The company's reliance on ATM offerings for capital raises is a common strategy for smaller public companies but can lead to significant shareholder dilution, which is a concern compared to larger, more established industry players that can fund growth through internal cash flows or less dilutive debt.

Management Changes

Corporate Governance

Legal Proceedings

• The company is not currently a party to any material legal or administrative proceedings.

Related Party Transactions

• Issuance of 730,000 shares of Non-Convertible Series A Voting Preferred Stock to CEO Michael Mo on January 26, 2024, for no consideration.
• Issuance of an additional 270,000 shares of Non-Convertible Series A Voting Preferred Stock to CEO Michael Mo on January 16, 2025, for no consideration, bringing his total to 1,000,000 shares.
• Michael Mo, CEO and Chairman, beneficially owns 70.28% of the voting power of the company's voting stock, largely due to his Series A Voting Preferred Stock holdings (1,000,000 shares, each with 100 votes).
• Compensation for Named Executive Officers (Michael Mo, Shawn Canter, William Walker) and non-employee directors (Dr. Joanna Massey, Donna Grier, Aron Schwartz) including salary, bonus, and stock awards.
• Joanna Massey, a director, terminated a Rule 10b5-1 trading arrangement on December 17, 2025, and sold 500 shares at $5.4594 on October 3, 2025, under this plan.

Stakeholder Impact

• Shareholders experienced significant dilution from ATM offerings (14,783,401 shares for $146M, 7,243,562 shares for $39.1M in 2025). Potential for further dilution from future capital raises. Concentrated voting power of CEO Michael Mo (70.28%) limits the influence of other shareholders. Unrealized losses on Bitcoin holdings and overall net loss negatively impact shareholder equity. A 1-for-8 reverse stock split impacts share count and per-share metrics.
• Employees benefit from stock-based compensation (options, RSUs, RSAs) as a significant part of executive and employee compensation. Cybersecurity training is provided to personnel. Increased R&D and SG&A expenses indicate investment in personnel and operations.
• Customers benefit from the expansion of battery system design and production infrastructure, aiming for faster development cycles and cost-effective volume production. KULR ONE platforms offer advanced thermal management and safety solutions for mission-critical applications. However, customer concentration risk means significant impact if key customers reduce orders.
• Suppliers and creditors face potential impacts from supply chain disruptions and increased costs of raw materials. The $20 million credit facility with Coinbase provides access to capital. Impairment of investments and credit losses due to a German Investee's insolvency highlight counterparty risk.
• Regulatory authorities continue to oversee compliance with SEC filing requirements, NYSE American listing standards, and environmental regulations. Evolving regulations around digital assets pose a risk to the Bitcoin treasury strategy.

Next Steps

• Finalize qualification of the Xero Vibe fan and automate balancing techniques to facilitate meaningful throughput for the server and data center industry.
• Continue to explore additional license opportunities for KULR VIBE technology.
• Continue to assess the merits of accumulating additional Bitcoin as part of the treasury strategy and monitor market conditions for additional purchases.
• Potentially sell Bitcoin for general corporate purposes or tax benefits, enter into additional capital raising transactions (potentially collateralized by Bitcoin), and pursue strategies to create income streams from Bitcoin holdings.
• Aggressively expand direct sales and marketing teams to deepen key account coverage and support a robust and growing network of representatives and distributors.
• Continue R&D for cold-temperature lithium-ion battery solutions for Lunar and Martian missions under the Texas Space Commission grant.
• Continue to buy and sell autos for KULR VIBE diagnostic testing in the automobile market to determine market viability.
• Ensure a smooth transition of manufacturing of UL-certified battery packs from Caban to KULR under the Transition Services Agreement (approximately 90 days after equipment installation).
• ATM transactions are paused through June 30, 2026.

Key Dates

Recommendation

KULR Technology Group demonstrates strong revenue growth and strategic expansion into high-growth areas like advanced battery systems and digital asset mining. However, the substantial net losses, significant impairment charges, and the inherent volatility and regulatory uncertainty of its Bitcoin treasury strategy introduce considerable risk. While the company has innovative technologies and secured significant financing, the lack of sustained profitability and the concentrated voting power of the CEO warrant a cautious approach. A 'hold' recommendation allows investors to monitor the company's ability to translate its technological advancements and revenue growth into sustainable profitability and to navigate the risks associated with its digital asset strategy and capital structure.

Keywords

KULR Technology Group, thermal management, battery systems, energy storage, lithium-ion batteries, Bitcoin, BTC mining, digital assets, SEC filing, 10-K, financial results, corporate governance, risk factors, NYSE American, KULR ONE, KULR VIBE, aerospace, defense, e-mobility, data centers, supply chain, intellectual property, capital raise, stock split