Q1 2025 KULR Technology Group Inc Earnings Call
Operator: statement covering this entire call. This call contains certain forward-looking statements based on the company's current expectations, forecasts, and assumptions that involve risks and uncertainties. Forward-looking statements made on this call are based on the information available to the company as of the date hereof.
This call contains certain forward looking statements based on the company's current expectations forecasts and assumptions that involve risks and uncertainties forward looking statements made on this call are based on the information available to the company as of the date hereof cooler technology groups as.
Operator: KULR Technology Group's actual results may differ materially from those stated or implied in such forward-looking statements due to risk and uncertainties associated with their business, which include the risk factors disclosed in their Form 10-K file with the Securities Exchange Commission on April 12, 2024, as may be amended or supplemented by other reports the company files with the Securities Exchange Commission from time to time. Forward-looking statements include statements regarding the company's expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as anticipate, believe, could, estimate, expect, intend, may, should, and would, or similar words.
Actual results may differ materially from those stated or implied in such forward looking statements due to risks and uncertainties associated with their business, which include the risk factors disclosed in their Form 10-K filed with the Securities Exchange Commission on April 12, 'twenty 'twenty four as may be amended or.
Supplemented by other reports the company files with the Securities Exchange Commission from time to time forward. Looking statements include statements regarding the company's expectations beliefs intentions or strategies regarding the future and can be identified by forward looking words, such as and.
<unk> believe could estimate expect intend may should and would or similar words.
Operator: All forecasts are provided by management on this call are based on the information available at this time, and management expects that internal projections and expectations may change over time. In addition, the forecasts are entirely based on management's best estimates of their future financial performance given their current contracts, current backlog of opportunities, and conversations with new and existing customers about their products and services.
All forecasts are provided by management on this call are based on the information available at this time and management expects that internal projections and expectations may change over time. In addition, the forecasts are entirely based on management's best estimates of their future financial performance given their current.
Contracts.
Current backlog of opportunities and conversations with new and existing customers about their products and services cooler technology group assumes no obligation to update the information included in this call whether as a result of new information future events or otherwise now the call.
Operator: KULR Technology Group assumes no obligation to update the information included in this call, whether as a result of new information, future events, or otherwise.
Operator: Now, the call will begin with opening statements from CEO Michael Mo, followed by the Chief Financial Officer, Shawn Canter.
Speaker Change: We'll begin with opening statements from CEO, Michael Moe, followed by the Chief Financial Officer, Shawn Cantor after that we will conduct a Q&A session made up of the questions emailed in and delivered to the company via social media, but with that let me turn the call over.
Operator: After that, we will conduct a Q&A session made up of the questions emailed in and delivered to the company via social media.
Operator: But with that, let me turn the call over now to Chief Executive Officer Michael Mo. Michael, the call is yours.
Now to Chief Executive Officer, Michael Moe, Michael the call is yours. Thank you sure. This is Michael thank.
Michael Mo: Thank you, Suhr. This is Michael Mo.
Michael Mo: Thank you, everyone, for joining us today. 2025 is a transformational year for KULR, and the transformation is well on its way. with over $100 million in cash and Bitcoin holdings on a balance sheet, and virtually no debt. were well capitalized to grow a battery in AI robotics business. while our capital market activities in the foreseeable future are geared to turbocharge our Bitcoin acquisition strategy.
Speaker Change: Thank you everyone for joining us today.
Speaker Change: Tony twenty-five is a transformational year, Oklahoma and your transformation is well on its way.
With over $100 million in cash and pick one holdings on our balance sheet and virtually no debt.
Speaker Change: We're well capitalized to grow a battery and AI robotics businesses, while our capital market activities in the foreseeable future well geared to turbocharge, our big one acquisition strategy.
Michael Mo: Establishing KULR as a pioneer, BTC first, Bitcoin treasury What is a BTC first? A Bitcoin first company treats Bitcoin not as a side asset or payment option, but as a core pillar of its identity, strategy, and mission. Our journey of transformation is riding the wave of the greatest digital transformation in human history. Intelligence, Capital, and Energy. Digital Transformation of Intelligence is AI, Digital Transformation of Capital and Energy is Bitcoin.
Speaker Change: Establishing cooler is a pioneer BTC first they call Treasury company.
Speaker Change: What is the BTC first company.
Speaker Change: A bitcoin first company treats bitcoin not as excited asset or payment option.
Speaker Change: It's a core pillar of its identity strategy ambition.
Speaker Change: Our journey of transformation is riding the wave of the greatest digital transformation in human history.
Speaker Change: College's capital in LNG.
Speaker Change: Digital transformation of intelligence is AI.
Speaker Change: Digital transformation of capital and energy is they quote.
Michael Mo: What are Michael Saylor's 21 rules of Bitcoin is the need to know. In 2024, we were a struggling battery company that needs to know how to survive. We were definitely in the need to know crowd.
Speaker Change: What are the micro sellers 21 rules of bitcoin is need to know.
Speaker Change: In 2024, we were struggling battery company doesn't need to know how to spot.
Speaker Change: We were definitely in a need to know about.
Michael Mo: On December 2nd, 2024, we did a survey on X, asking if KULR should adopt the Bitcoin Treasuries. The survey received over 100,000 views and over 1,500 votes, with two-thirds voting yes. We announce our first purchase of PTC on December 26th for $21 million. Since then, we have amassed over 716 bitcoins in our treasury. We're now number 30 in the world's top public companies holding Bitcoin according to HODL15 Capital. BTC acquisition is like buying a digital monopoly business at one time revenue and growing 60% a year. Would you do it? The answer is, of course, you would.
Speaker Change: At December 2nd plenty of time before we did a survey on S asking a quarter should adopt it pick one treasury strategy.
Speaker Change: The survey received over 100000 views and over 1500 votes with two thirds voting yes.
Speaker Change: We announced our first purchase of PTC at December 26 or $21 million.
Speaker Change: Since then we have amassed over several hundred 16th coins in our treasury.
Speaker Change: We're now number 30 in the world.
Speaker Change: The company's holding bitcoin according to huddle 15 Cabo.
Speaker Change: PTC acquisition is like buying a digital monopoly business at one time revenue growing 60% a year.
Speaker Change: Would you do it the answer is of course you would.
Michael Mo: Our new capital market activities are to turbocharge our Bitcoin treasury strategy for maximum BTC holding by acquiring this digital monopoly. are getting ever more entrenched into the Bitcoin and blockchain ecosystem. We're entering into strategic BTC mining opportunities because we expect BTC pricing to be higher in the future. We've spent our share prices to appreciate with our BTC Treasury strategy in our growing business. Our mining arrangement is another way to accumulate BTC at favorable cost basis with less dilutive capital market activities into the future. we expect to increase our PTC yield and return.
Speaker Change: Our new capital market activities are to turbocharge or be called Treasury strategy for maximum PTC holding by acquiring this digital monopoly.
Speaker Change: We're getting ever more entrenched into the bitcoin blockchain ecosystems.
Speaker Change: We're entering into strategic PTC mining opportunities, because we expect DTC pricing to be higher in the future.
Speaker Change: We expect our share prices to appreciate with our PTC treasury strategy and our growing businesses.
Speaker Change: Our mining arrangement is another way to accumulate PTC at favorable cost basis was less dilutive capital market activities into the future.
Speaker Change: We expect to increase our PTC yield and returns.
Michael Mo: We have launched a blockchain-secured supply chain initiative to safeguard product data to our customers. One of the initial products that will be recorded on the blockchain will include lithium-ion batteries screened to meet the NASA work instruction 37A testing Each battery that KULR manufactures will have its metadata minted on an NFT on the blockchain. When a battery is purchased, the NFP can be transferred to the customer's on-chain wallet or moved to a burned wallet maintained by KULR to indicate ownership has been transferred.
Speaker Change: We have launched a blockchain secured supply chain initiatives to save car product data to our customers.
Speaker Change: What are the initial products that will be recorded on the blockchain will include lithium ion batteries screen to meet the NASA work instructions 37, eight testing methods.
Speaker Change: Each battery cooler manufacturers will have to submit that data minted on T. All the blockchain.
Speaker Change: What a battery is purchased did have P can be transferred to the customers all ching wallet or move to a bird wallet maintained by quarter to indicate ownership has been transferred.
Michael Mo: As you know, we've been investing in our CoolerOne battery company. We're now reaping the benefits of that investment. KULR is entering a pivotal phase in battery innovation, marked by accelerated development cycles, increased production scale, enhanced capacity, and growing technical validation across key sectors. As part of a strategic growth plan, we have expanded our facility footprint to approximately 31,000 square feet, which doubled our battery production capacity. By integrating advanced manufacturing technologies with the in-house battery design experience, We have compressed development timelines from years to as little as six weeks. A prime example of this capability is a successful delivery of our custom certified quarter one space x 500 battery to Astroforge for their asteroid mining mission.
Speaker Change: As you know we've been investing in a cooler battery platform.
Speaker Change: We're now reaping the benefits of that investment.
Speaker Change: Quarter is entering a pivotal phase in battery innovation marked by accelerated.
Speaker Change: Development cycles, Inc.
Speaker Change: Increased production scale.
Speaker Change: Yes capacity.
Speaker Change: Technical validation across key sectors.
Speaker Change: As part of our strategic growth plan, we have expanded office hold any footprint to approximately 31000 square feet, which doubled our battery production capacity.
Speaker Change: By integrating advanced manufacturing technologies with the in House battery design expertise, we have compressed development timelines from years to as little as six weeks.
Speaker Change: A prime example of this capability is a successful delivery of our custom certified quarter, one space X 500 battery to actual forge asteroid money missions.
Michael Mo: This achievement highlights the readiness of our production team and the maturity of the Kuala Lumpur Space Platform to deliver mission-critical solutions on an accelerated scale. Our ability to respond rapidly to new customer requirements also support a capital efficient business model for us to serve many new markets. Our design, testing, prototyping services are cost effective to our customers, while we maintain full ownership of the all result intellectual property. ensuring long-term value creation for the company. Further validating our technical leadership.
Speaker Change: This achievement highlights the readiness of our production team and the maturity of the cooler space platform to deliver mission critical solutions on an accelerated schedule.
Speaker Change: Our ability to respond rapidly to new customer requirements also support a capital efficient business model for us to serve many new markets.
Speaker Change: Our design testing prototyping services are cost effective to our customers, while we maintain full ownership of the all resulting intellectual property Inc.
Speaker Change: Ensuring long term value creation for the company.
Speaker Change: Those are validating or technical leadership.
Michael Mo: KULR was recently selected by the Texas Space Commission to receive a $6.7 million grant aimed to advance next generation space battery This initiative supports the development of a rocketized battery technology. capable of operating in extreme environments. including temperatures as low as minus 60 degrees Celsius. The Commission's strategic vision is to establish Texas as a global hub for space innovation. And a key component of that vision is ensuring a secure in-state supply chain for spade rated energy systems. KULR's deep expertise combined with this grant and our expanded infrastructure in Webster, Texas will play a critical role in fulfilling that objective.
Speaker Change: Quarter was recently selected by the Texas Space Commission two received a $6 7 million grant aimed to address next generation space battery systems.
Speaker Change: This initiative supports the development of a ruggedized battery technologies capable of awkwardly in extreme environments, including temperatures as low as minus 60 degrees Celsius.
Speaker Change: The Commission strategic vision is established Texas is a global hub or space innovation.
Speaker Change: And a key component of that vision is ensuring a secure and stay supply chain or split rated energy systems.
Speaker Change: Corners deep expertise combined with its Glenn and our expanded infrastructure in Webster, Texas will play a critical role role at fulfilling that objective.
Michael Mo: with our proven technical capabilities. Scalable operations and strong financial foundation, KULR is well positioned as the premier source of fast turnaround space and defense grade battery systems delivered at cost effective price points.
Speaker Change: With our proven technical capabilities.
Speaker Change: Global operations and strong financial Foundation, Cuda is well positioned as the premier source of fast turnaround space and Defense group battery systems delivered a cost effective price points.
Michael Mo: Physical AI and robotics will be a multi trillion dollar market according to many industry giants. The global market for wearable robotics is projected to hit $42 billion by 2035. and we see huge potential across industries that have labor shortages and high physical demand. We believe that exoskeletons present one of the most immediate come-to-market and revenue opportunities to get into the robotics and physical AI market. The Apogee is the world's most powerful exoskeleton designed to support and protect workers engaged in heavy and repetitive bending and lifting during the course of their work. The suit has on-board sensors connected to the cloud via an integrated cellular modem so that health and safety supervisors can view safety and ergonomic data through our enterprise-grade dashboard and analytics.
Speaker Change: Physically and robotics will be a multi trillion dollar market. According to many industry Giants took.
Speaker Change: Global market for wearable robotics is projected at $42 billion.
Speaker Change: But 2030 P M.
Speaker Change: We see huge potential across industries to have labor shortages and high physical damage.
Speaker Change: We believe that Exoskeletons present, one of the most immediate come to market and revenue opportunities to get into the robotics and physical AI markets.
Speaker Change: The apogee is the world's most powerful exoskeleton designed to support and protect workers engaged in heavy and repetitive N D and lifting during the course of their work.
Speaker Change: The suite has all four sensors and led to the cloud via an integrated Senator Gordon. So is the health and safety Supervisors have your safety and economic data through our enterprise grade dashboard and analytics.
Michael Mo: The number one MSD is lower back pain, and the Apogee was expressly designed to address this huge problem in the world.
Speaker Change: The number one MST is lower back pain.
Speaker Change: And the attitude was expressed to me designed to address this huge problem in the workplace.
Michael Mo: Right now there are two business models that German Bionics is selling into the European market. One is to sell the product for a little less than €20,000. or customers can lease the product for about 20 euros a day. I think the customer engagements are about 50-50 between product sales and the leasing market.
Speaker Change: Right now there are two business models Dutch here in La bionics is selling into the European market.
Speaker Change: One is to sell the product for a little less than 20000 euros.
Speaker Change: Or customers can lease the product or about 20 euros a day.
Speaker Change: I think the customer engagements are about 50 50 between product sales and the leasing model.
Michael Mo: as the exclusive technology and distribution partner for the North American market. We see this business model to be applicable to the U.S. market. will have a product sales and leasing model at aggressive price. In the US, there are approximately 12 million workers in the manufacturing 8 million in the construction sector and 1.8 million employees in the warehouse and storage sector. but we're facing significant labor shortages across these industries. every day. These millions of workers across America engage in tough manual labor that includes heavy and repetitive lifting as they unload containers, break down pallets, pick orders, and rebuild pallets for distribution.
Speaker Change: S. A S. A exclusive technology as distribution partner for the North American market.
Speaker Change: We see this business model to the applicable to the U S market.
Speaker Change: We have a product sales and leasing model and aggressive price points.
Speaker Change: In the U S. There are approximately 12 million workers in the manufacturing sector.
Speaker Change: 8 million in the construction sector, the 1.8 million employees in the warehouse and storage sector.
Speaker Change: Over a facing significant labor shortages across these industries.
Speaker Change: Everyday these.
Speaker Change: These millions of workers across America, engaging tough manual labor that include heavy a repetitive lifting let's say a low containers graystown pellets pick orders and rebuild pellets for distributions.
Michael Mo: The Apogee, with its powerful motors and sensors, seamlessly support this work by preventing assistance in lifting, lowering and walking. Workers wearing the suit will experience less fatigue, fewer injuries, and will be more productive.
Speaker Change: The apogee with its powerful borders and assessors seamlessly support this work by preventing assistance in lifting Laurie and walking.
Speaker Change: Walker's wearing a suit who experienced this fatigue fewer injuries it will be more productive.
Michael Mo: For the healthcare sector, we have over 2 million nurses and nursing assistants in the U.S. Home Health and Personal Care Aides is about another 4 million workers. The Apogee suit being used in German hospitals has demonstrated that they can dramatically reduce the lower back strain of the nurses when they're helping patients to move around.
Speaker Change: For the health care sector, we have over 2 million nurses and nursing systems in the U S.
Speaker Change: Home health and personal care is about a leather formula workers.
Speaker Change: The apogee suite being used in German hospitals has demonstrated that they can dramatically reduce the lower back straight after nurses when they're helping patients to move around.
Michael Mo: I'll give you a fun fact. The latest generation of the suit was developed in partnership with some of the most prestigious hospitals in Germany. One of the enhancements requested by the nurses was to have handles built into the suit for patients to hold on to.
Speaker Change: You're a fun fact.
Speaker Change: The latest generation of the suite was developed in partnership with some of the most prestigious hospitals in Germany.
Speaker Change: One of the thing Testaments requested by the nurses was to have handles built into the suite for patients to hold onto.
Michael Mo: without a seat. patients have been usually holding on to the nurse's neck, which can be awkward and not as Frequently, patients are reluctant to ask for help because they don't want to bother the nurse. With the Apogee suit, patients are more proactive to ask for help. They get up and move around, go outside, and therefore recover better. For the nurses, helping patients become much easier. It's a win-win solution.
Speaker Change: Without this suite.
Speaker Change: Patients have been usually holding onto the nurse's neck, which can be awkward and not as effective.
Speaker Change: Frequently patients are reluctant to us for help because they don't want to bother the nurse.
Speaker Change: With the apogee suit patients are more proactive to ask for help to get up and move around glass side, and therefore recover a bit.
Speaker Change: So the nurses, helping patients become much easier.
Speaker Change: It's a win win solution.
Michael Mo: These suits have sophisticated machine to human interface with sensors throughout the suit that can collect data on how workers use them and how the suits impact performance and well We're just scratching the surface on how to apply AI to all these data. I can give a few examples. Based on how the user moves and lifts things and how much weight they have lifted for the day, AI can provide recommendations on when the person may be close to fatigue and need to take a break. and can also provide recommendations on stretch and cool down exercises for faster recovery and provide in and to prevent injury.
Speaker Change: These suits have sophisticated machine to human interface with sensors throughout the suite that can collect data on how workers to Houston and health of suits impact performance and the wealthy.
Speaker Change: We're just scratching the surface.
Speaker Change: Apply AI to all these data books.
Speaker Change: A few examples.
Speaker Change: Based on how the user booms and lifts things and how much weight they have lifted for the day.
Speaker Change: Hey, I can prevent recommendations or when the person may be closer fatigue and need to take a break.
Speaker Change: It can also provide recommendations on stretch and kudos exercises for faster recovery and provide and to prevent injuries.
Michael Mo: Just remember. These suits reduce the stress but do not eliminate them completely. So we still need to take care of the workers. The more the device is used, and the smarter, the more adaptive it becomes.
Speaker Change: Just remember.
Speaker Change: These suits reduce distress, but do not eliminate them completely.
Speaker Change: So we still need to take care of the workers.
Speaker Change: The water devices used in a smarter more adapted it becomes.
Michael Mo: One of our customers in the paper cutting business have a couple of these suits in operation. It shows that over 10,000 pounds of weight was compensated during a two hour work session for its workers. That's equivalent to an average elephant in just two hours of work. That's four elephants a day and 20 elephants a week.
Speaker Change: One of our customers in a paper cutting business had a couple of these suits and operation.
Speaker Change: She'll start over 10000 pounds of weight was compensated.
Speaker Change: A two hour work session voice workers.
Speaker Change: That's equivalent to a average elephant in just two hours of work.
Speaker Change: That's four elements for elephant, a day and 20 elephants are weak.
Michael Mo: We're at the cross section of the future of AI, capital and energy. We believe Bitcoin is not just a treasure. It's a strategic and deliberate design choice on which we're anchoring our organization. BTC's property. Limited Supply, Decentralized Control, Ethical Protocols, Transparent Governance, Unprecedented Growth and Scale. Merit the Principles, KULR is building. Resilience, Independence, Transparency, and Boldness.
Speaker Change: We're at the cross section of the future of AI capital and energy.
Speaker Change: We believe bitcoin is not just a treasury play, it's a strategic and deliberate design choice of which we're anchoring our organization.
Speaker Change: B T six properties limited supply decentralized control ethical protocols transparent governance.
Speaker Change: Precedent growth is skill mirrored our principles quarter is building around resilience independence transparency and bonus.
Michael Mo: It's not about hype. It's about building an architecture that can last 100 years. So rather than watching from the sidelines, we're diving in. Fully committed to the mission with clarity, long-term conviction, and the courage to explore alternative systems. We're building a foundation that's fueled by digital energy, and that prepares us for the future that will be increasing volatile, distributed and dynamic.
Speaker Change: It's not about it's about building an architecture that can last for 100 years.
Speaker Change: So rather than watching from the sidelines, we're diving in.
Speaker Change: Fully committed to the mission with clarity long term conviction and courage to explore alternative systems.
Speaker Change: We're building a foundation, that's fueled by digital energy and that prepares us for the future that would be increasing volatile distribute it and dynamic.
Michael Mo: I can answer a lot about how we stomach the volatility in Bitcoin. Michael Saylor said it best. Volatility is vitality.
Speaker Change: I can't ask a lot about how his stomach the volatility input.
Jose Luis said it best.
Speaker Change: Volatility is vitality.
Michael Mo: In the age of AI, where things are changing at blissing rates overnight, someone may call it the deep sleep moment. We better get used to the volatility and avoid our own B-seek moment.
Speaker Change: At HMA, where things are changing a blistering rates overnight someone may call it deep sleep moments.
Speaker Change: We better get used to the volatility and avoid our own P seek moment.
Michael Mo: We fully understand and appreciate the unique position KULR is at in this exciting time in history. Peter Thiel said, courage is a much shorter supply than cheese. It takes courage to be different. It takes on the challenges of this new world. We appreciate you, our shareholders, to be on this journey with us as we navigate our way through this highly dynamic, volatile, chaotic, and disruptive future.
Speaker Change: With 40 understand and appreciate the unique position holders at in this exciting time in history.
Speaker Change: Peter Toolset how.
Speaker Change: So rich is a much shorter supply than genius.
Speaker Change: It takes courage to be different it take all the challenges of this new world.
Speaker Change: We appreciate you our shareholders to be on this journey with us as we navigate our way through this highly dynamic volatile chaotic as disruptive future.
Shawn Canter: Next, Shawn Canter will go over financial and operational highlights. Shawn. Thanks, Mike. Let's cover some key highlights now for the first quarter of 2025. Revenue was up 40% from the same quarter last year to $2.4 million. Trailing 12 months revenue ended Q1 2025 is the highest trailing 12 months revenue KULR has ever generated and the third straight quarter of increasing that record. For the first quarter of 2025 versus the first quarter of 2024, product revenue was up 89%, service revenue was down 8%, and we recognized our first Bitcoin mining revenue of $250,000. For the first quarter of 2025, compared to the first quarter of 2024, overall revenue per customer was up approximately 64%, product revenue per customer was up 195%, and service revenue per customer was up 7%.
Speaker Change: Next shelf central will go over financial and operational highlights.
Speaker Change: Got it.
Speaker Change: Thanks, Mike let's cover some key highlights now for the first quarter of 2025.
Speaker Change: Revenue was up 40% from the same quarter last year to $2.4 million.
Speaker Change: Trailing 12 months revenue ended Q1 2025 is the highest trailing 12 months revenue cooler has ever generated in the third straight quarter of increasing that record.
Speaker Change: For the first quarter of 2025 versus the first quarter of 2020 for product revenue was up 89% service revenue was down 8% and we recognized our first bitcoin mining revenue of $250000.
Speaker Change: For the first quarter of 2025 compared to the first quarter of 2024.
Speaker Change: Overall revenue per customer was up approximately 64% product revenue per customer was up 195% and service revenue per customer was up 7%.
Shawn Canter: Gross margin for the first quarter of 8% was down primarily due to unanticipated labor hours needed to complete technical projects. For the same period, year over year, operating expenses were up due to, among other things, increases in marketing, insurance, non-cash stock-based compensation, and a one-time non-cash adjustment in the carrying value of an asset.
Speaker Change: Gross margin for the first quarter of 8% was down primarily due to unanticipated labor hours needed to complete technical projects.
Speaker Change: For the same period year over year operating expenses were up due to among other things increases in marketing insurance noncash stock based compensation and a one time noncash adjustment in the carrying value of an asset.
Shawn Canter: A few points on our balance sheet now. At the end of the first quarter, our cash balance was $24 million, our current accounts receivable was $2.9 million, and we held $55 million worth of Bitcoin. Our total assets were $94 million. Additionally, we had no material financial debt. We ended the first quarter of 2025 with 670 Bitcoin, worth over $55 million, as I mentioned above. And as an update, as of May 10th, when I started to prepare these remarks. KULR holds 716 bitcoins valued at about $74 million.
Speaker Change: A few points on our balance sheet now.
Speaker Change: At the end of the first quarter, our cash balance was $24 million. Our current accounts receivable was $2 $9 million and we held $55 million worth of bitcoin or.
Speaker Change: Our total assets were $94 million. Additionally.
Speaker Change: Additionally, we had no material financial debts.
Speaker Change: We ended the first quarter of 2025 with 670 bitcoin with over $55 million as I mentioned above.
Speaker Change: And as a as an update as.
Speaker Change: As of May 10th when I started to prepare these remarks.
Speaker Change: Cooler holds 716 bitcoins valued at about $74 million.
Shawn Canter: As a reminder, you'll see an approximately $9.7 million non-operating, non-cash expense on the quarter's income statement. This is simply a mark-to-market of our Bitcoin holdings as compared to 12-31-2024. This does not represent a realized loss. It does not represent that we sold any Bitcoin. In fact, we did not sell any. with the price of BTC over $103,000 as I write this. This unrealized loss would be reversed if marked to market.
Speaker Change: As a reminder, youll see an approximately $9.7 million nonoperating noncash expense on the quarters income statement.
Speaker Change: This is simply a mark to market of our Bitcoin holdings as compared to 12 31 2024. This.
This does not represent a realized loss it does not represent that we sold any bitcoin in fact, we did not sell any bitcoin.
Speaker Change: With the price of BTC over $103000 as I write this.
Speaker Change: This unrealized loss would be reversed if marked to market too.
Shawn Canter: Two remaining notes.
Speaker Change: Two remaining notes the first regarding our recently announced strategic relationship with German Bionic and there are amazing exoskeleton suit, yes, just like an iron man suite.
Shawn Canter: The first, regarding our recently announced strategic relationship with German Bionic and their amazing exoskeleton suit. Yes, just like an Iron Man suit. This is a large addressable market. According to SkyQuest research, the exoskeleton market is about $2.5 billion and projected to be about 24 billion in 2031. Due to the reshoring of manufacturing in America, this market is only likely to grow. Again, according to Emerging Strategy, at the end of 2023, there were 601 unfilled manufacturing positions in the United States. According to Forbes and Manufacturing Today, by 2030 the United States manufacturing sector may face a shortfall of up to 2.1 million workers, costing as much as $1 trillion.
Speaker Change: This is a large addressable market. According to Sky quests research the exoskeleton market is about $2 $5 billion and projected to be about 24 billion and 2031.
Speaker Change: Due to the re shoring of manufacturing in America. This market is only likely to grow.
Speaker Change: Again, according to emerging strategy at the end of 2023 there were 601 unfilled manufacturing positions in the United States.
Speaker Change: According to Forbes and manufacturing today by 2030, the United States manufacturing sector may face a shortfall of up to 2.1 million workers costing as much as one trillion dollars.
Speaker Change: Yeah.
Shawn Canter: With our debt-free and strong balance sheet, we can now play offense when special opportunities arrive. Through a mutual connection, we were introduced to the GB team, we were impressed with the team, the product, and their deep willingness to learn and understand how the human user relates to the mechanical suit and vice versa. by combining the experienced, well-trained human user with the power and safety features of a robotic assist. We are pushing more resources to the point and moment of work so that the user can be more productive and safer without having to compromise one or the other.
Speaker Change: With our debt free and strong balance sheet, we can now play offense when special opportunities arise.
Speaker Change: Through mutual connection we were introduced to the G. B team, we were impressed with the team the product and their deep willingness to learn and understand how the human user relates to the mechanical soup and vice versa.
Speaker Change: By combining the experienced well trained human user with the power and safety features of our robotic assist.
Speaker Change: We are pushing more resources to the point and moment of work so that the user can be more productive and safer without having to compromise one or the other.
Shawn Canter: This decentralization theme, pushing resources to their most local use, can be seen across our platform.
Speaker Change: This decentralisation beam pushing resources to their most local use can be seen across our platform.
Shawn Canter: We are direct and clear in our belief in the long-term value of Bitcoin and our long-term plans to be acquirers and holders of BTC. We are a leader in the delivery of safe, responsible power across multiple environments and applications via our battery business. Now, via our German bionic relationship, we are empowering and protecting the individual in each moment of work by combining his or her human capability and energy with AI-enabled mechanical energy.
Speaker Change: We are direct and clear and our belief in the long term value of bitcoin and our long term plans to be acquirers and holders of BTC.
Speaker Change: We are a leader in the delivery of safe responsible power across multiple environments and applications via our battery business.
Speaker Change: Now via our German bionic relationship, we are empowering and protecting the individual in each moment of work by combining his or her her human capability and energy with AI enabled mechanical energy.
Shawn Canter: If you work in logistics, manufacturing, transportation and baggage handling, construction, warehousing and fulfillment, food and beverage logistics, or healthcare, let's get you in a suit, turn on Ultra Mode, and show you what we can do for you and your team.
Speaker Change: If you work in logistics manufacturing transportation and baggage handling construction warehousing and fulfillment food and beverage logistics or health care, Let's gets you in a suit turn on ultra mode and show you. What we can do for you and your team.
Shawn Canter: Now one last point. A question had previously been asked about our San Diego facility. As we said at the time, once a decision has been made, and it was appropriate to share, we would.
Speaker Change: Now one last point.
Speaker Change: A question had previously been asked about our San Diego facility.
As we said at the time once a decision has been made and it was appropriate to share we would well that time has come.
Shawn Canter: Well, that time has come. We will not be extending our San Diego lease when it expires in November. We will be consolidating the activity that is in our San Diego facility into our Webster, Texas facility.
Speaker Change: We will not be extending our San Diego lease when it expires in November.
Speaker Change: We will be consolidating the activity that is in our sandy in our San Diego facility into our Webster, Texas facility.
Operator: Back to you, Stuart. All right, thank you for that.
Stuart: Back to you Stuart.
Speaker Change: All right. Thank you for that now let's move onto the question in answer portion of our conference call. Today. So Michael here is the first question is kul are still pursuing a deal with U P. S for safekeeping.
Michael Mo: Now let's move on to the question and answer portion of our conference call today. So Michael, here is the first question. Is KULR still pursuing a deal with UPS for Safecase? Oh, yes, we continue to pursue a deal with UPS on safe case on these large size batteries. Yes. All right, very good. Next question, Michael. Does KULR still have a licensing deal with Ampria? Well, we have a technology design partnership with embryos. They are working on some very exciting, high energy and high power batteries. So it's a great partnership to work with them and go go to market together with our joint markets, you know, well, you know, together we're focused on space, DOD, drums, robotics, and industrial applications.
Speaker Change: Oh, yes, we continue to pursue a deal with <unk> on state case.
Speaker Change: These large sized batteries yes.
Speaker Change: Very good next question Michael is Kul are still have a licensing deal with Amp Prius.
Speaker Change: Well, we have a technology design partnership with embryos.
Speaker Change: They are working on some very exciting high energy and high power batteries. So it's a great partnership to work with them and go to market together with our joint markets. You know, we're all together were focus on space.
Speaker Change: Drums, robotics, and industrial applications, so super exciting stuff there.
Michael Mo: So super exciting stuff. All right, great.
Speaker Change: Alright, great at the next question is about Spacex and it says is cooler paying spacex to take their tech into space in 'twenty 'twenty six or it's Spacex interested in what cooler has to offer.
Michael Mo: The next question is about SpaceX. And it says, is KULR paying SpaceX to take their tech into space in 2026? Or is SpaceX interested in what KULR has to offer? Yes, we are paying SpaceX to take our CubeSat and our battery into space. This will happen actually in 2027, together with our ultra low temperature battery program, which I mentioned earlier in my prepared remarks about the Texas Space Commission program for the low temperature. So all these things are coming together on the SpaceX platform. All right, very good.
Speaker Change: Oh, yes, we are paying Spacex to take our cube set in our battery into space.
Speaker Change: This will happen actually in 2027, together with our ultra low temperature battery program, which I mentioned earlier in my prepared remarks about the Texas Space Commission program for the low temperature.
Speaker Change: All these things are coming together.
Speaker Change: On the Spacex platform.
Speaker Change: Alright, very good which are the partnerships or collaborations that have been reported this year do you think will be the most profitable in the short term.
Michael Mo: Which of the partnerships or collaborations that have been reported this year do you think will be the most profitable in the short term? Yes, it's a hard one to say which one, but I am equally excited about our KULR OneSpace development, as well as our new AI robotics. And so it's got an opportunity. And I think that both of them have really good promise. Very good.
Speaker Change: Yes, it's a hard one to say, which one but I am equally.
Speaker Change: About a cooler one space development as well as our new AI robotics, and so Scott the opportunity.
Speaker Change: And I think that both of them have really good promise.
Michael Mo: I think this next question needs a little context for some of our brand new investors. It's the question is, what is the California facility used for now? Those that may not know the main operations of the company have moved very close to NASA here in the great state of Texas in the town of Webster.
Speaker Change: Very good I think this next question needs a little context for some of our brand new investors. Its the question is what is the California facility used for now those that may not know the main operations of the company have moved very close to NASA here in the great State of Texas in the town of Webster. So Michael the question is specifically, though what is the cash.
Michael Mo: So, Michael, the question is specifically, though, what is the California facility used for now? Right. Well, thanks for giving that context, Stuart, to some of the new shareholders and listeners. We are in the process of transitioning all of our California activity, including currently the thermal products, the battery cell screening products, as well as some other business activities, to our Webster, Texas facility. And that's all going to happen between now and the end of the year. Okay.
Speaker Change: Before in your facility used for now.
Speaker Change: Right. Thanks for keeping the context store to some of the new.
Speaker Change: Shareholders and listeners we.
Speaker Change: We are in the process of transitioning all of our California city, including currently thermal products.
Speaker Change: So screening products as well as some other business activities to our Webster, Texas facility and Thats, all going to happen between now and end of the year.
Michael Mo: All right, next question. What do you say to investors who have been waiting on sales agreements and contracts now that we're in the month of May in the, here's a quote, new production ready facility that was talked about so much last year? Yeah, that's a great question. As I talked about in the prepared remarks, we have been expanding our facility in Webster, Texas, now to 31,000 square feet, and it's getting it production ready to serve more customers faster, like the example that I gave, which is AstroForge, that we went from design to deliver the product in six weeks, not in six months or six years.
Speaker Change: Okay.
Speaker Change: Alright next question, what do you say to investors, who have been waiting on sales agreements and contracts now that we're in the month of May and here's a quote new production ready facility that was talked about so much last year.
Speaker Change: Yeah, that's great question as I talked about in the prepared remarks, we have been expanding our facility in Webster, Texas now to 31000 square feet.
Speaker Change: It's getting it production ready to serve more customers faster like the example that idea, which is astral porch that that we went from design to deliver the product in six weeks not as six months or six years. So.
Michael Mo: So we expect more of these customer engagements and get them through the pipeline into production faster in higher cadence. Very good.
Speaker Change: We expect more of these customer engagements and get them through the pipeline into production faster and higher cadence.
Speaker Change: Very good and this next question is about our last earnings call and Michael. It says this last earnings call. Michael claimed that they expect revenue to at least double by the end of 'twenty twenty-five did this quarter and give you confidence in that regard.
Michael Mo: This next question is about our last earnings call, and Michael, it says this. Last earnings call, Michael claimed that they expect revenue to at least double by the end of 2025. Did this quarter give you confidence in that regard? Yes, we still expect this to happen in 2020.
Speaker Change: But yes, we still expect this to happen in 2025.
Michael Mo: What are KULR's vision and plan for tapping into providing batteries for the EV industry where battery life and safety has to be a big concern? And it also goes on to say Tesla had issues with battery fires that have affected their business. Boy, it's not just Tesla, Michael. Battery fires, as we all know, are a big problem.
Speaker Change: Okay. Next question, what are Kul ours vision and plan for tapping into providing batteries for the EV industry, where battery life and safety has to be a big concern.
Speaker Change: And it also go on to say Tesla had issues with battery fires that have affected their business boy, it's not just Tesla Michael battery fires as we all know are a big problem. That's the question no Michael.
Michael Mo: That's the question, though, Michael. Yeah, well, we have provided a lot of battery testing services for large automotive OEMs throughout the years. But the EV battery business in itself is a, we believe it's a very challenging one, has razor-thin margins. Sometimes I think from operating basis, it's very hard to make money. So you can see in the marketplace, it's very tough. So we have intentionally stayed away from EV batteries as a provider, but we have done a lot of testing for I think pretty much all the EV vendors in the industry. Very good.
Speaker Change: Well, we have provided a lots of battery testing services for large automotive Oems throughout the years.
Speaker Change: But the EV battery business in itself.
Speaker Change: We believe it's a very challenging one has razor thin margins.
Speaker Change: Sometimes I think from operating basis, it's very hard to make money.
Speaker Change: So you should see in the marketplace. It's very tough so we have intentionally stayed away from.
Speaker Change: Batteries as a provider, but we have done that all the testing for.
Speaker Change: Pretty much all the or the EDI vendors.
Speaker Change: And the industry.
Speaker Change: Very good here's our final question for the call today does cooler have plans for other battery needs. Besides the current battery solutions for current customers. An example would be portable generators that don't use gas or propane small portable battery packs for consumer electronics and mobile phones et cetera.
Michael Mo: Here's our final question for the call today. Does KULR have plans for other battery needs besides the current battery solutions for current customers? An example would be portable generators that don't use gas or propane, small portable battery packs for consumer electronics and mobile phones, etc. Right. We are focused on our quota one platform for space, DoD, robotics and other industrial applications at this time. So the question seems like seems to be pointing towards more consumer oriented products, which is not the focus for KULR at this time. All right, very good.
Speaker Change: Right.
We are focused on.
Speaker Change: Put on one platform for space.
Speaker Change: Robotics and other industrial applications at this time so.
The question seems like seems to be pointing towards more consumer oriented products.
Speaker Change: Which is not a focus for quarter at this moment.
Speaker Change: Alright, very good well once again that is our Q&A portion of the call today, which also is our final portion of the call today I would like to thank both the guests from cooler technology group, the CEO, Michael Moe as well as the CFO, Sean Kantor with that I will turn the call back over to our operator.
Operator: Well, once again, that is our Q&A portion of the call today, which also is our final portion of the call today.
Operator: I would like to thank both the guests from KULR Technology Group, the CEO, Michael Mo, as well as the CFO, Shawn Canter. With that, I will turn the call back over to our operator. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you. This does conclude today's conference call. You may disconnect. Your lines at this time and have a wonderful day. Thank you once again for your participation.
Operator: This does conclude today's conference call. You may disconnect your lines at this time and have a wonderful day. Thank you once again for your participation.