To The Moon

### Financial Analysis for KULR Technology Group, Inc. (KULR)

#### Bullish Points:

1. **Revenue Growth**:

- Record annual revenues of $10.7 million in 2024, a 9% increase from 2023.

- Introduction of IP licensing revenue stream contributing $2.69 million, indicating diversification and potential for high-margin growth.

2. **Gross Profit and Margin**:

- Gross profit increased by 50% to $5.48 million, with gross profit margin improving to 51% from 37% in 2023.

- Margin improvement driven by high-margin IP licensing revenue.

3. **Reduction in Net Loss**:

- Net loss reduced to $17.52 million in 2024 from $23.69 million in 2023, showing progress in cost management.

4. **Operating Cost Reductions**:

- Research and development expenses decreased by 34%, and selling, general, and administrative expenses decreased by 16%, reflecting improved operational efficiency.

5. **Bitcoin Strategy**:

- Adoption of Bitcoin as a treasury reserve asset, with holdings valued at $65 million as of March 2025, potentially providing long-term financial flexibility.

6. **Debt and Financing**:

- Full repayment of prepaid advance liability of $5.92 million.

- Raised $67.57 million in financing, including $61.91 million from an At-the-Market (ATM) offering, strengthening liquidity.

7. **Cash Position**:

- Significant increase in cash balance to $29.83 million as of December 31, 2024, compared to $1.19 million in 2023.

8. **IP Licensing Agreements**:

- Entered into two licensing agreements worth $2.4 million, showcasing innovation and monetization of proprietary technology.

9. **Stock-Based Compensation Reduction**:

- Stock-based compensation expenses decreased to $2.69 million in 2024 from $3.50 million in 2023, reducing shareholder dilution.

10. **Federal Tax Benefits**:

- Federal net operating loss carryforwards of $61 million, which could offset future taxable income.

#### Bearish Points:

1. **Net Loss**:

- Despite reductions, the company still incurred a significant net loss of $17.52 million in 2024.

2. **Bitcoin Volatility Risk**:

- Bitcoin holdings valued at $65 million expose the company to cryptocurrency price volatility, which could impact financial stability.

3. **Inventory Reduction**:

- Inventory decreased to $545,467 from $1.15 million in 2023, potentially signaling supply chain challenges or reduced production capacity.

4. **Debt Discount and Interest Expense**:

- Amortization of debt discount increased to $1.15 million in 2024, reflecting higher financing costs.

5. **Preferred Stock Issuance**:

- Issuance of 730,000 shares of Series A Preferred Stock with super voting rights to the CEO may raise governance concerns.

6. **Separation Agreement Costs**:

- One-time payment of $99,551 and accelerated vesting of 500,000 shares for the former COO, along with a $500,000 cash payment, adds to operational expenses.

7. **Treasury Stock**:

- Holding 131,162 shares in treasury at a cost of $296,222 may limit liquidity.

8. **Patent License Agreement**:

- Minimum annual royalty payments of $20,000 beginning in 2024 could add recurring obligations.

#### Summary:

KULR Technology Group demonstrated strong revenue growth, improved gross profit margins, and reduced operating costs, signaling progress in financial performance and operational efficiency. The adoption of Bitcoin as a treasury reserve asset and increased cash position provide liquidity but introduce risks associated with cryptocurrency volatility. While the company has made strides in reducing its net loss and diversifying revenue streams through IP licensing, significant losses, inventory reductions, and governance concerns related to preferred stock issuance remain challenges. Overall, the financial report reflects a mix of positive developments and areas requiring attention for sustainable growth.

For more information, you can read the original text of KULR Technology Group, Inc.'s financial report.