KULR Technology Stock

Welcome, everyone, to the KULR Technology Group Second Quarter 2026 Earnings Call. In just a moment, I will be joined by the CEO of the company, Michael Mo; and the CFO of the company, Mike Kimel. Before we can get started, please listen to the following safe harbor statement covering this call. This call may contain certain forward-looking statements based on the company's current expectations, intentions and assumptions that involve risks and uncertainties. Forward-looking statements made on this call are based on the information available to management as of the date hereof. KULR Technology Group's 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 and Exchange Commission on March 31, 2026, as may be amended or supplemented by other reports filed by the company with the Securities and 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. All such forward-looking statements that are provided by management on this call are based on information available at this time, and management expects that their internal expectations may change over time. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, the company assumes no obligation to update the information included on this call, whether as a result of new information, future events or otherwise. With that, I will now turn the call over to Michael Mo. Michael, the call is yours.

Thank you, Stuart. Good afternoon, everyone. Thank you for joining. On our last earnings call, we told you 2026 will be measured by 3 things: product revenue growth, gross margin improvement and cost discipline. I want to start today by being direct with you. Second quarter fell short. Second quarter revenue was $2.1 million, down significantly from both prior year and the first quarter with a gross loss. That's not the quarter we planned, and I'm not going to make excuses. What I'm going to do is walk you through 3 things: what challenged us in the second quarter, what we're doing to resolve those challenges and the growth we expect to see in the second half of this year and why.

KULR builds high-power battery systems for the physical AI era, autonomous systems, drones, underwater vehicles, robotics and telecom critical infrastructure. In June, I wrote to shareholders that battery is infrastructure, and there is no grid in the sky, in the orbit, in the ocean or on the battlefield. Everything we do is in service of that mission and nothing about this quarter changed it. Four things challenged us this quarter, and I'll name each one. First, supply chain. New programs mean new parts. And in this environment, new parts mean long lead times and critical bottlenecks. These constraints delayed the production and delivery of our battery products and shipments we had planned for, for the second quarter were delayed.

Second, execution focus. KULR is carrying more customer programs that our resource can execute with the speed and quality our customers demand of us. Now in one sense that this is a good problem. It reflects real demand, but it's still a problem. And in the second quarter, it costed us. We're evaluating all of our customer engagements and prioritizing our engineering and manufacturing resources towards the highest value opportunities. Third, alignment. The Board and management changes during the quarter consumed a significant amount of management bandwidth and slowed decision-making. That transition is now behind us. Mike Kimel, our Chief Financial Officer, will talk about how we're taking this opportunity to step back and reassess some of our business processes. Fourth, production capacity. Our new Texas facility was not yet contributing in the second quarter. The good news is that the facility and the production lines are coming up nicely, and we expect them to be operational in the third quarter.

As we walk through these challenges, I believe that the demand for our products and services remains strong. Our business shifts to the right, and we're in the very early phase of this market growth in the United States. Look underneath the quarterly fluctuations, you can see that our core energy platform business remained essentially stable on the first half basis. Energy Management platform revenue was $4.76 million versus $4.73 million in the prior year period, slightly higher year-over-year. Total first half revenue was $6.03 million versus $6.1 million a year ago. And the composition of that revenue shows that demand is broadening. Second quarter product sales was driven principally by 2 large orders, both from new customers and both involving new battery configurations.

We're not just selling more of the same product to the same customer base. We're bringing new battery configurations into new accounts, and that's exactly the type of customer expansion we want to see as quarter 1 scales. Now let me tell you what we're doing to resolve these challenges, both things and they map directly what I just described. First, we're prioritizing the operating business above all else. Our priority is clear: deploy our technology, our capital, our people towards scaling KULR ONE and building a world-class energy system platform for physical AI economy. That means the same 3 accountability measures that we laid out in June, product revenue growth, gross margin improvement and cost discipline center on 5 markets: Space and Defense, Drones and Autonomous vehicles, Telecom and Critical infrastructure and Robotics. And within that, we're qualifying our customer engagements more carefully, concentrating our best engineering and production talent on the programs with the strongest economics and strategic value.

Second, we're simplifying. Since the second quarter close, we exited Bitcoin mining, and we repaid our $20 million credit facility in full using proceeds from Bitcoin sales without issuing a single share through our ATM this year. The Board and the management team have decided to divest our Bitcoin treasury to focus on -- to focus our balance sheet on the operating business. Mike Kimel will walk you through the balance sheet logic. But the principle is simple: reduce volatility, preserve flexibility and let the management team and investors see the operating business fairly. With approximately $60 million on our balance sheet and no debt, we believe we have the financial resources to execute our growth strategy. We have also brought some early-stage activities to an orderly conclusion with the conservative reserves Mike Kimel will describe.

Third, we're fixing alignment and execution. The leadership team is now set aligned with technology go-to-market strategy-oriented Board members, a CFO who is operationally focused and clear priorities. On that foundation, a company-wide operating review is underway to standardize our data, refine our workflows, strengthen the systems that give management real operational visibility and become more selective about the vendors and customers that we partner with. Fourth, we're building capacity. We're building a full stack operation in Texas, design, prototyping, testing, certification, manufacturing, battery management, software and electronics, all together under one roof.

In May, we signed a lease on approximately 25,000 square foot facility to expand our manufacturing footprint and a new automated production line for both cylindrical and pouch cells will be operational in that facility. On the supply chain side, we're multi-sourcing components to reduce single supplier as a critical bottleneck. Our cell-agnostic architecture let us qualify multiple chemistries and form factors. And we're investing more in production readiness. Raw materials inventory is up roughly fivefold since end of 2025, and you should expect inventory to increase further in the second half as we position ourselves to meet anticipated demands. The infrastructure we're putting in place is designed to shorten the path from customer requirements to prototype to qualification to volume production. That vertical integration is central to how we improve speed, control and ultimately, economics.

Now let me share with you on why we expect the second half to look different. The American drone market is converting from policy to purchase orders. The United States is at the early cycle of its unmanned system build-out. Europe shows where that curve goes. Ukraine produced roughly 4 million drones last year and is targeting 7 million this year. The United States by comparison, produce on the order of 100,000 small drones a year, and Washington has decided to close that gap. Department of War's $1.1 billion drone dominance program moved from plan to purchase order this summer. The first delivery order has been accepted. Roughly 30,000 units are being delivered right now. And the department has said it will order 60,000 more in September on the way to hundreds of thousands of drones by 2027.

The fiscal 2027 budget request include more than $70 billion for drones and counter drone systems, the largest such investment in the U.S. history. Here's why that matters for KULR. American drone makers are being required to stop using foreign parts, including batteries. That makes American-made power like ours more important every quarter. And when drones are classified as consumables, batteries become consumables, too, which means recurring demand. The rest of the market tells the same story. One of the largest drone battery cell suppliers in the market reported this month that about 16% of its latest quarterly revenue came from North America, while roughly 70% came from Europe and the Middle East, much of the shipping directly to Ukraine.

The overseas cycle is at scale. The American cycle is just beginning to convert to orders. That's the demand wave that KULR is positioned for. We're executing across dozens of active customer programs supporting drone dominance-related customers, maritime programs and [indiscernible] space programs. In the second quarter, we secured initial defense drone battery orders from a U.S. drone maker participating in the drone dominance initiative. It is a customer opportunity that exceeds $5 million. We demonstrated KULR ONE Air with next-generation solid-state cells at over 350 watt hour per kilogram and we were selected by Oracle Space as battery providers for its orbital transport mission.

Meanwhile, we're building the ecosystem around batteries, not just the pack itself. We're now sampling NDA-compliant 6S chargers supporting both cylindrical and pouch cells. We have completed our 18S charger prototype. And by the end of 2026, we expect to be shipping NDA-compliant chargers to U.S. customers. Power, thermal management, BMS charging, all from one compliance stack engineered and built by one supplier. That's how we're positioning KULR ONE to be the power platform for physical AI. So here's how the second half of 2026 could look like in summary. Delayed shipments will be recovering. New Texas facility and battery production lines will be operational and contributing to the business.

Pipe volumes starting to ramp and NDA-compliant power electronics and chargers shipping by the end of the year. While U.S. drone procurement cycles is converting into orders. One quarter doesn't make a turnaround for us in Q1 and one difficult quarter doesn't break the plan. Hold us accountable for the same 3 measures we set out in June, product revenue growth, gross margin improvement and cost discipline. The mission has not changed. The market is driving and our job is to execute, build more batteries and sell more batteries. With that, let me turn the call over to Mike Kimel to take you through the financials and operating changes underway.

Thank you, Mike. We make batteries and we sell batteries. That's what I wanted to discuss today. Unfortunately, our second quarter results were below our expectations. And today, I want to focus on the actions we are taking to strengthen performance and position the business for growth. We fell short on both revenue and profitability, and we're not satisfied with that outcome. Since quarter end, though, we've moved quickly, sharpening our priorities, simplifying the business and concentrating our resources on the opportunities we believe we can create the most value. There were also meaningful areas of progress during the quarter. We reduced SG&A spending compared with both the second quarter of last year and the first quarter of this year, which reflects real if early progress in making this company more efficient.

SG&A declined about 9% year-over-year in Q2 and approximately 5% in the first half. First half R&D expenses -- expense was also about 3% lower. But cost discipline is not enough. A company cannot cut its way to prosperity. We also have to convert demand into revenue, serve our customers well and execute consistently. That's where we are directing our attention now. We're becoming more deliberate about where every dollar goes. To be clear, the goal isn't just to spend less, but to move resources away from activities that are not central to the business and to the products and programs that can drive revenue and manufacturing scale. Increasingly, that means focusing our capital manufacturing capability and commercial efforts around KULR ONE.

These actions reflect the company becoming increasingly focused on production, commercialization and disciplined capital allocation. From my perspective as CFO, that means maintaining conservative financial practices, strengthening our processes and building an operating structure that can support a larger business. I also want to talk about our Bitcoin position. The treasury strategy provided financial flexibility, including the ability to repay our $20 million credit facility after quarter end. At the same time, though, carrying a large digital asset position introduces meaningful volatility into both the balance sheet and reported results. Of our approximately $51 million first half net loss, about $31.4 million reflected the noncash mark-to-market change in the value of our digital asset holdings. That's worth repeating that movement was unrelated to the operating performance of the battery business.

As we evaluated our capital priorities, we determined that simplifying the digital asset position would give us greater flexibility and allow us to concentrate more fully on the operating business. That's why since the quarter closed, we've exited Bitcoin mining, begun reducing our Bitcoin holdings in a deliberate manner and taken steps to simplify the balance sheet. We used proceeds from the sale of 333 Bitcoin to fully repay the $20 million Coinbase loan, releasing the 565 Bitcoin pledged as collateral. We also terminated our mining services agreement, eliminating about $2.1 million of remaining operating expense commitments for a $150,000 termination fee.

Going forward, the Board has authorized management to sell any and all Bitcoin holdings and to focus on the core business. Each of these steps reduces balance sheet volatility and simplifies the business. They also increase our flexibility to allocate capital based on the needs and opportunities of the operating business. The principle behind these decisions is simple: support the operating business, preserve flexibility and remain mindful of dilution. Consistent with that approach, we were able to avoid issuing any shares through the ATM during the first half of 2026. At the same time, the Board and management have been refining the company's strategic priorities and operating structure to support the next stage of KULR's development.

The Board changes announced on April 28 and the management realignment in June accelerated that work and gave us the opportunity to sharpen priorities, simplify decision-making and align resources more closely with the core business. That company-wide operating review is underway right now. As part of the review, we've identified opportunities to improve data consistency, increase the use of existing ERP functionality and strengthen the operational visibility available to management. We've also reviewed our professional services relationships with a clear focus on cost, performance and value. Depending on the situation, we are evaluating bringing work in-house, renegotiating terms or moving to a provider that better fits our needs.

We are applying the same discipline to how we evaluate customer and program economics. Not every opportunity warrants the same commitment of engineering and manufacturing resources, and we intend to prioritize the programs that offer the strongest combination of economics and strategic value. Our engineering and production resources are valuable and the resources applied to one program are resources that cannot be deployed elsewhere. As the company grows, we can be increasingly selective about where we deploy those resources. And since quarter end, we have strengthened the way we qualify new opportunities and evaluate existing ones.

Now that doesn't mean walking away from difficult work. It does mean being more thoughtful about whether the economics and strategic value of a program justify the engineering and manufacturing resources it requires. We're standardizing data, rebuilding workflows and building better systems. As KULR moves from a business historically centered on R&D and highly customized lower volume work towards larger and more repeatable production, our operating infrastructure is evolving with it. We're designing processes to support greater scale, accountability, visibility and speed. But the point of that is not to build more bureaucracy. It's to give our people better information, clearer accountability and systems that allow the company to grow without adding unnecessary complexity.

This is an ongoing process, and a number of changes are already underway. We're building a company that's more focused, more efficient and better positioned to scale. So where does that leave us? Q2 was a challenging quarter, but our view of the underlying opportunity hasn't changed. Demand remains. Our customers are engaged, and we continue to see attractive opportunities across our core markets. Our focus is now straightforward, concentrate our resources around the core battery business with KULR ONE at the center of that effort and convert demand into revenue more consistently. We believe strongly in our products, our customer relationships and the markets we serve.

The changes we're making are designed to put more of our capital, manufacturing capability and management attention behind those strengths. Becoming leaner and more focused doesn't mean retreating from growth. It means directing resources toward the programs and customers where we believe they can create the greatest value while building the operating infrastructure necessary to support a larger business. We've also identified additional applications for our battery systems that could open new markets over time. We'll talk about those when they're further along and appropriate to share. But the immediate priority is the business already in front of us. Demand remains as the company concentrates resources around KULR ONE. Management's job is now to convert that demand into consistent revenue, improved profitability and sustainable growth. That's where our attention is focused, where our resources are going and how we intend to measure our progress. Thank you very much.

Thank you, Mike, and thank you very much, Michael Mo. That concludes our call for today. I will now turn the call back over to our operator. Thank you so much for joining us. Operator, the call is yours.

Thank you. This does conclude today's webcast and conference call. You may disconnect at this time, and have a wonderful day. Thank you once again for your participation.

All right. Welcome to the KULR Technology Group First Quarter 2026 Earnings Call. I'm your host, Stuart Smith. And in a moment, I'll be joined by management from KULR Technology Group.

But before we can begin this call, please listen to these forward-looking statements covering the comments and the call today. The call today may contain certain forward-looking statements based on the company's current expectations, intentions and assumptions that involve risks and uncertainties.

Forward-looking statements made on this call today are based on information available to the company as of the date hereof. KULR Technology Group's 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 and Exchange Commission on March 31, 2026, as may be amended or supplemented by other reports the company files with the Securities and Exchange Commission from time to time.

Forward-looking statements include statements regarding their 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.

All such forward-looking statements that are provided by management on this call are based on the information available at this time, and management expects that internal expectations may change over time. These statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, the company assumes no obligation to update the information included on this call, whether as a result of new information, future events or otherwise.

Now with that, the call today will begin with opening comments from Chief Executive Officer, Michael Mo. We will then pivot to a question-and-answer portion where management will field questions that you have submitted via social media, e-mail and other medium.

With that, I'll turn the call over to CEO, Michael Mo. Michael, the call is yours.

Thank you, Stuart. Good afternoon, everyone. Thank you for joining. On our last earnings call, we told you 2026 will be measured by product revenue growth, gross margin improvement and cost discipline.

Q1 showed progress against each of these priorities. Total revenue grew 98% year-over-year to $4.8 million compared to $2.4 million in Q1 2025. Product sales grew 84% year-over-year to $2.1 million. Overall blended gross margin was approximately 29%, up from 8% of Q1 2025. Product sales gross margin was 26%. Total loss from operations decreased approximately 22% year-over-year.

As we move from platform development into production scaling, we signed a new lease for additional 25,000 square feet of manufacturing space to support new battery production lines and high-volume customer programs. We remain in solid financial position with approximately $19 million in cash as of today and approximately 1,085 Bitcoin in our treasury. We're committing all of our financial resources to our battery business and not acquiring any Bitcoin with cash. The only Bitcoin acquisition is through our existing BTC mining contracts.

One quarter does not make a turnaround, but Q1 is evidence that the vision and discipline we commit to for 2026 is starting to translate into measurable results. KULR is beginning to scale its battery business with better cost discipline and improved operating leverage. The core objective of 2026 is straightforward: scale the KULR ONE platform to build more batteries, sell more batteries while converting customer traction into margin-accretive revenue.

Let me start with KULR ONE Air. Before walking through the program updates, I want to remind everyone why KULR ONE Air is positioned the way it is. On our last earnings call, I explained that the high-growth markets KULR serves, autonomous platforms, direct energy systems and digital infrastructure share one common technical constraint, power density. Drones, robots and other autonomous systems do not need batteries that simply store energy. They need batteries that can deliver power at 5x to 20x the discharge rate of a standard battery, sustain that output through repeated high demand cycles and manage heat generated without failure. That's the engineering problem KULR ONE was built to solve. And it's the reason why our platform is gaining traction we're able to walk through. Power is the wedge. Every program update that follows is downstream from the core advantage.

KULR ONE Air continues to gain strong traction with U.S. and NDAA-compliant drone manufacturers. Our 6S 3P LiFT battery is seeing broad adoption. And this quarter, we expanded to LiFT Pack family with additional configurations designed specifically for long-duration flight applications. We've also advanced the KULR ONE Air power class for agriculture and heavy lifting applications.

On the BMS side, we are on track with our customer for 6S, 12S and 18S battery management systems targeting large UAV platforms. These are high-volume, high-demand applications and KULR is well positioned to serve them. We've also completed design of [ MIL-spec EMI-resistant BMS ] for drone-based defense applications. Customer development activities is increasing across defense, aerospace, space and unmanned systems.

We're seeing especially strong growth in our UAS battery programs. Existing customers are launching new drone models that require entirely new battery systems. We have also expanded the platform's reach into 2 important directions into humanoid robots, where we are now engaged with 2 customers and into large Class II and Class III drones.

Working with a broad base of battery cell providers in cylindrical, pouch and prismatic format is central to building out the KULR ONE ecosystem. The same platform architecture paired with the best available cell technology is what gives KULR ONE a road map that extends well beyond current production configurations. KULR ONE Air is now actively exploring configurations with NDAA-compliant solid-state and lithium metal battery cell providers capable of exceeding 380 watt hour per kilogram. I'm very excited about these developments. The same engineering discipline, build the architecture first, then bring the best cell technology to it is what defines our work in Space and Triton, which I'll cover next.

On the Space side of our operation, I want to start with the point that we made in our last earnings call. KULR ONE Space is not just a product line. It's the program that sets the performance standard for the entire KULR ONE portfolio. Space operates in an environment where battery failure is not recoverable. Every performance requirement met in the spacecraft, propagation resistance, thermal stability under extreme conditions, certification under scrutiny raises the engineering baseline that KULR ONE Air, MAX and our maritime platforms inherit. Customers in defense, drone, electric aviation and AI data center programs are buying [indiscernible] architecture that has already been qualified in the most demanding operating environments.

With that context, I'm pleased to report that KULR ONE Space was selected by several additional LEO and GEO missions this quarter. This continues the validation that the platform and the trust our customers are placing in us for mission-critical applications. Our XLT and REACH series batteries remain in active deployment across multiple satellite programs in both LEO and GEO. Recent investments in our BMS are enabling higher radiation tolerance and improved current-carrying capabilities, both critical for expanded space missions.

I also want to give you a brief update on our KULR ONE Triton, our maritime battery family. Triton extends with the same engineering principle I just described, the architecture first, safety first standards developed for space into autonomous surface and subsea systems. We're developing and testing Triton in partnership with several OEMs, bringing aerospace-grade and Navy 9310 reliability standards to a market where battery failure under water carry similar nonrecoverable consequences.

Consistent with the cell partnership theme I covered earlier, we're currently testing Triton across multiple chemistries, solid-state, nickel metal hydride and small format lithium-ion to identify the optimal configuration for next-generation autonomous maritime vehicles. It's an exciting and fast-growing market, and KULR is building the right foundation to compete in it.

Moving to our data center platform. On our last earnings call, we described a shift underway in the industry. As AI workloads grow and hardware becomes more power intensive, battery backup is moving out of the dedicated UPS room into computing rack itself. A battery operating next to the processor it protects must meet higher safety standards, handle higher voltage and response faster than conventional backup systems. This is the opportunity for KULR ONE MAX is built for.

This quarter, KULR attended the Open Compute Projects European Summit, where we met with major data center OEMs. Our focus was to license our PPR and thermal management IP for data center BBU applications. The data center market is enormous, and KULR's PPR architecture and thermal expertise give us a technology edge that OEMs want access to. We're continuing to advance the design and optimization of our KULR ONE MAX, our 48-volt high-power PPR BBU platform. Progress this quarter includes advance in power conversion efficiency, continued development of our custom distributed BMS and PPR testing for higher energy 21700 cells. We're targeting edge, AI data center and telecom infrastructure with this platform.

Speaking of telecom infrastructure market, we observed a shift underway in the telecom industry. 5G rollouts and rising uptime requirements are pushing operators away from legacy lead-acid systems towards lithium-ion. And at the same time, operators are looking to move battery backup assets off the balance sheet entirely, shifting CapEx from nonrecurring revenue assets into lower-cost OpEx models with clear total cost of ownership advantages.

KULR's position in this market is unique. We're demonstrating to operators that we have a proven safe and reliable option to contract the mission-critical DC power as a full service and never have to buy a battery again. Our platform pairs the KULR ONE battery architecture with operational and financial structure operators need to make that transition.

On execution, this quarter, we delivered production battery pack against our existing supply commitments, and we remain on track with the manufacturing consolidation milestones we outlined on our last earnings call. Beyond those committed programs, we now have over half a dozen engagements with telecom service providers on KULR ONE Battery-as-a-Service, a clear sign that the market opportunity that we described in March is materializing.

Next, I'd like to address the Board changes we announced on April 28. We appointed 2 new directors, Ben Frank from Microsoft and Mr. Mike Kimball and at the same time, streamlined the Board to 3 members, 2 of whom are independent. The smaller, more focused Board is itself part of the operating principle message. It reduces SG&A and ensures that every director seat directly contributes to expertise that we need to scale. These 2 appointments are not generic Board additions. Each one was able to fill a specific gap that becomes critical as KULR moves from platform development into platform monetization.

Mr. Frank is the Director of Workforce AI Solutions Engineering at Microsoft, where he leads engineering teams supporting large enterprise customers deploying AI platforms within Microsoft's energy and resource organization. Microsoft is one of the best technology companies in the world that won its markets by building an ecosystem platform and then opening that platform to a broad range of partners, customers and developers. That's the playbook KULR is running with KULR ONE.

The KULR ONE ecosystem is built as follows: opening the architecture to multiple cell chemistry partners across cylindrical, pouch and prismatic formats, build the battery management software, electronics to increase customer stickiness to the KULR ONE platform, pursuing IP license for AI data center BPU applications and expand the customer base in defense, aerospace, maritime and humanoid robotics. Ben brings firsthand experience from inside the most successful enterprise ecosystem company of the modern era, applying directly to AI-driven industries that are core KULR end markets.

Dr. Kimball has more than 30 years of experience as a corporate executive, consultant and academic, specifically focused on pricing strategies and margin performance. He holds a PhD in Economics from UCLA and has previously held senior pricing positions in OmniSource, Toyo Tires and Sears Holdings. His expertise is perfectly aligned with our 2026 mission, build and sell more batteries for product revenue growth, higher margins and reduce costs. Dr. Kimball's appointment is how we institutionalize that progress, bring discipline to how we price every contract, how we structure customer engagements and how we convert revenue growth into durable profitability in addition to top line growth.

Before turning the call over, I want to share one observation about where the industry is headed. In recent weeks, a public traded UAV component company has agreed to acquire a U.S. drone battery manufacturer for over $50 million, adding battery capabilities to a portfolio that over the past 12 months has been assembled through separate acquisitions of drone software, motor manufacturing and distribution alongside a $75 million strategic materials purchase.

We view this as validation. The UAV and broader autonomous system supply chain is consolidating around 3 requirements: NDA compliance, domestic vertical integration and a complete component ecosystem rather than a single product. That's exactly the platform that KULR has been building organically with in-house engineering for the last few years.

Let me put our position in context. KULR already operates over 31,000 square feet of vertically integrated R&D and production facility in our headquarters in Webster, Texas, and we're adding another 25,000 square feet of manufacturing capacity in Q2. Our portfolio span NDA-compliant battery packs, custom battery management system and electronics, thermal management IP and platform architecture qualified across drone, space, maritime, AI data center and telecom applications. We engineered the battery cell partnerships, the cell-agnostic architecture, the BMS and the safety system together, and we're doing it for end markets that extend well beyond UAVs alone.

With the industry paying over $50 million for a battery pack manufacturing operation for UAV, it tells you what the market now believes domestic vertical integrated battery capabilities can be valued at. The market will be moving and evolving towards an ecosystem platform that KULR has been investing and building for multiple end markets for many years. We're focused on building more batteries and selling more batteries.

Now back to you, Stuart.

All right. Thank you, Michael. Now let's pivot into the investor questions that have been sent in. Here is the first question, Michael, and it is: What were the primary drivers of Q1 2026 revenue? And how should investors think about revenue visibility for the remainder of 2026?

Cost reduction is already visible in Q1 numbers. R&D expense declined 28% year-over-year. SG&A declined approximately 9% and total operating loss declined 22% year-over-year. And we'll be -- continue to be more disciplined about our cost structure while investing in our growth.

As I said in the prepared remarks, our appointment of Mike Kimball is aligned with that strategy. With his expertise in price, margin and profit optimization, we'll bring discipline to how we price every contract, how we structure customer agreements and how we convert revenue to durable profitability in addition to top line growth.

[ Yes. Cost reduction is already visible in the Q1 numbers. R&D expenses was down 35% year-over-year. SG&A declined 8% year-over-year. I think we can do a lot more on that. And the total operating expenses, excluding the $500,000 credit loss declined actually 24% year-over-year. And so we will continue to be more disciplined on our cost structure while investing in our growth.

As I said in the prepared remarks, our appointment of Dr. Mike Kimball is also aligned with that strategy with his expertise in pricing, margin and profit optimization. We'll be bringing discipline to how we price every contract, how we structure customer engagements and how we convert revenue growth into durable profitability in addition to top line growth. ]

All right. Here's question #3 then. How many KULR AIR Air programs are moving from prototype or development work into production? And what does that imply for the second half of 2026 revenue visibility?

Yes. Multiple KULR ONE Air programs are in transition. The 6S 3P LiFT pack has been moved to broad adoption is in production now. The expanded LiFT family with the long-duration configurations is moving from design into qualification with customers.

Also on the BMS side, the 6S, 12S and 18S systems for large UAV platforms are on track with customers. Our mill spec EMS-resistant BMS design is complete. Two humanoid robot customers were added in Q1 and existing UAS customers are launching new drone models that require new battery systems at all times. So we haven't actually disclosed kind of a program by program count, but underneath all these activities, that's what's going to drive second half of 2026 ramp profile.

All right. Speaking of drones, here's a question about that. How is demand developing for KULR's defense and drone battery solutions? And are defense-related programs becoming a larger portion of the company's near-term opportunity?

Yes. Defense demand is definitely accelerating from what we can see. Customer development activities is increasing across the defense, aerospace, unmanned systems and the conversation we're having with defense customers is more about volume and timeline. So it's all about execution on our side now to deliver to these customers.

Defense and defense adjacent programs have really become a larger part of our near-term opportunity. And our work on the NDA-compliant battery cell partnerships, including the emerging solid-state and lithium metal suppliers is really exciting for us, and that's going to play an increasing role for these customers.

So what progress has KULR made with domestic battery supply, Texas-based manufacturing and NDAA-compliant battery systems for government and defense adjacent customers?

Yes. We have been developing a full NDA compliant ecosystem for the KULR ONE battery platform for a while now. So from battery cell suppliers in cylindrical pouch prismatic format to solid-state and lithium metal chemistry to BMS and also into electronic systems supporting all the batteries. These are all around NDA compliance. And just like our battery pack will be -- will all be made in Texas. That is definitely a core part of our strategy.

Very good, Michael. The next question talks about gross margin. It says product gross margin was low-single-digit in 2025. What progress did KULR make in Q1 towards improving margins? And when should investors expect improvement to become visible in the financials?

Yes. Q1 is an example of that our gross margin at 29% for overall blended and also product sales margin about 26%. One quarter doesn't make it a trend or a complete turnaround story, but that we -- I do believe that we're on the right track to execute our strategy for 2026.

Is the automated production line still on schedule for the second half of 2026? And what impact could it have on production capacity, labor cost, yield consistency and gross margin?

Yes. The new production lines will be installed at our new 2000-square-foot facility in Q2, and we expect that to start production in Q3 of this year. We will have capacity to produce 10,000 battery packs per month and expect the unit economics for our batteries to go down and therefore, improving margins.

All right. Well, let's talk more about those 10,000 battery packs. KULR ONE Air was highlighted as the company's highest momentum platform with a target of approaching 10,000 battery packs per month in the second half of 2026. Are customer qualification, schedules and production time lines still on track?

Yes. Again, another question around KULR ONE Air and our production schedule, which I think a lot of investors really care about. Yes, we have the new facility now. The new production lines will be installed and operational in Q3. I would also say that there is a lot more going on behind the scenes than just the production lines themselves.

We now have our own copper busbar laser cutter in-house that really dramatically lowers our lead time to get these really high-performance components made in-house and also lower our cost. We're putting a UN 38.3 certification infrastructure in-house, all the equipment in-house so that we can build, qualify, ship batteries very quickly to customers and also lower the cost. All around, we've been making significant investment in our infrastructure to make the best one-stop shop in the U.S. for all these high-performance batteries.

All right. Michael, here's our final question for this call today. How should investors think about cash usage, working capital needs and capital allocation priorities for the rest of 2026?

Yes. It is -- for us, it's all about building more batteries and selling more batteries. So our cash usage will be CapEx for equipment and facility that I talked about. Working capital for inventory, SG&A, which we are on path to reduce the cost on that and also continue to invest in our people to build the best team in the industry, to build -- to deliver the best product for our customers at a very good value to them. So this is how we're going to win.

Well, as mentioned, that was our final call -- or our final question for the call today, I should say. And I want to thank everyone for joining us today. But more than that, I want to thank the shareholders for their continued support and for sending in their questions throughout the quarter. And of course, our gratitude to the team at KULR Technology Group. Michael, thank you so much for your time here today. With that, we will turn the call over to the operator.

Thank you. This does conclude today's webcast and conference call. You may disconnect at this time, and have a wonderful day. Thank you once again for your participation.

Welcome, everyone, to the KULR Technology Group Fourth Quarter and Full Year 2025 Earnings Call. I'm your host today, Stuart Smith. In just a moment, I'm going to be joined by the Chief Executive Officer for the company, Michael Mo, as well as the Chief Financial Officer for the company, Shawn Canter. Both of those officers will be giving their opening remarks, and that will be followed by a question-and-answer section with management. And again, we want to thank you for those questions.

Now before I begin, I would like you to listen to the following safe harbor statement. This call contains certain forward-looking statements based on KULR Technology Group's current expectations, intentions 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. The company's 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 KULR Technology Group's Form 10-K filed with the Securities and Exchange Commission on March 31, 2026, as may be amended or supplemented by other reports the company files with the Securities and 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.

All such forward-looking statements that are provided by management on this call are based on the information available at this time, and management expects that internal expectations may change over time. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Except as otherwise required by applicable law, the company assumes no obligation to update the information included on this call, whether as a result of new information, future events or otherwise.

Now with that, I'm going to turn the call over to Michael Mo, Chief Executive Officer of KULR Technology Group. Michael, the call is yours.

Thank you, Stuart. Good afternoon, everyone. Thank you for joining. 2025 was a difficult year for our shareholders and for our company. Share price declined significantly, and we recorded a net loss of approximately $62 million. The majority of this loss was driven by onetime and noncash items, but it was still a loss. Our investors, shareholders, internal team members and I all felt the effects of this loss.

We recognize the impact this has had, not just on our investors and shareholders, but also on our employees and partners who are deeply invested in our success. I feel that way alongside all of you. I want to acknowledge this directly. Equally as important, I want to separate what affected performance in 2025 from what matters most to the business going forward.

In 2025, KULR continued to grow and invest in its core business, the KULR ONE battery platform for energy storage systems. Adversity brings clarity. It sharpens our focus, reinforce our discipline and remind us exactly what must be done.

We're taking these lessons forward with urgency and intent. Our foundation is strong, our direction is clear, and we committed to executing with precision and accountability in 2026. What I want to do today is go through what we built in 2025, what we believe is the right foundation and what realistic 2026 growth execution looks like.

KULR designs and builds advanced battery systems for autonomous platforms, digital infrastructure, electric transportation and space exploration. KULR ONE is our battery platform. Our progress in 2026 will be judged by core battery revenue growth and improvements in gross margin as volume and automation increase. The mission for 2026 is clear: eliminate distractions and execute with discipline. Our singular focus is to build and sell more KULR ONE batteries. That's the work, and we will do it relentlessly.

I would now like to walk you through some of the 2025 financial reportings and the situation surrounding them. Shawn Canter will provide a full financial summary during his portion of the call.

Under GAAP accounting, KULR recognized an unrealized mark-to-market adjustment of $13.8 million on its Bitcoin holdings for 2025. The adjustment reflects the change in Bitcoin price at the end of 2025. While this is an expense, it's not a cash expense. We have maintained our Bitcoin treasury of approximately 1,082 Bitcoins without selling any coins. We invested in and formed a distribution relationship with a private exoskeleton company. In late 2025, that company filed for insolvency.

We took the full write-off of approximately $6.9 million. Clearly, this investment did not work out. The investment and the distribution relationship with this entity have been ended and the full account is in the 10-K. The lesson is clear. We must be disciplined in how we allocate capital and resources, prioritizing the growth of our core battery platform and focusing on opportunities where we have greater operational control, strong commercial visibility and direct alignment with our strategic priorities.

Battery platform revenue, which is product sales plus contract services was $7.3 million in 2025. That's the commercial baseline we're scaling from in 2026. Revenue was $16.1 million, up 51%. Most of that growth came from Bitcoin mining and battery research grant dollars. The number that matters most to us in 2026 is the battery platform revenue. That's the business we're building KULR ONE around, and that's where we need to demonstrate growth. $7.6 million is where we start.

I would also like to address the product sales gross margin of 1% in 2025. KULR ONE gross margin at current production volume reflects the economics of an early-stage manufacturing ramp. Three factors are driving the current cost structure. First, material pricing at current volume is high. Second, the fixed facility costs are spread across a production base that has not yet reached high throughput. Third, each new customer program carries engineering and design costs that are concentrated in early production runs before volume scales.

As programs mature and volume increases, those program level costs will be absorbed across a larger number of units. All 3 of these factors compressed margin at the start of a production ramp. They will improve as volume grows. To address these, 3 actions are already in motion. First, programs that began as early prototypes are transitioning to production. Many KULR ONE Air drone battery programs are moving along that curve.

Each program that crosses from prototype to volume production shifts from a cost center to a margin contributor. Second, we're installing an automated production line in second half of 2026. Automation reduced per unit labor cost and improves yield consistency at scale, both of which will directly impact gross margin.

Third, the KULR ONE platform itself is maturing. As more programs are built on the same modular architecture, engineering and design work required to onboard new customers decrease. That ratio continues to improve as platform accumulates application experiences across defense, aviation, telecom and data center use cases.

In summary, we do not view 2025 margin profile as the end state of the business. We view it as the current economics of low-volume production before programs mature, automations in place and production volume grows. What we built in 2025 is the foundation for our growth in 2026. Our headquarters facility is a vertically integrated battery production center from design, prototyping, cell screening, qualification test to volume production.

We're working with domestic battery cell suppliers to strengthen our NDAA compliant supply chain and our customer base has grown across 6 diverse industries. We have an experienced and dedicated team, solid financial resources and a broad customer base to grow our business. We have learned the difficult and valuable lessons. We're now focused on execution, ship more batteries.

You may ask the question, why now? Why 2026 is the year for change? High-growth markets that KULR serves, autonomous platforms, direct energy systems, digital infrastructure, they all share a common technical constraint, power density. The demand for high-power battery pack has emerged, and that's the biggest growth driver for us.

The requirement is not simply to store more energy, but to deliver at high C-rates than the standard battery. Oftentimes, this must be done in challenging environments that include extreme temperatures, high G-force, vacuum conditions and underwater pressure without thermal failure. That's not a commercially available battery problem. That's a specialized battery problem. It requires a battery architecture specifically designed for high-power and thermal stress operation.

Simply put, these customers often cannot rely on off-the-shelf battery packs. They need high performance, safety and reliability, all in one package that can deliver fast at commercial prices. KULR ONE is built to that specification. It starts with building the right architecture and then select the right battery cell partners.

KULR ONE is a modular and customizable architecture to meet customer needs across multiple end markets. We currently have over 30 active customer development programs in KULR ONE Air, KULR ONE Space, Guardian and Triton, which is our new maritime platform. Those programs are at different stages from evaluation to development through more advanced commercialization work.

They represent a broad pipeline of revenue growth for KULR ONE as we move these customers from design into production revenue in 2026 and beyond. KULR's cell partnership reflect the same focus. We have worked with both Amprius and Molicel for a long time. They focus on high-power and high-energy density batteries. Those partnerships are a deliberate long-term strategy to maintain access to the most capable battery cell technology available as power density requirements with KULR's markets continue to advance.

The combination of KULA ONE system architecture and advanced power cells from our partners give our platform a development road map that extends well beyond the current production configurations.

Next, I'll give you an update on our KULR ONE Air. KULR ONE Air, which was launched last year to support the drone industry is now expanded beyond just air-based autonomous systems. Just in the KULR ONE Air category, we have over 20 active engagements to develop specialized battery systems for many high-profile unmanned systems companies that operate in the air, ground and maritime markets. The intensive work accomplished in 2025 to ramp our engagement with these demanding customers will start to become apparent in 2026 as their programs and system evolve from development to deployment.

Let me share with you why KULR ONE Air is the right platform for this market. Autonomous systems like drones and robots operate by executing rapid and high-intensity physical action. Their motors accelerate a takeoff. Gimbals stabilize under heavy load. Sensors are firing at the same time and their control systems respond in milliseconds. Each of these actions demand a large amount of current and power delivered instantaneously.

Energy batteries, the kind of optimize for energy density and releasing it gradually over a long period of time cannot respond fast enough and sustain the discharge rate, these actions require without overheating or collapsing the voltage. A power battery is designed around the opposite priority. It's built to deliver power at 5 to 20x faster than energy batteries. It also needs to sustain that output through repeated high demand cycles, and it needs to manage the heat generated by the power without failure.

For autonomous system where the motor, the sensors and the computers are all cranking at peak current at the same time, only a power optimized architecture can keep up. The engineering challenge of a power battery is not simply to build a bigger or stronger version of an energy battery where heat and thermal stress is manageable.

For power batteries, heat dissipation becomes the primary engineering constraint. The design needs to be lightweight enough for the platform to fly and high component and manufacturing quality to sustain the performance. For example, a single defect in welding and soldering joints will result in such a high-energy battery creating a resistance point that at high discharge rate generates enough localized heat to drive the entire pack into thermal runway.

KULR ONE address each one of these constraints through a combination of engineering expertise, proprietary technology, thermal control, component integrity and build precision. That's what separates KULR ONE battery that perform in the field from one fails under operational load.

Our current engagements span agriculture, survey, law enforcement, defense drone programs and surface and subsea maritime vehicles. The breadth of the applications reflect the platform's configurability. It's the same KULR ONE architecture adopted to the specific power, weight and certification requirements for each platform.

KULR has shipped thousands of these drone battery packs to date. We're engaged with 2 of the leading unmanned aerial system companies in the United States with a combined production volume target to approach 10,000 packs per month in second half of 2026. These are active engineering partnerships with production time lines, pack configuration and qualification schedules already in place.

Another point -- another important point I'd like to make is about supply chain resilience, namely NDAA compliance that stands for National Defense Authorization Act. The NDAA compliance is a procurement requirement for government and defense adjacent customers. KULR entered a joint development collaboration with Hylio to design, prototype, qualify and manufacture NDAA-compliant battery systems in Texas. Hylio is a Texas-based designer and manufacturer of drones for agriculture and public sector programs where NDAA compliance becomes important. Both the batteries and the drones are made in the United States.

Next, I'll give an update on our other KULR ONE programs. KULR ONE Space and KULR ONE Guardian are the 2 programs that set the performance standards for the entire KULR ONE portfolio, both operating environments where battery failure is not recoverable, human space flight, deep space missions and active military operations.

The engineering standards that we develop for these programs are what the rest of the KULR ONE platform is built on. Every performance requirement met in the spacecraft or combat system, propagation resistant, thermal stability under extreme conditions, certification under scrutiny raised the engineering baseline that KULR ONE Air, Max and Triton inherit.

Customers in defense drones, electric aviation, AI data center programs are buying into this architecture that has already been qualified in the most demanding operating environment. KULR continue to see adoptions across the space sector. The XLT and the Reach series batteries are in active use across multiple satellites in both LEO and GEO applications. The Reach series currently is in multiple unit deployment on 4 partner satellites.

Next, I'll talk about what are the competitive advantages of the KULR ONE platform. The #1 competitive advantage for the KULR ONE platform is the performance, safety and quality standards the platform was built to. KULR ONE's core IP originated by the work we've done with NASA Johnson Space Center.

The architecture was designed for human-rated spaceflight applications, environments where battery failure is not a recoverable event. Zero propagation failure has a propagation containment. That heritage is the engineering foundation that makes KULR ONE the correct choice for applications where performance and safety are both nonnegotiable.

A perfect example of that advantage is our partnership with Robinson Helicopters. Robinson Helicopter Company has manufactured more civil helicopters than any other company in the world in its 50-year history. They have manufactured more than 14,000 helicopters. The procurement standards for safety critical systems are established and rigorous. They valued KULR ONE and selected to be their next electric aviation platform.

That decision is important because it further validates the engineering standards KULR ONE was built to. Under this co-development agreement, KULR will design and integrate a lightweight, high-performance battery architecture for the eR66 battery-electric helicopter demonstrator. We're building a dual life architecture, which means that each pack is engineered from day 1 for 2 years. First for primary flight cycle and a certified second life energy storage application.

This model creates 2 revenue streams for KULR. The primary use case are rapid organ and tissue transport, emergency response and short-haul operations where zero emission performance and low acoustic signature are operational requirements. Second life energy storage is for industrial and digital infrastructure applications. Execution speed is another KULR ONE advantage. Not speed is a marketing claim, but speed as a demonstrated and repeatable engineering capability.

In November 2025, we received a purchase order for a 400-volt battery system to power a Counter-UAV (sic) Counter-UAS direct energy platform. Five weeks later, we developed -- we delivered a complete design package to work in prototype. Achieving that time line was made only possible because of the deliberate engineering foundation we built in 2025, including model-based electrical and thermal simulation, proprietary cell selection, design for safety architecture and in-house integration running electrical, mechanical and firmware developed, all in parallel. This system is scheduled to enter production in 2026.

Next, I'll provide an update on KULR ONE platform for digital infrastructure and AI data center applications. Our digital infrastructure strategy addresses 2 distinct but related segments, telecom network backup and AI data center power. Both require battery systems that must perform reliably, but in different operating environments. Telecom sites face grid instability across diverse geography, while AI racks increasingly require battery integration closer to the compute equipment itself rather than rely on centralized UPS systems.

Telecom operators depend on the battery backup as a primary protection against grid interruptions. 5G infrastructure laws are raising the performance and uptime requirements for those systems beyond what legacy lead acid installation can meet. In January 2026, KULR was awarded a 5-year preferred battery supply agreement from Caban Energy, a Miami-based company that deliver energy as a service to telecommunication operators across 12 countries.

As part of that transaction, KULR has taken full control of the battery manufacturing equipment and process, and we've commenced production. Production battery packs were delivered to Caban in Q1 of 2026. We plan to consolidate full operation into our Texas facility in Q2 to improve efficiency, reduce overhead and centralize operation as we grow.

We now have the supply chain set up for the 48-volt 100-amp hour battery production and the focus is to deliver batteries to meet growing Caban demands. Beyond that agreement, we're in active engagements with telecom operators and service providers directly with our KULR ONE battery as a Service offering. These are separate from the Caban channel and represent KULR's effort to build direct recurring revenue relationships in the telecom segment. Data centers have traditionally handled battery backup the same way with large power systems installed in a dedicated room, separate from the computing equipment they protect. That model is changing.

As AI workloads grow and hardware running them becomes more power intensive, the industry is moving towards battery backup installed directly inside the computing rack. The battery is no longer just a facility utility. It's become part of the compute infrastructure itself. That shifts create a different set of requirements. A battery that operates inside the rack next to the processor, it protects needs to meet much higher safety standards and need to handle higher voltages and respond much faster than conventional backup systems.

At the end of last year, KULR joined the Open Compute Project as a Platinum member. OCP is an industry body whose specifications define how hyperscalers and large cloud operators build their infrastructure. Platinum membership places KULR in the working groups writing the next generation of power standards and position us inside the relevant technical working groups and help us to build a product in line with where the market is going.

In the same month, KULR created a joint development collaboration with a leading global battery cell manufacturer to develop the KULR ONE MAX BBU for AI scale data centers. KULR leads the system design, safety engineering and certification, while the cell partner supplies the battery cell platform for the life of the commercial program upon certification.

The opportunity is significant, and it depends on certification, qualification and customer adoption time lines. The same trend that are driving record level battery demand in large data centers is also driving demand at the edge. AI inference, the process of running AI models to generate response is moving out of the central data centers into network itself closer to the end user.

That means that the computer hardware and the battery backup protecting it must operate in telecom facilities, cell towers and distributed network nodes. The environmental and reliability requirements at these locations are more demanding. This is where the AI data center opportunity and the telecom opportunities converge. The battery requirements are related, the customer base overlap and KULR ONE is the same architecture to save both.

Next, Shawn Canter will discuss financial highlights. Shawn?

Thanks, Mike. 2025 was an important year for KULR. As Mike mentioned, it marked a transition to a scalable product-focused model. Let me touch on a few points from 2025 before we get to the Q&A. KULR generated over $16 million in revenue in 2025. This is a 51% increase over the prior year.

As we have previously discussed around our focus on product, our product revenue increased and our service revenue declined. Product revenue was up 39%, while service was down 50%. Again, while we expect to have some service business, we anticipate continued growth to come from the product side of the business as we scale into the large end markets Mike discussed earlier.

Product revenue came from 47 customers in 2025. Revenue per customer was approximately $108,000 or 56% higher than 2024. Services revenue came from 34 customers, the same as 2024. Services revenue per customer in 2025 was approximately $65,000 or 50% lower than 2024.

Mike touched on gross margins earlier. We have set out in detail information about gross margin, R&D and SG&A in the Form 10-K filed today. KULR recorded an approximately $62 million net loss for the year. There is an aggregate of approximately $33 million of noncash expenses on the income statement that contribute to the net loss.

These represent almost 55% of it. As Mike mentioned, the largest of these is an approximately $14 million mark-to-market expense due to the decline in the price of Bitcoin. As a reminder, in the second and third quarter, Bitcoin's ascending price contributed a noncash gain to those quarter's results.

Now let's get to the Q&A. Back to you, Stuart.

All right. Thank you very much for that, Shawn. And as mentioned, that now takes us into the question-and-answer portion for our call today. And here's the first question. Can management speak to which markets are seeing the most momentum today and where early customer interest is starting to turn into repeat business and meaningful revenue?

Yes, Stuart, I'll take that one. I would say the KULR ONE Air for the autonomous platforms are the clearest near-term production momentum. It has expanded beyond the airborne drones to surface and subsea maritime applications as well as land applications.

We now have over 20 active customer development agreements or programs across our KULR ONE Air platform. Thousands of battery packs have already been shipped and 2 of the leading drone companies in the U.S. have active production time line with us, pack configurations, qualification schedules in place, and we're looking at over 10,000 battery packs per month later 2026. I would say that's the market has the highest momentum these days.

Thank you for that, Michael. Here's the next question. Could you give an update on where KULR is positioned in the AI data center backup power market? And what investors should be watching for to know whether this can become a meaningful source of growth?

Yes. We start developing our AI data center BBU product in 2025. And at the end of 2025, we joined the OCP platform membership and which positions us inside the working group that writes the next generation of the power standard for these hyperscaler infrastructures.

So now we're building products to meet where the market is heading for the next cycle of growth. 2026 is the year that we really need to work with our BBU cell providers on the UL 9540 certification and work with the hyperscaler customers on integration work. And I would say that 2027 is the year that we can see revenue opportunities.

Next question. Where do things stand in telecom and energy infrastructure? And what still needs to happen before those opportunities can start contributing in a bigger way? The Caban announcement was a great start.

Yes. We've taken control of the battery manufacturing equipment and process from Caban, and we've commenced production. Production battery types have been delivered to the customer, and we plan to consolidate that into our Webster facility in Q2 and improve efficiency to reduce costs and also centralize operation as we grow.

We now have supply chain set up for the 48-volt 100-amp hour battery production, and the focus is now to deliver batteries to meet the customers' needs. In addition, we are in active engagements with telecom operators and service providers directly to provide KULR ONE batteries as a battery as a service offering that's separate from the combined channels.

So we're starting to test the water to offer that as the battery as a subscription service. And the goal is to lower the total cost of ownership for operators to replace the lead acid batteries into lithium-ion batteries.

Michael, since KULR is involved in several areas like aerospace, defense, telecom, e-mobility and data centers, where is management most focused right now? And where will most of the company's attention and resources go over the next year?

Yes. The focus for 2026 is simple, build and sell more KULR ONE batteries. The management is most focused right now on the KULR ONE Air platform. That's the one that shows the highest growth with our customers.

I think I repeated it now that we have over 20 active customer engagements for the autonomous systems for air, land and maritime, and we shipped thousands of the battery packs for the customers. And this is the one that we see the highest growth in 2026.

Looking at the rest of 2026, what are the biggest goals and milestones investors should be on the lookout for? And what would management consider a successful year?

Well, I think that the -- across our portfolio, the KULR ONE Space and Guardian products will continue to gain customer traction. As you know, the private space exploration and the DLW the market is also very growing very quickly.

The telecom batteries, we're shipping volume to our customers to meet their demands. We have some new telecom operators that hopefully will get contracts in 2026 for Battery as a Service. Keep in mind that these operating engagements can take some time, but I think it could be a very good recurring revenue business for us.

The first is the -- but the most important is the KULR ONE Air product that's going to ramp and scale with our customers. And I think the baseline is 10,000 packs per month as we get our automated production line going. So I think these are the big ideas for our goals.

Okay. Excellent. Next question then, how stable and repeatable is the KULR ONE platform revenue base becoming?

Yes. Like I said in the prepared remarks, what has fundamentally changed for KULR in 2026 compared to previous years is that the need for power battery pack has emerged for these very fast-growing new markets, autonomous platforms, digital infrastructure and direct energy. KULR ONE is engineered from the ground up to serve this paradigm shift.

And our customer engagements are now broader industry coverage. The customers are very diversified in different markets. And we also have a lot more customers and they all have their programs that's running, and we're customizing our solutions specifically for their programs.

And these customers have their own road map to ramp in volume in 2026. And that gives us more confidence and build our production capability to serve these customers on schedule. We're certainly moving to a more stable and repeatable product sales business model in 2026.

All right. Michael, next question is, as space-based AI data centers become more of a long-term discussion point, does KULR see a potential role there given its background in space applications, thermal management and battery safety?

Well, first of all, I think this is a long-term conversation, and it is not something KULR can focus on in 2026. But the space-based AI data center is probably one of the biggest and the hardest idea right now. Elon Musk talked about it. He believes that the best way to solve the difficulties of building AI data center on earth is to move them into space.

And at GTC 2026, NVIDIA launched the Space-1 Vera Rubin module along with their Thor and Jetson platform. And these are engineered to deliver AI performance for the open data centers. And on top of that, how to cool chips in space is still an unsolved problem. These data centers will definitely need to use space-proven batteries. And some of these private space companies that NVIDIA is working with for space AI data centers are already KULR customers. So I think there might be opportunities, but not particularly a focus for us in 2026.

Understood. Here's the next question. You have recently announced drone partnerships with Hylio, a backup power partnership with Caban Energy and a standards body looking to modularize AI data center building blocks. These 3 initiatives represent a large market opportunity, but how much, if any, will you see in 2026?

Yes. Hylio and Caban are both 2026 revenue contributors, Caban in production by now and grow for the remainder of 2026. Hylio is an active engineering collaboration right now and revenue will follow qualification and production milestones as program move from prototype to volumes. And we do expect that the Hylio revenue in second half of 2026. The AI data center BBU business, as I talked about, it will be more like a 2027 business for us.

Michael, here's the final question for today's call. In regards to your ability to power drones. Given the recent developments globally, are you aligning yourself with companies that plan to rapidly increase output as a result?

Yes. KULR ONE Air for drone, autonomous platform is the focus for KULR 2026. We have many active engagements for air, land, maritime applications. And many of them will go to production in 2026. And we're setting up an automated production line for those platforms, for those batteries in -- to be in operation in second half 2026.

Also related to the drone is the counter drone direct energy systems, and we develop a 400-volt battery for a customer in 5 weeks' time from when we receive the PO. And that's actually a record time for a system like that. And these systems will go into production in 2026. Another one that's really important is NDAA compliant. So that's for domestic production. A lot of times, that's a structural requirement for government drone programs.

And this is why we partnered with Hylio to build made in U.S.A. batteries and drones together. So we are very well positioned to serve many of these customers that's growing very fast for both defense and commercial applications in 2026.

Well, as mentioned, that's our final question for today's call. I do want to point out, as we do in all of these calls that all you need to do is pull up the press release that came out for this call, which came out March 26, and continue to send your questions in throughout the quarter leading up to our next call.

We appreciate all of those who did submit calls for questions for today's call. And I would like to thank Michael Mo, CEO for KULR Technology as well as Shawn Canter, the CFO for KULR Technology Group for joining us here today. That concludes our call, and I will now turn the call over to our operator.

Thank you. This does conclude today's webcast and conference call. You may disconnect at this time, and have a wonderful day. Thank you once again for your participation.

Thank you, everyone, for joining us here today for the KULR Technology Group Third Quarter 2025 Earnings Call. I will be your host and moderator, Stuart Smith.

In just a moment, I will be joined by the Chief Executive Officer of the company, Michael Mo, as well as the Chief Financial Officer for the company, Shawn Canter. After we are given their opening statements, we will have a question-and-answer section on the call today.

But before we get started, please listen to the following safe harbor statement that will cover the statements made on the call today. This call may contain 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 information available to the company as of the date hereof. KULR Technology Group's 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 risk factors disclosed in their Form 10-K filed with the Securities and Exchange Commission on March 31, 2025, as may be amended or supplemented by other reports KULR files with the Securities and 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. All forecasts that are provided by management on this call are based on information available at this time, and management expects that internal projections and expectations may change over time.

In addition, the forecasts are based entirely on management's best estimate 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. 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.

Now with that, let me welcome on to the call, Chief Executive Officer of KULR Technology Group, Michael Mo. Michael, the call is yours.

Thank you, everyone, for joining us today. I'm proud to share that KULR delivered our strongest quarter to date. In Q3 2025, we generated approximately $6.9 million in revenue, growing 116% year-over-year and 75% sequentially from last quarter. Our product revenue more than doubled, showing that our transition from services to a product-driven company is firmly underway.

We also strengthened our financial foundation. We have approximately $140 million in cash and digital assets and no debt following the full repayment of the $8 million Coinbase loan. This strong financial foundation allows us to invest in research and development, growing product, production capabilities, expand facilities and accelerate growth across the KULR ONE platform. We believe we are at the beginning of a super growth cycle in our energy storage and management business, and this optimism is backed by real results.

This summer, we launched KULR ONE Air built on the same technology foundations as our KULR ONE Space and Guardian platforms. Since July, we have created more than 150 KULR ONE Air battery SKUs giving us one of the largest made-in-USA battery portfolios in the market, and that the demand is growing strong. We have over a dozen late-stage opportunities or signed contracts across unmanned autonomous vessels, drones, direct energy systems and underwater vehicles, and we're seeing an acceleration in customer engagements.

At the same time, we're expanding the KULR ONE platform into AI data centers and telecom infrastructure with new battery backup units, BBUs, and battery energy store systems, BESS products, both of which sit in some of the fastest-growing energy markets in the world. With these growth engines coming online, we expect our energy storage and management business to grow tenfold over the next 3 years.

What sets KULR apart is simple. We deliver faster, we deliver with higher quality and we deliver better performance, all at a competitive price point. Customers feel that difference immediately. A big part of that advantage comes from our team and our facilities in Texas. We design, prototype, build and test our batteries in-house, all under one roof, which allows us to move with the speed and precision. And to meet the rising demand, we're preparing for our next phase of expansion. In 2026, we plan to grow our Texas headquarter to over 100,000 square feet and scale production from a few thousand packs per month right now to more than 50,000 packs per month, supported by new automated battery production lines.

This is an exciting moment for KULR. We have the technology, the team, the balance sheet and the momentum to be America's trusted energy source for these growing applications.

I'm very excited that we are entering a super growth cycle if demand surges for advanced energy storage and management products across our corporates. UAVs, drones and autonomous robots are scaling rapidly, and our KULR ONE Air and Guardian platforms meet this demand with safe, high-performance, production-ready propulsion batteries at competitive commercial prices.

Space exploration is accelerating in both private and public sectors. And KULR ONE Space positions us as a trusted partner for mission-critical energy systems built to operate in extreme environments. AI data centers need dramatically more energy and they need it fast. KULR ONE MAX platform aligns directly with industry shift towards high density, high power and high reliability backup battery systems.

Telecom networks and critical infrastructures are investing heavily in resilience, driving greater demand for certified, high-reliability energy storage solutions. And the U.S. is moving decisively towards domestic secure battery supply chain and our Texas-based design and production operation give us a strong strategic advantage.

Let me summarize why KULR is winning and why we're winning right now. First, speed. Our entire value proposition is built on getting high-performance energy systems to customers faster than anyone else because we design, engineer, test, certify and prepare for production under one roof. We can move from concept to manufacturable products in a fraction or traditional industry time lines. That speed has become a decisive advantage as customers demand semi-custom and high-performance solutions delivered quickly and reliably.

Second, quality. KULR's heritage in thermal management and battery safety is a core differentiator. We're [ 40 AS9100 ] and ISO 2001 certified. Customers increasingly view quality and safety, not as check boxes, but as strategic factors in selecting long-term partners.

Third, performance. We use next-generation battery cells, advanced categorization and validation processes to ensure every KULR ONE system delivers consistent, high confidence performance even in the harshest mission profile. Our focus on thermal stability and optimization is separating us from legacy pack manufacturers.

Fourth, safety. Our engineering platform is built on NASA's space-grade safety architecture, applied across the full KULR ONE ecosystem. As energy level rises across all applications, safety is becoming one of the most important buying criteria. And this is an area that KULR has a structural advantage.

Fifth, secure supply chain. Every KULR ONE battery we ship is designed, built and tested in Texas. Customers want domestic, transparent and highly controlled supply chain and KULR provides that, supported by strategically secured component partnerships worldwide.

And finally, customer experience and value. We believe that we have the best team in the industry because everything is done under one roof. We deliver fast turnaround, better quality, higher performance and more competitive pricing than our competition. That combination is building customers' trust, winning their business. It's a major reason why KULR's capturing momentum across the markets we serve.

Let me highlight one of the most exciting developments at KULR, the launch of KULR ONE Air. We introduced this platform in July and immediately positioned us in one of the fastest-growing segments of the electrification economy, the UAV, drone, electric aviation and autonomous robotics. KULR ONE Air is a purpose-built high-performance propulsion battery architecture designed specifically for those next-generation systems.

The momentum has been extraordinary. In just a few months, the platform has expanded to over 150 commercial-ready SKUs across multiple cell manufacturers and form factors. That makes KULR ONE Air one of the largest made-in-USA battery portfolios in the market. And we're entering the market at exactly the right time. The UAV and the drone battery market is expected to grow from roughly $1.5 billion in 2025 to more than $2.4 billion by 2030, driven by rapid adoption in commercial operations, public sector modernization and the rise of autonomous robotic platforms across industries.

KULR ONE Air has built our space grid engineering heritage, delivering safer bus bar and connector architectures, lower thermal rise and high-power performance that meets searing demand that legacy packs simply cannot handle. This performance profile is resonating strongly with customers who operate demanding mission environments.

Demand is accelerating on every front. Today, we have actively engaged with a broad range of commercial and government customers using drones for inspection, logistics, imaging, environmental monitoring, public safety and advance robotics. In every case, operators need high-power batteries that deliver safety, power and reliability at scale.

On the production side, we're scanning aggressively. We're currently producing a few thousand packs per month. And with our Texas expansion, we're targeting 50,000 packs per month by mid-2026. And if demand signal accelerates, which we anticipate, we're ready to scale to 100,000 packs per month and beyond. We have the capital, the talent, the supply chain partnerships and the facility space to execute.

KULR ONE Air isn't just a product line. It's a platform that leverages our decades long engineering heritage and opens a multibillion-dollar market for us. AI is creating one of the largest energy transformations we've ever seen, and KULR is stepping directly into the center of this. We're expanding our KULR ONE MAX platform into 2 massive markets, AI data center battery backup units, BBUs and telecom infrastructure energy storage systems.

Across NVIDIA GPU generations, our consumption per server is increasing by about 100x. Rack power is climbing from today's 30 to 80 kilowatts to more than 250 kilowatts in some deployments and NVIDIA's road map is pushing towards 1 megawatt racks by 2028. At these levels, right level battery backup units, BBUs become essential. NVIDIA's latest GB300 NVL72 architecture now bakes BBUs directly into the reference design to manage power spikes right through micro outages and reduce reliance on massive UPS systems as data centers transition to 800-volt high-voltage DC system.

The whole industry is moving this way, including Meta's Open Compute Project. But with high power comes higher risk and the battery safety now -- is now mission-critical. Operators must meet stringent standards like the UL 9540A as they push for greater energy and higher discharge rates. This is where KULR has a unique advantage.

Our space-grade safety architecture makes the KULR ONE MAX platform ideally suited for these AI rack applications. We're designing 21,700 bays and 5 amp-hour class BBU systems, specifically for next-generation NVIDIA systems. While much of the market is still relying on older 18650 cells under 3 amp-hours. We expect our BBU system to be UL 9540 certified in production ready in 2026, positioning KULR to compete in this multibillion-dollar fast-growing market. AI is rewriting the energy transition and KULR intends to be on the forefront of that transition.

AI isn't just changing data centers. It is transforming the entire power network. Power and thermal has moved from the backroom issue to network-wide operating constraints. We're seeing pressure everywhere on tower, radio, fiber hubs, central offices and of course, inside the high-density AI data centers. So it's across the entire telecom infrastructure.

Recent incidents are reminding everyone why safety matters. One of the clearest example came from South Korea, where a battery-originated fire disrupted hundreds of government systems and took nearly a full day to extinguish. Events like this are forcing operators to reevaluate their backup power and thermal protection. KULR's role is to help operators safely increase run time and energy density as he has pushed the infrastructure to its new limit. Near term, we're partnering with established backup power providers to deliver safer and higher energy lithium-ion battery packs and thermal runway mitigation to existing UPS platforms, especially in space-constrained towers, fiber hubs and central offices.

Looking ahead, we're leaning to alliance with platform players and co-development partners to leverage our safety hardware to integrate with recurring software and service business models. More to come in the near future.

Let me make -- let me take a moment to update you on our Bitcoin treasury strategy because it continues to be an important part of how we build long-term shareholder value. As a Bitcoin+ Treasury company, we stay close to the digital asset treasury market, and we remain disciplined. We have not taken on any convertible debt to acquire Bitcoin. Instead, our approach is intentional. We are making incremental and economically sound BTC acquisitions through our mining operations, while directing our primary capital towards high-value and high-growth energy businesses.

Our mining strategy itself creates additional strategic upside. We focus on projects with renewable low-cost power and that puts us in direct partnership with mining hosts who are increasingly spending to high-power computing and AI infrastructure. These relationships give us a front-row seat in new opportunities where KULR can deliver battery energy solutions, BBUs and UPS systems to support AI workloads and grid resilience.

Through Q3, our mining operations produced Bitcoin at an all-in cost of approximately $102,000 per coin, and we continue to evaluate projects where we can lower our average cost of acquisition even further. In short, our Bitcoin treasury and mining strategy is disciplined, aligned with shareholder value and increasingly synergistic with our move into the AI data center energy markets.

Let me give you an update on KULR VIBE, which is becoming another exciting part of our portfolio. This year, we've been working closely with helicopter OEMs and operators across both civilian and government sectors in the U.S. Vibration mitigation remains one of the most challenging maintenance issues in aviation and is often described as more of an art than a science. KULR VIBE is changing that.

Our system enables maintenance team to track and balance aircraft quickly, accurately and without needing decades of experiences. The software learns over time, becoming more precise with each balance on each specific aircraft through its building learning algorithm.

Now the government shutdown has ended, we expect our U.S. Army program to resume in advance to the next level. On the commercial side, demand is growing rapidly. To support the civilian helicopter market, we're preparing to launch the KULR VIBE app on iOS in 2026 in partnership with a global aviation leader, making this technology more accessible than ever.

Let me give you a quick update on Exia. In just a few months of marketing Exia in North America, we've already deployed more than 30 units across multiple verticals. In retail, Exia is supporting workers in distribution centers of a major North American retailer. In logistics, its operating inside a national 3PL specializing oversized and bulky items. For industrial distributors, Exia is deployed across 3 warehouse locations, serving a restaurant sector. And in the health care, we've been running a successful pilot in a nursing home in Montreal with highly positive feedback from caretakers and we're preparing to launch a second pilot with a major hospital in the Northeast.

The momentum is strong because Exia's seventh generation architecture delivers the right balance of cost reduction, performance and safety, a combination that's resonating with industrial customers who need productivity gains without compromising worker well-being. As industry look to empower workers, reduce injuries and bridge labor gaps, Exia allows us to play a strategic role in the future of modern augmented workforce.

Next, Shawn Canter will provide financial updates. Shawn?

Thanks, Mike. Overall, the third quarter was another strong quarter for KULR. Our operating activity continues to position KULR for continued growth and future success. With that in mind, I'll touch on some highlights.

Revenue grew 116% from the same quarter last year to approximately $6.9 million. Q3 was the highest revenue quarter KULR has ever posted. This grows the streak to the fifth straight quarter KULR has grown revenue over the comparable prior year period. The third quarter also sets another growth record. This one, a new trailing 12-month revenue record at $16.7 million. The third quarter grew the streak to the fifth consecutive quarter KULR has set a trailing 12-month record.

For the third quarter 2025 versus the third quarter 2024, product revenue grew 112%, but services revenue was down 74%. Let me make a brief comment on our services revenue. Our services work plays an important role in complementing our products business. But over time, you'll continue to see us focus our resources on products. This reflects our belief that our products business can go after a much larger global market, benefit from economies of scale, leverage our already strong and growing brand awareness and offers KULR a long sustainable growth trajectory in which to invest.

Now let's touch on our operating expenses. In addition to what is in the 10-Q, I'd like to share the trend from the first, second and now third quarter this year. Both R&D and SG&A have gone down each quarter since the beginning of the year. R&D is down 5.2% and SG&A is down 13%. Our operating costs reflect the everyday cost to run the business as a public company, find and retain high-quality talented teammates and make the necessary investments to drive growth in the short and long term. In fact, many of the investments that we've made are bearing fruit and serve as a foundation for the vision that Mike just outlined. We are seeing increases in the number, quality and size of customer engagements.

I'll point out that the payoffs for some of the investments will take longer to realize. It's to be expected that every investment doesn't always play out over a straight line, but we remain confident of their future payoff.

One last point on operating expenses. We won't be able to reduce costs every quarter. Our goal is to get to a positive operating earnings through strong revenue growth with appropriate investments to maintain the durability of that growth.

Now a few points on our balance sheet. At the end of the third quarter, our cash balance was just over $20 million. Our current accounts receivable was approximately $3 million. We held Bitcoin worth approximately $120 million. And our total assets were approximately $156 million.

Before I hand things back to Stuart, I'll just add a point to another topic Mike spoke about. We continue to be enthusiastic about the exoskeleton market and technology. Based on our early commercial customer experiences and what we can see in the marketplace, the appetite for exoskeletons appears to be strong. NIKE's recent announcement of their own exoskeleton is an example.

Notwithstanding that outlook, I do want to state that based on information from German Bionic, we made the appropriate decision to take onetime impairments. We do not anticipate this will materially affect our U.S. commercial sales activity going forward. Overall, we are enthusiastic about another strong positive growth momentum quarter for KULR.

Back to you, Stuart.

All right. Thank you very much, Sean. So that, again, brings us to the question-and-answer portion of our call today. And Michael, the first question is for you. And here it is, what is KULR's strategic priorities today as a Bitcoin treasury company with operations?

Yes. Thank you, Stuart. And this is a question that we are often asked, and I'm glad to answer it. Our priorities are focused and deliberate. Bitcoin treasury is an important role for our treasury strategy, but operationally, we are very focused and anchored in our core energy management and storage business as well as our vibration reduction technologies because we're seeing both areas present strong revenue growth for 2026 and that's where we're going to focus all of our attention and our commercial efforts on.

Very good. Well, Shawn, the next question is for you. What is the long-term strategy for the Bitcoin treasury and mining operations?

That's a good follow-up after the prior question about our future. We believe Bitcoin supply and demand structure supports a favorable long-term pricing outlook. After initially purchasing Bitcoin on the spot market, we shifted in mid-July to growing our position through mining. In addition to accumulating more Bitcoin, mining brings us closer to the data center ecosystem as we explore new opportunities in energy storage solutions.

While we're on the topic of Bitcoin, perhaps it makes sense to have a word about Bitcoin's price volatility and even the equity market volatility, which we've all recently seen. We like to maintain a strong cash position and no debt as a buffer to Bitcoin's price and the stock market volatility. We don't have any interest payments or debt maturities to worry about. We're focused on growing revenue. We've worked very hard to position ourselves to be able to take advantage of volatility rather than to be a victim of it.

Okay. Thank you for that, Shawn. Michael, next question for you. Given the previous reverse split and the ongoing share price pressure, what outcomes have been achieved in terms of institutional participation and market perception? And is another reverse split being considered?

Well, since the reverse split that went into effect in June of 2025, third-party data has indicated that the company has more than doubled its institutional ownership. And today, we can say definitively that there is no basis for considering another reverse split.

All right. Michael, the next question is also for you. Several partnerships, government, military, aerospace and corporate have been announced with limited follow-up. Can management provide detailed updates expected milestones and how these programs contribute to revenue and long-term enterprise value?

Well, across government, aerospace, defense and corporate accounts, we continue to make steady progress on the partnerships that we have previously announced. Many of these partners involve multistage qualification, certification, design, testing and integration process. And as you know, those cycles often spend probably several quarters and also they are governed by some confidentiality agreements that limit the level of program-specific details that we can publicly talk about. As we transition to a product-focused company, these engagements are important because they establish long-term technical and operational pathway for products to get inside of these critical platforms where reliability, safety and performance matter the most.

At the same time, as I talked about in our -- in my prepared remarks, it's important to highlight that the future growth of the company is now being driven by our KULR ONE Air product and also the entire KULR ONE platform, which is seeing significant broader and faster commercial adoption. As we enter to 2026, we'll keep everybody up to date on the commercial efforts around our KULR ONE MAX and AI, BBU and also telecom applications as well. These new platforms are expanding our addressable markets into multibillion-dollar markets.

All right. Shawn, previously KULR has issued investor letters. Mike has said he would try to communicate more with shareholders. Is this still a priority? And if so, how will you be doing it?

Sure. Well, as Mike just mentioned, due to the nature of many of our government, defense and even commercial customers and the programs we work on, we're often limited in our ability to disclose contracts and progress until later milestones occur.

With that said, as we've indicated before, we hear our shareholders and their desire for more communications. In early 2026, we will write an investor letter in addition to everything else that we do to communicate. Going forward, at least once a year in this -- in an investor letter, we will share more intimate and a more intimate account of what we're seeing and doing. We'll use it as a reflection of where we are in the window into what may lie ahead.

In 2026, we're looking forward to our next open house at our headquarters in Texas. We're looking forward to attending more events where we can speak about our progress. We're looking forward to increase institutional coverage from research analysts. I guess it's worth noting that as everybody knows, the analysts independently make those decisions, we don't. And of course, where we can publicly announce new contracts, customers and programs, we certainly will.

Shawn, the next question is also for you. What concrete steps is management taking to stabilize the stock price?

Well, Stuart, our primary focus is squarely on accelerating revenue growth in our core energy storage and vibration reduction markets. The investments we've made are showing real traction. As we've mentioned earlier, we are securing meaningful business in autonomous systems and expect additional wins ahead. As Mike mentioned, we're pushing into infrastructure with our market-leading energy storage and management solutions. We also are advancing KULR VIBE towards a scalable, globally marketable platform.

It's probably worth noting also that our Bitcoin treasury strategy has sort of touches on this question, too. Both Mike and I have mentioned at the end of the third quarter, we held about $120 million worth of Bitcoin. We have intentionally taken a conservative approach to our Bitcoin holdings. We have no debt or other complex structures on our balance sheet, unlike others who have levered up their balance sheets to acquire Bitcoin and have experienced or perhaps still own the risk of leverage in volatile markets.

As Mike mentioned, we believe in the long-term value of Bitcoin and its unique fixed supply and increasing demand characteristics. Individuals, institutions and governments are buyers of Bitcoin. The regulatory environment has moved from a headwind to a tailwind, increased domestic and international economic and political macro risks and resulting volatility on global currencies appear to further contribute to Bitcoin demand.

Let me put some numbers associated to this, just to understand the scale of this demand trend. And I asked AI for some help here. In 2011, there were an estimated 100,000 active Bitcoin addresses. In 2015, an estimated 6 million. In 2020, the estimated number of active addresses increased fivefold to 30 million. And an estimate for November 2025 indicates the number of active addresses to be approximately 60 million. That's a 58% compounded annual growth rate. It's not easy and one doesn't find every day where one can find something that grows 58% a year for 14 years.

So simply, fixed supply, strong growth demand trend. All else equal, we think this suggests over time, the price of Bitcoin should rise and along with it, the value of our holdings. Historically, we acquired Bitcoin via the spot market, more recently via mining operations. And as Mike mentioned, one of the reasons for this is the strategic position for KULR to both acquire Bitcoin and get insight into the infrastructure energy solutions market. Overall, Stuart, over time, we believe our stock price should reflect the results of our strong operational execution.

Thank you for that, Shawn. And this really dovetails into that. Here is the next question. I will direct it back towards you again, Shawn. Given so much that has happened at KULR in the last year or 2, how is management viewing these changes in relationship to revenue growth and ultimately, stock price appreciation?

Sure. Well, that's a great question. A lot certainly has changed over the last couple of years. I guess, again, it's worth stating again. Our focus is on growing KULR's business. We are applying our core offerings to a larger marketplace, and we are seeing positive results. In the first part of 2026, we believe that the market demand, number and nature of customer engagements, and the engagement sizes will show up in scaling durable revenue. From programs that took our batteries into outer space and to the bottom of the ocean, we're now applying those same technologies, insights and learnings to higher volume programs related to autonomous vehicles, covering air, land and sea.

Whether -- another example of change that took place over time is our decision to implement and then consolidate our facilities into just one location in Texas. As Mike mentioned earlier, we're already seeing demand signals indicating that we need more space to accommodate the customer engagements and growing programs that we see heading our way.

Additionally, as we've already touched on, we're exploring how our products can be applied to even larger global infrastructure markets. Again, all of this to say, we see revenue materially growing in 2026. And as we talked about in the prior question, while we don't predict ours or anyone else's stock price, it would seem that it would stand to reason, KULR's stock price should follow as revenue grows and we gain further scale.

Since we're talking about change, I guess I'll add one more observation even though we have touched on it already. Looking at our balance sheet and how it has evolved over the last few years. Today, we have no debt. We have over $100 million in liquid assets. We are seeing real traction across products and markets. We can and are investing in our real durable growth. Thanks, Stuart.

Thank you, Shawn. And Michael, we're going to close out the Q&A portion with this final question directed towards you, and it is a long one. It's in regards to the KULR intelligent data system, which currently generates high fidelity vibration and thermal telemetry at scale from active battery deployments and it says -- it's a multipart question actually. Will KULR in the future, one, tokenize the aggregated data set on a public blockchain with verifiable provenance? And two, license access to leading AI labs for training foundation models specialized in battery physics, electrochemistry and predictive saving -- safety, excuse me. If so, what is the minimum data moat size expressed in terabytes of raw sensor streams that KULR believes would be required to position the platform as the "de facto Bloomberg terminal of battery physics?"

And then he has this comment. Thank you again for your vision in building the data backbone of safe electrification. So Michael, will you handle that one, please?

No. Thanks, Stuart. This is actually a really interesting question actually kind of relates to AGI, artificial general intelligence. It's something like that type of question. You can think about this question or answering this in 3 buckets. First is how much data you can get from individual model of battery cells and packs? Second is how many of these cells and packs do you have in operation to get the data more size, terabyte data that this investor is referring to? And third is what you do with that data, both as a primary and secondary application for these batteries?

We can probably spend hours talking about this in general, but the first point is that some of these proprietary testing and categorization techniques that we have such as TRC, ICM, ISC, trigger cells and et cetera. We can get some of the most detailed and quantitative data on thermal runaway and safety behavior on both the battery cells and packs that we're interested in building for KULR ONE battery packs. This will not probably not include all the battery cells in the world, but just focus on the cells that's relevant to our applications and our customers.

Then it's to get to scale by deploying as many packs as possibly to the field and continuously monitor them. That's where I say the EV vendors will have a tremendous advantage because they have some of the largest scale deployments and the EV BMS monitor all the cells. We can do similar with our KULR ONE battery platform. And then it's actually becoming a business model question on do you sell the battery packs? Or do you lease them out of the battery packs and charge for the use of the energy consumption through the batteries as a subscription service? So I think the shareholder -- actually, the question is actually leaning towards the second case. So if your business model is Energy as a Service, then KULR have data on primary application usage and potentially second life application for these battery packs as well to maximize the lifetime value of these batteries.

I actually really believe that Energy as a Service will be the business model for telecom, for data centers and advanced electric mobility applications. They all have different requirements for the cell performance and life span of the batteries so you can price something for each one of them as a primary application and then you can eventually take possession of the battery and then apply second life applications for another industry. And in that case, you can maximize economic value of the battery packs and also minimize waste. In those applications, the Bloomberg Terminal analogy for battery information and AGI-like monitoring system, I believe, will be the killer app.

Well, Michael, thank you for that. I want to thank both Michael Mo, CEO of KULR Technology Group as well as Shawn Canter, the CFO of KULR Technology Group. That concludes our call today.

And with that, I'll hand the call back over to our operator, Thomas. Thomas, the call is yours.

Thank you. This does conclude today's webcast and conference call. You may disconnect at this time, and have a wonderful day. Thank you once again for your participation.