KULR Tech Gr achieves 116% revenue growth in Q3 2025, setting stage for expanded energy storage and management initiatives.

OPERATOR - (00:00:00)

The Chief Executive Officer of KULR Tech Gr, Michael Mo. Michael, the call is yours.

Michael Mo - Chief Executive Officer - (00:00:08)

Thank you everyone for joining us today. I'm proud to share that KULR Tech Gr 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 CorridorOne 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 Tech Gr One Air, built on the same technology foundations as our KULR Tech Gr One Space and Guardian Air platforms. Since July, we have created more than 150401 air battery SKUs giving us one of the largest made in USA battery portfolios in the market. And 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 CornerOne platform into AI data centers and telecom infrastructure with new Battery backup units, BBUs and battery energy storage systems, Bess products, both of which fit 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 three years. What sets KULR Tech Gr 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 the advantage comes from our team and our facility 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 Tech Gr. 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 as demand surges for advanced energy storage and management products across our core markets, UAVs, drones and autonomous robots are scaling rapidly. Inner KULR Tech Gr, 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. In KULR One, 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 US 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 Tech Gr 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 fractional traditional industry timelines. That speed has become a decisive advantage as customers demand semi custom and high performance solutions delivered quickly and reliably. Second, Quality KULR Tech Gr's heritage in thermal management and battery safety is a core differentiator. We're 40 as 9100 and ISO 2001 certified and our customers increasingly view quality and safety not as checkboxes 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 coilover 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 Tech Gr has a structural advantage. 5th Secure supply chain every cooler one battery we ship is designed, built and tested in Texas. Customers want domestic transparent and highly controlled supply chain and KULR Tech Gr 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 Tech Gr is Capturing momentum across the markets we serve Let me highlight one of the most exciting developments at KULR Tech Gr the launch of cooler OneAir. 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 Tech Gr 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 Tech Gr 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 in 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 is built on space grade engineering heritage, delivering safer busbar and connector architectures, lower thermal rise and high power performance that meets theory demands that legacy PACs simply cannot handle. This performance profile is resonating strongly with customers who operate in 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 advanced robotics. In every case, operators need high power batteries that deliver safety, power and reliability at scale. On the production side, we're scaling 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 in the facility space to execute cora. One Air isn't just a product line, it's a platform that leverages our decades long engineering heritage and opens up a multibillion dollar market for us. AI is creating one of the largest energy transformations we've ever seen and KULR Tech Gr is stepping directly into the center of this. We're expanding our KULR One Max platform into two massive markets, AI data center battery backup units, BBUs and telecom infrastructure energy storage systems across Nvidia GPU generations. Power consumption per server is increasing by about 100x. Rack power is climbing from today's 30 to 80kW to more than 250kW in some deployments and Nvidia's roadmap is pushing towards 1 megawatt racks by 2028. At these levels, rack level battery backup units BVUs become essential. Nvidia's latest GB300 MBL72 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 UR9540A as they push for greater energy and higher discharge rates. This is where KULR Tech Gr has a unique advantage. Our space grade safety architecture makes the cooler 1 max platform ideally suited for these AI RAC applications. We're designing 21700 bays and 5amp hour class BBU systems specifically for next generation Nvidia systems. While much of the market is still relying on older 18650 cells under 3amp hours, we expect our BBU system to be UI 9540 certified and production ready in 2026. Positioning cooler to compete in this multi billion dollar fast growing market, AI is rewriting the energy transition and cooler intense be on the forefront of that transition. AI isn't just changing data centers, it's transforming the entire power network. Power and thermal have 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 examples came from South Korea where a battery origin fire disrupted hundreds of government systems and took nearly a full day to extinguish. Events like this are forcing operators to re evaluate their backup power and thermal protection. KULR Tech Gr's role is to help operators safely increase runtime and energy density. It has pushed 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 leaning into 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 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 plus 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 expanding to high power computing and AI infrastructure. These relationships give us a front row seat in new opportunities where Corolla can deliver battery energy solutions, bbus and UPS systems to support AI workloads and Grid Resilience through Q3. Our mining operations produce Bitcoin at an all in cost of approximately 102,000 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 corevibe, 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. It is often described as more of an art than a science. KULR Tech Gr 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 that government shutdown has ended, we expect our U.S. army program to resume and 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 Axia in just a few months of marketing Axia in North America, we've already deployed more than 30 units across multiple verticals. In retail, Axia is supporting workers in distribution centers of a major North American retailer. In logistics, it's operating inside a national 3 PL, specializing oversized and bulky items for industrial distributors. Axia is deployed across three warehouse locations, serving in restaurant sector and in the healthcare. 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 Axia'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, Axia allows us to play a strategic role in the future modern augmented workforce. Next, Sean Kinter will provide financial updates. Sean thanks Mike.

Sean Kinter - (00:18:03)

Overall, the third quarter was another strong quarter for KULR Tech Gr. Our operating activity continues to position KULR Tech Gr 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 Cooler has ever posted. This grows the streak to the fifth straight quarter. Cooler has grown revenue over the comparable prior year period. The third quarter also sets another growth record, this one a new trailing twelve months revenue record at $16.7 million. The third quarter grew this streak to the fifth consecutive quarter. KULR Tech Gr has set a trailing twelve 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 Cooler a long sustainable growth trajectory in which to invest. Now let's touch on our operating expenses. In addition to what is in the 10Q. I'd like to share the trend from the first, second and now third quarter this year. Both R and D and SGA have gone down each quarter since the beginning of the year. R and D is down 5.2% and SGA 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. KULR'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 one time impairments. We do not anticipate this will materially affect our US Commercial sales activity going forward. Overall, we are enthusiastic about another strong positive growth momentum quarter for Cooler. Back to you, Stuart.

Stuart - (00:22:03)

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 Cooler's strategic priorities today as a Bitcoin treasury company with operations?

Michael Mo - Chief Executive Officer - (00:22:22)

Yeah, 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're 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 what we're going to focus all of our attention and our commercial efforts on.

Stuart - (00:22:55)

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

Sean Kinter - (00:23:05)

Thanks Stuart. 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 the volatility rather than to be a victim of it.

Stuart - (00:24:06)

Okay, thank you for that, Sean. 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?

Michael Mo - Chief Executive Officer - (00:24:26)

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.

Stuart - (00:24:44)

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?

Michael Mo - Chief Executive Officer - (00:25:07)

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 multi stage qualification, certification, design, testing and integration process and as you know, those cycles often spend probably several quarters and also they are governed by confidentiality agreements that limit the level 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 my prepared remarks, it's important to highlight that the future growth engine 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 into 2026. We'll keep everybody up to date on the commercial efforts around our KULR One Max and AI BBU as also telecom application as well. These new platforms are expanding our addressable markets into multi billion dollar markets.

Stuart - (00:26:30)

All right, Shawn, previously Kuhler 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?

Sean Kinter - (00:26:45)

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 an investor letter, we'll share more intimate and a more intimate account of what we're seeing and doing. We'll use it as a reflection on where we are and a 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 increased institutional coverage from research analysts. I guess it's worth noting that as everybody knows that 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.

Stuart - (00:27:57)

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

Sean Kinter - (00:28:06)

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 cooler vibe towards a scalable, globally marketable platform. It's probably worth noting also that our Bitcoin treasury strategy 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 or 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 Kuler 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.

Stuart - (00:31:15)

Thank you for that, Sean. 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 Cooler in the last year or two, how is management viewing these changes in relationship to revenue growth and ultimately stock price appreciation?

Sean Kinter - (00:31:36)

Sure, well, that's a great question. A lot certainly has changed over the last couple years. I guess. Again, it's worth stating Again, our focus is on growing Cooler's business. We are applying our core offerings to a larger marketplace and 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. 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 Pooler'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 two 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.

Stuart - (00:33:49)

Thank you Sean and Michael. We're going to close out the Q and A portion with this final question directed towards you and it is a long one. It's in regards to the Cooler Intelligent Data System which currently generates high fidelity vibration and thermal telemetry at scale from active battery deployments. And it says it's a multi part question actually will Cooler in the future one tokenize the aggregated data set on a public blockchain with verifiable provenance and 2 license access to leading AI labs for training foundation models specialized in battery physics, electrochemistry and predictive.