KULR Technology Group, Inc.

All right, welcome everyone to the Cooler Technology Group second quarter 2025 earnings conference call. Today is Thursday, August 14th. And in just a moment, I will be joined by the CEO of the company, Michael Mo, as well as the CFO for the company, Sean Cantor. Before the call begins, please listen to the following forward looking statement disclosure covering this call. 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 the information available to Cooler Technology Group 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 their form 10K filed with the Securities and Exchange Commission on March 31st, 2025, as may be amended or supplemented by other reports, Cooler files with the Security 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 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 entirely based on management's best estimates of their future financial performance given their current contracts, current backlog of opportunities, and conversations with new and existing customers about their product and services. Cooler Technology Group assume no obligation to update the information included on this call, whether as a result of new information, future events, or otherwise. With that, I'd like to turn the call over now to Michael Mo, CEO of Cooler Technology Group.

Thank you, Snort. Thank you everyone for joining today. This is Michael Mo. In Q2 2025, we achieved record revenue of approximately $4 million, which is up 63% from the same quarter in 2024. We also achieved our first quarterly profit of 22 cents per share, primarily attributed to our Bitcoin treasury strategy. Our balance sheet is approximately $140 million in cash and Bitcoin as of today. We're very well capitalized to grow all of our current business operations. With Q2 2025 product revenue of 74% year over year, we're in the midst of a transformation from a design and testing service company to a product focused company that will see our growth trajectory accelerate in second half of 2025. Launched in 2023, the Quota One platform was built to deliver best in class battery products, the vision now coming to life. With customer milestones achieved in Quota One Space and Quota One Guardian, we're leveraging this momentum to introduce two new platforms later this year. Quota One Air for unmanned autonomous vehicles and battery backup units for industrial, telecom and data center applications. We believe the Quota One platform will be a key growth engine for us, position Quota to double revenue in 2025 versus 2024, is staying this growth trajectory into 2026. As I was preparing my opening remarks for this call, I saw about 30 questions coming in from my shareholders. Sean and I will answer all these questions on the call. I would like to address three key areas of the questions to start our call. First, there were a lot of questions around the rationale for the reverse split and its effect. The primary strategic reason for the reverse split was to attract more institutional investors, strengthening our shareholder base with larger, longer term holders. A higher share price better aligns with institutional buying criteria, as many funds have minimum share thresholds in their charters. Some shareholders asked whether the reverse split was done to regain NYC listing compliance. We can state unequivocally that this was not the case. Quota was already in full compliance prior to the split. While short-term market reactions can be unpredictable, we remain confident that this move will broaden institution ownership, enhance shareholder stability, and increase longer term shareholder value, not just a few months. Secondly, there were many questions around shareholder communications and a negative sentiment. We've heard your feedback, and we agree there's room to improve. Could we have communicated reverse split more effectively? Absolutely. Could we have done a better job sharing updates on our operating business alongside the BTC plus treasury strategy? Yes, we'll make this greater focus going forward. In April, 2025, a short report targeting Cooler was published. Short sellers profit when the company stock decline, and often publish or promote negative opinions to create downward pressure. The April report was filled with negative commentary and opinions, and since then, we've seen the increase in critical opinions and rumors spreading on social media about Cooler. It is not our policy to let such report distract our management team or engage in what would become an endless back and forth of opinions. Our legal options are also limited by freedom of speech protection and our own need to maintain commercial confidentiality. However, here are two important facts. As of today, we're not aware of any class-sexual litigation against the company or its officers. The reverse split was not initiated due to NYSE compliance concerns. We were fully compliant at the time. It was done to strengthen our shareholder base and drive long-term shareholder value. The third group of questions is around strategy of our core operating business, and how does it relate to our Bitcoin treasury strategy. Cooler is a Bitcoin plus treasury company leveraging a Bitcoin back balance sheet to build and scale a portfolio of frontier technologies from high-performance energy systems to AI robotics. Our Bitcoin treasury strategy has enabled us to build a $140 million balance sheet, providing the capital and the stability to accelerate our growing businesses. A remarkable transformation from where we were just one year ago. Speaking of the past, I'd like to take us back a few years. Cooler's route trace back over 40 years to Dr. Tim Noh's pioneering work in carbon fiber thermal management for space and DoD missions. When Tim and I co-founded Cooler more than a decade ago, our goal was to commercialize space-proven materials for mass market applications from smartphones to advanced battery systems. Over the past five years, we evolved from a component supplier to a design and testing service provider, bringing us closer to the end customer and enabling complete product solutions. Our technology has been deployed on the Mars Rover, International Space Station, nuclear fusion reactors, wearables, battery systems, and even helicopters. Our ability to move quickly and adapt across a versatile technology portfolio has strengthened our customer relationships and allows us to identify the next breakthrough applications. In 2023, we launched Cooler One, uniting design, testing, and battery product developments all into one platform. In 2025, we have advanced our technology and operational infrastructure to rapidly launch products like Cooler One 8 in air and next generation batteries, both through internal innovation and our manufacturing capabilities. We continue to explore new markets and applications where we can truly scale. This exploration has led us to the exoskeleton business where we're very excited about its growth prospects. We believe we're now at the inflection point. Our Cooler One battery products bring us closer to the end customer and give us a scalability in the hybrid growth potential that we've been looking for. With our strong balance sheet, proven technology, operational infrastructure, and a network of world-class partners, we're well positioned for the next stage of accelerated growth. Cooler One sits at the heart of our growth plan, delivering advanced mission-ready energy storage system for the most demanding applications. In Q2, our Cooler One Space A1S-400 successfully passed NASA's acceptance process for the 20793 certification in support of the Artemis program. We believe this marked the first true commercial -the-shelf battery to achieve a 20793 rating. Final certification is pending NASA's approval process for the Artemis crew mission in 2026. This platform architecture paired with a working structure 37A screen cells is now ready for human-rated space mission. Alongside the K1S-400, our K1S-100, 200, and 300 series are also prepared for immediate customer deployment. The K1S-500XLT offers a compact ultra lightweight design that delivers cutting edge performance at commercial level cost, aligned with the economics of the private space sector. This model combines high-grade working structure 37A screen cells, optimize packing factors, and the low mass structural materials, along with Cooler's second generation space rated BMS. Together, these elements create a complete -to-end energy storage solution for our customers. Cooler has also successfully demonstrated a ballistic-proof battery capable of withstanding API route impact, a major milestone for both Cooler and our customer. One of the greatest challenges in deploying lithium-ion battery for defense application is meeting the demanding combination of thermal runaway abuse, vibration, and ballistic testing, with ballistic testing being the most difficult to pass. Traditional battery chemistries pass the ballistic tests by producing only smoke after API run penetration. Lithium-ion battery cells, however, typically produce flames and combustion, preventing them from widespread adoptions in many military applications. Our Cooler One Guardian solved this problem with a proprietary ballistic-proof design that shields the cells from damage, even after the API route impact. This results in a passing test, paving the way for further certifications, scale production, and operational deployment. Cooler has also delivered its first extreme pressure-tolerant subsea battery pack to a key strategic partner, reinforcing our leadership in energy solutions for extreme environments. With several kilowatt hours of capacity, this pack is engineered to withstand 6 to 8,000 PSI for deep water missions, and is PPR rated at surface pressure and designed for safe shipboard handling. The subsea battery system market is valued at approximately $1.2 billion in 2024, with the projection to reach $3.5 billion by 2035. Successfully delivering these advanced products demonstrate Cooler's capability to engineer custom energy storage solutions for the most demanding conditions, whether it's in space, underwater, or in the air. We're now channeling this -in-class engineering expertise into our commercial Cooler One products to accelerate growth. As we have announced previously, Cooler's working to drive adoption of solutions that embody the concept of physical AI, beginning with our award-winning, -in-class AI-powered exoskeleton, Exia. Almost half of all muscle and joint injuries at work involve the back, and Exia is built to help prevent those injuries while reducing fatigue with powerful and high-quality robotic motors. The seventh generation Exia, developed with our partner, German Bionics, is now being introduced to customers across North America. Since its launch in June, feedback has been very positive. We believe that technology can greatly help people doing hard physical work. Even though most jobs are becoming automated, millions of workers still do tasks by hand. Exia helps them work more efficiently, avoid injuries, and feel less tired by the end of the day. We're marketing Exia to industries like retail distribution centers, supply chain and logistics, food service distribution, and many others, where injury rates, employee turnover, and heavy labor are big challenges. As the U.S. brings more manufacturing back home and strengthens supply chain, supporting American workers with advanced technology like this has never been more important. We expect Exia business to grow quickly and starting to contribute to our revenue in Q3 of 2025. In the coming months, we look forward to share success stories from our first customers as their teams start enjoying the benefit of this technology. Since December, 2024, Cooler has reinvented itself as a Bitcoin treasury company. We utilize equity financing, strategically acquired Bitcoin through open market purchases and mining, and measures performance using BTC Eometrics to create value. This approach seeks to build a long-term model grounded in BTC exposure and growth, including potential expansions into lending services and Bitcoin-based derivatives using existing holdings. As governments continue printing more money, leading to a gradual weakening of traditional fiat currencies, cash is likely to diminish in value over time. Bitcoin, however, offers a hedge against this erosion with its fixed supply and independence from government control. We currently hold approximately 1,035 Bitcoins. We'll continue to accumulate Bitcoin through our dual acquisition strategy in a responsible and pragmatic manner. We note that in a non-erosive asset like BTC on our growing balance sheet, we continue to build more confidence in our customers and partners to scale up their business with us. Next, Sean Ketcher will go over financial and operational highlights.

Sean? Thanks, Mike. Overall, we had a very strong second quarter that helped set the stage for us to accelerate our growth going forward. Here are some of the key highlights. Revenue grew an impressive 63% from the same quarter last year to approximately $4 million. Cooler's quarterly revenue growth records continue to grow. This is the highest quarterly revenue Cooler has ever generated. Trailing 12-months revenue and at Q2 2025 also grew to a record high. Notably, Cooler's growth included its streak of trailing 12-month revenue increases for a fourth straight quarter. We are pleased to highlight that the second quarter was the first time Cooler had positive net earnings posting a positive earnings per share of 22 cents. For the second quarter 2025 versus the second quarter 2024, product revenue grew 74%, service revenue was down 57%. Overall revenue per customer was down approximately 6%. Product revenue per customer grew .6% and service revenue per customer was down 50%. As we sometimes see in our battery design and testing services, the timing of projects can vary from expectations due to their complex nature. Our battery design and testing services are an important component to our overall customer offering. Gross margin for the second quarter of 18% was down primarily due to unanticipated labor hours needed to complete technical projects and the price of Bitcoin affecting our Bitcoin mining margin. Since the end of the second quarter, the price of Bitcoin has gone up, which would have grown the second quarter gross margin. For the same period year over year, operating expenses were up due to, among other things, planned investments in growth-related activities we anticipate will accelerate our growth going forward. A few points on our balance sheet. At the end of the second quarter, our cash balance was just over $20 million. Our current accounts receivable was about 4.2 million and we held just over 928 Bitcoins worth approximately $100 million. Our total assets were 141 million. Additionally, we had no material deaths. As an update, as of August 11th, Cooler held 1,035 Bitcoins worth about $120 million. So again, a very strong second quarter financial performance. Back to you, Stuart.