KULR Technology Group, Inc.

Thank you, everyone, for joining us here today for the Cooler 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 Moe, as well as the chief financial officer for the company, Sean Cantor, 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. Cooler 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 Cooler files with the Securities Exchange Commission from time to time. Forward-looking statements include statements regarding the company's expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as anticipate, believe, could, estimate, expect, intend, may, should, and would or similar words. All forecasts 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. Cooler Technology Group assumes no obligation to update the information included in this call, whether as a result of new information, future events, or otherwise. Now with that, let me welcome on to the call Chief Executive Officer of Cooler Technology Group, Michael Moe. Michael, the call is yours.

Thank you everyone for joining us today. I'm proud to share that Cooler delivered our strongest quarter to date. In Q3, 2025, we generated approximately 6.9 million in revenue, going 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 QuoraOne 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 CoolerOne Air, built on the same technology foundations as our CoolerOne Space and Guardian platforms. Since July, we have created more than 150 CoolerOne 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 quarter one platform into AI data centers and telecom infrastructure with new battery backup units, PVUs, and battery energy storage systems, BSS 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 three years. What sets Cooler 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 facility in Texas. we design, prototype, build, and test our batteries in-house, all under one roof, which allows us to move with 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 Cooler. 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 core markets. UAVs, drums, and autonomous robots are scaling rapidly. And Okula 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 Okula 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. All of a 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 Cooler 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, Unprepared for production under one roof, we can move from concept to manufacturable products in a fractional traditional industry timeline. That speed has become a decisive advantage as customers demand semi-custom and high-performance solutions delivered quickly and reliably. Second, quality. Coolers' heritage in thermal management and battery safety is a core differentiator. We're fully AS9100 and ISO2001 certified. You know, 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 cool over 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 CoolerOne ecosystem. If energy level rises across all applications, safety is becoming one of the most important buying criteria. In this scenario, that cooler has a structural advantage. Fifth, secure supply chain. Every cooler one battery we ship is designed, built, and tested in Texas. Customers want a domestic, transparent, and highly controlled supply chain, and Cooler 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 Cooler is capturing momentum across the markets we serve. Let me highlight one of the most exciting developments at Cooler, 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. Cooler 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 CoolerOne 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 $1.2.4 billion by 2030. driven by rapid adoption in commercial operations, public sector modernization, and the rise of autonomous robotic platforms across industries. 401 Air is built on space-grade engineering heritage, delivering safer bus bar and connector architectures, lower thermal rise, and high power performance that meets C-rate demands that Lexi Pax simply cannot handle. This performance profile is resonating strongly with customers who are offering 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, and the facility space to execute. Kodawan Air isn't just a product line. It's a platform that leverages our decades-long engineering heritage and opens up a multi-billion dollar market for us. AI is creating one of the largest energy transformations we've ever seen, and Cooler is stepping directly into the center of this. We're expanding our Cooler One Max platform into two massive markets, AI data center, battery backup units, PVUs, 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 80 kilowatts to more than 250 kilowatts in some deployments, and NVIDIA's roadmap is pushing towards 1 megawatt racks by 2028. At these levels, rack-level battery backup units, DBUs, become essential. NVIDIA's latest GB300 MVL72 architecture now bakes BVUs directly into the reference design to manage power spikes right through micro outages and reduce reliance on massive UPS systems if 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 Cooler has a unique advantage. Our space-grade safety architecture makes the CoolerOne Max platform ideally suited for these AI REC applications. We're designing 21,700 bays and five amp hour class BBU systems specifically for next generation NVIDIA systems. While much of the market is still relying on older 18650 cells under three amp hours. We expect our BBU system to be UR9540 certified in production ready in 2026. positioning Cooler to compete in this multi-billion dollar fast-growing market. AI is rewriting the energy transition and Cooler intends to 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 power, radio, fiber hubs, central offices, and of course, inside the highest 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 origin 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. Cooler's role is to help operators safely increase runtime and energy density as push 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 runaway mitigation to existing UPS platforms, especially in space-constrained towers, fiber hubs, and central offices. Looking ahead, we're leaning into alliance with platform players and core 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're making incremental and economically sound BTC acquisitions throughout mining operations, while directing our primary capital towards high-value and high-growth energy businesses. Our mining strategy itself creates additional strategic upsides. 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 Kula 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 the shareholder value, and increasingly synergistic with our move into the AI data center energy markets. Let me give you an update on Coral 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. Diversion mitigation remains one of the most challenging maintenance issues in aviation. It is often described as more of an art than a science. Coral 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 the 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 CuraBuy 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, it's operating inside a national 3PL specializing oversize and bulky items. For industrial distributors, Exia is deployed across three warehouse locations serving the 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 XCF'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. If industry look to empower workers, reduce injuries, and bridge labor gaps, Axia allows us to play a strategic role in the future of modern, augmented workforce. Next, Sean Cantor will provide financial updates. Sean?

Thanks, Mike. Overall, the third quarter was another strong quarter for Cooler. Our operating activity continues to position Cooler 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 12-month revenue record at $16.7 million. The third quarter grew this streak to the fifth consecutive quarter. Buller 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 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&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 costs 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 one-time 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 Cooler. Back to you, Stuart.