KULR Technology Group, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, KULR generated total revenue of $3.19 million, a 5% increase from $3.04 million in Q3 2023. However, for the nine months ended September 30, 2024, revenue decreased by 2% to $7.37 million from $7.50 million in the same period last year. The decline in product sales was significant, dropping 60% to $765,201 in Q3 2024, and 54% to $2.52 million for the nine months. In contrast, contract services revenue surged by 22% in Q3 to $1.39 million and by 90% for the nine months to $3.82 million, reflecting a shift in the company’s revenue mix.

Gross profit for Q3 2024 rose to $2.26 million, a 69% increase from $1.34 million in Q3 2023, resulting in a gross profit margin of 71%. For the nine-month period, gross profit increased by 12% to $3.34 million. Operating expenses significantly decreased, with total operating expenses for Q3 2024 at $3.97 million, down 38% from $6.43 million in Q3 2023. This reduction was attributed to lower stock-based compensation and decreased advertising and labor costs. Consequently, the loss from operations narrowed to $(1.71) million in Q3 2024, compared to $(5.10) million in Q3 2023. The net loss for Q3 2024 was $(2.00) million, a substantial improvement from $(5.56) million in the prior year.

As of September 30, 2024, KULR's total current assets increased to $4.83 million from $3.90 million at the end of 2023, while total assets rose to $12.35 million from $10.86 million. Total current liabilities decreased to $5.98 million, contributing to a significant improvement in stockholders’ equity, which turned positive at $5.17 million from a deficit of $(2.18) million at the end of 2023.

Strategically, KULR entered a three-year licensing agreement for its KULR VIBE software, generating an immediate revenue of $500,000 and a guaranteed minimum royalty of $600,000 over the contract term. The company also engaged in an At the Market Offering, raising $3.43 million from the sale of 12.82 million shares from July to September 2024, and an additional $4.32 million from October to November 2024.

Despite these developments, KULR faces substantial doubt regarding its ability to continue as a going concern, as indicated by its ongoing financial challenges and the need for additional funding to meet future cash requirements.