KULR Technology Group tumbles after wider Q3 loss

Investing.com -- KULR Technology Group, Inc. (NYSE American:KULR) reported a wider loss for the third quarter despite more than doubling its revenue, sending shares down 4.4% in after-hours trading on Tuesday.

The Bitcoin+ Treasury company reported a third quarter net loss of $6.97 million, or -$0.17 per share, compared to a net loss of $2.00 million, or -$0.08 per share, in the same period last year. The company attributed the increased loss primarily to a one-time impairment charge and credit losses on loan and accounts receivable.

Revenue for the quarter surged 116% to $6.88 million from $3.18 million in the year-ago period. Product sales increased 112% to $1.62 million compared to $765,000 in the same quarter last year.

Despite the revenue growth, KULR’s gross margin declined significantly to 9% from 71% in the same period last year, due to increased hours spent on service contracts and higher costs related to digital assets mining leases.

"KULR continues to accelerate growth and push forward our innovations," said KULR CEO Michael Mo. "With solid Q3 revenue gains and our unlevered Bitcoin holdings, we now have a more resilient balance sheet that allows us to confidently invest in next-generation KULR ONE battery products."

Operating expenses increased substantially, with SG&A expenses rising to $6.26 million from $2.74 million, while R&D expenses grew to $2.32 million from $1.23 million in the same quarter last year.

"This quarter marks another record revenue quarter," noted Shawn Canter, KULR’s CFO. "Our product business is gaining traction and priming for more growth."

During the quarter, KULR announced strategic partnerships with Molicel and Amprius Technologies to power its new KULR ONE Air product line, launched six new commercial off-the-shelf CubeSat batteries, and introduced its next-generation Battery Management System.

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