10-Q

UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2018

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                    

Commission File Number:

000-55564

KULR TECHNOLOGY GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware (State or Other Jurisdiction of Incorporation or Organization)	81-1004273 (I.R.S. Employer Identification No.)
1999 S. Bascom Ave. Suite 700. Campbell, CA. (Address of principal executive offices)	95008 (Zip Code)

Registrant’s telephone number, including area code: 408-663-5247

KT High-Tech Marketing, Inc., 14440 Big Basin Way #12, Saratoga, California 95070

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b- 2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of November 9, 2018, there were 78,021,819 shares of common stock, $0.0001 par value, issued and outstanding.

KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY

(FORMERLY KT HIGH-TECH MARKETING, INC.)

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2018

TABLE OF CONTENTS

		Page
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements.		1
	Condensed Consolidated Balance Sheets as of September 30, 2018 (Unaudited) and December 31, 2017	1
	Unaudited Condensed Consolidated Statements of Operations for the
	Three and Nine Months Ended September 30, 2018 and 2017	2
	Unaudited Condensed Consolidated Statement of Changes in Stockholders' (Deficiency) Equity for the
	Nine Months Ended September 30, 2018	3
	Unaudited Condensed Consolidated Statements of Cash Flows for the
	Nine Months Ended September 30, 2018 and 2017	4
	Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.		12
Item 3. Quantitative and Qualitative Disclosures About Market Risk.		16
Item 4. Controls and Procedures.		16
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.		17
Item 1A. Risk Factors.		17
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.		17
Item 3. Defaults Upon Senior Securities.		17
Item 4. Mine Safety Disclosures.		17
Item 5. Other Information.		17
Item 6. Exhibits.		17
SIGNATURES		18

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY

(FORMERLY KT HIGH-TECH MARKETING, INC.)

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,			December 31,
	2018			2017
	(unaudited)
Assets
Current Assets:
Cash	$	174,350		$	895,761
Accounts receivable		155,440			151,802
Inventory		13,767			13,767
Prepaid expenses		82,733			106,466
Other current assets		11,089			8,727
Total Current Assets		437,379			1,176,523
Property and equipment, net		47,145			43,493
Total Assets	$	484,524		$	1,220,016
Liabilities and Stockholders' (Deficiency) Equity
Current Liabilities:
Accrued expenses and other current liabilities	$	491,269		$	197,713
Accrued expenses and other current liabilities - related parties		203,917			282,597
Deferred revenue		51,158			-
Total Current Liabilities		746,344			480,310
Commitments and contingencies
Stockholders' (Deficiency) Equity:
Preferred stock, $0.0001 par value, 20,000,000 shares authorized;
Series A Preferred Stock, 1,000,000 shares designated;
None issued and outstanding
at September 30, 2018 and December 31, 2017		-			-
Common stock, $0.0001 par value, 100,000,000 shares authorized;
78,021,819 and 77,440,000 shares issued and outstanding
at September 30, 2018 and December 31, 2017, respectively		7,802			7,744
Additional paid-in capital		5,750,416			5,090,282
Accumulated deficit		(6,020,038	)		(4,358,320	)
Total Stockholders' (Deficiency) Equity		(261,820	)		739,706
Total Liabilities and Stockholders' (Deficiency) Equity	$	484,524		$	1,220,016

The accompanying notes are an integral part of these condensed consolidated financial statements.

1

KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY

(FORMERLY KT HIGH-TECH MARKETING, INC.)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	2018			2017			2018			2017
Revenue	$	482,798		$	15,106		$	881,929		$	26,006
Cost of revenue		75,384			52,384			258,801			108,579
Gross Profit (Loss)		407,414			(37,278	)		623,128			(82,573	)
Operating Expenses:
Research and development		161,194			157,876			399,884			207,504
Research and development - related parties		-			38,767			-			439,824
Selling, general and administrative		461,377			605,473			1,908,635			1,019,835
Total Operating Expenses		622,571			802,116			2,308,519			1,667,163
Loss From Operations		(215,157	)		(839,394	)		(1,685,391	)		(1,749,736	)
Other Income (Expense):
Interest (expense) income, net		(269	)		142			(502	)		(8,114	)
Change in fair value of accrued issuable equity		24,175			-			24,175			-
Total Other Income (Expense)		23,906			142			23,673			(8,114	)
Net Loss	$	(191,251	)	$	(839,252	)	$	(1,661,718	)	$	(1,757,850	)
Net Loss Per Share
- Basic and Diluted	$	(0.00	)	$	(0.01	)	$	(0.02	)	$	(0.03	)
Weighted Average Number of
Common Shares Outstanding
- Basic and Diluted		77,785,191			76,843,759			77,513,560			59,570,769

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY

(FORMERLY KT HIGH-TECH MARKETING, INC.)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ (DEFICIENCY) EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018

(Unaudited)

										Total
					Additional					Stockholders'
	Common Stock				Paid-In		Accumulated			Equity
	Shares		Amount		Capital		Deficit			(Deficiency)
Balance - December 31, 2017		77,440,000	$	7,744	$	5,090,282	$	(4,358,320	)	$	739,706
Stock-based compensation		-		-		307,792		-			307,792
Common stock issued for cash, net of issuance costs [1]		581,819		58		352,342		-			352,400
Net loss		-		-		-		(1,661,718	)		(1,661,718	)
Balance - September 30, 2018		78,021,819	$	7,802	$	5,750,416	$	(6,020,038	)	$	(261,820	)

[1] Includes gross proceeds of $384,000, less issuance costs of $31,600 ($25,000 of cash and $6,600 of non-cash).

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY

(FORMERLY KT HIGH-TECH MARKETING, INC.)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine Months Ended September 30,
	2018			2017
Cash Flows From Operating Activities:
Net loss	$	(1,661,718	)	$	(1,757,850	)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation expense		11,824			3,374
Change in fair value of accrued issuable equity		(24,175	)		-
Stock-based compensation		402,656			411,181
Changes in operating assets and liabilities:
Accounts receivable		(3,638	)		(19,106	)
Other current receivable		-			30,000
Other current receivable - related parties		-			2,000
Interest receivable - related party		-			2,152
Inventory		-			(15,151	)
Prepaid expenses		23,733			(115,945	)
Other current assets		(2,362	)		861,377
Accrued expenses and other current liabilities		216,267			189,083
Accrued expenses and other current liabilities - related parties		(78,680	)		145,300
Deferred revenue		51,158			-
Total Adjustments		596,783			1,494,265
Net Cash Used In Operating Activities		(1,064,935	)		(263,585	)
Cash Flows From Investing Activities:
Proceeds from loan from related party		-			85,000
Cash acquired in reverse recapitalization		-			1,859,261
Purchases of property and equipment		(15,476	)		(36,271	)
Net Cash (Used In) Provided By Investing Activities		(15,476	)		1,907,990
Cash Flows from Financing Activities:
Proceeds from sale of common stock [1]		359,000			-
Net Cash Provided By Financing Activities		359,000			-
Net (Decrease) Increase In Cash		(721,411	)		1,644,405
Cash - Beginning of Period		895,761			9,087
Cash - End of Period	$	174,350		$	1,653,492

[1] Includes gross proceeds of $384,000, less withheld issuance costs of $25,000.

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY

(FORMERLY KT HIGH-TECH MARKETING, INC.)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

(Unaudited)

	For the Nine Months Ended
	September 30,
	2018		2017
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	646	$	-
Income taxes	$	2,400	$	1,600
Non-cash investing and financing activities:
Common stock equity offering issuance costs	$	6,600	$	-

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

KULR TECHNOLOGY GROUP, INC. AND SUBSIDIARY

(FORMERLY KT HIGH-TECH MARKETING, INC.)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 (UNAUDITED)

Note 1 Business Organization, Nature of Operations and Basis of Presentation

Organization and Operations

Effective August 30, 2018, KT High-Tech Marketing, Inc. changed its name to KULR Technology Group, Inc. KULR Technology Group, Inc. ("KUTG") through its wholly-owned subsidiary, KULR Technology Corporation (“KTC”) (collectively referred to as “KULR” or the “Company”), is primarily focused on developing and commercializing its thermal management technologies, which it acquired through assignment from and license with KTC’s co-founder Dr. Timothy Knowles, in the high value, high-performance consumer electronic and energy storage applications. KTC owns proprietary carbon fiber based (Carbon Fiber Velvet or “CFV”) thermal management solutions that it believes are more effective at conducting, dissipating and storing heat generated by an electronic system’s internal components (i.e. semiconductor, integrated circuits “chips”) in comparison to traditional materials, such as copper and aluminum. KTC’s technologies can be applied inside a wide array of electronic applications where heat is often a problem, such as mobile devices, cloud computing, virtual reality platforms, satellites, internet of things, drones, and connected cars.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of September 30, 2018 and for the three and nine months then ended. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the operating results for the full year ending December 31, 2018 or any other period. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related disclosures as of December 31, 2017 and for the year then ended, which were filed with the Securities and Exchange Commission (“SEC”) on Form 10-K on April 17, 2018.

Note 2 Going Concern and Management’s Plans

The Company has not yet achieved profitability and expects to continue to incur cash outflows from operations. It is expected that its research and development and general and administrative expenses will continue to increase and, as a result, the Company will eventually need to generate significant product revenues to achieve profitability. These conditions indicate that there is substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statement issuance date.

The Company is currently funding its operations on a month-to-month basis. Although the Company’s management believes that it has access to capital resources, there are currently no commitments in place for new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures.

The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustment that might become necessary should the Company be unable to continue as a going concern.

Note 3 Summary of Significant Accounting Policies

The Company’s significant accounting policies are disclosed in Note 2 – Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Since the date of the Annual Report, there have been no material changes to the Company’s significant accounting policies, except as disclosed below.

6

Concentrations of Credit Risk

The Company maintains cash with major financial institutions. Cash held in U.S. bank institutions is currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at each institution. There was an aggregate uninsured cash balance of $611,450 at December 31, 2017. There was no uninsured balance as of September 30, 2018.

Customer concentrations are as follows:

	Revenues												Accounts Receivable
	For the Three Months Ended						For the Nine Months Ended						As of			As of
	September 30,						September 30,						September 30, 2018			December 31, 2017
	2018			2017			2018			2017
Customer A		*			*			17	%		*			*			15	%
Customer B		*			*			12	%		*			*			*
Customer C		92	%		*			64	%		*			92	%		43	%
Customer D		*			*			*			42	%		*			16	%
Customer E		*			76	%		*			44	%		*			*
Customer F		*			24	%		*			14	%		*			*
Total		92	%		100	%		93	%		100	%		92	%		74	%

* Less than 10%                      

Deferred Offering Costs

Deferred offering costs, which primarily consist of direct, incremental professional fees incurred in connection with a debt or equity financing, are capitalized as non-current assets on the balance sheet. Once the financing closes, the Company reclassifies such costs as either discounts to notes payable or as a reduction of proceeds received from equity transactions so that such costs are recorded as a reduction of additional paid-in capital. If the completion of a contemplated financing was deemed to be no longer probable, the related deferred offering costs would be charged to general and administrative expense in the condensed consolidated financial statements.

Revenue Recognition

On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing accounting principles generally accepted in the United States of America (“U.S. GAAP”) including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation.

The Company adopted ASC 606 for all applicable contracts using the modified retrospective method, which would have required a cumulative-effect adjustment, if any, as of the date of adoption. The adoption of ASC 606 did not have a material impact on the Company's condensed consolidated financial statements as of the date of adoption. As a result, a cumulative-effect adjustment was not required.

The Company recognizes revenue primarily from the following different types of contracts:

· Product sales – Revenue is recognized at the point the customer obtains controls of the goods and the Company satisfies its performance obligation, which is generally at the time it ships the product to the customer.

· Contract services – Revenue is recognized at the point in time that the Company satisfies its performance obligation under the contract, which is generally at the time it delivers a report to the customer.

7

The following table summarizes our revenue recognized in our condensed consolidated statements of operations:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Product sales	$	482,798	$	15,106	$	735,941	$	26,006
Contract services		-		-		145,988		-
Total revenue	$	482,798	$	15,106	$	881,929	$	26,006

As of September 30, 2018, the Company had $0 and $51,158 contract assets and contract liabilities, respectively, from contracts with customers. The contract liabilities represent payments received from customers for which the Company had not yet satisfied its performance obligation under the contract. As of December 31, 2017, the Company did not have any contract assets or contract liabilities from contracts with customers. During the three and nine months ended September 30, 2018, and 2017, $0 of revenue was recognized from performance obligations satisfied (or partially satisfied) in previous periods.

Reclassifications

Certain prior year balance sheet amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Net Loss Per Common Share

Basic net loss per common share is computed by dividing net loss by the weighted average number of vested common shares outstanding during the period. The following weighted average shares were excluded from basic weighted average common stock outstanding:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Non-vested restricted stock		-		596,241		90,812		782,051
Total		-		596,241		90,812		782,051

Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of non-vested restricted stock, if not anti-dilutive.

The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:

	September 30,
	2018		2017
Non-vested restricted stock		-		500,000
Total		-		500,000

Recently Issued Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, “Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting,” (“ASU 2017-09”). ASU 2017-09 provides clarity on the accounting for modifications of stock-based awards. ASU 2017-09 requires adoption on a prospective basis in the annual and interim periods for fiscal years beginning after December 15, 2017 for share-based payment awards modified on or after the adoption date. The Company adopted ASU 2017-09 effective January 1, 2018 and its adoption did not have a material impact on the Company’s condensed consolidated financial statements.

8

In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, “Compensation — Stock Compensation (Topic 718),” (“ASU 2018-07”). ASU 2018-07 is intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. Currently, the accounting requirements for nonemployee and employee share-based payment transactions are significantly different. ASU 2018-07 expands the scope of Topic 718, Compensation — Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity — Equity-Based Payments to Nonemployees. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within that fiscal year. Early adoption is permitted, but no earlier than a company’s adoption date of Topic 606, Revenue from Contracts with Customers. The Company early adopted ASU 2018-07 effective April 1, 2018. The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements.

In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements” (“ASU 2018-09”). These amendments provide clarifications and corrections to certain ASC subtopics including the following: Income Statement - Reporting Comprehensive Income – Overall (Topic 220-10), Debt - Modifications and Extinguishments (Topic 470-50), Distinguishing Liabilities from Equity – Overall (Topic 480-10), Compensation - Stock Compensation - Income Taxes (Topic 718-740), Business Combinations - Income Taxes (Topic 805-740), Derivatives and Hedging – Overall (Topic 815-10), and Fair Value Measurement – Overall (Topic 820-10). The majority of the amendments in ASU 2018-09 will be effective in annual periods beginning after December 15, 2018. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements.

In July 2018, the FASB issued Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases,” (“ASU 2018-10”). The amendments in ASU 2018-10 are to address stakeholders’ questions about how to apply certain aspects of the new guidance in ASC 842. The clarifications address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. The amendments in ASC Topic 842 are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently in the process of evaluating its lease assets and lease liabilities to be recorded as of January 1, 2019. The Company continues to evaluate other provisions of the updated guidance and expects to complete its analysis by December 31, 2018.

In July 2018, the FASB issued Accounting Standards Update No. 2018-11, “Leases (Topic 842): Targeted Improvements,” (“ASU 2018-11”). The amendments in ASU 2018-11 related to transition relief on comparative reporting at adoption affect all entities with lease contracts that choose the additional transition method and separating components of a contract affect only lessors whose lease contracts qualify for the practical expedient. The amendments in ASC Topic 842 are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently in the process of evaluating its lease assets and lease liabilities to be recorded as of January 1, 2019. The Company continues to evaluate other provisions of the updated guidance and expects to complete its analysis by December 31, 2018.

In August 2018, the FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements.

9

Note 4 Prepaid Expenses

As of September 30, 2018 and December 31, 2017, prepaid expenses consisted of the following:

	September 30, 2018		December 31, 2017
		(unaudited)
Business development services	$	-	$	40,000
Research and development services		27,616		25,000
Professional fees		16,991		10,000
Filing fees		12,500		-
Insurance		9,750		-
Other		15,876		31,466
Total prepaid expenses	$	82,733	$	106,466

Note 5 Accrued Expenses and Other Current Liabilities

As of September 30, 2018 and December 31, 2017, accrued expenses and other current liabilities consisted of the following:

	September 30, 2018		December 31, 2017
		(unaudited)
Accrued legal and professional fees	$	100,379	$	71,241
Accrued payroll and vacation		80,776		69,425
Payroll and income tax payable		107,601		14,223
Accrued research and development expenses		41,819		14,611
Credit card payable		6,266		110
Accrued issuable equity		77,289		1,104
Other		77,139		26,999
Total accrued expenses and other current liabilities	$	491,269	$	197,713

The Company has agreed to issue an aggregate of 117,104 shares of common stock for legal and consulting fees. See Note 7 – Stockholders’ Equity – Stock-Based Compensation for details of related expense recognized. As of September 30, 2018, the shares had not been issued and, as a result, $77,289 of accrued issuable equity is included within accrued expenses and other current liabilities.

Note 6 Related Party Transactions

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities – related parties consist of: (i) a liability of $142,269 and $254,344 as of September 30, 2018 and December 31, 2017, respectively, to Energy Science Laboratories, Inc. (“ESLI”), a company controlled by the Company’s Chief Technology Officer (“CTO”), in connection with consulting services provided to the Company associated with the development of the Company’s CFV thermal management solutions; and (ii) a liability of $61,647 and $28,253 as of September 30, 2018 and December 31, 2017, respectively, to the Company’s Chief Executive Officer (“CEO”) in connection with Company-related travel and entertainment expenses incurred by the CEO.

Consulting Agreements

During the three and nine months ended September 30, 2017, the Company recorded aggregate expense of $0 and $65,000 (of which, $32,500 and $32,500 was included within research and development expenses and selling, general and administrative expenses, respectively), respectively, related to consulting agreements with its CEO and CTO, which were terminated in connection with the closing of the Share Exchange Agreement on June 19, 2017.

During the three and nine months ended September 30, 2017, the Company recorded research and development expense of $38,767 and $407,324, respectively, related to consulting services provided to the Company by ESLI associated with the development of the Company’s CFV thermal management solutions. There were no such costs recorded in the three and nine months ended September 30, 2018. ESLI is controlled by the Company’s CTO.

10

Note 7 Stockholders' Equity

Private Placement of Common Stock

During the three months ended September 30, 2018, the Company sold an aggregate of 581,819 shares of common stock at $0.66 per share to accredited investors for aggregate gross and net proceeds of $384,000 and $352,400, respectively. Of the $31,600 of issuance costs, $25,000 were cash costs and $6,600 were non-cash costs.

Stock-Based Compensation

During the three and nine months ended September 30, 2018, the Company recognized stock-based compensation expense of $94,864 and $402,656, respectively, and during the three and nine months ended September 30, 2017, the Company recognized stock-based compensation expense of $187,023 and $411,181, respectively, related to restricted common stock awards which is included within general and administrative expenses on the condensed consolidated statements of operations. As of September 30, 2018, there was no unrecognized stock-based compensation expense.

Equity Incentive Plan

On August 15 and November 5, 2018, the Board of Directors and a majority of  the Company’s shareholders, respectively, approved the 2018 KULR Technology Group Equity Incentive Plan (the “2018 Plan”). Under the 2018 Plan, 15,000,000 shares of common stock of the Company are authorized for issuance. The 2018 Plan provides for the issuance of incentive stock options, non-statutory stock options, rights to purchase common stock, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants of the Company and its affiliates. The 2018 Plan requires the exercise price of stock options to be not less than the fair value of the Company’s common stock on the date of grant.

Note 8 Commitments and Contingencies

Patent License Agreement

On March 21, 2018, the Company entered into an agreement with the National Renewable Energy Laboratory (“NREL”) granting the Company an exclusive license to commercialize its patented Internal Short Circuit technology. The agreement shall be effective for as long as the licensed patents are enforceable, subject to certain early termination provisions specified in the agreement. In consideration, the Company agreed to pay to NREL the following: (i) a cash payment of $12,000 payable over one year, and (ii) royalties ranging from 1.5% to 3.75% on the net sales price of the licensed products, as defined in the agreement, with minimum annual royalty payments ranging from $0 to $7,500. In addition, the Company shall use commercially reasonable efforts to bring the licensed products to market through a commercialization program that requires that certain milestones be met, as specified in the agreement. As of the date of filing, there had been no sales of the licensed products, such that no royalties had been earned. 

Note 9 Subsequent Events

Shareholder Consent

On November 5, 2018, the Company received a written consent of the stockholders representing 78.4% of the issued and outstanding securities of the Company entitled to vote on matters of the stockholders to take the following actions: (i) to amend the Company’s certificate of incorporation with the Delaware Secretary of State increasing the number of authorized shares of the Company’s common stock from 100,000,000 shares to 500,000,000 shares; (ii) to approve, ratify and adopt the Company’s 2018 Equity Incentive Plan, pursuant to which the Company may award up to 15,000,000 shares of the Company’s common stock to employees, nonemployee officers and directors and consultants for the purpose of, among other things, motivating such persons to put forth their maximum efforts for the Company’s growth, profitability and success; and (iii) to approve and authorize, as a measure to protect the progress of the Company by vesting voting control of the Company in its Chief Executive Officer, Michael Mo, the issuance of 1,000,000 shares of the Company’s Series A Voting Preferred Stock to Mr. Mo.

11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of the results of operations and financial condition of KULR Technology Group, Inc. ("KUTG") and its wholly-owned subsidiary, KULR Technology Corporation (“KTC”) (collectively referred to as “KULR” or the “Company”) as of September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017 should be read in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis should be read in conjunction with the Company’s audited financial statements and related disclosures as of December 31, 2017 and for the year then ended, which are included in the Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 17, 2018. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to “us”, “we”, “our” and similar terms refer to the Company. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains statements that are forward-looking. These statements are based on current expectations and assumptions that are subject to risk, uncertainties and other factors. These statements are often identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue,” and similar expressions or variations. Actual results could differ materially because of the factors discussed in “Risk Factors” elsewhere in this Report, in our other reports filed with the SEC, and other factors that we may not know.

Overview

The Company owns proprietary carbon fiber based (Carbon Fiber Velvet or “CFV”) thermal management solutions that it believes are more effective at conducting, dissipating and storing heat generated by an electronic system’s internal components (i.e. semiconductor, integrated circuits “chips”) than traditional materials, such as copper and aluminum. KULR’s technologies can be applied inside a wide array of electronic applications where heat is often a problem, such as mobile devices, cloud computing, virtual reality platforms, satellites, internet of things, drones, and connected cars.

Three key vectors have driven advancements in semiconductors and electronics systems – performance, power, and size. These vectors, however, often counteract one another. As chip performance increases, power consumption increases, and more heat is generated as a byproduct. When chip size reduces, there is an increased potential for a hot spot on the chip, which can degrade system performance. Electronic system components must operate within a specific temperature range on both the high and low end to operate properly. KULR resolves many of the tradeoffs associated with other thermal management materials. KULR’s products improve heat storage and dissipation, rigidity problems and durability. Its products are lightweight and reduce manufacturing complexity associated with traditional thermal management materials.

In addition to thermal management of electronic systems, KULR has developed, in partnership with National Aeronautics and Space Administration (“NASA”) Johnson Space Center (“NASA JSC”), a highly effective, lightweight and passive thermal protection technology, Thermal Runaway Shield (“TRS”) for lithium-ion batteries. KULR’s lithium-ion battery (“Li-B”) TRS product prevents a potentially dangerous combustible condition known as thermal runaway propagation from occurring in neighboring Li-B cells by acting as a shield or barrier in between individual Li-B cells in a battery pack. Although rare, incidents of thermal runaway propagation occurring spontaneously in Li-B cargo shipments and inside electronics, including hoverboards, smartphones, and electric vehicles, are a cause of public concern.

We have not yet achieved profitability and expect to continue to incur cash outflows from operations. It is expected that our research and development and general and administrative expenses will continue to increase and, as a result, we will eventually need to generate significant product revenues to achieve profitability. These conditions indicate that there is substantial doubt about our ability to continue as a going concern within one year after the financial statement issuance date. Historically, we have been able to raise funds to support our business operations, although there can be no assurance we will be successful in raising additional funds in the future.

Recent Developments

In May 2018, we were assigned a trading symbol, “KUTG”, for quotation on the OTC Markets. In August 2018, we were up-listed to the OTCQB.

During the three months ended September 30, 2018, we sold an aggregate of 581,819 shares of common stock at $0.66 per share to accredited investors for aggregate gross and net proceeds of $384,000 and $352,400, respectively.

On August 15, 2018, the Board of Directors approved the 2018 KULR Technology Group Equity Incentive Plan (the “2018 Plan”), subject to approval from a majority of our shareholders. Under the 2018 Plan, 15,000,000 shares of common stock are authorized for issuance. The 2018 Plan provides for the issuance of incentive stock options, non-statutory stock options, rights to purchase common stock, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants of the Company and its affiliates. The 2018 Plan requires the exercise price of stock options to be not less than the fair value of our common stock on the date of grant.

12

Results of Operations

Three and Nine Months Ended September 30, 2018 Compared With Three and Nine Months Ended September 30, 2017

The closing of the share exchange agreement with KTC on June 19, 2017 was accounted for as a reverse recapitalization under the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805-40. The condensed consolidated statements of operations herein reflect the historical results of KTC prior to the completion of the reverse recapitalization since it was determined to be the accounting acquirer, and do not include the historical results of operations for KUTG prior to the completion of the reverse recapitalization.

Revenues

Our revenues consisted of the following types:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Product sales	$	482,798	$	15,106	$	735,941	$	26,006
Contract services		-		-		145,988		-
Total revenue	$	482,798	$	15,106	$	881,929	$	26,006

For the three months ended September 30, 2018 and 2017, we generated $482,798 and $15,106 of revenues, an increase of $467,692. Our revenues during the three months ended September 30, 2018 consisted of sales of our component product, CFV thermal management solution. Our revenues during the three months ended September 30, 2017 consisted of sales of our Phase Change Material (“PCM”) heat sink. The increase was primarily due to an increase in the volume of product sales to one existing customer.

For the nine months ended September 30, 2018 and 2017, we generated $881,929 and $26,006 of revenues, an increase of $855,923. Our revenues during the nine months ended September 30, 2018 consisted of sales of our component product, CFV thermal management solution, sales of an Original Equipment Manufacturer (“OEM”) product as well as certain research and development contract services. Our revenues during the nine months ended September 30, 2017 consisted of sales of our PCM heat sink. The increase in revenue was due to new contracts entered into during 2018.

Cost of Revenues and Gross Margins

Cost of revenues consists of the cost of our products as well as labor expenses directly related to product sales or research contract services.

Generally, we earn greater margins on revenue from products compared to revenue from services, so product mix plays an important part in our reported average margins for any period. Also, we are introducing new products at an early stage in our development cycle and the margins earned can vary significantly between period, customers and products due to the learning process, customer negotiating strengths, and product mix.

Our customers and prospective customers are large organizations with multiple levels of management, controls/procedures, and contract evaluation/authorization. Furthermore, our solutions are new and do not necessarily fit into pre-existing patterns of purchase commitment. Accordingly, the business activity cycle between expression of initial customer interest to shipping, acceptance and billing can be lengthy, unpredictable and lumpy, which can influence the timing, consistency and reporting of sales growth.

Cost of revenue increased by $23,000, or 44%, from $52,384 for the three months ended September 30, 2017 to $75,384 for the three months ended September 30, 2018. The increase was primarily due to increased volume of contracts in the 2018 period, which required additional labor and materials. We generated a gross profit of $407,414 for the three months ended September 30 ,2018 as compared to a gross loss of $32,278 for the three months ended September 30, 2017, representing an improvement in gross profit of $444,692, primarily resulting from the increase in product revenue due to new contracts entered into during 2018.

13

Cost of revenue increased by $150,222, or 138%, from $108,579 for the nine months ended September 30, 2017 to $258,801 for the nine months ended September 30, 2018. The increase was primarily due to increased volume of contracts in the 2018 period, which required additional labor and materials. We generated a gross profit of $623,128 for the nine months ended September 30 ,2018 as compared to a gross loss of $82,573 for the nine months ended September 30, 2017, representing an improvement in gross profit of $705,701, primarily resulting from the increase in product revenue due to new contracts entered into during 2018.

Research and Development

Research and development (“R&D”) includes expenses incurred in connection with the R&D of our CFV thermal management solution. R&D expenses are expensed as they are incurred.

For the three months ended September 30, 2018, R&D expenses increased by $3,318, or 2%, to $161,194 from $157,876 for the three months ended September 30, 2017. The increase is primarily attributable to an increase in salaries and other benefits due to an increase in headcount.

For the nine months ended September 30, 2018, R&D expenses increased by $192,380, or 93%, to $399,884 from $207,504 for the nine months ended September 30, 2017. The increase is primarily attributable to an increase in salaries and other benefits due to an increase in headcount.

We expect that our R&D expenses will continue to increase as we expand our operations.

Research and Development – Related Parties

R&D – related parties include expenses associated with the development of our CFV thermal management solutions provided by Energy Science Laboratories, Inc. (“ESLI”), a R&D company owned by our Chief Technology Officer (“CTO”), as well as services provided by our CTO. R&D – related parties’ expenses are expensed as they are incurred.

For the three months ended September 30, 2018, R&D – related parties decreased by $38,767, or 100%, to $0 from $38,767 for the three months ended September 30, 2017. The decrease is due to a reduction in R&D services provided by ESLI during the current period, which resulted from the Company hiring its own research and development staff in 2017.

For the nine months ended September 30, 2018, R&D – related parties decreased by $439,824, or 100%, to $0 from $439,824 for the nine months ended September 30, 2017. The decrease is due to a reduction in R&D services provided by ESLI during the current period, which resulted from the Company hiring its own research and development staff in 2017.

Selling, General and Administrative

Selling, general and administrative expenses consist primarily of salaries, payroll taxes and other benefits, legal and professional fees, stock-based compensation, marketing, travel, rent and office expenses.

For the three months ended September 30, 2018, selling, general and administrative expenses decreased by $144,096, or 24%, to $461,377 from $605,473 for the three months ended September 30, 2017. The decrease is primarily due to decreased non-cash stock-based compensation expense of $186,771 due to awards becoming fully vested in the second quarter of 2018, partially offset by increased salaries and other benefits of approximately $74,000 and professional fees of approximately $55,000 resulting from entering into new consulting agreements.

For the nine months ended September 30, 2018, selling, general and administrative expenses increased by $888,800, or 87%, to $1,908,635 from $1,019,835 for the nine months ended September 30, 2017. The increase is primarily due to increased salaries and other benefits of approximately $233,000 from the hiring of new employees in the third quarter of 2017, increased professional fees of approximately $501,000 resulting from entering into new consulting agreements, increased travel expenses of approximately $78,000 and increased rent expense of approximately $72,000 due to entering into a new lease agreement, partially offset by decreased non-cash stock-based compensation expense of approximately $103,000 due to awards becoming fully vested in the second quarter of 2018.

Other Income (Expense)

For the three months ended September 30, 2018, other income increased by $23,764 to $23,906 from $142 for the three months ended September 30, 2017. The increase is primarily due to a gain in the change in fair value of accrued issuable equity of $24,175, which is related to a decrease in the fair value of our common stock.

14

For the nine months ended September 30, 2018, other income (expense) increased by $31,787 to $23,673 from $(8,114) for the nine months ended September 30, 2017. The increase is primarily due to a gain in the change in fair value of accrued issuable equity of $24,175, which is related to a decrease in the fair value of our common stock.

Liquidity and Capital Resources

For the nine months ended September 30, 2018 and 2017, cash used in operating activities was $1,064,935 and $263,585, respectively. Our cash used in operations for the nine months ended September 30, 2018 was primarily attributable to our net loss of $1,661,718, adjusted for non-cash expenses in the aggregate amount of $390,305, partially offset by $206,478 of net cash provided by changes in the levels of operating assets and liabilities. Our cash provided by operations for the nine months ended September 30, 2017 was primarily attributable to our net loss of $1,757,850, adjusted for net non-cash expense in the aggregate amount of $414,555, partially offset by $1,079,710 of net cash provided by changes in the levels of operating assets and liabilities.

For the nine months ended September 30, 2018 and 2017, cash (used in) provided by investing activities was $(15,476) and $1,907,990, respectively. Cash used in investing activities during the nine months ended September 30, 2018 was due to purchases of equipment. Cash provided by investing activities during the nine months ended September 30, 2017 resulted from $1,859,261 of cash acquired in connection with the share exchange as well as $85,000 of proceeds received from the collection of our note receivable from our CEO, partially offset by $36,271 of purchases of property and equipment.

For the nine months ended September 30, 2018 and 2017, cash provided by financing activities was $359,000 and $0, respectively. Cash provided by financing activities during the nine months ended September 30, 2018 was due to the sale of common stock in our private placement.

We have not yet achieved profitability and expect to continue to incur cash outflows from operations. It is expected that our research and development and general and administrative expenses will continue to increase and, as a result, we will eventually need to generate significant product revenues and/or raise additional capital to fund our operations. These conditions indicate that there is substantial doubt about our ability to continue as a going concern within one year after the financial statement issuance date.

We are currently funding our operations on a month-to-month basis. Although our management believes that we have access to capital resources, there are currently no commitments in place for new financing at this time and there is no assurance that we will be able to obtain funds on commercially acceptable terms, if at all. If we are unable to obtain adequate funds on reasonable terms, we may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. Our operating needs include the planned costs to operate our business, including amounts required to fund working capital and capital expenditures.

Our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which contemplate our continuation as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the condensed consolidated financial statements do not necessarily purport to represent realizable or settlement values. The condensed consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.

Off Balance Sheet Arrangements

There are no off-balance sheet arrangements between us and any other entity that have, or are reasonably likely to have, a current or future effect on financial conditions, changes in financial conditions, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Critical Accounting Policies

For a description of our critical accounting policies, see Note 3 – Summary of Significant Accounting Policies in Part 1, Item 1 of this Quarterly Report on Form 10-Q.

Recently Adopted Accounting Pronouncements

For a description of recently adopted accounting pronouncements, including adoption dates and estimated effects, if any, on our condensed consolidated financial statements, see Note 3 – Summary of Significant Accounting Policies in Part 1, Item 1 of this Quarterly Report on Form 10-Q.

15

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

The Company is a smaller reporting company, as defined by Rule 229.10(f)(1), and is not required to provide the information required by this Item. 

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our management, with the participation of our principal executive officer and principal financial officer, concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to our management, including our principal executive officer, as appropriate, to allow timely decisions regarding required disclosure.

The following material weakness in our internal control over financial reporting were identified as of September 30, 2018 in the normal course:

1. We have inadequate controls to ensure that information necessary to properly record transactions is adequately communicated on a timely basis to those responsible for financial reporting.

A material weakness is a deficiency, or a combination of deficiencies, within the meaning of Public Company Accounting Oversight Board (“PCAOB”) Auditing Standard AS 2201, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

We intend to address the weakness identified above by increasing the internal controls over the (a) vendor management process and (b) purchase to pay process.

Notwithstanding the assessment that our disclosure controls and procedures and our internal controls over financial reporting were not effective and that there is a material weakness as identified herein, we believe that our condensed consolidated financial statements contained in this Quarterly Report fairly present our financial position, results of operations and cash flows for the periods covered thereby in all material respects.

Changes in Internal Control over Financial Reporting

Except as disclosed above, our internal control over financial reporting did not change during the three months ended September 30, 2018.

16

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

There have been no material changes to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K which was filed with the SEC on April 17, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

During the three months ended September 30, 2018, we sold an aggregate of 581,819 shares of common stock at $0.66 per share to certain accredited investors in aggregate gross and net proceeds of $384,000 and $352,400, respectively, which proceeds will be used for general corporate expenses and other research and development expenses. The issuances of securities were made pursuant to the exemption from registration under Section 4(a)(2) and Rule 506 of Regulation D under the Securities Act for transactions not involving a public offering and transactions with “accredited investors” as defined under the Securities Act. 

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

 None.

Item 6. Exhibits.

3.1 Certificate of Amendment to the Certificate of Incorporation, effective August 30, 2018 (previously filed as an exhibit to Form 8-K on August 30, 2018 and incorporated herein by this reference)

4.1 2018 KULR Technology Group Equity Incentive Plan (previously filed as an exhibit to Form S-8 on October 9, 2018 and incorporated herein by this reference)

31.1 Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

31.2 Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

101.INS XBRL Instance*

101.SCH XBRL Taxonomy Extension Schema*

101.CAL XBRL Taxonomy Extension Calculation*

101.DEF XBRL Taxonomy Extension Definition*

101.LAB XBRL Taxonomy Extension Labels*

101.PRE XBRL Taxonomy Extension Presentation*

*Filed herewith

**Furnished herewith

17

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this quarterly report to be signed on its behalf by the undersigned hereunto duly authorized.

November 13, 2018	By	/s/ Michael Mo
		Michael Mo
		Chief Executive Officer and Chairman

November 13, 2018	By	/s/ Simon Westbrook
		Simon Westbrook
		Chief Financial Officer

18

EX-31.1

Exhibit 31.1

Certification of

Principal Executive Officer

of KULR TECHNOLOGY GROUP, INC.

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael Mo, certify that:

1) I have reviewed this quarterly report on Form 10-Q of KULR Technology Group, Inc.;

2) Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3) Based on my knowledge, the financial statements and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared.

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d. Disclosed in this quarterly report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2018	/s/ Michael Mo
	Michael Mo
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of

Principal Financial Officer

of KULR TECHNOLOGY GROUP, INC.

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Simon Westbrook, certify that:

1) I have reviewed this quarterly report on Form 10-Q of KULR Technology Group, Inc.;

2) Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3) Based on my knowledge, the financial statements and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared.

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d. Disclosed in this quarterly report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2018	/s/ Simon Westbrook
	Simon Westbrook
	Chief Financial Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of KULR Technology Group, Inc. (the “Company”) on Form 10-Q for the quarter ending September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to such officer’s knowledge:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 13, 2018	By	/s/ Michael Mo
		Michael Mo
		Chief Executive Officer
		(Principal Executive Officer)

Date: November 13, 2018	By	/s/ Simon Westbrook
		Simon Westbrook
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 09, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Entity Registrant Name	KULR Technology Group, Inc.
Entity Central Index Key	0001662684
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		78,021,819
Entity Emerging Growth Company	false
Entity Small Business	true

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 174,350	$ 895,761
Accounts receivable	155,440	151,802
Inventory	13,767	13,767
Prepaid expenses	82,733	106,466
Other current assets	11,089	8,727
Total Current Assets	437,379	1,176,523
Property and equipment, net	47,145	43,493
Total Assets	484,524	1,220,016
Current Liabilities:
Accrued expenses and other current liabilities	491,269	197,713
Accrued expenses and other current liabilities - related parties	203,917	282,597
Deferred revenue	51,158	0
Total Current Liabilities	746,344	480,310
Commitments and contingencies
Stockholders' (Deficiency) Equity:
Preferred stock, $0.0001 par value, 20,000,000 shares authorized; Series A Preferred Stock, 1,000,000 shares designated; None issued and outstanding at September 30, 2018 and December 31, 2017	0	0
Common stock, $0.0001 par value, 100,000,000 shares authorized; 78,021,819 and 77,440,000 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	7,802	7,744
Additional paid-in capital	5,750,416	5,090,282
Accumulated deficit	(6,020,038)	(4,358,320)
Total Stockholders' (Deficiency) Equity	(261,820)	739,706
Total Liabilities and Stockholders' (Deficiency) Equity	$ 484,524	$ 1,220,016

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Preferred Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	78,021,819	77,440,000
Common Stock, Shares, Outstanding	78,021,819	77,440,000
Series A Preferred Stock [Member]
Preferred Stock, Shares Authorized	1,000,000	1,000,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue	$ 482,798	$ 15,106	$ 881,929	$ 26,006
Cost of revenue	75,384	52,384	258,801	108,579
Gross Profit (Loss)	407,414	(37,278)	623,128	(82,573)
Operating Expenses:
Research and development	161,194	157,876	399,884	207,504
Research and development - related parties	0	38,767	0	439,824
Selling, general and administrative	461,377	605,473	1,908,635	1,019,835
Total Operating Expenses	622,571	802,116	2,308,519	1,667,163
Loss From Operations	(215,157)	(839,394)	(1,685,391)	(1,749,736)
Other Income (Expense):
Interest (expense) income , net	(269)	142	(502)	(8,114)
Change in fair value of accrued issuable equity	24,175	0	24,175	0
Total Other Income (Expense)	23,906	142	23,673	(8,114)
Net Loss	$ (191,251)	$ (839,252)	$ (1,661,718)	$ (1,757,850)
Net Loss Per Share - Basic and Diluted	$ 0.00	$ (0.01)	$ (0.02)	$ (0.03)
Weighted Average Number of Common Shares Outstanding - Basic and Diluted	77,785,191	76,843,759	77,513,560	59,570,769

XML

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) - 9 months ended Sep. 30, 2018 - USD ($)		Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2017		$ 739,706	$ 7,744	$ 5,090,282	$ (4,358,320)
Balance (shares) at Dec. 31, 2017			77,440,000
Stock-based compensation		307,792	$ 0	307,792	0
Common stock issued for cash, net of issuance costs	[1]	352,400	$ 58	352,342	0
Common stock issued for cash, net of issuance costs (in shares)	[1]		581,819
Net loss		(1,661,718)	$ 0	0	(1,661,718)
Balance at Sep. 30, 2018		$ (261,820)	$ 7,802	$ 5,750,416	$ (6,020,038)
Balance (shares) at Sep. 30, 2018			78,021,819

[1] Includes gross proceeds of $384,000, less issuance costs of $31,600 ($25,000 of cash and $6,600 of non-cash).

XML

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) (Parenthetical) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Proceeds From Issuance Of Private Placement Gross	$ 384,000	$ 384,000
Stock Issued	6,600
Common Stock [Member]
Payments of Stock Issuance Costs	31,600
Common Stock [Member] | Cash [Member]
Payments of Stock Issuance Costs	$ 25,000	$ 25,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017
Cash Flows From Operating Activities:
Net loss		$ (1,661,718)	$ (1,757,850)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		11,824	3,374
Change in fair value of accrued issuable equity		(24,175)	0
Stock-based compensation		402,656	411,181
Changes in operating assets and liabilities:
Accounts receivable		(3,638)	(19,106)
Other current receivable		0	30,000
Other current receivable - related parties		0	2,000
Interest receivable - related party		0	2,152
Inventory		0	(15,151)
Prepaid expenses		23,733	(115,945)
Other current assets		(2,362)	861,377
Accrued expenses and other current liabilities		216,267	189,083
Accrued expenses and other current liabilities - related parties		(78,680)	145,300
Deferred revenue		51,158	0
Total Adjustments		596,783	1,494,265
Net Cash Used In Operating Activities		(1,064,935)	(263,585)
Cash Flows From Investing Activities:
Proceeds from loan from related party		0	85,000
Cash acquired in reverse recapitalization		0	1,859,261
Purchases of property and equipment		(15,476)	(36,271)
Net Cash (Used In) Provided By Investing Activities		(15,476)	1,907,990
Cash Flows from Financing Activities:
Proceeds from sale of common stock	[1]	359,000	0
Net Cash Provided By Financing Activities		359,000	0
Net (Decrease) Increase In Cash		(721,411)	1,644,405
Cash - Beginning of Period		895,761	9,087
Cash - End of Period		174,350	1,653,492
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for: Interest		646	0
Cash paid during the period for: Income taxes		2,400	1,600
Non-cash investing and financing activities:
Common stock equity offering issuance costs		$ 6,600	$ 0

[1] Includes gross proceeds of $384,000, less withheld issuance costs of $25,000.

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Proceeds From Issuance Of Private Placement Gross	$ 384,000	$ 384,000
Common Stock [Member]
Payments of Stock Issuance Costs	31,600
Common Stock [Member] | Cash [Member]
Payments of Stock Issuance Costs	$ 25,000	$ 25,000

XML

Business Organization, Nature of Operations and Basis of Presentation

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 Business Organization, Nature of Operations and Basis of Presentation

Organization and Operations

Effective August 30, 2018, KT High-Tech Marketing, Inc. changed its name to KULR Technology Group, Inc. KULR Technology Group, Inc. ("KUTG") through its wholly-owned subsidiary, KULR Technology Corporation (“KTC”) (collectively referred to as “KULR” or the “Company”), is primarily focused on developing and commercializing its thermal management technologies, which it acquired through assignment from and license with KTC’s co-founder Dr. Timothy Knowles, in the high value, high-performance consumer electronic and energy storage applications. KTC owns proprietary carbon fiber based (Carbon Fiber Velvet or “CFV”) thermal management solutions that it believes are more effective at conducting, dissipating and storing heat generated by an electronic system’s internal components (i.e. semiconductor, integrated circuits “chips”) in comparison to traditional materials, such as copper and aluminum. KTC’s technologies can be applied inside a wide array of electronic applications where heat is often a problem, such as mobile devices, cloud computing, virtual reality platforms, satellites, internet of things, drones, and connected cars.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of September 30, 2018 and for the three and nine months then ended. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the operating results for the full year ending December 31, 2018 or any other period. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related disclosures as of December 31, 2017 and for the year then ended, which were filed with the Securities and Exchange Commission (“SEC”) on Form 10-K on April 17, 2018.

XML

Going Concern and Management's Plans

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Substantial Doubt about Going Concern [Text Block]

Note 2 Going Concern and Management’s Plans

The Company has not yet achieved profitability and expects to continue to incur cash outflows from operations. It is expected that its research and development and general and administrative expenses will continue to increase and, as a result, the Company will eventually need to generate significant product revenues to achieve profitability. These conditions indicate that there is substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statement issuance date.

The Company is currently funding its operations on a month-to-month basis. Although the Company’s management believes that it has access to capital resources, there are currently no commitments in place for new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. If the Company is unable to obtain adequate funds on reasonable terms, it may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures.

The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustment that might become necessary should the Company be unable to continue as a going concern.

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Note 3 Summary of Significant Accounting Policies

The Company’s significant accounting policies are disclosed in Note 2 – Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Since the date of the Annual Report, there have been no material changes to the Company’s significant accounting policies, except as disclosed below.

Concentrations of Credit Risk

The Company maintains cash with major financial institutions. Cash held in U.S. bank institutions is currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at each institution. There was an aggregate uninsured cash balance of $611,450 at December 31, 2017. There was no uninsured balance as of September 30, 2018.

Customer concentrations are as follows:

	Revenues												Accounts Receivable
	For the Three Months Ended						For the Nine Months Ended						As of			As of
	September 30,						September 30,						September 30, 2018			December 31, 2017
	2018			2017			2018			2017
Customer A		*			*			17	%		*			*			15	%
Customer B		*			*			12	%		*			*			*
Customer C		92	%		*			64	%		*			92	%		43	%
Customer D		*			*			*			42	%		*			16	%
Customer E		*			76	%		*			44	%		*			*
Customer F		*			24	%		*			14	%		*			*
Total		92	%		100	%		93	%		100	%		92	%		74	%

* Less than 10%

Deferred Offering Costs

Deferred offering costs, which primarily consist of direct, incremental professional fees incurred in connection with a debt or equity financing, are capitalized as non-current assets on the balance sheet. Once the financing closes, the Company reclassifies such costs as either discounts to notes payable or as a reduction of proceeds received from equity transactions so that such costs are recorded as a reduction of additional paid-in capital. If the completion of a contemplated financing was deemed to be no longer probable, the related deferred offering costs would be charged to general and administrative expense in the condensed consolidated financial statements.

Revenue Recognition

On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing accounting principles generally accepted in the United States of America (“U.S. GAAP”) including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation.

The Company adopted ASC 606 for all applicable contracts using the modified retrospective method, which would have required a cumulative-effect adjustment, if any, as of the date of adoption. The adoption of ASC 606 did not have a material impact on the Company's condensed consolidated financial statements as of the date of adoption. As a result, a cumulative-effect adjustment was not required.

The Company recognizes revenue primarily from the following different types of contracts:

· Product sales – Revenue is recognized at the point the customer obtains controls of the goods and the Company satisfies its performance obligation, which is generally at the time it ships the product to the customer.

· Contract services – Revenue is recognized at the point in time that the Company satisfies its performance obligation under the contract, which is generally at the time it delivers a report to the customer.

The following table summarizes our revenue recognized in our condensed consolidated statements of operations:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Product sales	$	482,798	$	15,106	$	735,941	$	26,006
Contract services		-		-		145,988		-
Total revenue	$	482,798	$	15,106	$	881,929	$	26,006

As of September 30, 2018, the Company had $0 and $51,158 contract assets and contract liabilities, respectively, from contracts with customers. The contract liabilities represent payments received from customers for which the Company had not yet satisfied its performance obligation under the contract. As of December 31, 2017, the Company did not have any contract assets or contract liabilities from contracts with customers. During the three and nine months ended September 30, 2018, and 2017, $0 of revenue was recognized from performance obligations satisfied (or partially satisfied) in previous periods.

Reclassifications

Certain prior year balance sheet amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Net Loss Per Common Share

Basic net loss per common share is computed by dividing net loss by the weighted average number of vested common shares outstanding during the period. The following weighted average shares were excluded from basic weighted average common stock outstanding:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Non-vested restricted stock		-		596,241		90,812		782,051
Total		-		596,241		90,812		782,051

Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of non-vested restricted stock, if not anti-dilutive.

The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:

	September 30,
	2018		2017
Non-vested restricted stock		-		500,000
Total		-		500,000

Recently Issued Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, “Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting,” (“ASU 2017-09”). ASU 2017-09 provides clarity on the accounting for modifications of stock-based awards. ASU 2017-09 requires adoption on a prospective basis in the annual and interim periods for fiscal years beginning after December 15, 2017 for share-based payment awards modified on or after the adoption date. The Company adopted ASU 2017-09 effective January 1, 2018 and its adoption did not have a material impact on the Company’s condensed consolidated financial statements.

In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, “Compensation — Stock Compensation (Topic 718),” (“ASU 2018-07”). ASU 2018-07 is intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. Currently, the accounting requirements for nonemployee and employee share-based payment transactions are significantly different. ASU 2018-07 expands the scope of Topic 718, Compensation — Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity — Equity-Based Payments to Nonemployees. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within that fiscal year. Early adoption is permitted, but no earlier than a company’s adoption date of Topic 606, Revenue from Contracts with Customers. The Company early adopted ASU 2018-07 effective April 1, 2018. The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements.

In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements” (“ASU 2018-09”). These amendments provide clarifications and corrections to certain ASC subtopics including the following: Income Statement - Reporting Comprehensive Income – Overall (Topic 220-10), Debt - Modifications and Extinguishments (Topic 470-50), Distinguishing Liabilities from Equity – Overall (Topic 480-10), Compensation - Stock Compensation - Income Taxes (Topic 718-740), Business Combinations - Income Taxes (Topic 805-740), Derivatives and Hedging – Overall (Topic 815-10), and Fair Value Measurement – Overall (Topic 820-10). The majority of the amendments in ASU 2018-09 will be effective in annual periods beginning after December 15, 2018. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements.

In July 2018, the FASB issued Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases,” (“ASU 2018-10”). The amendments in ASU 2018-10 are to address stakeholders’ questions about how to apply certain aspects of the new guidance in ASC 842. The clarifications address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. The amendments in ASC Topic 842 are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently in the process of evaluating its lease assets and lease liabilities to be recorded as of January 1, 2019. The Company continues to evaluate other provisions of the updated guidance and expects to complete its analysis by December 31, 2018.

In July 2018, the FASB issued Accounting Standards Update No. 2018-11, “Leases (Topic 842): Targeted Improvements,” (“ASU 2018-11”). The amendments in ASU 2018-11 related to transition relief on comparative reporting at adoption affect all entities with lease contracts that choose the additional transition method and separating components of a contract affect only lessors whose lease contracts qualify for the practical expedient. The amendments in ASC Topic 842 are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently in the process of evaluating its lease assets and lease liabilities to be recorded as of January 1, 2019. The Company continues to evaluate other provisions of the updated guidance and expects to complete its analysis by December 31, 2018.

In August 2018, the FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements.

XML

Prepaid Expenses

9 Months Ended

Sep. 30, 2018

Prepaid Expense, Current [Abstract]

Prepaid Expenses Disclosure [Text Block]

Note 4 Prepaid Expenses

As of September 30, 2018 and December 31, 2017, prepaid expenses consisted of the following:

	September 30, 2018		December 31, 2017
	(unaudited)
Business development services	$	-	$	40,000
Research and development services		27,616		25,000
Professional fees		16,991		10,000
Filing fees		12,500		-
Insurance		9,750		-
Other		15,876		31,466
Total prepaid expenses	$	82,733	$	106,466

XML

Accrued Expenses and Other Current Liabilities

9 Months Ended

Sep. 30, 2018

Accounts Payable and Accrued Liabilities, Current [Abstract]

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

Note 5 Accrued Expenses and Other Current Liabilities

As of September 30, 2018 and December 31, 2017, accrued expenses and other current liabilities consisted of the following:

	September 30, 2018		December 31, 2017
	(unaudited)
Accrued legal and professional fees	$	100,379	$	71,241
Accrued payroll and vacation		80,776		69,425
Payroll and income tax payable		107,601		14,223
Accrued research and development expenses		41,819		14,611
Credit card payable		6,266		110
Accrued issuable equity		77,289		1,104
Other		77,139		26,999
Total accrued expenses and other current liabilities	$	491,269	$	197,713

The Company has agreed to issue an aggregate of 117,104 shares of common stock for legal and consulting fees. See Note 7 – Stockholders’ Equity – Stock-Based Compensation for details of related expense recognized. As of September 30, 2018, the shares had not been issued and, as a result, $77,289 of accrued issuable equity is included within accrued expenses and other current liabilities.

XML

Related Party Transactions

9 Months Ended

Sep. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 6 Related Party Transactions

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities – related parties consist of: (i) a liability of $142,269 and $254,344 as of September 30, 2018 and December 31, 2017, respectively, to Energy Science Laboratories, Inc. (“ESLI”), a company controlled by the Company’s Chief Technology Officer (“CTO”), in connection with consulting services provided to the Company associated with the development of the Company’s CFV thermal management solutions; and (ii) a liability of $61,647 and $28,253 as of September 30, 2018 and December 31, 2017, respectively, to the Company’s Chief Executive Officer (“CEO”) in connection with Company-related travel and entertainment expenses incurred by the CEO.

Consulting Agreements

During the three and nine months ended September 30, 2017, the Company recorded aggregate expense of $0 and $65,000 (of which, $32,500 and $32,500 was included within research and development expenses and selling, general and administrative expenses, respectively), respectively, related to consulting agreements with its CEO and CTO, which were terminated in connection with the closing of the Share Exchange Agreement on June 19, 2017.

During the three and nine months ended September 30, 2017, the Company recorded research and development expense of $38,767 and $407,324, respectively, related to consulting services provided to the Company by ESLI associated with the development of the Company’s CFV thermal management solutions. There were no such costs recorded in the three and nine months ended September 30, 2018. ESLI is controlled by the Company’s CTO.

XML

Stockholders' Equity

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 7 Stockholders' Equity

Private Placement of Common Stock

During the three months ended September 30, 2018, the Company sold an aggregate of 581,819 shares of common stock at $0.66 per share to accredited investors for aggregate gross and net proceeds of $384,000 and $352,400, respectively. Of the $31,600 of issuance costs, $25,000 were cash costs and $6,600 were non-cash costs.

Stock-Based Compensation

During the three and nine months ended September 30, 2018, the Company recognized stock-based compensation expense of $94,864 and $402,656, respectively, and during the three and nine months ended September 30, 2017, the Company recognized stock-based compensation expense of $187,023 and $411,181, respectively, related to restricted common stock awards which is included within general and administrative expenses on the condensed consolidated statements of operations. As of September 30, 2018, there was no unrecognized stock-based compensation expense.

Equity Incentive Plan

On August 15 and November 5, 2018, the Board of Directors and a majority of  the Company’s shareholders, respectively, approved the 2018 KULR Technology Group Equity Incentive Plan (the “2018 Plan”). Under the 2018 Plan, 15,000,000 shares of common stock of the Company are authorized for issuance. The 2018 Plan provides for the issuance of incentive stock options, non-statutory stock options, rights to purchase common stock, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants of the Company and its affiliates. The 2018 Plan requires the exercise price of stock options to be not less than the fair value of the Company’s common stock on the date of grant.

XML

Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 8 Commitments and Contingencies

Patent License Agreement

On March 21, 2018, the Company entered into an agreement with the National Renewable Energy Laboratory (“NREL”) granting the Company an exclusive license to commercialize its patented Internal Short Circuit technology. The agreement shall be effective for as long as the licensed patents are enforceable, subject to certain early termination provisions specified in the agreement. In consideration, the Company agreed to pay to NREL the following: (i) a cash payment of $12,000 payable over one year, and (ii) royalties ranging from 1.5% to 3.75% on the net sales price of the licensed products, as defined in the agreement, with minimum annual royalty payments ranging from $0 to $7,500. In addition, the Company shall use commercially reasonable efforts to bring the licensed products to market through a commercialization program that requires that certain milestones be met, as specified in the agreement. As of the date of filing, there had been no sales of the licensed products, such that no royalties had been earned.

XML

Subsequent Events

9 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 9 Subsequent Events

Shareholder Consent

On November 5, 2018, the Company received a written consent of the stockholders representing 78.4% of the issued and outstanding securities of the Company entitled to vote on matters of the stockholders to take the following actions: (i) to amend the Company’s certificate of incorporation with the Delaware Secretary of State increasing the number of authorized shares of the Company’s common stock from 100,000,000 shares to 500,000,000 shares; (ii) to approve, ratify and adopt the Company’s 2018 Equity Incentive Plan, pursuant to which the Company may award up to 15,000,000 shares of the Company’s common stock to employees, nonemployee officers and directors and consultants for the purpose of, among other things, motivating such persons to put forth their maximum efforts for the Company’s growth, profitability and success; and (iii) to approve and authorize, as a measure to protect the progress of the Company by vesting voting control of the Company in its Chief Executive Officer, Michael Mo, the issuance of 1,000,000 shares of the Company’s Series A Voting Preferred Stock to Mr. Mo. 

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk

The Company maintains cash with major financial institutions. Cash held in U.S. bank institutions is currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at each institution. There was an aggregate uninsured cash balance of $611,450 at December 31, 2017. There was no uninsured balance as of September 30, 2018.

Customer concentrations are as follows:

	Revenues												Accounts Receivable
	For the Three Months Ended						For the Nine Months Ended						As of			As of
	September 30,						September 30,						September 30, 2018			December 31, 2017
	2018			2017			2018			2017
Customer A		*			*			17	%		*			*			15	%
Customer B		*			*			12	%		*			*			*
Customer C		92	%		*			64	%		*			92	%		43	%
Customer D		*			*			*			42	%		*			16	%
Customer E		*			76	%		*			44	%		*			*
Customer F		*			24	%		*			14	%		*			*
Total		92	%		100	%		93	%		100	%		92	%		74	%

* Less than 10%

Deffered Offering Costs Policy [Policy Text Block]

Deferred Offering Costs

Deferred offering costs, which primarily consist of direct, incremental professional fees incurred in connection with a debt or equity financing, are capitalized as non-current assets on the balance sheet. Once the financing closes, the Company reclassifies such costs as either discounts to notes payable or as a reduction of proceeds received from equity transactions so that such costs are recorded as a reduction of additional paid-in capital. If the completion of a contemplated financing was deemed to be no longer probable, the related deferred offering costs would be charged to general and administrative expense in the condensed consolidated financial statements.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

On January 1, 2018, the Company adopted ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing accounting principles generally accepted in the United States of America (“U.S. GAAP”) including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation.

The Company adopted ASC 606 for all applicable contracts using the modified retrospective method, which would have required a cumulative-effect adjustment, if any, as of the date of adoption. The adoption of ASC 606 did not have a material impact on the Company's condensed consolidated financial statements as of the date of adoption. As a result, a cumulative-effect adjustment was not required.

The Company recognizes revenue primarily from the following different types of contracts:

· Product sales – Revenue is recognized at the point the customer obtains controls of the goods and the Company satisfies its performance obligation, which is generally at the time it ships the product to the customer.

· Contract services – Revenue is recognized at the point in time that the Company satisfies its performance obligation under the contract, which is generally at the time it delivers a report to the customer.

The following table summarizes our revenue recognized in our condensed consolidated statements of operations:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Product sales	$	482,798	$	15,106	$	735,941	$	26,006
Contract services		-		-		145,988		-
Total revenue	$	482,798	$	15,106	$	881,929	$	26,006

As of September 30, 2018, the Company had $0 and $51,158 contract assets and contract liabilities, respectively, from contracts with customers. The contract liabilities represent payments received from customers for which the Company had not yet satisfied its performance obligation under the contract. As of December 31, 2017, the Company did not have any contract assets or contract liabilities from contracts with customers. During the three and nine months ended September 30, 2018, and 2017, $0 of revenue was recognized from performance obligations satisfied (or partially satisfied) in previous periods.

Reclassification, Policy [Policy Text Block]

Reclassifications

Certain prior year balance sheet amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Common Share

Basic net loss per common share is computed by dividing net loss by the weighted average number of vested common shares outstanding during the period. The following weighted average shares were excluded from basic weighted average common stock outstanding:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Non-vested restricted stock		-		596,241		90,812		782,051
Total		-		596,241		90,812		782,051

Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of non-vested restricted stock, if not anti-dilutive.

The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:

	September 30,
	2018		2017
Non-vested restricted stock		-		500,000
Total		-		500,000

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements

In May 2017, the FASB issued ASU No. 2017-09, “Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting,” (“ASU 2017-09”). ASU 2017-09 provides clarity on the accounting for modifications of stock-based awards. ASU 2017-09 requires adoption on a prospective basis in the annual and interim periods for fiscal years beginning after December 15, 2017 for share-based payment awards modified on or after the adoption date. The Company adopted ASU 2017-09 effective January 1, 2018 and its adoption did not have a material impact on the Company’s condensed consolidated financial statements.

In June 2018, the FASB issued Accounting Standards Update (“ASU”) No. 2018-07, “Compensation — Stock Compensation (Topic 718),” (“ASU 2018-07”). ASU 2018-07 is intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. Currently, the accounting requirements for nonemployee and employee share-based payment transactions are significantly different. ASU 2018-07 expands the scope of Topic 718, Compensation — Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity — Equity-Based Payments to Nonemployees. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within that fiscal year. Early adoption is permitted, but no earlier than a company’s adoption date of Topic 606, Revenue from Contracts with Customers. The Company early adopted ASU 2018-07 effective April 1, 2018. The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements.

In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements” (“ASU 2018-09”). These amendments provide clarifications and corrections to certain ASC subtopics including the following: Income Statement - Reporting Comprehensive Income – Overall (Topic 220-10), Debt - Modifications and Extinguishments (Topic 470-50), Distinguishing Liabilities from Equity – Overall (Topic 480-10), Compensation - Stock Compensation - Income Taxes (Topic 718-740), Business Combinations - Income Taxes (Topic 805-740), Derivatives and Hedging – Overall (Topic 815-10), and Fair Value Measurement – Overall (Topic 820-10). The majority of the amendments in ASU 2018-09 will be effective in annual periods beginning after December 15, 2018. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements.

In July 2018, the FASB issued Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases,” (“ASU 2018-10”). The amendments in ASU 2018-10 are to address stakeholders’ questions about how to apply certain aspects of the new guidance in ASC 842. The clarifications address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. The amendments in ASC Topic 842 are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently in the process of evaluating its lease assets and lease liabilities to be recorded as of January 1, 2019. The Company continues to evaluate other provisions of the updated guidance and expects to complete its analysis by December 31, 2018.

In July 2018, the FASB issued Accounting Standards Update No. 2018-11, “Leases (Topic 842): Targeted Improvements,” (“ASU 2018-11”). The amendments in ASU 2018-11 related to transition relief on comparative reporting at adoption affect all entities with lease contracts that choose the additional transition method and separating components of a contract affect only lessors whose lease contracts qualify for the practical expedient. The amendments in ASC Topic 842 are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company is currently in the process of evaluating its lease assets and lease liabilities to be recorded as of January 1, 2019. The Company continues to evaluate other provisions of the updated guidance and expects to complete its analysis by December 31, 2018.

In August 2018, the FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments are effective for all entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements.

XML

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

Customer concentrations are as follows:

	Revenues												Accounts Receivable
	For the Three Months Ended						For the Nine Months Ended						As of			As of
	September 30,						September 30,						September 30, 2018			December 31, 2017
	2018			2017			2018			2017
Customer A		*			*			17	%		*			*			15	%
Customer B		*			*			12	%		*			*			*
Customer C		92	%		*			64	%		*			92	%		43	%
Customer D		*			*			*			42	%		*			16	%
Customer E		*			76	%		*			44	%		*			*
Customer F		*			24	%		*			14	%		*			*
Total		92	%		100	%		93	%		100	%		92	%		74	%

* Less than 10%

Revenue from External Customers by Products and Services [Table Text Block]

The following table summarizes our revenue recognized in our condensed consolidated statements of operations:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Product sales	$	482,798	$	15,106	$	735,941	$	26,006
Contract services		-		-		145,988		-
Total revenue	$	482,798	$	15,106	$	881,929	$	26,006

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

Basic net loss per common share is computed by dividing net loss by the weighted average number of vested common shares outstanding during the period. The following weighted average shares were excluded from basic weighted average common stock outstanding:

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Non-vested restricted stock		-		596,241		90,812		782,051
Total		-		596,241		90,812		782,051

Diluted net loss per common share is computed by dividing net loss by the weighted average number of common and dilutive common-equivalent shares outstanding during each period. Dilutive common-equivalent shares consist of shares of non-vested restricted stock, if not anti-dilutive.

The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:

	September 30,
	2018		2017
Non-vested restricted stock		-		500,000
Total		-		500,000

XML

Prepaid Expenses (Tables)

9 Months Ended

Sep. 30, 2018

Prepaid Expense, Current [Abstract]

Schedule of Prepaid Expenses [Table Text Block]

As of September 30, 2018 and December 31, 2017, prepaid expenses consisted of the following:

	September 30, 2018		December 31, 2017
	(unaudited)
Business development services	$	-	$	40,000
Research and development services		27,616		25,000
Professional fees		16,991		10,000
Filing fees		12,500		-
Insurance		9,750		-
Other		15,876		31,466
Total prepaid expenses	$	82,733	$	106,466

XML

Accrued Expenses and Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Accounts Payable and Accrued Liabilities, Current [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

As of September 30, 2018 and December 31, 2017, accrued expenses and other current liabilities consisted of the following:

	September 30, 2018		December 31, 2017
	(unaudited)
Accrued legal and professional fees	$	100,379	$	71,241
Accrued payroll and vacation		80,776		69,425
Payroll and income tax payable		107,601		14,223
Accrued research and development expenses		41,819		14,611
Credit card payable		6,266		110
Accrued issuable equity		77,289		1,104
Other		77,139		26,999
Total accrued expenses and other current liabilities	$	491,269	$	197,713

XML

Summary of Significant Accounting Policies (Details)		3 Months Ended				9 Months Ended
		Sep. 30, 2018		Sep. 30, 2017		Sep. 30, 2018		Sep. 30, 2017		Dec. 31, 2017
Concentration Risk	[1]
Revenues [Member]
Concentration Risk, Percentage		92.00%		100.00%		93.00%		100.00%
Accounts Receivable [Member]
Concentration Risk		92.00%				92.00%				74.00%
Customer A [Member] | Revenues [Member]
Concentration Risk, Percentage			[1]		[1]	17.00%			[1]
Customer A [Member] | Accounts Receivable [Member]
Concentration Risk										15.00%
Customer B [Member] | Revenues [Member]
Concentration Risk, Percentage			[1]		[1]	12.00%			[1]
Customer B [Member] | Accounts Receivable [Member]
Concentration Risk	[1]
Customer C [Member] | Revenues [Member]
Concentration Risk, Percentage		92.00%			[1]	64.00%			[1]
Customer C [Member] | Accounts Receivable [Member]
Concentration Risk		92.00%				92.00%				43.00%
Customer D [Member] | Revenues [Member]
Concentration Risk, Percentage			[1]		[1]		[1]	42.00%
Customer D [Member] | Accounts Receivable [Member]
Concentration Risk			[1]				[1]			16.00%
Customer E [Member] | Revenues [Member]
Concentration Risk, Percentage			[1]	76.00%			[1]	44.00%
Customer E [Member] | Accounts Receivable [Member]
Concentration Risk	[1]
Customer F [Member] | Revenues [Member]
Concentration Risk, Percentage			[1]	24.00%			[1]	14.00%
Customer F [Member] | Accounts Receivable [Member]
Concentration Risk	[1]

[1] Less than 10%

XML

Summary of Significant Accounting Policies (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Total revenue	$ 482,798	$ 15,106	$ 881,929	$ 26,006
Product sales [Member]
Total revenue	482,798	15,106	735,941	26,006
Contract services [Member]
Total revenue	$ 0	$ 0	$ 145,988	$ 0

XML

Summary of Significant Accounting Policies (Details 2) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings per share basic [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	596,241	90,812	782,051
Earnings per share diluted [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			0	500,000
Restricted Stock [Member] | Earnings per share basic [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	596,241	90,812	782,051
Restricted Stock [Member] | Earnings per share diluted [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			0	500,000

XML

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Cash, FDIC Insured Amount	$ 250,000		$ 250,000
Cash, Uninsured Amount	0		0		$ 611,450
Contract with Customer, Asset, Net	0		0
Contract with Customer, Liability	51,158		51,158
Contract with Customer, Liability, Revenue Recognized	$ 0	$ 0	$ 0	$ 0

XML

Prepaid Expenses (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Total prepaid expenses	$ 82,733	$ 106,466
Business development services [Member]
Business development services	0	40,000
Research and development services	27,616	25,000
Professional fees	16,991	10,000
Filing fees	12,500	0
Insurance	9,750	0
Other	15,876	31,466
Total prepaid expenses	$ 82,733	$ 106,466

XML

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Accrued legal and professional fees	$ 100,379	$ 71,241
Accrued payroll and vacation	80,776	69,425
Payroll and income tax payable	107,601	14,223
Accrued research and development expenses	41,819	14,611
Credit card payable	6,266	110
Accrued issuable equity	77,289	1,104
Other	77,139	26,999
Total accrued expenses and other current liabilities	$ 491,269	$ 197,713

XML

Accrued Expenses and Other Current Liabilities (Details Textual) - USD ($)	1 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Accrued issuable Equity	$ 77,289	$ 1,104
Share To Be Issued Legal And Consulting Fees	117,104

XML

Related Party Transactions (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Due to Other Related Parties, Current	$ 203,917		$ 203,917		$ 282,597
Other Research and Development Expense	0	$ 38,767	0	$ 439,824
Consulting Agreements [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party		0		65,000
Consulting Agreements [Member] | Research and Development Expense [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party		32,500
Consulting Agreements [Member] | Selling, General and Administrative Expenses [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party		32,500
Chief Technology Officer CTO [Member]
Related Party Transaction [Line Items]
Due to Other Related Parties, Current	142,269		142,269		254,344
Energy Science Laboratories, Inc ESLI [Member]
Related Party Transaction [Line Items]
Other Research and Development Expense		$ 38,767		$ 407,324
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Due to Other Related Parties, Current	$ 61,647		$ 61,647		$ 28,253

XML

Stockholders' Equity (Details Textual) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018		Sep. 30, 2017	Nov. 05, 2018
Stock Issued During Period, Value, New Issues		$ 352,400		$ 352,400	[1]
Proceeds From Issuance Of Private Placement Gross		384,000		384,000
Stock Issued		6,600
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense		$ 94,864	$ 187,023	$ 402,656		$ 411,181
Subsequent Event [Member] | 2018 Group Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized							15,000,000
Common Stock [Member]
Stock Issued During Period, Shares, New Issues		581,819		581,819	[1]
Stock Issued During Period, Value, New Issues	[1]			$ 58
Sale of Stock, Price Per Share		$ 0.66		$ 0.66
Payments of Stock Issuance Costs		$ 31,600
Common Stock [Member] | Cash [Member]
Payments of Stock Issuance Costs		$ 25,000		$ 25,000

[1] Includes gross proceeds of $384,000, less issuance costs of $31,600 ($25,000 of cash and $6,600 of non-cash).

XML

Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Research and Development Expense	$ 161,194	$ 157,876	$ 399,884	$ 207,504
License [Member]
Research and Development Expense			$ 12,000
Minimum [Member]
Royalty Rate			1.50%
Royalty Expense			$ 0
Maximum [Member]
Royalty Rate			3.75%
Royalty Expense			$ 7,500

XML

Subsequent Events (Details Textual) - shares	Nov. 05, 2018	Sep. 30, 2018	Dec. 31, 2017
Subsequent Event [Line Items]
Common Stock, Shares Authorized		100,000,000	100,000,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Common Stock, Shares Authorized	500,000,000
Percentage of Issued and Outstanding Securities	78.40%
Subsequent Event [Member] | Series A Preferred Stock [Member]
Subsequent Event [Line Items]
Shares to be Issued	1,000,000
Subsequent Event [Member] | Two Thousand and Eighteen Group Equity Incentive Plan [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	15,000,000