KULR Technology Group, Inc. (NYSE American: KULR), a manufacturer of electronic components with a market capitalization of $489 million, announced on January 16, 2025, the issuance of 270,000 shares of its Non-convertible Series A Voting Preferred Stock to its Chairman and CEO, Michael Mo.
The company has shown remarkable market performance, with InvestingPro data showing a striking 1,255% return over the past year, despite high price volatility. This move, according to the Independent (LON:) Members of the Board, aims to enhance the company’s strategic flexibility and protect against potential hostile actions.
The shares, which do not convert into common stock or carry liquidation value, come with a condition that allows the Board to revoke them should Mo leave or be removed from his position. This condition seeks to ensure that the voting power remains with the active leadership, aligning with the long-term interests of the company and its shareholders.
Additionally, KULR’s Board, following the Compensation Committee’s recommendations, has approved adjustments to the cash compensation of its executive officers. These changes, effective January 16, 2025, are a response to a comprehensive review that found the executives’ pay to be below market rates.
According to InvestingPro data, the company faces financial challenges with a current ratio of 0.81 and negative EBITDA of $14.45 million in the last twelve months, highlighting the importance of strategic leadership during this growth phase.
The adjustments include an increase in the CEO’s salary to $450,000 with a grant of 2,000,000 restricted stock units (RSUs) vesting over four years, the CFO’s salary raised to $350,000 with 1,500,000 RSUs, and the CTO’s salary increased to $265,000 with 1,000,000 RSUs. The VP of Engineering was also granted 200,000 RSUs vesting on June 30, 2025.
These changes reflect KULR’s intention to align executive compensation with the company’s market position and to reward the leadership for guiding the company through market volatility and periods without compensatory adjustments. With annual revenue of $9.7 million and significant growth potential ahead, investors seeking deeper insights can access comprehensive analysis and 11 additional ProTips through InvestingPro‘s detailed research reports, which provide essential metrics and expert analysis for informed investment decisions.
The issuance of the preferred stock was made in reliance on exemptions from registration under the Securities Act, as detailed in the Certificate of Designation filed with the Delaware Secretary of State on June 6, 2017. Each share of Preferred A Stock provides 100 votes, significantly enhancing the voting power of the holder. This information is based on a press release statement from KULR Technology Group, Inc.
In other recent news, KULR Technology Group has expanded its stock offering by an additional $50 million, according to an amendment to its existing Sales Agreement with Craig-Hallum Capital Group LLC. The company has also regained NYSE American compliance, ending its noncompliance status, demonstrating adherence to the relevant listing standards for two consecutive quarters. In a strategic shift, KULR has adopted bitcoin as a primary reserve asset, allocating up to 90% of its surplus cash to the cryptocurrency.
In addition, KULR Technology Group has announced plans to deploy the KULR ONE Space battery on a SpaceX mission in 2026, marking a significant step in the development of their space battery systems. Furthermore, the company has secured a U.S. Navy contract to enhance its Internal Short Circuit technology, a key safety feature for military and commercial applications.
On the financial front, KULR reported a record third-quarter revenue of approximately $3.19 million, a 5% increase from the previous year, despite a decline in product revenue. The additional $50 million in common stock is expected to provide the company with increased financial flexibility.
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