KULR Technology (KULR) 10-K 19 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 18, 2021	Jun. 30, 2020
Document and Entity Information
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Entity Registrant Name	KULR Technology Group, Inc.
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		92,627,200
Entity Public Float			$ 86,305,522
Entity Central Index Key	0001662684
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Current Assets:
Cash	$ 8,880,140	$ 108,857
Accounts receivable	55,492	30,101
Inventory	55,452	27,091
Prepaid expenses and other current assets	159,196	43,201
Total Current Assets	9,150,280	209,250
Property and equipment, net	57,857	27,516
Total Assets	9,208,137	236,766
Current Liabilities:
Accounts payable	66,537	344,660
Accounts payable - related party	2,628	4,253
Accrued expenses and other current liabilities	395,012	659,399
Accrued expenses and other current liabilities - related party	0	10,419
Accrued issuable equity	128,380
Notes payable, net of debt discount of $128,198 and $0 at December 31, 2020 and 2019, respectively	2,321,802	0
Loans payable, current portion	12,936
Deferred revenue	20,000	15,000
Total Current Liabilities	2,947,295	1,033,731
Loans payable, non-current portion	142,290
Total Liabilities	3,089,585	1,033,731
Commitments and contingencies ( Note 13)
Stockholders' Deficiency:
Common stock, $0.0001 par value, 500,000,000 shares authorized;89,908,600 and 81,071,831 shares issued and outstanding at December 31, 2020 and 2019, respectively	8,991	8,107
Additional paid-in capital	17,355,968	7,591,239
Accumulated deficit	(11,246,408)	(8,396,312)
Total Stockholders' Equity (Deficiency)	6,118,552	(796,965)
Total Liabilities and Stockholders' Equity (Deficiency)	9,208,137	236,766
Series A Preferred Stock
Stockholders' Deficiency:
Preferred stock
Series B Convertible Preferred Stock
Stockholders' Deficiency:
Preferred stock	1	1
Total Stockholders' Equity (Deficiency)	1	1
Series C Preferred Stock [Member]
Stockholders' Deficiency:
Preferred stock

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Debt discount, Current	$ 128,198	$ 0
Preferred Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares Issued	89,908,600	81,071,831
Common Stock, Shares Outstanding	89,908,600	81,071,831
Series A Preferred Stock
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Series B Convertible Preferred Stock
Preferred Stock, Shares Authorized	31,000	31,000
Preferred Stock, Shares Issued	13,972	14,487
Preferred Stock, Shares Outstanding	13,972	14,487
Preferred Stock Shares Liquidated Preference	$ 13,972	$ 14,487
Series C Preferred Stock [Member]
Preferred Stock, Shares Authorized	400	400
Preferred Stock, Shares Issued	0	24.01
Preferred Stock, Shares Outstanding	0	24.01
Preferred Stock Shares Liquidated Preference	$ 0	$ 240,100

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 623,965	$ 830,398
Cost of revenue	169,016	226,505
Gross Profit	454,949	603,893
Operating Expenses:
Research and development	289,772	502,225
Selling, general, and administrative	2,505,609	2,080,941
Total Operating Expenses	2,795,381	2,583,166
Loss From Operations	(2,340,432)	(1,979,273)
Other (Expenses) Income
Interest expense, net	(5,268)	(1,580)
Other income		1,100
Amortization of debt discount	(501,802)
Change in fair value of accrued issuable equity	(2,594)
Total Other Expenses	(509,664)	(480)
Net Loss	(2,850,096)	(1,979,753)
Deemed dividend to Series C Preferred Stockholders	(1,691)
Net Loss Attributable to Common Stockholders	$ (2,851,787)	$ (1,979,753)
Net Loss Per Share - Basic and Diluted (In dollars per share)	$ (0.03)	$ (0.02)
Weighted Average Number of Common Shares Outstanding - Basic and Diluted (In Shares)	82,032,420	80,123,111

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) - USD ($)		Series B Convertible Preferred StockCommon Stock	Series B Convertible Preferred StockAdditional Paid-in Capital	Series B Convertible Preferred Stock	Series C Convertible Preferred StockCommon Stock	Series C Convertible Preferred StockAdditional Paid-in Capital	Series C Convertible Preferred Stock	Common StockCommon Stock	Common Stock	Additional Paid-in CapitalCommon Stock	Additional Paid-in CapitalStock options	Additional Paid-in Capital	Accumulated Deficit	Common Stock	Stock options	Total
Balance at Dec. 31, 2018				$ 3					$ 7,871			$ 6,283,548	$ (6,416,559)			$ (125,137)
Balance (shares) at Dec. 31, 2018				30,858					78,706,256
Stock-based compensation									$ 19			220,606				220,625
Stock-based compensation (in shares)									185,966
Common stock issued for cash									$ 135			898,165				898,300
Common stock issued for cash (in shares)									1,361,059
Common stock issued upon conversion of Series B Convertible Preferred Stock				$ (2)					$ 82			(80)
Common stock issued upon conversion of Series B Convertible Preferred Stock (in shares)				(16,371)					818,550
Series C Convertible Preferred Stock and warrants issued for cash, net of issuance costs	[1]											154,000				154,000
Series C Convertible Preferred Stock and warrants issued for cash, net of issuance costs (In shares)	[1]						24.01
Forgiveness of accrued expenses by related party												35,000				35,000
Net loss													(1,979,753)			(1,979,753)
Balance at Dec. 31, 2019				$ 1			$ 24.01		$ 8,107			7,591,239	(8,396,312)			(796,965)
Balance (shares) at Dec. 31, 2019				14,487					81,071,831
Stock-based compensation								$ 23		$ 178,619	$ 39,426			$ 178,642	$ 39,426
Stock-based compensation (in shares)								238,953
Common stock issued for the commitment fee pursuant to the SEDA agreement									$ 10			63,249				63,259
Common stock issued for the commitment fee pursuant to the SEDA agreement (in shares)									95,847
Common stock issued upon conversion of Series B Convertible Preferred Stock		$ 3	$ (3)
Common stock issued upon conversion of Series B Convertible Preferred Stock (in shares)				(515)					25,758
Common stock issued upon conversion of Series C Convertible Preferred Stock					$ 24	$ (24)
Common stock issued upon conversion of Series C Convertible Preferred Stock (in shares)		25,758			56,777		(24.01)		234,662
Common stock and warrants issued for cash, net of issuance costs	[2]								$ 640			7,269,209				7,269,849
Common stock and warrants issued for cash, net of issuance costs (in shares)	[2]								6,400,001
Common stock issued pursuant to the SEDA agreement for cash, net of issuance costs	[3]								$ 113			1,423,324				1,423,437
Common stock issued pursuant to the SEDA agreement for cash, net of issuance costs (in shares)	[3]								1,128,908
Common stock issued pursuant to the SEDA agreement, In satisfaction of notes payable									$ 71			790,929				791,000
Common stock issued pursuant to the SEDA agreement, In satisfaction of notes payable (in shares)									712,640
Net loss													(2,850,096)			(2,850,096)
Balance at Dec. 31, 2020				$ 1					$ 8,991			$ 17,355,968	$ (11,246,408)			$ 6,118,552
Balance (shares) at Dec. 31, 2020				13,972					89,908,600
[1]	Includes gross proceeds of $216,000, less cash issuance costs of $62,000.
[2]	Includes gross proceeds of $8,000,001, less issuance costs of $730,152 ($705,300 of cash and $24,852 of non-cash).
[3]	Amount represents gross proceeds of $1,501,696 less $78,259 issuance costs.

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY) (Parenthetical)	12 Months Ended
	Dec. 31, 2020USD ($)
Payments of Stock Issuance Costs	$ 15,000
Proceeds from sale of common stock and warrants	8,000,001
Gross proceeds from issuance of common stock and warrants	8,000,000
Payment of offering costs in connection with sale of common stock and warrants	705,300
Proceeds from sale of common stock	1,501,696
Common Stock
Payments of Stock Issuance Costs	730,152
Gross proceeds from issuance of common stock and warrants	8,000,001
Common Stock | Standby Equity Distribution Agreement
Payments of Stock Issuance Costs	78,259
Proceeds from sale of common stock	1,501,696
Cash | Common Stock
Payments of Stock Issuance Costs	705,300
Cash | Common Stock | Series C Convertible Preferred Stock
Payments of Stock Issuance Costs	32,000
Non Cash [Member] | Common Stock
Non-cash issuance costs	$ 24,852

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash Flows From Operating Activities:
Net loss	$ (2,850,096)	$ (1,979,753)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	501,802
Depreciation expense	15,746	17,275
Bad debt expense	933
Write-down of inventory		90
Change in fair value of accrued issuable equity	2,594
Stock-based compensation	343,854	220,625
Changes in operating assets and liabilities:
Accounts receivable	(26,324)	82,123
Inventory	(28,361)	(17,587)
Prepaid expenses and other current assets	(115,995)	11,401
Accounts payable	(296,072)	230,918
Accounts payable - related party	(1,625)
Accrued expenses and other current liabilities	(271,290)	270,069
Accrued expenses and other current liabilities - related party	10,419	38,500
Deferred revenue	5,000	15,000
Total Adjustments	119,843	791,414
Net Cash Used In Operating Activities	(2,730,253)	(1,188,339)
Cash Flows From Investing Activities:
Purchase of property and equipment	(46,087)
Net Cash Used In Investing Activities	(46,087)
Cash Flows from Financing Activities:
Proceeds from note payable	3,710,000
Repayments of note payable	(759,000)
Payment of debt issuance costs	(340,000)
Proceeds from Paycheck Protection Program loan	155,226
Proceeds from sale of Series C Convertible Preferred Stock and warrants		184,000
Payment of offering costs in connection with sale of Series C Convertible Preferred Stock and warrants		(15,000)
Proceeds from sale of common stock issued pursuant to the SEDA agreement	1,501,696
Payment of offering costs in connection with the SEDA agreement	(15,000)
Proceeds from sale of common stock and warrants	8,000,001	898,300
Payment of offering costs in connection with sale of common stock and warrants	(705,300)
Net Cash Provided By Financing Activities	11,547,623	1,067,300
Net Increase (Decrease) In Cash	8,771,283	(121,039)
Cash - Beginning of Period	108,857	229,896
Cash - End of Period	8,880,140	108,857
Cash paid during the year for:
Interest	3,890	789
Non-cash investing and financing activities:
Common stock issued for repayment of note payable	791,000
Forgiveness of accrued expenses by related party		35,000
Original issuance discount on note payable	290,000
Value of common stock issued as a commitment fee for the SEDA agreement	63,259
Disposal of fully depreciated property and equipment	1,829
Series B Convertible Preferred Stock
Non-cash investing and financing activities:
Common stock issued upon conversion	3	82
Series C Convertible Preferred Stock
Cash Flows from Financing Activities:
Payment of offering costs in connection with the SEDA agreement		$ (62,000)
Non-cash investing and financing activities:
Common stock issued upon conversion	$ 24

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Payments of Stock Issuance Costs	$ 15,000
Proceeds From Issuance Of Common Stock	898,300
Series C Convertible Preferred Stock
Gross cash proceeds from preferred stock and warrants		$ 216,000
Payments of Stock Issuance Costs		62,000
Common Stock
Payments of Stock Issuance Costs	730,152
Common Stock | Standby Equity Distribution Agreement
Gross cash proceeds from common stock	2,292,695
Payments of Stock Issuance Costs	78,259
Proceeds from issuance withheld by investors	791,000
Common Stock | Series C Convertible Preferred Stock
Gross proceeds from sale of Series C Convertible Preferred Stock and warrants		216,000
Proceeds From Issuance Of Private Placement Gross	216,000
Proceeds From Issuance Of Common Stock		184,000
Cash | Common Stock
Payments of Stock Issuance Costs	705,300
Cash | Common Stock | Series C Convertible Preferred Stock
Payments of Stock Issuance Costs	$ 32,000	$ 32,000

BUSINESS ORGANIZATION, NATURE O

BUSINESS ORGANIZATION, NATURE OF OPERATIONS AND RISKS AND UNCERTANTIES	12 Months Ended
	Dec. 31, 2020
BUSINESS ORGANIZATION, NATURE OF OPERATIONS AND RISKS AND UNCERTANTIES
BUSINESS ORGANIZATION, NATURE OF OPERATIONS AND RISKS AND UNCERTANTIES	NOTE 1 Organization and Operations KULR Technology Group, Inc. was incorporated on December 11, 2015 under the laws of the State of Delaware as KT High-Tech Marketing, Inc. Effective August 30, 2018, KT High-Tech Marketing, Inc. changed its name to KULR Technology Group, Inc. KULR Technology Group, Inc., through its wholly-owned subsidiary, KULR Technology Corporation (collectively referred to as “KULR” or the “Company”), develops and commercializes high-performance thermal management technologies for electronics, batteries, and other components across a range of applications. Currently, the Company is focused on targeting both, high performance aerospace and Department of Defense (“DOD”) applications, such as satellite communications, directed energy system and hypersonic vehicle, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electrical vehicle, 5G communication, cloud computer infrastructure, consumer and industrial devices. Risks and Uncertainties In January 2020, an outbreak of a new strain of coronavirus, COVID-19, was identified in Wuhan, China. Through the first quarter of 2020, the disease became widespread around the world, and on March 11, 2020, the World Health Organization declared a pandemic. Our business is dependent on developing new markets and new products to be used on a global basis, thus restrictions on travel led to reduced demand for our products and interruptions to supply chains. Also, the local regulations such as “Shelter in Place” affected our ability to maintain regular R&D and manufacturing schedules as well as the capability to meet customer demands in a timely manner. Given the uncertainty around the extent and timing of the potential future spread or mitigation of the Coronavirus and around the imposition or relaxation of protective measures, we cannot reasonably estimate the impact to our future results of operations, cash flows, or financial condition.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 Principles of Consolidation and Basis of Presentation The consolidated financial statements of the Company include the accounts of KULR Technology Group, Inc. and its wholly-owned subsidiary, KULR Technology Corporation. All significant intercompany transactions have been eliminated in the consolidation. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Liquidity The Company has previously disclosed that there was substantial doubt about its ability to continue as a going concern as a result of its past working capital balances, operating losses, and cash used in operations. During the year ended December 31, 2020, the Company raised aggregate gross proceeds of approximately $8.0 million, $1.5 million, and $3.9 million in connection with the sale of common stock and warrants in a public offering, the sale of common stock issued pursuant to a Standby Equity Distribution Agreement, and the issuances of notes payable, respectively. As of December 31, 2020, the Company had cash and working capital of approximately $8.9 million and $6.2 million, respectively. As a result of these capital raising efforts, the Company has alleviated the previously reported substantial doubt about its ability to continue as a going concern. For the year ended December 31, 2020, the Company incurred a net loss of approximately $2.9 million and used cash in operations of approximately $2.7 million. While the Company anticipates it will continue to incur operating losses and use cash in operating activities for the foreseeable future, the Company believes that its current working capital is sufficient in comparison to its anticipated cash usage for the period of at least the next twelve months subsequent to the filing date of these financial statements. Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the financial statements. The Company’s significant estimates used in these financial statements include, but are not limited to, fair value calculations for equity securities, stock-based compensation, the collectability of receivables, inventory valuations, the recoverability and useful lives of long-lived assets, and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates. See Note 2 – Summary of Significant Accounting Policies, Stock-Based Compensation for additional discussion of the use of estimates in estimating the fair value of the Company’s common stock. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consisted primarily of cash, accounts receivable, revenue and accounts payable. Cash Concentrations A significant portion of the Company’s cash is held at one major financial institution. The Company has not experienced any losses in such accounts. Cash held in US bank institutions is currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at each institution. There was an uninsured balance of $8,513,010 as of December 31, 2020 and no uninsured cash balances as of December 31, 2019. Customer and Revenue Concentrations The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: Revenue Accounts Receivable For the Years Ended December 31, As of December 31, 2020 2019 2020 2019 Customer A * * % * Customer B * * % % Customer C * * * % Customer D * * % % Customer E * * * % Customer F * % * * Customer G % % * * Customer H % * * * Customer I * % * * Total % % % % * Less than 10% There is no assurance the Company will continue to receive significant revenues from any of these customers. Any reduction or delay in operating activity from any of the Company's significant customers, or a delay or default in payment by any significant customer, or termination of agreements with significant customers, could materially harm the Company's business and prospects. As a result of the Company's significant customer concentrations, its gross profit and results from operations could fluctuate significantly due to changes in political, environmental, or economic conditions, or the loss of, reduction of business from, or less favorable terms with any of the Company's significant customers. Accounts Receivable Accounts receivable are carried at their contractual amounts, less an estimate for uncollectible amounts. As of December 31, 2020 and 2019, no allowances for uncollectable amounts were determined to be necessary. Management estimates the allowance for bad debts based on existing economic conditions, the financial conditions of the customers, and the amount and age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted. Inventory Inventory is comprised of carbon fiber velvet (“CFV”) thermal interface solutions and internal short circuit batteries, which are available for sale. Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. The cost of inventory that is sold to third parties is included within cost of sales and the cost of inventory that is given as samples is included within operating expenses. The Company periodically reviews for slow-moving, excess or obsolete inventories. Products that are determined to be obsolete, if any, are written down to net realizable value. As of December 31, 2020, and 2019, the Company’s inventory was comprised solely of finished goods. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation which is recorded commencing at the in-service date using the straight-line method at rates sufficient to charge the cost of depreciable assets to operations over their estimated useful lives, which range from 3 to 7 years. Leasehold improvements are amortized over the shorter of (a) the useful life of the asset; or (b) the remaining lease term. Maintenance and repairs are charged to operations as incurred. The Company capitalizes cost attributable to the betterment of property and equipment when such betterment extends the useful life of the assets. The Company reviews for the impairment of long-lived assets annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when the present value of estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying value. Fair Value of Financial Instruments The Company measures the fair value of financial assets and liabilities based on the guidance of Accounting Standards Codification ("ASC") 820 “Fair Value Measurements and Disclosures” (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example, cash flow modeling inputs based on assumptions) The carrying amounts of the Company’s financial instruments, such as cash, accounts receivable, accrued expenses and other current liabilities, notes payable and loans payable approximate fair values due to the short-term nature of these instruments. Preferred Stock The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. The Company’s Preferred shares are classified as stockholders’ equity because they are not subject to mandatory redemption, which would result in liability classified instruments measured at fair value and are not conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) which would result in temporary equity classified instruments. Convertible Instruments The Company evaluates its convertible instruments to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for in accordance with Topic 815 of the FASB ASC. The accounting treatment of derivative financial instruments requires that the Company record embedded conversion options and any related freestanding instruments at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. Embedded conversion options and any related freestanding instruments are recorded as a discount to the host instrument. If the instrument is determined not to be a derivative liability, the Company then evaluates for the existence of a beneficial conversion feature by comparing the market price of the Company’s common stock as of the commitment date to the effective conversion price of the instrument. Accrued Issuable Equity The Company records accrued issuable equity when it is contractually obligated to issue shares and there has been a delay in the issuance of such shares. Accrued issuable equity is recorded and carried at fair value with changes in its fair value recognized in the Company’s consolidated statements of operations. Once the underlying shares of common stock are issued, the accrued issuable equity is reclassified as of the share issuance date at the then current fair market value of the common stock. 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 consolidated financial statements. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“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, 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 following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the company satisfies a performance obligation. The Company recognizes revenue primarily from the following different types of contracts: · Product sales – Revenue is recognized at the point in time the customer obtains control 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 the services are fulfilled and/or accepted by the customer . The following table summarizes the Company’s revenue recognized in its consolidated statements of operations: For the Years Ended December 31, 2020 2019 Product sales $ 404,467 $ 735,431 Contract services 219,498 94,967 Total revenue $ 623,965 $ 830,398 As of December 31, 2020 and 2019, the Company had $20,000 and $15,000 of deferred revenue, 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, or the customers have not officially accepted the goods or services provided under the contract. During the years ended December 31, 2020, and 2019, the Company recognized $15,000 and $0, respectively, of revenues that were included in deferred revenue in previous periods. As of December 31, 2020 and 2019, the Company recorded $31,212 and $0, respectively, of deferred labor costs, which is included in prepaid expenses and other current assets in the Company's consolidated balance sheets. Deferred labor costs represented costs to fulfill the Company's contract service revenue. The Company will recognize the deferred labor costs as cost of revenues at the point in time that the Company satisfies its performance obligation under the respective contract, which is generally at the time the services are fulfilled and/or accepted by the customer. Shipping and Handling Costs Shipping and handling costs incurred by the Company as well as fees received by customers for products shipped to customers are included in selling, general and administrative expenses in the consolidated statements of operations. For the years ended December 31, 2020 and 2019, shipping and handling costs amounted to $18,887 and $3,172, respectively. Research and Development Research and development include expenses incurred in connection with the R&D of our CFV thermal management solution and non-cash stock-based compensation expenses. Research and development expenses are charged to operations as incurred. Advertising Costs Advertising costs are expensed in the period incurred. Advertising costs charged to operations for the years ended December 31, 2020 and 2019 were $123,846 and $49,300, respectively, and are included in selling, general and administrative in the consolidated statements of operations. Stock-Based Compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award since the fair value of the award is more readily determinable than the value of the services. The fair value of the award is measured on the grant date. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Upon the exercise of an award, the Company issues new shares of common stock out of its authorized shares. During the year ended December 31, 2019 and the period from January 1, 2020 through June 17, 2020, it was determined that the Company’s common stock had a fair value of $0.66 per share, which was based on a number of factors, such as the examination of the sales of common stock for cash and the convertible preferred stock for cash etc. All of the shares of common stock sold during the year ended December 31, 2019 were sold at $0.66 per share, therefore the value of the equity instruments issued during the stated periods were determined using a common stock fair value of $0.66 per share. For the period from June 18, 2020 through December 31, 2020, the Company estimated the fair value of the awards granted in this period to be based on the market value of its freely tradable common stock as reported on the OTCQB market. The Company determined the freely tradable common stock price became a reliable and accurate representation of its fair market value during this period as a result of increased share volume and dollar trading volume. 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. 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: For the Years Ended December 31, 2020 2019 Series B Convertible Preferred Stock 698,600 724,350 Series C Convertible Preferred Stock — 240,100 Options 370,000 385,000 Warrants 6,787,911 210,025 Total 7,856,511 1,559,475 Operating Leases The Company leases properties under operating leases. For leases in effect upon adoption of Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" at January 1, 2019 and for any leases commencing thereafter, the Company recognizes a liability to make lease payments, the "lease liability", and an asset representing the right to use the underlying asset during the lease term, the "right-of-use asset". The lease liability is measured at the present value of the remaining lease payments, discounted at the Company's incremental borrowing rate. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the right-of-use asset. The Company evaluated their operating lease and elected to apply the short-term lease measurement and recognition exemption in which the right of use asset and lease liability are not recognized for short-term leases. The adoption of this pronouncement did not have a material impact on the Company’s consolidated financial statements. Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included or excluded in the financial statements or tax returns. Deferred tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary differences are expected to reverse. The Company utilizes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2020 and 2019. The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as selling, general and administrative expenses in the consolidated statements of operations. Reclassifications Certain prior period balances have been reclassified in order to conform to the current period presentation. These reclassifications have no effect on previously reported results of operations or loss per share. Subsequent Events The Company has evaluated subsequent events through the date which the consolidated financial statements were issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the consolidated financial statements, except as disclosed. Recently Issued Accounting Pronouncements In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses ("ASU 2019-11"). ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU are effective, as revised by ASU 2019-10, for annual reporting periods beginning after December 15, 2022, as extended, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is currently evaluating ASU 2019-11 and its impact on its consolidated financial statements and financial statement disclosures. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning in fiscal years after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. The Company is currently assessing the impact that this pronouncement will have on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-10 "Codification Improvements", which improves consistency by amending the Codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022 with early adoption permitted. The Company is currently assessing the impact that this pronouncement will have on its consolidated financial statements. Recently Adopted Accounting Pronouncements In November 2018, the FASB issued Accounting Standards Update No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”), which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for periods for which financial 3 statements have not yet been issued and (2) for all other entities for periods for which financial statements have not yet been made available for issuance. The Company adopted ASU 2018-18 effective January 1, 2020 and its adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments” (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 upon issuance, which did not have a material effect on the Company’s consolidated financial statements.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	12 Months Ended
	Dec. 31, 2020
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS	NOTE 3 PREPAID EXPENSES AND OTHER CURRENT ASSETS As of December 31, 2020 and 2019, prepaid expenses and other current assets consisted of the following: December 31, 2020 2019 Filing $ 9,944 $ 9,858 Marketing 56,853 — Deferred labor costs 31,212 — Professional 10,603 4,134 Insurance 10,429 8,026 Security deposit 8,729 16,977 Other 31,426 4,206 Total prepaid expenses and other current assets $ 159,196 $ 43,201

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2020
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	NOTE 4 PROPERTY AND EQUIPMENT As of December 31, 2020 and 2019, property and equipment consisted of the following: December 31, 2020 2019 Estimated Useful Life Computer equipment $ 11,525 $ 13,355 3 years Leasehold improvement 8,834 8,834 15 years or the remaining life of the lease Software 5,656 5,656 3 years Machinery & equipment 72,392 26,304 5 -7 years Research and development equipment 12,810 12,810 3 years Furniture and fixtures 3,307 3,307 5 years 114,524 70,266 Less: accumulated deprecation (56,667) (42,750) Property and equipment; net $ 57,857 $ 27,516 Depreciation expense amounted to $15,746 and $17,275 for the years ended December 31, 2020 and 2019, respectively, which is included in selling, general and administrative expenses in the consolidated statements of operations. During the year ended December 31, 2020, the Company disposed of $1,829 of fully depreciated property and equipment.

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
	Dec. 31, 2020
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	NOTE 5 As of December 31, 2020 and 2019, accrued expenses and other current liabilities consisted of the following: December 31, 2020 2019 Payroll and vacation $ 279,054 $ 525,917 Legal and professional fees 81,902 60,000 Other 34,056 73,482 Total accrued expenses and other current liabilities $ 395,012 $ 659,399

ACCRUED ISSUABLE EQUITY

ACCRUED ISSUABLE EQUITY	12 Months Ended
	Dec. 31, 2020
ACCRUED ISSUABLE EQUITY.
ACCRUED ISSUABLE EQUITY	NOTE 6 ACCRUED ISSUABLE EQUITY A summary of the accrued issuable equity activity during the year ended December 31, 2020, is presented below: Balance, January 1, 2020 $ — Additions 205,297 Reclassifications to equity (79,511) Mark-to market 2,594 Balance, December 31, 2020 $ 128,380 Accrued Issuable Equity for Services During the year ended December 31, 2020, the Company entered into certain contractual arrangements for services in exchange for a fixed number of shares of common stock of the Company. On the respective dates the contracts were entered into, the estimated fair value of the shares to be issued was an aggregate of $205,297. During the year ended December 31, 2020, the Company settled certain of its accrued issuable equity obligations through the issuance of an aggregate of 100,000 of its shares with an aggregate fair value of $79,511, remeasured as of the date of settlement. During the year ended December 31, 2020, the Company recorded an aggregate of $2,594 of losses related to the change in fair value of accrued issuable equity (see Note 12 – Stockholders’ Deficiency, Stock-Based Compensation for additional details). The fair value of the accrued but unissued shares as of December 31, 2020 was $128,380.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 7 Accounts Payable – Related Party Accounts payable - related party consists of a liability of $2,628 and $4,253 as of December 31, 2020 and December 31, 2019, 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 in prior periods. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities - related party consisted of a liability of $0 and $10,419 as of December 31,2020 and 2019,respectively, to ESLI. On September 30, 2019, ESLI agreed to forgive $35,000 of previously accrued consulting fees. As a result, the Company accounted for the forgiveness as a capital contribution by reducing accrued expenses and other current liabilities by $35,000 with a corresponding credit to additional paid-in capital.

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
	Dec. 31, 2020
LINE OF CREDIT
LINE OF CREDIT	NOTE 8 On February 18, 2020, the Company entered into a financing agreement (the “Line of Credit”) wherein it may borrow up to $10,000. The repayment terms (interest rate, repayment amount and number of consecutive weekly periodic installments) are determined at the time the Company borrows proceeds under the Line of Credit. On February 19, 2020, the Company borrowed and received gross proceeds of $10,000 under the Line of Credit for its working capital needs, which was being repaid weekly over the 26-week period following the date of receipt at a weekly interest rate of 1.7%. The line of credit, including interest thereon, was repaid in July 2020. During the year ended December 31, 2020, the Company recorded interest expense of $2,292 related to the Line of Credit.

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Dec. 31, 2020
NOTES PAYABLE
NOTES PAYABLE	NOTE 9 A summary of the notes payable activity during the year ended December 31, 2020, is presented below: Notes Debt Payable Discount Total Outstanding, January 1, 2020 $ — $ — $ — Issuances 4,000,000 (630,000) 3,370,000 Repayments in cash (759,000) — (759,000) Repayments from proceeds of SEDA (791,000) — (791,000) Amortization of debt discount — 501,802 501,802 Outstanding, December 31, 2020 $ 2,450,000 $ (128,198) $ 2,321,802 During the year ended December 31, 2020, the Company entered into note purchase agreements with the YAII PN, Ltd., a Cayman Island exempt limited partnership (the “Investor”), pursuant to which the Investor purchased full recourse promissory notes (the “Notes”) in the original aggregate principal amount of $4,000,000 (“Principal Amount”) for cash proceeds of $3,710,000. The Notes included an original issue discount of $290,000, which represents the difference between the principal and proceeds received. The original issue discount, along with the $340,000 advisory fees were recorded as a debt discount which are being amortized over the term of the respective Notes using the effective interest rate method. The Notes bears no coupon interest (original issue discount only) and will become immediately due and payable on May 31, 2021 or June 30, 2021, depending on the Note, or upon acceleration, redemption or otherwise upon the occurrence of an event of default, as set forth in the Notes and which includes the early termination of a standby equity distribution agreement with the Investor (see Note 12 – Stockholders’ (Deficiency) Equity, Standby Equity Distribution Agreement ). The Company is required to repay the Principal Amount in monthly installments as set forth in the agreements. The Company may, at its discretion, prepay any installment amount or the principal amount, subject to a payment premium equal to the 10% of the amount being prepaid. Further, pursuant to the terms of the Notes, the Company may decrease any installment payment, up to three times per Note, by up to 50%, of which the decreased amount is added to the final installment due on the maturity date. The Company elected to decrease the monthly installment payments due during May and August 2020 by an aggregate of $225,000. The decrease of $225,000 will be added to the final monthly installment due on the respective maturity date.

LOAN PAYABLE

LOAN PAYABLE	12 Months Ended
	Dec. 31, 2020
LOAN PAYABLE
LOAN PAYABLE	NOTE 10 On April 27, 2020, the Company received $155,226 of cash proceeds pursuant to an unsecured loan (the “PPP” Loan) provided in connection with the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security Act and applicable regulations (“CARES Act”). Under the terms of the CARES Act, as amended by the Paycheck Protection Program Flexibility Act of 2020, the Company is eligible to apply for and receive forgiveness for all or a portion of the PPP Loan. Such forgiveness will be determined, subject to limitations, based on the use of the loan proceeds for certain permissible purposes as set forth in the PPP, including, but not limited to, payroll costs (as defined under the PPP) and mortgage interest, rent or utility costs (collectively, “Qualifying Expenses”) incurred during the 24 weeks subsequent to funding, and on the maintenance of employee and compensation levels, as defined, following the funding of the PPP Loan. The Company used the proceeds of the PPP Loan for Qualifying Expenses. However, no assurance is provided that KULR will be able to obtain forgiveness of the PPP Loan in whole or in part. Any amounts not forgiven incur interest at 1.0% per annum and monthly repayments of principal and interest are deferred to the earlier of (i) when the Small Business Administration remits the forgiven amount to the lender or notifies the lender that no forgiveness is allowed or (ii) October 31, 2021. While the Company’s PPP Loan currently has a two-year maturity, the amended law will permit the Company to request a five-year maturity, subject to the approval of the counterparty. As of December 31, 2020, the Company’s accrued interest related to the PPP Loan was $923.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2020
INCOME TAXES
INCOME TAXES	NOTE 11 The income tax provision for the years ended December 31, 2020 and 2019 consists of the following: For The Years Ended December 31, 2020 2019 Federal: Current $ — $ — Deferred (474,692) (418,667) State and local: Current — — Deferred (164,651) (75,967) (639,343) (494,634) Change in valuation allowance 639,343 494,634 Income tax provision $ — $ — A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: For The Years Ended December 31, 2020 2019 Tax benefit at federal statutory rate (21.0) % (21.0) % State income taxes, net of federal benefit (6.0) % (6.0) % Permanent differences 0.5 % 1.6 % Other and prior year true-ups 4.1 % 0.4 % Change in valuation allowance 22.4 % 25.0 % Effective income tax rate 0.0 % (0.0) % The Company has determined that a valuation allowance for the entire net deferred tax asset is required. A valuation allowance is required if, based on the weight of evidence, it is more likely than not that some or the entire portion of the deferred tax asset will not be realized. After consideration of all the evidence, management has determined that a full valuation allowance is necessary to reduce the deferred tax asset to zero. The tax effects of temporary differences that give rise to deferred tax assets and liabilities are presented below: For The Years Ended December 31, 2020 2019 Deferred Tax Assets: Net operating loss carryforwards $ 2,799,135 $ 1,975,739 Research and development credit carryforwards 51,199 152,785 Stock-based compensation 11,062 11,062 Accruals 68,082 150,548 Gross deferred tax assets 2,929,478 2,290,134 Valuation allowance (2,929,478) (2,290,134) Deferred tax asset, net of valuation allowance $ — $ — Changes in valuation allowance $ 639,344 $ 494,634 At December 31, 2020 and 2019, the Company had federal net operating loss carry forwards of approximately $10.4 million and $7.3 million, respectively. At December 31, 2020, approximately $3.9 million of federal net operating losses will expire from 2033 to 2037, and approximately $6.5 million will have no expiration. At December 31, 2020 and 2019, the Company had state net operating loss carry forwards of approximately $10.2 million and $7.1 million, respectively, which will begin to expire in 2024. The net operating loss carryovers may be subject to annual limitations under Internal Revenue Code Section 382, and similar state provisions, should there be a greater than 50% ownership change as determined under the applicable income tax regulations. The amount of the limitation would be determined based on the value of the company immediately prior to the ownership change and subsequent ownership changes could further impact the amount of the annual limitation. An ownership change pursuant to Section 382 may have occurred in the past or could happen in the future, such that the NOLs available for utilization could be significantly limited. The Company files federal and state (California) tax returns which are subject to audit for the years ending on or after December 31, 2016. No tax audits were commenced or were in process during the years ended December 31, 2020 and 2019.

STOCKHOLDERS' EQUITY (DEFICIENC

STOCKHOLDERS' EQUITY (DEFICIENCY)	12 Months Ended
	Dec. 31, 2020
STOCKHOLDERS' EQUITY (DEFICIENCY)
STOCKHOLDERS' EQUITY (DEFICIENCY)	NOTE 12 Authorized Capital The Company is authorized to issue 500,000,000 shares of common stock, par value of $0.0001 per share, and 20,000,000 shares of preferred stock, par value of $0.0001 per share. The holders of the Company’s common stock are entitled to one vote per share. The preferred stock is designated as follows: 1,000,000 shares designated as Series A Preferred Stock, 31,000 shares designated as Series B Convertible Preferred Stock and 400 shares designated as Series C Preferred Stock. On November 16, 2020, the Company’s board of directors (the “Board”) approved, by unanimous written consent, to amend (the “Amendment”) the Company’s Certificate of Incorporation effecting a reverse split of its issued and outstanding common stock at a ratio no greater than one-for-eight, with such ratio to be determined at the sole discretion of the Board (or its designee or designees) and with such reverse split to be effected at such time and date, if at all, as determined by the Board in its sole discretion (provided that it is effected within one year of the date on which the stockholders of the Corporation approve the Reverse Split). On November 16, 2020, the voting stockholders, acting by written consent, approved the Amendment and the Reverse Split. See Note 14 – Subsequent Events for additional details. 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 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. As of December 31, 2020, there were 13,841,047 shares available for issuance under the 2018 Plan. Series A Preferred Stock Each record holder of Series A Preferred Stock shall have the right to vote on any matter with holders of the Company’s common stock and other securities entitled to vote, if any, voting together as one (1) class. Each record holder of Series A Preferred Stock is entitled to one-hundred (100) votes per share of Series A Preferred Stock held by such holder. The Series A Preferred Stock is not convertible into any series or class of stock of the Company. In addition, holders of the Series A Preferred Stock shall not be entitled to receive dividends, nor do they have a right to distribution from the assets of the Company in the event of any liquidation, dissolution, or winding up of the Company. On November 5, 2018, the Company received a written consent of the majority of the stockholders to issue 1,000,000 shares of the Company’s Series A Preferred Stock to Mr. Mo, as a measure to protect the Company from an uninvited takeover. As of the date of filing, the shares of Series A Preferred Stock have not been issued. Series B Convertible Preferred Stock On November 30, 2018, the Company filed with the Secretary of State of the State of Delaware the Certificate of Designation of Series B Convertible Preferred Stock (the “Certificate of Designation”), which became effective upon filing. The Company designated 31,000 shares as Series B Convertible Preferred Stock out of the authorized and unissued preferred stock of the Company, par value $0.0001 per share. The Series B Convertible Preferred Stock does not contain any redemption provisions or other provisions requiring cash settlement within control of the holder. Series B Convertible Preferred Stock is senior in liquidation preference to common stock. Holders of shares of Series B Convertible Preferred Stock are not entitled to voting rights and dividend rights. Each share of Series B Convertible Preferred Stock, after 181 days after issuance and without the payment of additional consideration, shall be convertible at the option of the holder into fifty (50) fully paid and non-assessable shares of common stock. It was determined that the embedded conversion option is clearly and closely related to the equity host, therefore it is not bifurcated and not accounted for as a derivative. Each share of Series B Convertible Preferred Stock shall have a stated value of $1.00 per share. During the year ended December 31, 2019, holders of Series B Convertible Preferred Stock elected to convert an aggregate of 16,371 shares of Series B Convertible Preferred Stock into an aggregate of 818,550 shares of common stock. During the year ended December 31, 2020, a holder of 515 shares of Series B Convertible Preferred Stock elected to convert their shares into 25,758 shares of common stock. Series C Convertible Preferred Stock On August 19, 2019, the Company filed with the Secretary of State of the State of Delaware the Certificate of Designation of Series C Convertible Preferred Stock (the "Certificate of Designation"), which became effective upon filing. Pursuant to the Certificate of Designation, the Company designated 400 shares as Series C Convertible Preferred Stock out of the authorized and unissued preferred stock of the Company, par value $0.0001 per share. Series C Convertible Preferred Stock is senior in liquidation preference to the Company's common stock for an amount equal to the stated value per share of $10,000 ("Stated Value"). Holders of shares of Series C Convertible Preferred Stock shall vote on an as-if-converted-to-common-stock basis with the common stockholders. Holders of shares of Series C Convertible Preferred Stock are entitled to receive dividends when, as and if declared by the Board of Directors, at an annual rate of twelve percent (12)% beginning one year after each share's issuance. The Company may elect to redeem all or part of each share of Series C Convertible Preferred Stock for the Stated Value. Each share of Series C Convertible Preferred Stock, if converted within 180 days of such share's initial issuance, is convertible into a number of shares of common stock equal to the product determined by multiplying (i) the number of shares of Series C Convertible Preferred Stock being converted and any accrued dividends thereon and (ii) $1.00 per share. Each share of Series C Convertible Preferred Stock, if converted on or after the 181 st day of its initial issuance, is convertible into a number of shares of common stock equal to the product determined by multiplying (i) the number of shares of Series C Convertible Preferred Stock being converted and any accrued dividends thereon and (ii) 75% of the average of the trading prices five days prior to conversion but in no case less than $0.90 per share. In addition, all outstanding shares of Series C Convertible Preferred Stock shall be automatically converted upon the occurrence of a qualified offering of at least $5 million of gross proceeds ("Qualified Offering") or an approved listing of common stock on a national stock exchange ("Uplisting"). In the event of a Qualified Offering, each share of Series C Convertible Preferred Stock would be converted into the securities offered in the Qualified Offering determined by dividing (i) the Stated Value of the number of shares of Series C Convertible Preferred Stock being converted and any accrued dividends thereon and (ii) 85% of the price of the securities sold in the Qualified Offering. In the event of an Uplisting, each share of Series C Convertible Preferred Stock would be converted into a number of shares of common stock equal to the product determined by dividing (i) the Stated Value of the number of shares of Series C Convertible Preferred Stock being converted and any accrued dividends thereon and (ii) if converted within 180 days of such share's initial issuance, $1.00 per share, and if converted on or after the 181 st day of its initial issuance, 75% of the average of the trading prices five days prior to conversion but in no case less than $0.90 per share. The Series C Convertible Preferred Stock is redeemable at the Company's option; therefore, it has been classified within stockholders' equity (deficiency) on the consolidated balance sheet. An overall analysis of its features performed by the Company determined that the Series C Convertible Preferred Stock was more akin to equity. As a result, while the embedded conversion option ("ECO") contained certain anti-dilution price protection mechanisms, since the ECO was clearly and closely related to the equity host, it was not required to be bifurcated and accounted for as a derivative liability under ASC 815. The Company determined that the Series C Convertible Preferred Stock did not contain a beneficial conversion feature at issuance since the conversion price exceeded the estimated fair value of the Company's common stock as of the commitment date, however, the Company did recognize a contingent beneficial conversion feature in connection with a Qualified Offering, as described below within this footnote. During the year ended December 31, 2019, the Company sold to certain investors an aggregate of 24.01 shares of Series C Convertible Preferred Stock and two-year immediately vested warrants to purchase an aggregate of 60,025 shares of the Company's common stock at an exercise price of $1.50 per share for aggregate gross proceeds of $216,000, less cash issuance costs of $32,000, for aggregate net proceeds of $184,000. The warrants, which were determined to be classified within stockholders' equity (deficiency), had an aggregate issuance date fair value of $12,515. The Company has computed the fair value of warrants using the Black-Scholes pricing model with the following assumptions: risk free interest rate: 1.53% - 1.74%; expected term - 2 years, expected volatility - 97%, expected dividends - 0%. During the year ended December 31, 2020, certain holders of 5.11 shares of Series C Convertible Preferred stock elected to convert their shares into an aggregate of 56,777 shares of common stock. During the year ended December 31, 2020, a Qualified Offering occurred and 18.90 shares of Series C Convertible Preferred Stock were mandatorily converted into an aggregate of 177,885 shares of common stock of the Company and warrants for the purchase of an aggregate of 177,855 shares of common stock of the Company. The warrants are immediately exercisable and may be exercised at any time until December 31, 2025, at an exercise price of $1.25 per share. As a result of the Series C Preferred Stock having an effective conversion price that was lower than the market price on the commitment date, the Company immediately recognized a beneficial conversion feature of $1,735 as a deemed dividend, which increased the net loss attributable to common stockholders. Additionally, since the Company had an accumulated deficit, the impact was equity neutral to its additional paid-in capital. Common Stock During the year ended December 31, 2019, the Company sold an aggregate of 1,361,059 shares of common stock at $0.66 per share to accredited investors for aggregate gross proceeds of $898,300. During the year ended December 31, 2019, the Company issued 140,000 shares of common stock under the 2018 Plan and 45,966 shares of restricted common stock to consultants in exchange for services, which vested immediately. The grant date value of the common stock and restricted common stock were $133,660 during the year ended December 31, 2019. During the year ended December 31, 2020, the Company issued an aggregate of 238,953 shares of common stock with a grant date value of $275,500 for legal and consulting services, of which (i) 166,453 shares were immediately vested, (ii) 12,500 shares vest on the six-month anniversary following the respective issuance date, and (iii) 60,000 shares vest on the two-year anniversary following the respective issuance date upon completion of the service period, subject to the Company’s claw back, based upon the satisfaction of meeting general performance parameters which as of December 31, 2020 were probable to be achieved. The grant date fair value of the common stock will be recognized as stock-based compensation expense ratably over the respective vesting periods. See Stock-Based Compensation section within this footnote for additional details. Public Offering On December 29, 2020, the Company entered into a securities purchase agreement (the “Public Offering Purchase Agreement”) with investors for the purchase and sale of an aggregate of 6,400,001 shares of the Company’s common stock (the “Shares”) and warrants to purchase an aggregate of up to 6,400,001 shares of common stock (“Warrants”), in a registered direct offering at a combined purchase price of $1.25 per Share and Warrant, for aggregate gross proceeds to the Company of $8,000,001. The Warrants are immediately exercisable and may be exercised at any time until December 31, 2025, at an exercise price of $1.25 per share. The Warrants were determined to be classified within stockholders' equity (deficiency) at their fair value. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes, as well as for capital expenditures. This registered direct offering closed on December 31, 2020. Additionally, pursuant to the Public Offering Purchase Agreement, the Company shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company of common stock involving a variable rate transaction (“Variable Rate Transaction”) until such time as no Purchaser holds any of the Warrants. Pursuant to a co-placement agency agreement (the “Placement Agreement”) dated December 29, 2020 by and among the Company, Lake Street Capital Markets, LLC (“Lake Street”) and Maxim Group LLC (“Maxim”) (together with Lake Street, the “Co-Placement Agents”), the Company retained Lake Street and Maxim to act as the Company’s co-placement agents in connection with the registered direct offering. Pursuant to the Placement Agreement, the Company agreed to pay the co-placement agents a cash fee of 7.0% of the gross proceeds the Company receives under the Purchase Agreement. The Company also agreed to reimburse the co-placement agents for certain out-of-pocket accountable expenses incurred by them in connection with this offering, which amounted to $50,000. The total offering expenses incurred by the Company, other than the placement agent fees, were $170,152, which included the co-placement agents’ reimbursable expenses, legal, financial advisory fees, accounting, printing costs, listing fees, and various other expenses associated with registering and issuing the shares. As of December 31, 2020, of the offering costs described above, an aggregate of $24,852 of offering costs remained unpaid and were accrued for. Standby Equity Distribution Agreement On February 27, 2020, KULR Technology Group, Inc. entered into a Standby Equity Distribution Agreement (“SEDA”) with the Investor, pursuant to which the Company may, at its discretion, sell to the Investor up to $8,000,000 of shares of the Company’s common stock (the “Offering”), par value $0.0001 per share (the “Common Stock”). For each share of Common Stock purchased under the SEDA (the “Shares”), the Investor will pay the Company 80% of the lowest daily volume weighted average price of the Common Stock on the OTC Markets OTCQB or other principal market on which the Common Stock is traded for the five days immediately following the date the Company delivers notice requiring the Investor to purchase the Shares under the SEDA. The commitment period under the SEDA commenced on February 27, 2020 (the “Effective Date”) and expires on the earliest to occur of (i) first day of the month following the twenty-four months after the Effective Date, (ii) the date on which the Investor has purchased an aggregate amount of $8,000,000 of Shares under the SEDA, or (iii) the date the SEDA is earlier terminated. As of December 31, 2020, the Company was prohibited from issuing shares pursuant to the SEDA as a result of it being a Variable Rate Transaction pursuant to the Public Offering Purchase Agreement, described above. Among other things, the Investor’s obligation to purchase the Shares under the SEDA is subject to certain conditions, including the Company maintaining the effectiveness of a registration statement for the securities sold under the SEDA, and is subject to the Investor’s approval for amounts over $100,000. In addition, the Company may not request advances if the Shares to be issued would result in the Investor owning more than 4.99% of the Company’s outstanding Common Stock, with any such request being automatically modified to reduce the advance amount. The Company shall not be able to request advances under the SEDA if the Registration Statement is not effective or if any issuances of Common Stock pursuant to any Advances would violate any rules. The SEDA contains customary representations, warranties and agreements of the Company and the Investor, indemnification rights and other obligations of the parties. The Company has the right to terminate the SEDA at any time upon prior written notice, at no cost to the Company, provided that (i) there are no outstanding advances which have yet to be issued and (ii) the Company has paid all amounts owed to the Investor, including amounts borrowed under the Note. The Investor has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s shares of Common Stock. The Company paid cash of $15,000 and issued 95,847 shares of Common Stock to the Investor as consideration for entering into the SEDA. The shares of common stock issued to the Investor had an issuance date fair value of $63,259. The aggregate consideration of $78,259 was recorded as deferred offering costs and additional paid in capital on the consolidated balance sheet. During the year ended December 31, 2020 the Company issued an aggregate of 1,841,548 shares of common stock, at prices between $0.72 - $1.65 per share, for aggregate proceeds of $2,214,437, in connection with notices submitted to the Investor under the SEDA, of which $791,000 of the proceeds, were applied directly against the Notes. As of December 31, 2020, the Company had approximately $5,707,305 available in connection with the SEDA, however, so long as warrants issued on December 31, 2020 in an unrelated transaction remain outstanding, the Company may not issue shares in connection with Variable Rate Transactions pursuant to the Public Offering Purchase Agreement, described above. Warrants On June 10, 2019, the Company issued two-year immediately vested warrants to purchase an aggregate of 150,000 shares of the Company's common stock at an exercise price of $1.00 per share to certain vendors in connection with consulting agreements. The warrants vested immediately on the date of issuance. The warrants, which were determined to be classified within stockholders' deficiency, had an aggregate issuance date fair value of $40,974. The Company has computed the fair value of the warrants using the Black Scholes option pricing model with the following valuation assumptions: risk free interest rate - 1.90%, contractual term - 2.0 years, expected volatility -97%, expected dividends - 0%. During the year ended December 31, 2019, the Company issued two-year immediately vested warrants to purchase an aggregate of 60,025 shares of the Company's common stock at an exercise price of $1.50 per share to certain investors in connection with the Series C Convertible Preferred Stock sales. (See Note 12 - Stockholders' Deficiency, Series C Convertible Preferred Stock). For details regarding the issuance of warrants for the purchase of an aggregate of 177,885 and 6,400,001 shares of common stock of the Company during the year ended December 31, 2020, see Note 12 - Stockholders' Equity (Deficiency), Series C Convertible Preferred Stock and Common Stock, respectively. A summary of warrants activity during the year ended December 31, 2020 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Warrants Price Term (Yrs) Value Outstanding, January 1, 2020 210,025 $ 1.14 Issued 6,577,886 1.25 Exercised — — Expired — — Forfeited — — Outstanding, December 31, 2020 6,787,911 $ 1.25 4.9 $ 1,517,635 Exercisable, December 31, 2020 6,787,911 $ 1.25 4.9 $ 1,517,635 A summary of outstanding and exercisable warrants as of December 31, 2020 is presented below: Warrants Outstanding Warrants Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Warrants In Years Warrants $ 1.00 150,000 0.4 150,000 $ 1.25 6,577,886 5.0 6,577,886 $ 1.50 60,025 0.7 60,025 6,787,911 4.9 6,787,911 Stock Options On September 20, 2019, the Company granted five-year options to purchase a total of 100,000 shares of common stock at an exercise price of $0.66 per share to employees pursuant to the 2018 Plan. The options vested one-fifth on the first anniversary of the employment date and the remaining options vest monthly over three years. The options had an aggregate grant date value of $35,510 which is recognized over the vesting period. On January 1, 2020, the Company granted five-year options to purchase a total of 10,000 shares of common stock at an exercise price of $0.66 per share to an employee pursuant to the 2018 Plan. One-fourth of the options will vest on the first-year anniversary of the grant date and the remaining options vest monthly over three years. The options had an aggregate grant date value of $3,609 which is recognized over the vesting period. The Company has computed the fair value of stock options granted using the Black-Scholes option pricing model. In applying the Black-Scholes option pricing model, the Company used the following assumptions: For the Years Ended December 31, 2020 2019 Risk free interest rate 1.58 % 1.69 % Expected term (years) 2.50 2.50 Expected volatility 93.00 % 91.00 % Expected dividends 0.00 % 0.00 % Option forfeitures are accounted for at the time of occurrence. The expected term used is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The Company does not yet have a trading history to support its historical volatility calculations. Accordingly, the Company is utilizing an expected volatility figure based on a review of the historical volatility of comparable entities over a period of time equivalent to the expected life of the instrument being valued. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. The weighted average grant date fair value per share of options granted during both years ended December 31, 2020 and 2019 was $0.36. A summary of options activity during the year ended December 31, 2020 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Options Price Term (Yrs) Value Outstanding, January 1, 2020 385,000 $ 0.66 Granted 10,000 0.66 Exercised — — Expired (8,649) (0.66) Forfeited (16,351) (0.66) Outstanding, December 31, 2020 370,000 $ 0.66 3.1 $ 299,700 Exercisable, December 31, 2020 244,157 $ 0.66 3.1 $ 197,767 The following table presents information related to stock options as of December 31, 2020: Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 0.66 370,000 3.1 244,157 Stock-Based Compensation During the years ended December 31, 2020 and 2019, the Company recognized stock-based compensation expense of $343,854 and $220,625, respectively, related to restricted common stock, warrants and stock options which are included within selling, general and administrative expenses and research and development expenses on the consolidated statements of operations. During the years ended December 31, 2020 and 2019, the Company recognized stock-based compensation related to research and development of $30,932 and $36,022, respectively. During the years ended December 31, 2020 and 2019, the Company recognized stock-based compensation related to selling, general and administrative expenses of $312,922 and $184,603, respectively. As of December 31, 2020, there was $47,021 of unrecognized stock-based compensation expense that will be recognized over the weighted average remaining vesting period of 1.50 years. The following table presents information related to stock-based compensation for the years ended December 31, 2020 and 2019: For the Years Ended December 31, 2020 2019 Common stock (issued) $ 178,642 $ 133,660 Stock options 39,426 45,994 Warrants — 40,971 Accrued issuable equity (common stock) 125,786 — Total $ 343,854 $ 220,625

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 13 Operating Lease On December 30, 2018 , KULR Technology Group, Inc. entered into a lease addendum to extend its lease of 5,296 square feet of space located in San Diego, California with respect to its research and development activities until December 31, 2019. The base rent was $4,452 per month plus association fees of $555 per month. In connection with the lease, the Company paid the landlord a security deposit of $8,729. The lease was renewed on January 1, 2020 under a six-month lease agreement ending June 30, 2020. The base rent was increased to $4,552 per month plus association fees of $555 per month. On June 15, 2020, the Company entered into an agreement to extend the term of its original office space lease from June 30, 2020 to December 31, 2020. Monthly rental payments under the renewed lease total $5,107, which are comprised of $4,552 of base rent plus $555 of association fees. The lease was renewed subsequent to December 31, 2020 (see Note 14 - Subsequent Events). The Company evaluated this operating lease and determined that the short-term exemption available under ASC 842 applied since the lease term is less than 12 months and the lease does not include a purchase option whose exercise is reasonably certain. Since the short-term exemption applies, lease payments are recognized as expense and no right of use asset or lease liability is recorded. On March 8, 2018, KULR Technology Corporation took over ESLI’s lease agreement and entered into a one-year lease agreement to lease 6,754 square feet of space located in San Diego, California with respect to its research and development activities starting May 1, 2018. The base rent was $8,150 per month. In connection with the lease, the Company recorded a liability to ESLI in connection with the security deposit of $8,150. The aggregate base rent payable over the lease term was recognized on a straight-line basis. On March 22, 2019, the Company extended the lease for 8 months with a base rent of $8,442 starting May 1, 2019. The Company moved out of the space as of December 15, 2019. During the years ended December 31, 2020 and 2019, operating lease expense was $63,751 and $162,520, respectively. As of December 31, 2020, the Company does not have any financing leases. 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 is 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, (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. During the years ended December 31, 2020 and 2019, the Company recorded royalties of $1,906 and $1,290, respectively, which were included within cost of revenues. Sales Taxes States impose sales tax on certain sales to nonexempt customers. As of December 31, 2020, the Company collected and owes state sales tax to its home state of California in the amount of $3,330. Majority, of the Company’s sales during the year ended December 31, 2020 were not taxable as a result of the following: (i) a certain portion of the Company's sales are design and engineering services which are not subject to sales tax, (ii) certain product sales are shipped to non-US countries, states outside of California, or tax-exempt government agencies, (iii) the Company’s customers are licensed resellers of the products and accordingly are exempt from the pass through of sales taxes. The Company did not collect or owe sales taxes during the year ended December 31, 2019. If, during an inspection by a tax authority, the Company was unable to support its customers’ tax exemption status, the Company may be subject to a liability for sales taxes not collected. Consulting Agreement On September 30, 2020, the Company entered into a 2-year consulting agreement with a contractor to provide services as an Advisory Board Member related to government and defense acquisitions in exchange for 60,000 shares of restricted common stock. Pursuant to the consulting agreement, the shares are subject to the Company’s claw back, based upon the satisfaction of meeting general performance parameters. As of December 31, 2020, it was probable the contractor would satisfy the performance parameters and, as a result, the grant date fair value of the common stock is being recognized as stock-based compensation expense ratably over the vesting period. See Note 12 – Stockholders’ Equity (Deficiency) for additional details.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 14 Repayments of the Notes Payable Subsequent to December 31, 2020, the Company repaid principal on the Notes in the aggregate amount of $1,050,000. Election of Directors and Appointment of Certain Officers Subsequent to December 31, 2020, the Board of the Company appointed Joanna D. Massey, Morio Kurosaki and Stayce D. Harris as directors on the Board, to hold office until the earlier of the expiration of the term of office of the director whom they have replaced, a successor is duly elected and qualified, or the earlier of such director’s death, resignation, disqualification, or removal. Dr. Massey’s, Mr. Kurosaki’s and Ms. Harris’ appointment is contingent upon the Company’s common stock being approved for uplisting to a national exchange. Furthermore, subject to approval for uplisting to a national exchange, each director will receive quarterly cash compensation equal to $10,000 and each director will be granted 20,000 shares of common stock, which shares shall vest quarterly in 5,000 share installments with the first installment vesting immediately upon approval for uplisting to a national exchange. Subsequent to December 31, 2020, the Company entered into a consulting agreement with Keith Cochran to act in the capacity of Executive Vice President. The consultant provided management and business development services to the Company. In consideration for services provided in January and February 2021, the Company compensated the consultant with $10,000 per month and 10,000 shares of its common stock per month. Effective March 1, 2021, the Company appointed Keith Cochran as President and Chief Operating Officer (“COO”) of the Company, to hold office until the earlier of the expiration of the term of office, a successor is duly elected and qualified, or the earlier of such officer’s death, resignation, disqualification, or removal. The COO will receive cash compensation of $250,000 per annum and received an aggregate of 2,000,000 shares of its common stock, which shares will vest in four equal annual installments beginning on March 1, 2022. Additionally, the COO is eligible for incentive based share grants totaling up to 1,500,000 shares of the Company’s common stock, which will be earned based on certain market cap achievement up to $4 billion. Subsequent to December 31, 2020, the Company entered into an at-will employment arrangement with its Senior Director of Product Development. In connection with the hire of its Senior Director of Product Development the Company agreed to issue 50,000 shares of its common stock which shares will vest in four equal annual installments beginning on the first-year anniversary of the hire date. Additionally, the Company granted a five-year option to purchase 100,000 shares of common stock at an exercise price of $2.44 per share, pursuant to the 2018 Plan. One-fourth of the options will vest on the first-year anniversary of the grant date and the remaining options vest monthly over three years. Operating Lease Renewal Subsequent to December 31, 2020, the Company entered into a lease addendum to extend the term of its original lease, located in San Diego, California with respect to its research and development activities, from December 31, 2020 to June 30, 2021. Monthly rental payments under the renewed lease total $5,127, which is comprised of $4,572 of base rent plus $555 of association fees . Series B Convertible Preferred Stock Subsequent to December 31, 2020, the Company issued 698,600 shares of common stock upon conversion of 13,972 shares of the Company's Series B Preferred Stock.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The consolidated financial statements of the Company include the accounts of KULR Technology Group, Inc. and its wholly-owned subsidiary, KULR Technology Corporation. All significant intercompany transactions have been eliminated in the consolidation. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Liquidity	Liquidity The Company has previously disclosed that there was substantial doubt about its ability to continue as a going concern as a result of its past working capital balances, operating losses, and cash used in operations. During the year ended December 31, 2020, the Company raised aggregate gross proceeds of approximately $8.0 million, $1.5 million, and $3.9 million in connection with the sale of common stock and warrants in a public offering, the sale of common stock issued pursuant to a Standby Equity Distribution Agreement, and the issuances of notes payable, respectively. As of December 31, 2020, the Company had cash and working capital of approximately $8.9 million and $6.2 million, respectively. As a result of these capital raising efforts, the Company has alleviated the previously reported substantial doubt about its ability to continue as a going concern. For the year ended December 31, 2020, the Company incurred a net loss of approximately $2.9 million and used cash in operations of approximately $2.7 million. While the Company anticipates it will continue to incur operating losses and use cash in operating activities for the foreseeable future, the Company believes that its current working capital is sufficient in comparison to its anticipated cash usage for the period of at least the next twelve months subsequent to the filing date of these financial statements.
Use of Estimates	Use of Estimates Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the financial statements. The Company’s significant estimates used in these financial statements include, but are not limited to, fair value calculations for equity securities, stock-based compensation, the collectability of receivables, inventory valuations, the recoverability and useful lives of long-lived assets, and the valuation allowance related to the Company’s deferred tax assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates. See Note 2 – Summary of Significant Accounting Policies, Stock-Based Compensation for additional discussion of the use of estimates in estimating the fair value of the Company’s common stock.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consisted primarily of cash, accounts receivable, revenue and accounts payable. Cash Concentrations A significant portion of the Company’s cash is held at one major financial institution. The Company has not experienced any losses in such accounts. Cash held in US bank institutions is currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 at each institution. There was an uninsured balance of $8,513,010 as of December 31, 2020 and no uninsured cash balances as of December 31, 2019. Customer and Revenue Concentrations The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: Revenue Accounts Receivable For the Years Ended December 31, As of December 31, 2020 2019 2020 2019 Customer A * * % * Customer B * * % % Customer C * * * % Customer D * * % % Customer E * * * % Customer F * % * * Customer G % % * * Customer H % * * * Customer I * % * * Total % % % % * Less than 10% There is no assurance the Company will continue to receive significant revenues from any of these customers. Any reduction or delay in operating activity from any of the Company's significant customers, or a delay or default in payment by any significant customer, or termination of agreements with significant customers, could materially harm the Company's business and prospects. As a result of the Company's significant customer concentrations, its gross profit and results from operations could fluctuate significantly due to changes in political, environmental, or economic conditions, or the loss of, reduction of business from, or less favorable terms with any of the Company's significant customers.
Accounts Receivable	Accounts Receivable Accounts receivable are carried at their contractual amounts, less an estimate for uncollectible amounts. As of December 31, 2020 and 2019, no allowances for uncollectable amounts were determined to be necessary. Management estimates the allowance for bad debts based on existing economic conditions, the financial conditions of the customers, and the amount and age of past due accounts. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for bad debts only after all collection attempts have been exhausted.
Inventory	Inventory Inventory is comprised of carbon fiber velvet (“CFV”) thermal interface solutions and internal short circuit batteries, which are available for sale. Inventories are stated at the lower of cost or net realizable value. Cost is determined by the first-in, first-out method. The cost of inventory that is sold to third parties is included within cost of sales and the cost of inventory that is given as samples is included within operating expenses. The Company periodically reviews for slow-moving, excess or obsolete inventories. Products that are determined to be obsolete, if any, are written down to net realizable value. As of December 31, 2020, and 2019, the Company’s inventory was comprised solely of finished goods.
Property and Equipment	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation which is recorded commencing at the in-service date using the straight-line method at rates sufficient to charge the cost of depreciable assets to operations over their estimated useful lives, which range from 3 to 7 years. Leasehold improvements are amortized over the shorter of (a) the useful life of the asset; or (b) the remaining lease term. Maintenance and repairs are charged to operations as incurred. The Company capitalizes cost attributable to the betterment of property and equipment when such betterment extends the useful life of the assets. The Company reviews for the impairment of long-lived assets annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when the present value of estimated future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying value.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company measures the fair value of financial assets and liabilities based on the guidance of Accounting Standards Codification ("ASC") 820 “Fair Value Measurements and Disclosures” (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 — quoted prices in active markets for identical assets or liabilities Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 — inputs that are unobservable (for example, cash flow modeling inputs based on assumptions) The carrying amounts of the Company’s financial instruments, such as cash, accounts receivable, accrued expenses and other current liabilities, notes payable and loans payable approximate fair values due to the short-term nature of these instruments.
Preferred Stock	Preferred Stock The Company applies the accounting standards for distinguishing liabilities from equity when determining the classification and measurement of its preferred stock. The Company’s Preferred shares are classified as stockholders’ equity because they are not subject to mandatory redemption, which would result in liability classified instruments measured at fair value and are not conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) which would result in temporary equity classified instruments.
Convertible Instruments	Convertible Instruments The Company evaluates its convertible instruments to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for in accordance with Topic 815 of the FASB ASC. The accounting treatment of derivative financial instruments requires that the Company record embedded conversion options and any related freestanding instruments at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. Embedded conversion options and any related freestanding instruments are recorded as a discount to the host instrument. If the instrument is determined not to be a derivative liability, the Company then evaluates for the existence of a beneficial conversion feature by comparing the market price of the Company’s common stock as of the commitment date to the effective conversion price of the instrument.
Accrued Issuable Equity	Accrued Issuable Equity The Company records accrued issuable equity when it is contractually obligated to issue shares and there has been a delay in the issuance of such shares. Accrued issuable equity is recorded and carried at fair value with changes in its fair value recognized in the Company’s consolidated statements of operations. Once the underlying shares of common stock are issued, the accrued issuable equity is reclassified as of the share issuance date at the then current fair market value of the common stock.
Offering Costs	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 consolidated financial statements.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“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, 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 following five steps are applied to achieve that core principle: · Step 1: Identify the contract with the customer; · Step 2: Identify the performance obligations in the contract; · Step 3: Determine the transaction price; · Step 4: Allocate the transaction price to the performance obligations in the contract; and · Step 5: Recognize revenue when the company satisfies a performance obligation. The Company recognizes revenue primarily from the following different types of contracts: · Product sales – Revenue is recognized at the point in time the customer obtains control 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 the services are fulfilled and/or accepted by the customer . The following table summarizes the Company’s revenue recognized in its consolidated statements of operations: For the Years Ended December 31, 2020 2019 Product sales $ 404,467 $ 735,431 Contract services 219,498 94,967 Total revenue $ 623,965 $ 830,398 As of December 31, 2020 and 2019, the Company had $20,000 and $15,000 of deferred revenue, 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, or the customers have not officially accepted the goods or services provided under the contract. During the years ended December 31, 2020, and 2019, the Company recognized $15,000 and $0, respectively, of revenues that were included in deferred revenue in previous periods. As of December 31, 2020 and 2019, the Company recorded $31,212 and $0, respectively, of deferred labor costs, which is included in prepaid expenses and other current assets in the Company's consolidated balance sheets. Deferred labor costs represented costs to fulfill the Company's contract service revenue. The Company will recognize the deferred labor costs as cost of revenues at the point in time that the Company satisfies its performance obligation under the respective contract, which is generally at the time the services are fulfilled and/or accepted by the customer.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs incurred by the Company as well as fees received by customers for products shipped to customers are included in selling, general and administrative expenses in the consolidated statements of operations. For the years ended December 31, 2020 and 2019, shipping and handling costs amounted to $18,887 and $3,172, respectively.
Research and Development	Research and Development Research and development include expenses incurred in connection with the R&D of our CFV thermal management solution and non-cash stock-based compensation expenses. Research and development expenses are charged to operations as incurred.
Advertising Costs	Advertising Costs Advertising costs are expensed in the period incurred. Advertising costs charged to operations for the years ended December 31, 2020 and 2019 were $123,846 and $49,300, respectively, and are included in selling, general and administrative in the consolidated statements of operations.
Stock-Based Compensation	Stock-Based Compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award since the fair value of the award is more readily determinable than the value of the services. The fair value of the award is measured on the grant date. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Upon the exercise of an award, the Company issues new shares of common stock out of its authorized shares. During the year ended December 31, 2019 and the period from January 1, 2020 through June 17, 2020, it was determined that the Company’s common stock had a fair value of $0.66 per share, which was based on a number of factors, such as the examination of the sales of common stock for cash and the convertible preferred stock for cash etc. All of the shares of common stock sold during the year ended December 31, 2019 were sold at $0.66 per share, therefore the value of the equity instruments issued during the stated periods were determined using a common stock fair value of $0.66 per share. For the period from June 18, 2020 through December 31, 2020, the Company estimated the fair value of the awards granted in this period to be based on the market value of its freely tradable common stock as reported on the OTCQB market. The Company determined the freely tradable common stock price became a reliable and accurate representation of its fair market value during this period as a result of increased share volume and dollar trading volume.
Net Loss Per Common Share	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. 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: For the Years Ended December 31, 2020 2019 Series B Convertible Preferred Stock 698,600 724,350 Series C Convertible Preferred Stock — 240,100 Options 370,000 385,000 Warrants 6,787,911 210,025 Total 7,856,511 1,559,475
Operating Leases	Operating Leases The Company leases properties under operating leases. For leases in effect upon adoption of Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" at January 1, 2019 and for any leases commencing thereafter, the Company recognizes a liability to make lease payments, the "lease liability", and an asset representing the right to use the underlying asset during the lease term, the "right-of-use asset". The lease liability is measured at the present value of the remaining lease payments, discounted at the Company's incremental borrowing rate. The right-of-use asset is measured at the amount of the lease liability adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term, any unamortized initial direct costs, and any impairment of the right-of-use-asset. Operating lease expense consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis, variable lease payments not included in the lease liability, and any impairment of the right-of-use asset. The Company evaluated their operating lease and elected to apply the short-term lease measurement and recognition exemption in which the right of use asset and lease liability are not recognized for short-term leases. The adoption of this pronouncement did not have a material impact on the Company’s consolidated financial statements.
Income Taxes	Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included or excluded in the financial statements or tax returns. Deferred tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting amounts (“temporary differences”) at enacted tax rates in effect for the years in which the temporary differences are expected to reverse. The Company utilizes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s financial statements as of December 31, 2020 and 2019. The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as selling, general and administrative expenses in the consolidated statements of operations.
Reclassifications	Reclassifications Certain prior period balances have been reclassified in order to conform to the current period presentation. These reclassifications have no effect on previously reported results of operations or loss per share.
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through the date which the consolidated financial statements were issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the consolidated financial statements, except as disclosed.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses ("ASU 2019-11"). ASU 2019-11 is an accounting pronouncement that amends ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The amendments update guidance on reporting credit losses for financial assets. These amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU are effective, as revised by ASU 2019-10, for annual reporting periods beginning after December 15, 2022, as extended, including interim periods within those fiscal years. All entities may adopt the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). The Company is currently evaluating ASU 2019-11 and its impact on its consolidated financial statements and financial statement disclosures. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for the Company beginning in fiscal years after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. The Company is currently assessing the impact that this pronouncement will have on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-10 "Codification Improvements", which improves consistency by amending the Codification to include all disclosure guidance in the appropriate disclosure sections and clarifies application of various provisions in the Codification by amending and adding new headings, cross referencing to other guidance, and refining or correcting terminology. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022 with early adoption permitted. The Company is currently assessing the impact that this pronouncement will have on its consolidated financial statements. Recently Adopted Accounting Pronouncements In November 2018, the FASB issued Accounting Standards Update No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 (“ASU 2018-18”), which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under ASC 606 when the counterparty is a customer. In addition, ASU 2018-18 precludes an entity from presenting consideration from a transaction in a collaborative arrangement as revenue from contracts with customers if the counterparty is not a customer for that transaction. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for periods for which financial 3 statements have not yet been issued and (2) for all other entities for periods for which financial statements have not yet been made available for issuance. The Company adopted ASU 2018-18 effective January 1, 2020 and its adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments” (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The Company adopted ASU 2020-03 upon issuance, which did not have a material effect on the Company’s consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of concentrations of credit risk	Revenue Accounts Receivable For the Years Ended December 31, As of December 31, 2020 2019 2020 2019 Customer A * * % * Customer B * * % % Customer C * * * % Customer D * * % % Customer E * * * % Customer F * % * * Customer G % % * * Customer H % * * * Customer I * % * * Total % % % % * Less than 10%
Schedule of revenue recognized	For the Years Ended December 31, 2020 2019 Product sales $ 404,467 $ 735,431 Contract services 219,498 94,967 Total revenue $ 623,965 $ 830,398
Schedule of weighted average dilutive common shares because their inclusion would have been anti-dilutive	For the Years Ended December 31, 2020 2019 Series B Convertible Preferred Stock 698,600 724,350 Series C Convertible Preferred Stock — 240,100 Options 370,000 385,000 Warrants 6,787,911 210,025 Total 7,856,511 1,559,475

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	12 Months Ended
	Dec. 31, 2020
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Schedule of prepaid expenses and other current assets	December 31, 2020 2019 Filing $ 9,944 $ 9,858 Marketing 56,853 — Deferred labor costs 31,212 — Professional 10,603 4,134 Insurance 10,429 8,026 Security deposit 8,729 16,977 Other 31,426 4,206 Total prepaid expenses and other current assets $ 159,196 $ 43,201

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2020
PROPERTY AND EQUIPMENT
Schedule of property, plant and equipment	December 31, 2020 2019 Estimated Useful Life Computer equipment $ 11,525 $ 13,355 3 years Leasehold improvement 8,834 8,834 15 years or the remaining life of the lease Software 5,656 5,656 3 years Machinery & equipment 72,392 26,304 5 -7 years Research and development equipment 12,810 12,810 3 years Furniture and fixtures 3,307 3,307 5 years 114,524 70,266 Less: accumulated deprecation (56,667) (42,750) Property and equipment; net $ 57,857 $ 27,516

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2020
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Schedule of accrued expenses and other current liabilities	December 31, 2020 2019 Payroll and vacation $ 279,054 $ 525,917 Legal and professional fees 81,902 60,000 Other 34,056 73,482 Total accrued expenses and other current liabilities $ 395,012 $ 659,399

ACCRUED ISSUABLE EQUITY (Tables

ACCRUED ISSUABLE EQUITY (Tables)	12 Months Ended
	Dec. 31, 2020
ACCRUED ISSUABLE EQUITY.
Schedule of accrued issuable equity	Balance, January 1, 2020 $ — Additions 205,297 Reclassifications to equity (79,511) Mark-to market 2,594 Balance, December 31, 2020 $ 128,380

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	12 Months Ended
	Dec. 31, 2020
NOTES PAYABLE
Summary of notes payable activity	Notes Debt Payable Discount Total Outstanding, January 1, 2020 $ — $ — $ — Issuances 4,000,000 (630,000) 3,370,000 Repayments in cash (759,000) — (759,000) Repayments from proceeds of SEDA (791,000) — (791,000) Amortization of debt discount — 501,802 501,802 Outstanding, December 31, 2020 $ 2,450,000 $ (128,198) $ 2,321,802

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2020
INCOME TAXES
Schedule of Components of Income Tax Expense (Benefit)	For The Years Ended December 31, 2020 2019 Federal: Current $ — $ — Deferred (474,692) (418,667) State and local: Current — — Deferred (164,651) (75,967) (639,343) (494,634) Change in valuation allowance 639,343 494,634 Income tax provision $ — $ —
Schedule of Effective Income Tax Rate Reconciliation	For The Years Ended December 31, 2020 2019 Tax benefit at federal statutory rate (21.0) % (21.0) % State income taxes, net of federal benefit (6.0) % (6.0) % Permanent differences 0.5 % 1.6 % Other and prior year true-ups 4.1 % 0.4 % Change in valuation allowance 22.4 % 25.0 % Effective income tax rate 0.0 % (0.0) %
Schedule of Deferred Tax Assets and Liabilities	For The Years Ended December 31, 2020 2019 Deferred Tax Assets: Net operating loss carryforwards $ 2,799,135 $ 1,975,739 Research and development credit carryforwards 51,199 152,785 Stock-based compensation 11,062 11,062 Accruals 68,082 150,548 Gross deferred tax assets 2,929,478 2,290,134 Valuation allowance (2,929,478) (2,290,134) Deferred tax asset, net of valuation allowance $ — $ — Changes in valuation allowance $ 639,344 $ 494,634

STOCKHOLDERS' EQUITY (DEFICIE_2

STOCKHOLDERS' EQUITY (DEFICIENCY) (Tables)	12 Months Ended
	Dec. 31, 2020
STOCKHOLDERS' EQUITY (DEFICIENCY)
Schedule of warrants activity	A summary of warrants activity during the year ended December 31, 2020 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Warrants Price Term (Yrs) Value Outstanding, January 1, 2020 210,025 $ 1.14 Issued 6,577,886 1.25 Exercised — — Expired — — Forfeited — — Outstanding, December 31, 2020 6,787,911 $ 1.25 4.9 $ 1,517,635 Exercisable, December 31, 2020 6,787,911 $ 1.25 4.9 $ 1,517,635
Schedule of outstanding and exercisable warrants	A summary of outstanding and exercisable warrants as of December 31, 2020 is presented below: Warrants Outstanding Warrants Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Warrants In Years Warrants $ 1.00 150,000 0.4 150,000 $ 1.25 6,577,886 5.0 6,577,886 $ 1.50 60,025 0.7 60,025 6,787,911 4.9 6,787,911
Schedule of stock options granted	In applying the Black-Scholes option pricing model, the Company used the following assumptions: For the Years Ended December 31, 2020 2019 Risk free interest rate 1.58 % 1.69 % Expected term (years) 2.50 2.50 Expected volatility 93.00 % 91.00 % Expected dividends 0.00 % 0.00 %
Schedule of stock option activity outstanding and exercisable	A summary of options activity during the year ended December 31, 2020 is presented below: Weighted Weighted Average Average Number of Exercise Remaining Intrinsic Options Price Term (Yrs) Value Outstanding, January 1, 2020 385,000 $ 0.66 Granted 10,000 0.66 Exercised — — Expired (8,649) (0.66) Forfeited (16,351) (0.66) Outstanding, December 31, 2020 370,000 $ 0.66 3.1 $ 299,700 Exercisable, December 31, 2020 244,157 $ 0.66 3.1 $ 197,767 The following table presents information related to stock options as of December 31, 2020: Options Outstanding Options Exercisable Weighted Outstanding Average Exercisable Exercise Number of Remaining Life Number of Price Options In Years Options $ 0.66 370,000 3.1 244,157
Schedule of Information relating to stock based compensation	The following table presents information related to stock-based compensation for the years ended December 31, 2020 and 2019: For the Years Ended December 31, 2020 2019 Common stock (issued) $ 178,642 $ 133,660 Stock options 39,426 45,994 Warrants — 40,971 Accrued issuable equity (common stock) 125,786 — Total $ 343,854 $ 220,625

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Customer concentrations (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues [Member]
Concentration Risk, Percentage	50.00%	69.00%
Accounts Receivable [Member]
Concentration Risk, Percentage	99.00%	89.00%
Customer A [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	70.00%
Customer B [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	19.00%	20.00%
Customer C [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage		19.00%
Customer D [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	10.00%	33.00%
Customer E [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage		17.00%
Customer F [Member] | Revenues [Member]
Concentration Risk, Percentage		43.00%
Customer G [Member] | Revenues [Member]
Concentration Risk, Percentage	18.00%	14.00%
Customer H [Member] | Revenues [Member]
Concentration Risk, Percentage	32.00%
Customer I [Member] | Revenues [Member]
Concentration Risk, Percentage		12.00%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - consolidated statements of operations: (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 623,965	$ 830,398
Product sales [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	404,467	735,431
Contract services [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 219,498	$ 94,967

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - weighted average dilutive common shares (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	7,856,511	1,559,475
Series B Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	698,600	724,350
Series C Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		240,100
options
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	370,000	385,000
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,787,911	210,025

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash	$ 8,880,140	$ 108,857	$ 229,896
Working capital deficit	6,200,000
Net loss	2,850,096	1,979,753
Cash used in operations	2,730,253	1,188,339
Gross proceeds from issuance of common stock and warrants	8,000,000
Proceeds from sale of common stock issued pursuant to the SEDA agreement	1,501,696
Issuances of notes payable	3,900,000
Cash, FDIC Insured Amount	250,000	250,000
Uninsured cash	8,513,010	0
Deferred revenue	20,000	15,000
Revenue Recognized	15,000	0
Advertising Expense	123,846	$ 49,300
Share Price		$ 0.66
Cost of Goods and Services Sold	169,016	$ 226,505
Deferred labor costs	31,212	0
Shipping and Handling [Member] | Selling, general and administrative expenses
Cost of Goods and Services Sold	$ 18,887	$ 3,172
Minimum
Property, Plant and Equipment, Useful Life	3 years
Maximum
Property, Plant and Equipment, Useful Life	7 years

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred labor costs	$ 31,212	$ 0
Total prepaid expenses and other current assets	159,196	43,201
Business development services [Member]
Filing	9,944	9,858
Marketing	56,853
Deferred labor costs	31,212
Professional	10,603	4,134
Insurance	10,429	8,026
Security deposit	8,729	16,977
Other	31,426	4,206
Total prepaid expenses and other current assets	$ 159,196	$ 43,201

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 114,524	$ 70,266
Less: accumulated deprecation	(56,667)	(42,750)
Property and equipment; net	57,857	27,516
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 11,525	13,355
Property, Plant and Equipment, Estimated Useful life	P3Y
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 8,834	8,834
Property, Plant and Equipment, Estimated Useful life	P15Y
Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 5,656	5,656
Property, Plant and Equipment, Estimated Useful life	P3Y
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 72,392	26,304
Machinery and Equipment [Member] | Minimum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful life	P5Y
Research And Development Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 12,810	12,810
Property, Plant and Equipment, Estimated Useful life	P3Y
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 3,307	$ 3,307
Property, Plant and Equipment, Estimated Useful life	P5Y

PROPERTY AND EQUIPMENT - Additi

PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
PROPERTY AND EQUIPMENT
Depreciation	$ 15,746	$ 17,275
Value of fully depreciated property and equipment disposed off	$ 1,829

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Payroll and vacation	$ 279,054	$ 525,917
Legal and professional fees	81,902	60,000
Other	34,056	73,482
Total accrued expenses and other current liabilities	$ 395,012	$ 659,399

ACCRUED ISSUABLE EQUITY (Detail

ACCRUED ISSUABLE EQUITY (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Movements In Accrued Issuable Equity For Services, Current [Roll Forward]
Additions	$ 205,297
Reclassifications to equity	(79,511)
Mark-to market	2,594
Ending balance	$ 128,380

ACCRUED ISSUABLE EQUITY - Addit

ACCRUED ISSUABLE EQUITY - Additional information (Details) - USD ($)	Feb. 27, 2020	Dec. 31, 2020
Value of services		$ 205,297
Shares issued in exchange for services, number		100,000
Shares issued in exchange for services, aggregate fair value		$ 79,511
Gains (losses) related to the change in fair value		$ 2,594
Standby Equity Distribution Agreement
Common Stock Issued as a Commitment Fee for the Seda Agreement, Shares	95,847

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Accounts payable - related party		$ 2,628	$ 4,253
Accrued expenses and other current liabilities - related party		0	10,419
Adjustments to Additional Paid in Capital, Other	$ 35,000
Chief Technology Officer CTO [Member]
Related Party Transaction [Line Items]
Accounts payable - related party		$ 2,628	$ 4,253
Energy Science Laboratories, Inc ESLI [Member]
Related Party Transaction [Line Items]
Adjustments to Additional Paid in Capital, Other	$ 35,000

LINE OF CREDIT (Details)

LINE OF CREDIT (Details) - USD ($)	Feb. 19, 2020	Dec. 31, 2020	Feb. 18, 2020
LINE OF CREDIT
Maximum borrowing capacity			$ 10,000
Gross proceeds under line of credit	$ 10,000
Loan maturity term	182 days
Interest rate	1.70%
Interest expense		$ 2,292

NOTES PAYABLE (Details)

NOTES PAYABLE (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Movements In Notes Payable Current, Gross [Roll Forward]
Beginning balance	$ 0
Issuances	4,000,000
Repayments in cash	(759,000)
Repayments from proceeds of SEDA	(791,000)
Ending balance	2,450,000
Movements In Debt Instrument, Unamortized Discount, Current [Roll Forward]
Beginning balance	0
Issuances	(630,000)
Amortization of debt discount	501,802
Ending balance	(128,198)
Movements In Notes Payable Current [Roll Forward]
Beginning balance	0
Issuances	3,370,000
Repayments in cash	(759,000)
Repayments from proceeds of SEDA	(791,000)
Amortization of debt discount	501,802
Ending balance	$ 2,321,802

NOTES PAYABLE - Additional info

NOTES PAYABLE - Additional information (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Debt Instrument [Line Items]
Proceeds from notes payable	$ 3,710,000
Original issuance discount on note payable	290,000
Amortization of debt discount	501,802
Note payable
Debt Instrument [Line Items]
Aggregate principal amount	4,000,000
Proceeds from notes payable	3,710,000
Advisory fees paid to financial advisor	340,000
Original issuance discount on note payable	$ 290,000
Promissory Note | Note Purchase Agreement | Investor
Debt Instrument [Line Items]
Debt Instrument, Premium Price, Percentage	10.00%
Percentage of Decrease in the Monthly installment Premium	50.00%
Decrease in the Monthly installment Premium	$ 225,000

LOAN PAYABLE (Details)

LOAN PAYABLE (Details) - USD ($)	Apr. 27, 2020	Feb. 19, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Loan maturity term		182 days
Payment Protection Loans
Debt Instrument [Line Items]
Cash proceeds from unsecured loan	$ 155,226
Interest rate (as a percentage)	1.00%
Loan maturity term	2 years
Extended maturity term	5 years
Accrued interest related to the loan			$ 923

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Federal:
Current	$ 0	$ 0
Deferred	(474,692)	(418,667)
State and local:
Current	0	0
Deferred	(164,651)	(75,967)
Income Tax Expense Benefit, Federal, State And local, Net	(639,343)	(494,634)
Change in valuation allowance	639,343	494,634
Income tax provision	$ 0	$ 0

INCOME TAXES - Reconciliation o

INCOME TAXES - Reconciliation of the statutory federal income tax rate (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Tax benefit at federal statutory rate	(21.00%)	(21.00%)
State income taxes, net of federal benefit	(6.00%)	(6.00%)
Permanent differences	0.50%	1.60%
Other and prior year true-ups	4.10%	0.40%
Change in valuation allowance	22.40%	25.00%
Effective income tax rate	0.00%	0.00%

INCOME TAXES - Tax effects (Det

INCOME TAXES - Tax effects (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Components of Deferred Tax Assets [Abstract]
Net operating loss carryforwards	$ 2,799,135	$ 1,975,739
Research and development credit carryforwards	51,199	152,785
Stock-based compensation	11,062	11,062
Accruals	68,082	150,548
Gross deferred tax assets	2,929,478	2,290,134
Valuation allowance	(2,929,478)	(2,290,134)
Deferred tax asset, net of valuation allowance	0	0
Changes in valuation allowance	$ 639,344	$ 494,634

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Operating Loss Carryforwards	$ 10,400,000	$ 7,300,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration	3,900,000
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration	6,500,000
Repayment of Notes Receivable from Related Parties	$ 10,200,000	$ 7,100,000
Operating Loss Carryforwards, Limitations on Use	The net operating loss carryovers may be subject to annual limitations under Internal Revenue Code Section 382, and similar state provisions, should there be a greater than 50% ownership change as determined under the applicable income tax regulations.
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Operating Loss Carry forwards Expiration Year	net operating losses will expire from 2033 to 2037
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$ 639,344	$ 494,634

STOCKHOLDERS' EQUITY (DEFICIE_3

STOCKHOLDERS' EQUITY (DEFICIENCY) - Public offering (Details) - USD ($)	Dec. 29, 2020	Dec. 31, 2020	Dec. 31, 2019
Subsidiary, Sale of Stock [Line Items]
Aggregate gross proceeds		$ 8,000,001	$ 898,300
Payments of Stock Issuance Costs		$ 15,000
Public offering
Subsidiary, Sale of Stock [Line Items]
Common stock issued for cash (in shares)	6,400,001
Warrants to purchase common shares issued	6,400,001
Shares issued price (in dollars per share)	$ 1.25
Aggregate gross proceeds	$ 8,000,001
Exercise price of warrants		$ 1.25
Co-placement agents, cash fee (as a percent)		7.00%
Certain out-of-pocket accountable expenses incurred by co-placement agents agreed to be reimbursed by the company		$ 50,000
Payments of Stock Issuance Costs		170,152
Accrued offering costs		$ 24,852

STOCKHOLDERS' EQUITY (DEFICIE_4

STOCKHOLDERS' EQUITY (DEFICIENCY) - Warrant activity (Details) - Warrants	12 Months Ended
	Dec. 31, 2020USD ($)$ / sharesshares
Number of Warrants
Number of Warrants, Outstanding, January 1, 2019 | shares	210,025
Number of Warrants, Issued | shares	6,577,886
Number of Warrants Outstanding, Outstanding, December 31, 2019 | shares	6,787,911
Number of Warrants Exercisable | shares	6,787,911
Weighted Average Exercise Price
Weighted Average Exercise Price, Outstanding January 1, 2019 | $ / shares	$ 1.14
Weighted Average Exercise Price, Issued | $ / shares	1.25
Weighted Average Exercise Price, Outstanding December 31, 2019 | $ / shares	1.25
Weighted Average Exercise Price Exercisable | $ / shares	$ 1.25
Weighted Average Remaining Term (Yrs)
Weighted Average Remaining Term, Outstanding	4 years 10 months 24 days
Weighted Average Remaining Term, Exercisable	4 years 10 months 24 days
Intrinsic Value
Intrinsic Value, Outstanding | $	$ 1,517,635
Intrinsic Value, Exercisable | $	$ 1,517,635

STOCKHOLDERS' EQUITY (DEFICIE_5

STOCKHOLDERS' EQUITY (DEFICIENCY) - Outstanding and exercisable warrants (Details) - Warrants - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Jun. 10, 2019
Summary of outstanding and exercisable warrants
Exercise Price of Warrants Outstanding			$ 1
Outstanding Number of Warrants	6,787,911	210,025
Weighted Average Remaining Life In Years of Warrants Exercisable	4 years 10 months 24 days
Exercisable Number of Warrants	6,787,911
1.00 Exercise Price [Member]
Summary of outstanding and exercisable warrants
Exercise Price of Warrants Outstanding	$ 1
Outstanding Number of Warrants	150,000
Weighted Average Remaining Life In Years of Warrants Exercisable	4 months 24 days
Exercisable Number of Warrants	150,000
1.25 Exercise Price [Member]
Summary of outstanding and exercisable warrants
Exercise Price of Warrants Outstanding	$ 1.25
Outstanding Number of Warrants	6,577,886
Weighted Average Remaining Life In Years of Warrants Exercisable	5 years
Exercisable Number of Warrants	6,577,886
1.50 Exercise Price [Member]
Summary of outstanding and exercisable warrants
Exercise Price of Warrants Outstanding	$ 1.50
Outstanding Number of Warrants	60,025
Weighted Average Remaining Life In Years of Warrants Exercisable	8 months 12 days
Exercisable Number of Warrants	60,025

STOCKHOLDERS' EQUITY (DEFICIE_6

STOCKHOLDERS' EQUITY (DEFICIENCY) - Option pricing model (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
STOCKHOLDERS' EQUITY (DEFICIENCY)
Risk free interest rate (as a percent)	1.58%	1.69%
Expected term (years)	2 years 6 months	2 years 6 months
Expected volatility (as a percent)	93.00%	91.00%
Expected dividends (as a percent)	0.00%	0.00%

STOCKHOLDERS' EQUITY (DEFICIE_7

STOCKHOLDERS' EQUITY (DEFICIENCY) - Stock activity (Details)	12 Months Ended
	Dec. 31, 2020USD ($)$ / sharesshares
STOCKHOLDERS' EQUITY (DEFICIENCY)
Number of Options, Outstanding | shares	385,000
Number of Options, Granted | shares	10,000
Number of Options, Expired | shares	(8,649)
Number of Options, Forfeited | shares	(16,351)
Number of Options, Outstanding | shares	370,000
Number of Options, Exercisable | shares	244,157
Weighted Average Exercise Price, Outstanding | $ / shares	$ 0.66
Weighted Average Exercise Price, Granted | $ / shares	0.66
Weighted Average Exercise Price, Expired | $ / shares	(0.66)
Weighted Average Exercise Price, Forfeited | $ / shares	(0.66)
Weighted Average Exercise Price Outstanding | $ / shares	0.66
Weighted Average Exercise Price Exercisable | $ / shares	$ 0.66
Weighted Average Remaining Term, Outstanding	3 years 1 month 6 days
Weighted Average Remaining Term, Exercisable	3 years 1 month 6 days
Number of Options Intrinsic Value, Outstanding | $	$ 299,700
Number of Options Intrinsic Value, Exercisable | $	$ 197,767

STOCKHOLDERS' EQUITY (DEFICIE_8

STOCKHOLDERS' EQUITY (DEFICIENCY) - Stock options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Sep. 20, 2019
Options Outstanding, Exercise Price	$ 0.66	$ 0.66		$ 0.66
Options Outstanding, Number of Options	370,000	10,000	385,000	100,000
Options Exercisable, Weighted Average Remaining Life	3 years 1 month 6 days
Options Exercisable Number of Options	244,157
0.66 Exercise Price [Member]
Options Outstanding, Exercise Price	$ 0.66
Options Outstanding, Number of Options	370,000
Options Exercisable, Weighted Average Remaining Life	3 years 1 month 6 days
Options Exercisable Number of Options	244,157

STOCKHOLDERS' EQUITY (DEFICIE_9

STOCKHOLDERS' EQUITY (DEFICIENCY) - Stock-Based Compensation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 343,854	$ 220,625
Unrecognized stock-based compensation expense	$ 47,021
Weighted average remaining vesting period	1 year 6 months
Selling, general and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 312,922	184,603
Research and development expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	30,932	36,022
Common Stock
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	178,642	133,660
Stock options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	39,426	45,994
Warrants
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense		$ 40,971
Accrued issuable equity (common stock)
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 125,786

STOCKHOLDERS' EQUITY (DEFICI_10

STOCKHOLDERS' EQUITY (DEFICIENCY) - Additional Information (Details) - USD ($)	Feb. 27, 2020	Jan. 01, 2020	Sep. 20, 2019	Aug. 19, 2019	Jun. 10, 2019	Nov. 30, 2018	Dec. 31, 2020	Dec. 31, 2019	Nov. 05, 2018
Common stock authorized							500,000,000	500,000,000
Par value per share (in dollars per share)							$ 0.0001	$ 0.0001
Aggregate proceeds							$ 898,300
Preferred Stock, Par or Stated Value Per Share							$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized							20,000,000	20,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Option, Nonvested, Weighted Average Exercise Price							$ 0.36	$ 0.36
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross							10,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price							$ 0.66
Common stock issued for cash								$ 898,300
Payments of Stock Issuance Costs							$ 15,000
Allocated Share-based Compensation Expense							$ 343,854	$ 220,625
Risk free interest rate (as a percent)							1.58%	1.69%
Expected term (years)							2 years 6 months	2 years 6 months
Expected volatility							93.00%	91.00%
Expected dividends (as a percent)							0.00%	0.00%
Shares of common stock issued related to consulting services provided							100,000
Options Outstanding, Number of Options		10,000	100,000				370,000	385,000
Options Outstanding, Exercise Price		$ 0.66	$ 0.66				$ 0.66
Share based Compensation Arrangement By Share based Payment Award Options Non vested Weighted Average Aggregate Grant Date Fair Value		$ 3,609	$ 35,510
Standby Equity Distribution Agreement
Value of shares authorized to be issued under the SEDA agreement	$ 8,000,000
Par value per share (in dollars per share)	$ 0.0001
Lowest daily volume weighted average price of the Common Stock to be paid (as a percent)	80.00%
Threshold number of trading days for investor payments	5 days
Investor's obligation to purchase, per advance amount	$ 100,000
Threshold maximum investor's ownership percentage	4.99%
Commitment period	24 months
Cash paid	$ 15,000
Number of shares issued as a commitment fee for the SEDA agreement	95,847
Fair value of shares	$ 63,259
Deferred offering costs	$ 78,259
Common stock issued for cash, net of issuance costs (in shares)							1,841,548
Common stock issued for cash							$ 2,214,437
Amount of proceeds directly applied to Notes							791,000
Amount available for issuance as shares							$ 5,707,305
Legal and consulting services
Shares of common stock issued related to consulting services provided							238,953
Grant date value of common stock issued related to consulting services provided							$ 275,500
Preferred Class A [Member]
Preferred Stock, Shares Issued									1,000,000
Series A Preferred Stock
Preferred Stock, Shares Authorized							1,000,000	1,000,000
Preferred Stock, Shares Issued							0	0
Series B Convertible Preferred Stock
Number of shares mandatorily converted								16,371
Preferred Stock, Par or Stated Value Per Share						$ 0.0001
Preferred Stock, Shares Authorized						31,000	31,000	31,000
Preferred Stock, Shares Issued							13,972	14,487
Convertible Preferred Stock, Shares Issued upon Conversion						50		818,550
Convertible Preferred Stock, Terms of Conversion						181 days
Series C Convertible Preferred Stock
Liquidation preference, value per share				$ 0.0001
Number of shares mandatorily converted							18.90
Number of shares issued upon conversion							177,885
Beneficial conversion feature recognized as a deemed dividend							$ 1,735
Exercise Price of Warrants Outstanding							$ 1.25
Number of shares called by warrants							177,855
Preferred Stock, Dividend Rate, Percentage				12.00%
Gross proceeds from converted stock (qualified offering)				$ 5,000,000
Preferred Stock, Par or Stated Value Per Share				$ 0.0001
Preferred Stock, Shares Authorized							400	400
Preferred Stock, Shares Issued								24.01
Preferred Stock, Convertible, Conversion, Percentage of Securities Price				85.00%
Convertible Preferred Stock, Shares Reserved for Future Issuance				400
Payments of Stock Issuance Costs								$ 62,000
Stock Issued During Period, Shares, Conversion of Convertible Securities							(24.01)
Number of preferred stock elected to convert in to shares							5.11
Series C Convertible Preferred Stock | Less than 180 Days [Member]
Preferred Stock, Convertible, Conversion Price Per Share				$ 1
Series C Convertible Preferred Stock | More than 180 Days [Member]
Preferred Stock, Convertible, Conversion Price Per Share				$ 0.90
Preferred Stock, Convertible, Conversion, Threshold Days				5 days
Preferred Stock, Convertible, Conversion, Average of Trading Prices				75.00%
2018 Group Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized							13,841,047		15,000,000
Vested immediately
Shares of common stock issued related to consulting services provided							166,453
Vest on the six-month anniversary
Shares of common stock issued related to consulting services provided							12,500
Vest on the two-year anniversary
Shares of common stock issued related to consulting services provided							60,000
Maximum | Standby Equity Distribution Agreement
Common Stock, Par Value							$ 1.65
Minimum | Standby Equity Distribution Agreement
Common Stock, Par Value							$ 0.72
Restricted shares | 2018 Group Equity Incentive Plan [Member]
Common stock issued for cash, net of issuance costs (in shares)								45,966
Common Stock
Number of shares issued as a commitment fee for the SEDA agreement							95,847
Grant date value of stock								$ 133,660
Sale of Stock, Price Per Share								$ 0.66
Number of shares called by warrants							6,400,001
Common stock issued for cash, net of issuance costs (in shares)								1,361,059
Common stock issued for cash								$ 135
Payments of Stock Issuance Costs							$ 730,152
Stock Issued During Period, Shares, Conversion of Convertible Securities							234,662
Allocated Share-based Compensation Expense							$ 178,642	133,660
Common Stock | Standby Equity Distribution Agreement
Payments of Stock Issuance Costs							78,259
Common Stock | Cash
Payments of Stock Issuance Costs							$ 705,300
Common Stock | Series B Convertible Preferred Stock
Stock Issued During Period, Shares, Conversion of Convertible Securities							25,758
Common Stock | Series C Convertible Preferred Stock
Aggregate proceeds								$ 184,000
Shares, Issued								60,025
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price								$ 1.50
Gross proceeds from issuance of preferred stock and warrants								$ 216,000
Stock Issued During Period, Shares, Conversion of Convertible Securities							56,777
Common Stock | Series C Convertible Preferred Stock | Cash
Payments of Stock Issuance Costs							$ 32,000	$ 32,000
Common Stock | 2018 Group Equity Incentive Plan [Member]
Common stock issued for cash, net of issuance costs (in shares)								140,000
Warrants
Exercise Price of Warrants Outstanding					$ 1
Warrants Not Settleable in Cash, Fair Value Disclosure					$ 40,974			$ 12,515
Number of shares called by warrants					150,000
Allocated Share-based Compensation Expense								$ 40,971
Risk free interest rate (as a percent)					1.90%
Expected term (years)					2 years			2 years
Expected volatility					97.00%			97.00%
Expected dividends (as a percent)					0.00%			0.00%
Warrants | Series C Convertible Preferred Stock
Exercise Price of Warrants Outstanding					$ 1.50
Number of shares called by warrants					60,025			60,025
Warrants | Maximum
Risk free interest rate (as a percent)								1.74%
Warrants | Minimum
Risk free interest rate (as a percent)								1.53%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 30, 2018USD ($)ft²	Mar. 08, 2018USD ($)ft²	Sep. 30, 2020shares	Mar. 21, 2018USD ($)	Dec. 31, 2020USD ($)	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Area of Land | ft²	5,296	6,754
Monthly rental payments					$ 5,107			$ 5,107
Operating Lease, Base Rent	$ 4,452	$ 8,150			4,552	$ 4,552	$ 8,442
Operating Lease Association Fees	555				555	$ 555
Operating Lease, Expense								63,751	$ 162,520
Payments Made for Security Deposit	$ 8,729	$ 8,150
Lessee, Operating Lease, Renewal Term						6 months
Royalty Expense								1,906	1,290
Research and Development Expense								289,772	$ 502,225
State sales tax payable					$ 3,330			$ 3,330
Consulting Agreement, Term			2 years
Shares to be issued under Consulting Agreement | shares			60,000
License [Member]
Research and Development Expense				$ 12,000
Minimum
Royalty Rate				1.50%
Royalty Expense				$ 0
Maximum
Royalty Rate				3.75%
Royalty Expense				$ 7,500

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Jan. 01, 2021	Dec. 30, 2018	Mar. 08, 2018	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Nov. 30, 2018
Subsequent Event [Line Items]
Repayments of note payable							$ 759,000
Monthly base rent		$ 4,452	$ 8,150	$ 4,552	$ 4,552	$ 8,442
Monthly association fees		$ 555		$ 555	$ 555
Exercise price						$ 0.66		$ 0.66
Series B Convertible Preferred Stock
Subsequent Event [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion						818,550		818,550	50
Number of shares converted								16,371
Subsequent Event
Subsequent Event [Line Items]
Repayments of note payable	$ 1,050,000
Monthly rental payments	5,127
Monthly base rent	4,572
Monthly association fees	$ 555
Subsequent Event | Senior Director
Subsequent Event [Line Items]
Shares issue of common stock	50,000
Granted period	5 years
Additional option to purchase of common stock	100,000
Exercise price	$ 2.44
Remaining options vest period	3 years
Subsequent Event | Series B Convertible Preferred Stock
Subsequent Event [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion	698,600
Number of shares converted	13,972
Subsequent Event | Joanna D. Massey
Subsequent Event [Line Items]
Quarterly cash compensation payable to directors	$ 10,000
Subsequent Event | Joanna D. Massey | Restricted shares
Subsequent Event [Line Items]
Number of awards granted	20,000
Number awards that will vest in each installment	5,000
Subsequent Event | Morio Kurosaki
Subsequent Event [Line Items]
Quarterly cash compensation payable to directors	$ 10,000
Subsequent Event | Morio Kurosaki | Restricted shares
Subsequent Event [Line Items]
Number awards that will vest in each installment	5,000
Subsequent Event | Keith Cochran
Subsequent Event [Line Items]
Repayments of note payable	$ 2,000,000
Monthly compensation payable to consultant	$ 10,000
Subsequent Event | Keith Cochran | Restricted shares
Subsequent Event [Line Items]
Number of awards granted per month	10,000
Subsequent Event | Chief Operating Officer
Subsequent Event [Line Items]
Annual compensation payable to consultant	$ 250,000
Number of awards authorized	1,500,000
Market Cap	$ 4,000,000,000