KULR Technology (KULR) 10-Q 15 May 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 12, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Entity File Number	001-40454
Entity Registrant Name	KULR Technology Group, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-1004273
Entity Address, Address Line One	4863 Shawline Street
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92111
City Area Code	408
Local Phone Number	663-5247
Title of 12(b) Security	Common Stock
Trading Symbol	KULR
Security Exchange Name	NYSE
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		118,322,603
Entity Central Index Key	0001662684
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current Assets:
Cash	$ 7,186,034	$ 10,333,563
Accounts receivable	1,654,700	1,542,118
Inventory	1,669,634	1,962,035
Inventory deposits	264,384	285,260
Prepaid expenses and other current assets	1,138,331	1,613,008
Total Current Assets	11,913,083	15,735,984
Property and equipment, net	5,750,672	3,193,041
Equipment deposits	1,238,486	3,514,937
Security deposits	65,536	60,441
Intangible assets, net	750,445	720,768
Right of use asset	318,628	328,941
Deferred financing costs	71,818	71,818
Total Assets	20,108,668	23,625,930
Current Liabilities:
Accounts payable	895,372	1,408,017
Accrued expenses and other current liabilities	2,758,595	2,142,277
Accrued issuable equity	271,478	227,956
Lease liability, current portion	269,967	223,645
Prepaid advance liability, net of discount, current portion	7,302,196	5,655,612
Deferred revenue	1,141	23,000
Total Current Liabilities	11,498,749	9,680,507
Lease liability, non-current portion	39,427	97,958
Prepaid advance liability, net of discount, non-current portion	345,376	3,196,678
Accrued interest, non-current		157,054
Total Liabilities	11,883,552	13,132,197
Commitments and contingencies
Stockholders' Equity
Preferred stock
Common stock, $0.0001 par value, 500,000,000 shares authorized; 117,959,793 shares issued and 117,828,631 shares outstanding at March 31, 2023; 113,202,749 shares issued and 113,071,587 shares outstanding at December 31, 2022	11,796	11,320
Treasury stock, at cost; 131,162 shares held at March 31, 2023 and December 31, 2022	(296,222)	(296,222)
Additional paid-in capital	57,706,441	53,372,673
Accumulated deficit	(49,196,899)	(42,594,038)
Total Stockholders' Equity	8,225,116	10,493,733
Total Liabilities and Stockholders' Equity	20,108,668	23,625,930
Series A Preferred Stock
Stockholders' Equity
Preferred stock
Series B Convertible Preferred Stock
Stockholders' Equity
Preferred stock
Series C Preferred Stock
Stockholders' Equity
Preferred stock
Series D Preferred Stock
Stockholders' Equity
Preferred stock

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
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	117,959,793	113,202,749
Common stock, shares outstanding	117,828,631	113,071,587
Treasury stock, shares held	131,162	131,162
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	0	0
Preferred stock, shares outstanding	0	0
Series C Preferred Stock
Preferred stock, shares authorized	400	400
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series D Preferred Stock
Preferred stock, shares authorized	650	650
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 1,759,802	$ 200,499
Cost of revenue	1,116,414	122,918
Gross Profit	643,388	77,581
Operating Expenses
Research and development	1,388,215	721,347
Selling, general, and administrative	5,515,891	3,534,923
Total Operating Expenses	6,904,106	4,256,270
Loss From Operations	(6,260,718)	(4,178,689)
Other (Expense) Income
Interest expense	(159,931)	(906)
Amortization of debt discount	(246,320)
Change in fair value of accrued issuable equity	64,108	43,040
Total Other (Expense) Income, net	(342,143)	42,134
Net Loss	$ (6,602,861)	$ (4,136,555)
Net Loss Per Share - Basic (in dollars per share)	$ (0.06)	$ (0.04)
Net Loss Per Share - Diluted (In dollars per share)	$ (0.06)	$ (0.04)
Weighted Average Number of Common Shares Outstanding - Basic (In Shares)	112,877,236	102,496,310
Weighted Average Number of Common Shares Outstanding - Diluted (In Shares)	112,877,236	102,496,310

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock Common Stock	Common Stock	Additional Paid-In Capital Common Stock	Additional Paid-In Capital Amortization of restricted stock units	Additional Paid-In Capital Stock options	Additional Paid-In Capital Amortization of market-based awards	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Common Stock	Amortization of restricted stock units	Stock options	Amortization of market-based awards	Total
Balance at Dec. 31, 2021		$ 10,479					$ 39,512,122		$ (23,157,559)					$ 16,365,042
Balance (shares) at Dec. 31, 2021		104,792,072
Treasury stock held upon the vesting of restricted common stock								$ (439,728)						(439,728)
Treasury stock held upon the vesting of restricted common stock (in shares)								194,704
Common stock issued upon the exercise of warrants		$ 7					87,672							87,679
Common stock issued upon the exercise of warrants (in shares)		70,143
Common stock issued upon the exercise of options							5,075							5,075
Common stock issued upon the exercise of options (in shares)		2,500
Common stock issued for services	$ 1		$ 43,159							$ 43,160
Common stock issued for services (in shares)	6,000
Amortization				$ 519,231	$ 15,883	$ 730,048					$ 519,231	$ 15,883	$ 730,048
Net loss									(4,136,555)					(4,136,555)
Balance at Mar. 31, 2022		$ 10,487					40,913,190	$ (439,728)	(27,294,114)					13,189,835
Balance (shares) at Mar. 31, 2022		104,870,715						194,704
Balance at Dec. 31, 2021		$ 10,479					39,512,122		(23,157,559)					16,365,042
Balance (shares) at Dec. 31, 2021		104,792,072
Balance at Dec. 31, 2022		$ 11,320					53,372,673	$ (296,222)	(42,594,038)					10,493,733
Balance (shares) at Dec. 31, 2022		113,202,749						131,162
Common stock issued for the repayment of prepaid advance liability and related interest accrual		$ 315					3,750,653							3,750,968
Common stock issued for the repayment of prepaid advance liability and related interest accrual (in shares)		3,153,036
Shares repurchased for payroll taxes and canceled		$ (17)					(229,232)							(229,249)
Shares repurchased for payroll taxes and canceled (in shares)		(175,000)
Restricted stock awards granted		$ 185					(185)
Restricted stock awards granted (in shares)		1,848,508
Unvested restricted stock awards forfeited		$ (8)					8
Unvested restricted stock awards forfeited (in shares)		(75,000)
Common stock issued for services		$ 1					6,819							6,820
Common stock issued for services (in shares)		5,500
Amortization				$ 765,100	$ 40,605						$ 765,100	$ 40,605
Net loss									(6,602,861)					(6,602,861)
Balance at Mar. 31, 2023		$ 11,796					$ 57,706,441	$ (296,222)	$ (49,196,899)					$ 8,225,116
Balance (shares) at Mar. 31, 2023		117,959,793						131,162

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows From Operating Activities:
Net loss	$ (6,602,861)	$ (4,136,555)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	246,320
Non-cash lease expense	61,467	51,144
Depreciation and amortization expense	250,189	41,461
Change in fair value of accrued issuable equity	(64,108)	(43,040)
Stock-based compensation	920,155	1,242,922
Changes in operating assets and liabilities:
Accounts receivable	(112,582)	(56,766)
Inventory	292,401	(96,017)
Prepaid expenses and other current assets	474,677	(1,347,651)
Inventory deposits	20,876
Security deposits	(5,095)
Accounts payable	(715,200)	(265,770)
Accrued expenses and other current liabilities	559,944	197,262
Lease liability	(63,363)	(49,177)
Deferred revenue	(21,859)	(112,303)
Total Adjustments	1,843,822	(437,935)
Net Cash Used In Operating Activities	(4,759,039)	(4,574,490)
Cash Flows From Investing Activities:
Deposits for purchase of property and equipment		(227,538)
Purchases of property and equipment	(298,490)	(21,351)
Acquisition of intangible assets	(60,000)
Net Cash Used In Investing Activities	(358,490)	(248,889)
Cash Flows from Financing Activities:
Net proceeds from the prepaid advance liability	2,000,000
Issuance costs on prepaid advance liability	(30,000)
Proceeds from the exercise of options		5,075
Proceeds from the exercise of warrants		87,679
Net Cash Provided By Financing Activities	1,970,000	92,754
Net Decrease In Cash	(3,147,529)	(4,730,625)
Cash - Beginning of Year	10,333,563	14,863,301
Cash - End of Year	7,186,034	10,132,676
Cash paid during the year for:
Interest		642
Non-cash investing and financing activities:
Right of use asset for lease liability	51,154
Shares repurchased for payroll taxes (not paid as of period-end) and canceled	229,249
Common stock held in treasury upon the vesting of restricted common stock		$ (439,728)
Original issue discount on prepaid advance liability	105,263
Common stock issued in satisfaction of prepaid advance liability and interest	3,750,968
Deposits applied to purchase of property and equipment	2,276,451
Additions to property and equipment included in accounts payable	$ 202,554

ORGANIZATION, NATURE OF OPERATI

ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2023
ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION
ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NOTE 1 ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION Organization and Operations 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 United States Department of Defense (“DOD”) applications, such as space exploration, satellite communications, and underwater vehicles, and applying them to mass market commercial applications, such as lithium-ion battery energy storage, electric vehicles, 5G communication, cloud computer infrastructure, consumer and industrial devices. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the unaudited condensed consolidated financial statements of the Company as of March 31, 2023 and for the three months ended March 31, 2023 and 2022. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the operating results for the full year ending December 31, 2023 or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related disclosures as of December 31, 2022 and for the year then ended, which were filed with the Securities and Exchange Commission (“SEC”) on Form 10-K on March 28, 2023. The accompanying condensed consolidated balance sheet as of December 31, 2022 has been derived from the audited financial statements included in the Form 10-K.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Since the date of the Annual Report on Form 10-K for the year ended December 31, 2022, there have been no material changes to the Company’s significant accounting policies, except as disclosed in this note. Liquidity As of March 31, 2023, the Company had cash of $7,186,034 and working capital of $414,334. For the three months ended March 31, 2023, the Company incurred a net loss of $6,602,861 and used cash in operations of $4,759,039. Subsequent to the three months ended March 31, 2023, the Company issued 493,972 shares of common stock in satisfaction of the Initial Advance liability in the amount of $350,000 and interest accrued through March 2023 in the amount of $20,479 (see Note 8, Prepaid Advance Liability). As a result, $345,376 of Prepaid Advance Liability at March 31, 2023 (consisting of $350,000 of Initial Advance balance, plus $18,421 original issue discount, less $23,045 of unamortized debt discount), is classified as a non-current liability on the accompanying consolidated balance sheet. The Company’s primary source of liquidity has historically been cash generated from equity and debt offerings. Under ASC Subtopic 205-40, Presentation of Financial Statements—Going Concern (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet future financial obligations as they become due within one year after the date that the financial statements are issued. The above conditions are indicators that there is substantial doubt about the Company’s ability to continue as a going concern as the Company has a history of recurring net losses, recurring use of cash in operations and declining working capital. Despite these conditions, the Company has a successful track record of raising capital as needed and continues to have a positive, ongoing relationship with a financial institution that has provided access to capital and will continue to support KULR. Accordingly, management’s plans alleviate the substantial doubt about the Company’s ability to continue as a going concern. 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, combined with the cash availability pursuant to the Standby Equity Purchase Agreement described in Note 8, will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months after the filing date of these condensed consolidated 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 unaudited condensed consolidated financial statements include, but are not limited to, fair value calculations for equity securities, stock-based compensation 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. Concentrations of Credit Risk Balances 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 were uninsured balances of $6,686,034 and $9,709,169 as of March 31, 2023 and 2022, respectively. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ Accounts Receivable ​ ​ For the Three Months Ended ​ ​ ​ ​ ​ ​ March 31, ​ As of As of ​ 2023 2022 March 31, 2023 ​ December 31, 2022 Customer A * ​ * ​ * ​ 34 % Customer B * ​ 43 % * ​ * ​ Customer C * ​ 37 % * ​ * ​ Customer D 86 % * ​ 91 % 61 % Total 86 % 80 % 91 % 95 % * 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 of 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. Vendor Concentrations Vendor purchase concentrations are as follows for the three months ended March 31, 2023 and 2022, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ 2023 2022 Vendor A * ​ 69 % Vendor B 12 % * ​ Vendor C * ​ 14 % ​ 12 % 83 % * Less than 10% Inventory Inventory is comprised of carbon fiber velvet (“CFV”) thermal interface solutions and internal short circuit batteries, which are available for sale, as well as raw materials and work in process related primarily to the manufacture of safe cases. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard costing method, which approximates cost determined on a first-in, first-out basis. 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. Finished goods inventory is held on-site at the Company’s San Diego, California location. Certain raw materials are held off-site with our contract manufacturers. Inventory at March 31, 2023 and December 31, 2022 was comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2023 ​ 2022 Raw materials ​ $ 732,623 ​ $ 1,075,310 Work-in-process ​ ​ — ​ ​ 2,977 Finished goods ​ 937,011 ​ 883,748 Total inventory ​ $ 1,669,634 ​ $ 1,962,035 ​ 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 condensed consolidated statements of operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ 2023 2022 Product sales ​ $ 1,629,258 ​ $ 172,599 Contract services ​ 130,544 ​ 27,900 Total revenue ​ $ 1,759,802 ​ $ 200,499 ​ 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. The Company expects to satisfy the remaining performance obligations related to its deferred revenue balance within the next twelve months. During the three months ended March 31, 2023 and 2022, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. As of March 31, 2023 and December 31, 2022, the Company had $34,402 of deferred labor costs, which is included in prepaid expenses and other current assets in the Company’s unaudited condensed consolidated balance sheets. Deferred labor costs represent 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. 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. ​ The following table presents the computation of basic and diluted net loss per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ ​ 2023 2022 Numerator: ​ ​ Net loss attributable to common stockholders ​ $ (6,602,861) ​ $ (4,136,555) ​ ​ ​ ​ ​ ​ ​ Denominator (weighted average quantities): ​ ​ ​ ​ Common stock issued ​ 115,055,115 ​ 104,843,100 Less: Treasury shares purchased ​ (131,162) ​ (64,901) Less: Unvested restricted shares ​ (2,170,717) ​ (2,357,889) Add: Accrued issuable equity ​ ​ 124,000 ​ ​ 76,000 Denominator for basic and diluted net loss per share ​ ​ 112,877,236 ​ ​ 102,496,310 ​ ​ ​ ​ ​ Basic and diluted net loss per common share ​ $ (0.06) ​ $ (0.04) ​ The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2023 2022 Unvested issued restricted stock awards ​ 3,276,008 ​ 1,925,000 Unvested market-based equity awards ​ — ​ 3,000,000 Restricted stock units ​ 3,000,000 ​ — Options 765,216 462,716 Warrants ​ 2,524,410 ​ 2,524,410 Total 9,565,634 7,912,126 ​ Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

INVENTORY DEPOSITS

INVENTORY DEPOSITS	3 Months Ended
	Mar. 31, 2023
INVENTORY DEPOSITS
INVENTORY DEPOSITS	NOTE 3 INVENTORY DEPOSITS Inventory deposits consists of amounts paid in advance to vendors to secure future deliveries of specific finished goods and raw materials which will be received and sold in future periods. As of March 31, 2023 and December 31,2022, the Company had outstanding inventory deposits of $264,384 and $285,260, respectively.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	3 Months Ended
	Mar. 31, 2023
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS	NOTE 4 PREPAID EXPENSES AND OTHER CURRENT ASSETS As of March 31, 2023 and December 31, 2022, prepaid expenses and other current assets consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ 2023 2022 Marketing and sponsorships ​ $ 610,572 ​ $ 574,636 Compensation costs ​ ​ 250,000 ​ ​ 375,000 Dues and subscriptions ​ ​ 120,224 ​ ​ 75,889 Conferences and seminars ​ ​ 46,416 ​ ​ — Deferred labor costs ​ ​ 34,402 ​ ​ 34,402 Professional fees ​ ​ 24,467 ​ ​ 25,787 Insurance ​ ​ 13,813 ​ ​ 12,776 Vendor receivables ​ ​ — ​ ​ 368,069 Research and development ​ ​ — ​ ​ 62,329 Other ​ ​ 38,437 ​ ​ 84,120 Total prepaid expenses and other current assets ​ $ 1,138,331 ​ $ 1,613,008 ​ Prepaid marketing and sponsorships shown in the table above includes $531,250 of prepaid marketing expenses pursuant to certain sponsorship agreements which will be amortized over the respective service periods of the agreements.

EQUIPMENT DEPOSITS

EQUIPMENT DEPOSITS	3 Months Ended
	Mar. 31, 2023
EQUIPMENT DEPOSITS
EQUIPMENT DEPOSITS	NOTE 5 EQUIPMENT DEPOSITS The Company entered into agreements with third party contractors for facility improvements, the design and build of a battery packaging and inspection automation system, and automated robotic tending system. As of March 31, 2023 and December 31,2022, the Company had outstanding deposits of $1,238,486 and $3,514,937, respectively, in connection with these agreements.

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2023
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	NOTE 6 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of March 31, 2023 and December 31, 2022, accrued expenses and other current liabilities consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 Professional fees ​ $ 1,320,800 ​ $ 1,180,000 Payroll and vacation ​ ​ 818,099 ​ ​ 464,453 Research and development ​ ​ 364,549 ​ ​ 196,409 Inventory ​ 104,204 ​ ​ 58,804 Board compensation ​ ​ 85,000 ​ ​ 122,500 Other ​ 58,321 ​ ​ 49,112 Marketing and advertising fees ​ 6,026 ​ ​ 3,999 Legal fees ​ 1,596 ​ ​ 2,000 Subscriptions ​ — ​ ​ 65,000 Total accrued expenses and other current liabilities ​ 2,758,595 ​ ​ 2,142,277 Add: Accrued interest, non-current ​ ​ — ​ ​ 157,054 Total accrued expenses and other current liabilities ​ $ 2,758,595 ​ $ 2,299,331 ​

ACCRUED ISSUABLE EQUITY

ACCRUED ISSUABLE EQUITY	3 Months Ended
	Mar. 31, 2023
ACCRUED ISSUABLE EQUITY
ACCRUED ISSUABLE EQUITY	NOTE 7 ACCRUED ISSUABLE EQUITY A summary of the accrued issuable equity activity during the three months ended March 31, 2023 is presented below: ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, 2023 Beginning balance ​ $ 227,956 Grant date value of share obligations ​ ​ 107,630 Mark-to-market ​ ​ (64,108) Ending balance ​ $ 271,478 ​ During the three months ended March 31, 2023, 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 $107,630. During the three months ended March 31, 2023 and 2022, the Company recorded gains (losses) in the aggregate amount of $64,108 and $43,040, respectively, related to changes in the fair value of accrued issuable equity (see Note 12 – Stockholders’ Equity, Stock-Based Compensation

PREPAID ADVANCE LIABILITY

PREPAID ADVANCE LIABILITY	3 Months Ended
	Mar. 31, 2023
PREPAID ADVANCE LIABILITY
PREPAID ADVANCE LIABILITY	NOTE 8 PREPAID ADVANCE LIABILITY ​ The Company’s prepaid advance liability consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amount of Original Less: Prepaid Advance ​ ​ Prepaid Advance ​ Issue ​ Debt ​ Liability, ​ ​ Liability ​ Discount ​ Discount ​ net of discount Balance, December 31, 2022 ​ $ 9,000,000 ​ $ 473,631 ​ $ (621,341) ​ $ 8,852,290 Proceeds from prepaid advance ​ 2,000,000 ​ — ​ — ​ 2,000,000 Original issue discount on prepaid advance ​ — ​ 105,263 ​ (105,263) ​ — Legal fees ​ — ​ — ​ (30,000) ​ (30,000) Repayments in cash ​ — ​ — ​ — ​ — Repayments in shares of common stock ​ (3,250,000) ​ (171,038) ​ — ​ (3,421,038) Amortization of original issue discount ​ ​ — ​ ​ — ​ ​ — ​ ​ — Amortization of debt discount ​ — ​ — ​ 246,320 ​ 246,320 Outstanding, March 31, 2023 ​ $ 7,750,000 ​ $ 407,856 ​ $ (510,284) ​ $ 7,647,572 ​ On September 23, 2022, the Company entered into a Supplemental Agreement (the “Supplemental Agreement”) to its Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, Ltd. (“Yorkville”). Under the Supplemental Agreement, the Company may from time-to-time request advances of up to $15,000,000 (each, a “Prepaid Advance”) from Yorkville with a limitation on the aggregate amount of such advances of $50,000,000. At any time that there is a balance outstanding under a Prepaid Advance, the Company is not permitted to deliver Advance Notices (as defined in Note 12, Stockholders’ Equity) under the SEPA. Each Prepaid Advance matures 12 months after the date of the closing of such advance (the “Prepaid Advance Date”), and accrues interest at 10% per annum, subject to an increase to 15% per annum upon events of default as defined. Any Prepaid Advance balance that remains outstanding at maturity must be repaid in cash. Pursuant to the terms of the Supplemental Agreement, Yorkville has the right to receive shares to pay down Prepaid Advances, and may select the timing and delivery of such shares (via an “Investor Notice”), in an amount up to the balance of the Prepaid Advance at a price equal to the lower of (a) 135% of the volume weighted average price (“VWAP”) of the Company’s common stock on the day immediately prior the closing of the Prepaid Advance, or (b) 95% of the lowest VWAP during the three days immediately prior to the Investor Notice. On March 10, 2023, the Company and Yorkville agreed and closed on a second Prepaid Advance (the “Second Advance”). The Company recorded additional prepaid advance liability in the amount of $2,105,263, which consisted of $2,000,000 cash proceeds received, plus an original issue discount of $105,263. Interest accrues on the outstanding balance of each Prepaid Advance at an annual rate of 10%, subject to an increase to 15% upon events of default, as defined. During the three months ended March 31, 2023, the Company issued 3,153,036 shares of common stock, at purchase prices per share ranging from $0.90 to $1.20, pursuant to Investor Notices submitted by Yorkville for aggregate proceeds of $3,750,968. The proceeds were applied against the principal and interest due for Initial Advance in the aggregate amounts of $3,250,000 and $500,968, respectively. As of March 31, 2023, the remaining principal balance on the Initial Advance and Second Advance is $5,750,000 and $2,000,000, respectively. During the three months ended March 31, 2023, the Company recorded interest expense in the amount of $159,931 and recorded amortization of debt discount in the amount of $246,320 in connection with the Prepaid Advance liability. Subsequent to the three months ended March 31, 2023, the Company issued 493,972 shares of common stock in satisfaction of the Initial Advance liability in the amount of $350,000 and interest accrued through the date of issuance in the amount of $20,479 (see Note 13, Subsequent Events). As a result, $345,376 of Prepaid Advance Liability at March 31, 2023 (consisting of $350,000 of Initial Advance balance, plus $18,421 original issue discount, less $23,045 of unamortized debt discount), is classified as a non-current liability on the accompanying condensed consolidated balance sheet.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2023
LEASES
LEASES	NOTE 9 LEASES On January 18, 2023, the Company entered into a new lease agreement for office space in Webster, Texas. The initial lease term is twelve The Company also leases office space in San Diego, California pursuant to an operating lease which expires May 31, 2024. As of March 31, 2023, the Company does not have any financing leases. During the three months ended March 31, 2023 and 2022, operating lease expense was $65,873 and $74,080, respectively. Maturities of lease liabilities as of March 31, 2023 were as follows: ​ ​ ​ ​ ​ Maturity Date ​ ​ 2023 ​ ​ 215,399 2024 ​ 103,432 Total lease payments ​ 318,831 Less: Imputed interest ​ (9,438) Present value of lease liabilities ​ 309,394 Less: current portion ​ (269,967) Lease liabilities, non-current portion ​ $ 39,427 ​ Supplemental cash flow information related to the leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ ​ 2023 ​ 2022 Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows for operating lease ​ $ 63,363 ​ $ 49,176 Right-of-use asset obtained in exchange for lease obligations ​ ​ ​ ​ ​ ​ Operating lease ​ $ 51,154 ​ $ — ​

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2023
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 10 RELATED PARTY TRANSACTIONS The Company entered into an eight-month consulting agreement with the father of the Company’s Chief Technology Officer (the “Related Consultant”), to perform due diligence support for a potential research and development facility in Texas. The Company agreed to compensate the Related Consultant at a rate of $30/hour for services performed. Total expense recognized for services provided by the Related Consultant was $10,455 during the three months ended March 31, 2023. No related party expense was recognized during the three months ended March 31, 2022. As of March 31, 2023 and December 31, 2022, the Company did not have material accounts payable outstanding with related parties.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	NOTE 11 COMMITMENTS AND CONTINGENCIES Patent License Agreement During February 2023, the Company entered into a licensing agreement whereby the Company obtained an exclusive license to commercialize its patented Format Fractional Thermal Runaway Calorimeter. The agreement is effective 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 the following: (i) a cash payment of $60,000 payable upon the execution of this agreement was capitalized as an intangible asset and will be amortized over its useful life, (ii) royalties of 5.5% on the net sales price of royalty-based products and services for each accounting period, as defined in the agreement, with minimum annual royalty payments of $20,000. Appointment of Vice President, Sales On January 16, 2023, the Company appointed a Vice President of Sales (the “VP of Sales”), upon which the Company issued 298,507 shares of restricted common stock with a grant date fair value of $400,000, which vest in four equal annual installments beginning January 16, 2024. The grant date fair value will be amortized ratably over the vesting period. In addition, the Company committed to a one-year guaranteed commission of $200,000, payable in four quarterly installments as well as a severance package of $250,000 and one-year of family health insurance if the VP of Sales is terminated without cause (as defined) within one year of hire. Appointment of Chief Financial Officer On March 31, 2023, the Company appointed an individual to serve as Chief Financial Officer (the “CFO”) of the Company, upon which the Company issued 1,500,000 shares of restricted stock with an aggregate grant date fair value of $1,380,000, which vest in five equal annual installments beginning March 31, 2024.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2023
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	NOTE 12 STOCKHOLDERS’ EQUITY Standby Equity Purchase Agreement (“SEPA”) and Supplemental SEPA On May 13, 2022, the Company entered into the SEPA with Yorkville. Pursuant to the SEPA, the Company has the right, but not the obligation, to sell to Yorkville up to an aggregate of $50,000,000 of its shares of common stock, par value $0.0001 per share, at the Company’s request any time during the commitment period commencing on May 13, 2022 and terminating on the first day of the month following the 24-month Each sale (an “Advance”) that the Company requests under the SEPA (via an “Advance Notice”) may be for a number of shares of common stock with an aggregate value of up to $5,000,000. Shares are sold under the SEPA at 98.0% of the average of the VWAPs during each of the three See Note 8 – Prepaid Advance Liability, for details related to a supplemental agreement to the SEPA. Common Stock ​ During the three months ended March 31, 2023 and 2022, the Company issued an aggregate of 5,500 and 6,000 shares of immediately vested common stock with a grant date value of $6,820 and $13,859, respectively, for legal and consulting services. Stock Options ​ 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 Three Months Ended ​ ​ March 31, ​ ​ 2023 2022 Risk free interest rate ​ 3.92% - 4.52% ​ 1.18% - 2.28% ​ Expected term (years) ​ 3.5 ​ 3.5 - 3.8 ​ Expected volatility ​ 105% ​ 116% ​ Expected dividends ​ 0% ​ 0% ​ ​ For the three months ended March 31, 2023 and 2022, the weighted average grant date fair value per share of options was $0.67 and $3.23, respectively. A summary of options activity during the three months ended March 31, 2023 is presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ Number of ​ Exercise ​ Remaining ​ Intrinsic ​ Options Price Term (Yrs) Value Outstanding, January 1, 2023 640,216 ​ $ 1.72 ​ Granted 135,000 ​ 1.18 ​ Exercised — ​ — ​ Expired — ​ — ​ Forfeited (10,000) ​ 2.08 ​ Outstanding, March 31, 2023 765,216 ​ $ 1.62 3.6 ​ $ 24,307 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable, March 31, 2023 220,216 ​ $ 1.51 2.1 ​ $ 23,665 ​ The following table presents information related to stock options as of March 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ Options Outstanding ​ Options Exercisable ​ ​ ​ ​ Weighted ​ ​ ​ Outstanding ​ Average ​ Exercisable Exercise ​ Number of ​ Remaining Life ​ Number of Price Options In Years Options $0.66 - $0.99 ​ 135,486 ​ 0.1 ​ 107,570 $1.21 - $1.50 ​ 250,000 ​ — ​ — $1.55 - $1.99 ​ 90,000 ​ 3.2 ​ 5,833 $2.05 - $2.44 ​ 289,730 ​ 3.3 ​ 106,813 ​ ​ 765,216 ​ 2.1 ​ 220,216 ​ As of March 31, 2023, there was $505,926 of unrecognized stock-based compensation expense related to the above stock options, which will be recognized over the weighted average remaining vesting period of 3.2 years. Restricted Stock Awards The following table presents information related to restricted stock awards as of March 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ Restricted ​ Grant Date ​ ​ Stock Awards ​ Fair Value Non-vested RSAs, January 1, 2023 2,042,500 ​ $ 2.50 Granted 1,848,508 ​ 1.00 Vested (540,000) ​ 2.57 Canceled (75,000) ​ 2.08 Non-vested RSAs, March 31, 2023 3,276,008 ​ $ 1.84 ​ As previously reported, as compensation for his services as President and Chief Operating Officer, Keith Cochran was granted 2,000,000 shares of our common stock, subject to four (4) equal annual vesting installments, the first installment of which vested on March 1, 2023. On March 31, 2023, and effective as of March 1, 2023, the Company withheld and cancelled 175,000 shares of its common stock to satisfy an aggregate of $229,249 of payroll tax withholdings and remittance obligations in connection with the net settlement of 325,000 shares. The withholding and cancellation of the 175,000 shares represented a retirement of shares at a price per share equal to $1.31, the closing price per share of our common stock on the trading day prior to the March 1, 2023, the effective date of the share cancellation. ​ As of March 31, 2023, there was $5,052,687 of unrecognized stock-based compensation expense related to restricted stock awards that will be recognized over the weighted average remaining vesting period of 3.0 years. ​ Restricted Stock Units ​ The following table presents information related to restricted stock units (“RSUs”) as of March 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Restricted ​ Average ​ ​ Stock ​ Grant Date ​ Units Fair Value Non-vested RSUs, January 1, 2023 3,000,000 ​ $ 2.05 Granted — ​ ​ — Vested — ​ ​ — Canceled ​ — ​ ​ — Non-vested RSUs, March 31, 2023 ​ 3,000,000 ​ $ 2.05 ​ As of March 31, 2023, there was $3,780,078 of unrecognized stock-based compensation expense related to restricted stock units that will be recognized over the weighted average remaining vesting period of 3.6 years. Stock-Based Compensation ​ During the three months ended March 31, 2023 and 2022, the Company recognized stock-based compensation expense of $920,155 and $1,242,922, respectively, related to restricted common stock, warrants and stock options, of which $903,995 and $1,234,814, respectively are included within selling, general and administrative expenses, and $16,160 and $8,108, respectively are included within research and development expenses on the unaudited condensed consolidated statements of operations. ​ The following table presents information related to stock-based compensation for the three months ended March 31, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ 2023 2022 Common stock issued for services ​ $ 6,820 ​ $ 43,160 Accrued issuable equity (common stock) ​ 107,630 ​ (65,400) Amortization of stock options ​ 40,605 ​ 15,883 Amortization of market-based awards ​ — ​ 730,048 Amortization of restricted stock awards and units ​ 765,100 ​ 519,231 Total ​ $ 920,155 ​ $ 1,242,922 ​

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2023
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 13 SUBSEQUENT EVENTS Supplemental Agreement to the SEPA Subsequent to the three months ended March 31, 2023, the Company issued 493,972 shares of common stock in partial satisfaction of the Initial Advance liability in the amount of $350,000 and interest accrued through March 2023 in the amount of $20,479 (see Note 8, Prepaid Advance Liability). As a result, $345,376 of Prepaid Advance Liability at March 31, 2023 (consisting of $350,000 of Initial Advance balance, plus $18,421 original issue discount, less $23,045 of unamortized debt discount), is classified as a non-current liability on the accompanying condensed consolidated balance sheet. Purchase Agreement On May 4, 2023, the Company entered into an agreement (the “Purchase Agreement”) with a seller (the “Seller”), pursuant to which the Company purchased all of the assets, including intellectual property, of the Seller (the “Acquired Assets”) for consideration of $75,000. The Purchase Agreement includes customary representations, warranties and covenants of the Company and the Seller. The Purchase Agreement also contains post-closing indemnification provisions pursuant to which the parties have agreed to indemnify each other against losses resulting from certain events, including breaches of representations and warranties, covenants and certain other matters. The Company is evaluating whether this agreement meets the criteria of a business combination in accordance with the applicable accounting guidance.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liquidity	Liquidity As of March 31, 2023, the Company had cash of $7,186,034 and working capital of $414,334. For the three months ended March 31, 2023, the Company incurred a net loss of $6,602,861 and used cash in operations of $4,759,039. Subsequent to the three months ended March 31, 2023, the Company issued 493,972 shares of common stock in satisfaction of the Initial Advance liability in the amount of $350,000 and interest accrued through March 2023 in the amount of $20,479 (see Note 8, Prepaid Advance Liability). As a result, $345,376 of Prepaid Advance Liability at March 31, 2023 (consisting of $350,000 of Initial Advance balance, plus $18,421 original issue discount, less $23,045 of unamortized debt discount), is classified as a non-current liability on the accompanying consolidated balance sheet. The Company’s primary source of liquidity has historically been cash generated from equity and debt offerings. Under ASC Subtopic 205-40, Presentation of Financial Statements—Going Concern (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet future financial obligations as they become due within one year after the date that the financial statements are issued. The above conditions are indicators that there is substantial doubt about the Company’s ability to continue as a going concern as the Company has a history of recurring net losses, recurring use of cash in operations and declining working capital. Despite these conditions, the Company has a successful track record of raising capital as needed and continues to have a positive, ongoing relationship with a financial institution that has provided access to capital and will continue to support KULR. Accordingly, management’s plans alleviate the substantial doubt about the Company’s ability to continue as a going concern. 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, combined with the cash availability pursuant to the Standby Equity Purchase Agreement described in Note 8, will be sufficient to meet our working capital and capital expenditure requirements for a period of at least twelve months after the filing date of these condensed consolidated 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 unaudited condensed consolidated financial statements include, but are not limited to, fair value calculations for equity securities, stock-based compensation 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.
Concentrations of Credit Risk	Concentrations of Credit Risk Balances 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 were uninsured balances of $6,686,034 and $9,709,169 as of March 31, 2023 and 2022, respectively. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ Accounts Receivable ​ ​ For the Three Months Ended ​ ​ ​ ​ ​ ​ March 31, ​ As of As of ​ 2023 2022 March 31, 2023 ​ December 31, 2022 Customer A * ​ * ​ * ​ 34 % Customer B * ​ 43 % * ​ * ​ Customer C * ​ 37 % * ​ * ​ Customer D 86 % * ​ 91 % 61 % Total 86 % 80 % 91 % 95 % * 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 of 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. Vendor Concentrations Vendor purchase concentrations are as follows for the three months ended March 31, 2023 and 2022, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ 2023 2022 Vendor A * ​ 69 % Vendor B 12 % * ​ Vendor C * ​ 14 % ​ 12 % 83 % * Less than 10%
Inventory	Inventory Inventory is comprised of carbon fiber velvet (“CFV”) thermal interface solutions and internal short circuit batteries, which are available for sale, as well as raw materials and work in process related primarily to the manufacture of safe cases. Inventories are stated at the lower of cost or net realizable value. Cost is determined using the standard costing method, which approximates cost determined on a first-in, first-out basis. 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. Finished goods inventory is held on-site at the Company’s San Diego, California location. Certain raw materials are held off-site with our contract manufacturers. Inventory at March 31, 2023 and December 31, 2022 was comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2023 ​ 2022 Raw materials ​ $ 732,623 ​ $ 1,075,310 Work-in-process ​ ​ — ​ ​ 2,977 Finished goods ​ 937,011 ​ 883,748 Total inventory ​ $ 1,669,634 ​ $ 1,962,035 ​
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 condensed consolidated statements of operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ 2023 2022 Product sales ​ $ 1,629,258 ​ $ 172,599 Contract services ​ 130,544 ​ 27,900 Total revenue ​ $ 1,759,802 ​ $ 200,499 ​ 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. The Company expects to satisfy the remaining performance obligations related to its deferred revenue balance within the next twelve months. During the three months ended March 31, 2023 and 2022, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. As of March 31, 2023 and December 31, 2022, the Company had $34,402 of deferred labor costs, which is included in prepaid expenses and other current assets in the Company’s unaudited condensed consolidated balance sheets. Deferred labor costs represent 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.
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. ​ The following table presents the computation of basic and diluted net loss per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ ​ 2023 2022 Numerator: ​ ​ Net loss attributable to common stockholders ​ $ (6,602,861) ​ $ (4,136,555) ​ ​ ​ ​ ​ ​ ​ Denominator (weighted average quantities): ​ ​ ​ ​ Common stock issued ​ 115,055,115 ​ 104,843,100 Less: Treasury shares purchased ​ (131,162) ​ (64,901) Less: Unvested restricted shares ​ (2,170,717) ​ (2,357,889) Add: Accrued issuable equity ​ ​ 124,000 ​ ​ 76,000 Denominator for basic and diluted net loss per share ​ ​ 112,877,236 ​ ​ 102,496,310 ​ ​ ​ ​ ​ Basic and diluted net loss per common share ​ $ (0.06) ​ $ (0.04) ​ The following shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive: ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2023 2022 Unvested issued restricted stock awards ​ 3,276,008 ​ 1,925,000 Unvested market-based equity awards ​ — ​ 3,000,000 Restricted stock units ​ 3,000,000 ​ — Options 765,216 462,716 Warrants ​ 2,524,410 ​ 2,524,410 Total 9,565,634 7,912,126 ​
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of concentrations of credit risk	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenues ​ Accounts Receivable ​ ​ For the Three Months Ended ​ ​ ​ ​ ​ ​ March 31, ​ As of As of ​ 2023 2022 March 31, 2023 ​ December 31, 2022 Customer A * ​ * ​ * ​ 34 % Customer B * ​ 43 % * ​ * ​ Customer C * ​ 37 % * ​ * ​ Customer D 86 % * ​ 91 % 61 % Total 86 % 80 % 91 % 95 % * Less than 10% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ 2023 2022 Vendor A * ​ 69 % Vendor B 12 % * ​ Vendor C * ​ 14 % ​ 12 % 83 % * Less than 10%
Schedule of inventory	​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ ​ 2023 ​ 2022 Raw materials ​ $ 732,623 ​ $ 1,075,310 Work-in-process ​ ​ — ​ ​ 2,977 Finished goods ​ 937,011 ​ 883,748 Total inventory ​ $ 1,669,634 ​ $ 1,962,035 ​
Schedule of revenue recognized	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ 2023 2022 Product sales ​ $ 1,629,258 ​ $ 172,599 Contract services ​ 130,544 ​ 27,900 Total revenue ​ $ 1,759,802 ​ $ 200,499 ​
Schedule of of basic and diluted net loss per common share	​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ ​ March 31, ​ ​ 2023 2022 Numerator: ​ ​ Net loss attributable to common stockholders ​ $ (6,602,861) ​ $ (4,136,555) ​ ​ ​ ​ ​ ​ ​ Denominator (weighted average quantities): ​ ​ ​ ​ Common stock issued ​ 115,055,115 ​ 104,843,100 Less: Treasury shares purchased ​ (131,162) ​ (64,901) Less: Unvested restricted shares ​ (2,170,717) ​ (2,357,889) Add: Accrued issuable equity ​ ​ 124,000 ​ ​ 76,000 Denominator for basic and diluted net loss per share ​ ​ 112,877,236 ​ ​ 102,496,310 ​ ​ ​ ​ ​ Basic and diluted net loss per common share ​ $ (0.06) ​ $ (0.04) ​
Schedule of shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive	​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ 2023 2022 Unvested issued restricted stock awards ​ 3,276,008 ​ 1,925,000 Unvested market-based equity awards ​ — ​ 3,000,000 Restricted stock units ​ 3,000,000 ​ — Options 765,216 462,716 Warrants ​ 2,524,410 ​ 2,524,410 Total 9,565,634 7,912,126 ​

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Mar. 31, 2023
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Schedule of prepaid expenses and other current assets	​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, December 31, ​ 2023 2022 Marketing and sponsorships ​ $ 610,572 ​ $ 574,636 Compensation costs ​ ​ 250,000 ​ ​ 375,000 Dues and subscriptions ​ ​ 120,224 ​ ​ 75,889 Conferences and seminars ​ ​ 46,416 ​ ​ — Deferred labor costs ​ ​ 34,402 ​ ​ 34,402 Professional fees ​ ​ 24,467 ​ ​ 25,787 Insurance ​ ​ 13,813 ​ ​ 12,776 Vendor receivables ​ ​ — ​ ​ 368,069 Research and development ​ ​ — ​ ​ 62,329 Other ​ ​ 38,437 ​ ​ 84,120 Total prepaid expenses and other current assets ​ $ 1,138,331 ​ $ 1,613,008 ​

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2023
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Schedule of accrued expenses and other current liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 Professional fees ​ $ 1,320,800 ​ $ 1,180,000 Payroll and vacation ​ ​ 818,099 ​ ​ 464,453 Research and development ​ ​ 364,549 ​ ​ 196,409 Inventory ​ 104,204 ​ ​ 58,804 Board compensation ​ ​ 85,000 ​ ​ 122,500 Other ​ 58,321 ​ ​ 49,112 Marketing and advertising fees ​ 6,026 ​ ​ 3,999 Legal fees ​ 1,596 ​ ​ 2,000 Subscriptions ​ — ​ ​ 65,000 Total accrued expenses and other current liabilities ​ 2,758,595 ​ ​ 2,142,277 Add: Accrued interest, non-current ​ ​ — ​ ​ 157,054 Total accrued expenses and other current liabilities ​ $ 2,758,595 ​ $ 2,299,331

ACCRUED ISSUABLE EQUITY (Tables

ACCRUED ISSUABLE EQUITY (Tables)	3 Months Ended
	Mar. 31, 2023
ACCRUED ISSUABLE EQUITY
Schedule of accrued issuable equity	​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, 2023 Beginning balance ​ $ 227,956 Grant date value of share obligations ​ ​ 107,630 Mark-to-market ​ ​ (64,108) Ending balance ​ $ 271,478 ​

PREPAID ADVANCE LIABILITY (Tabl

PREPAID ADVANCE LIABILITY (Tables)	3 Months Ended
	Mar. 31, 2023
PREPAID ADVANCE LIABILITY
Summary of prepaid advance liability	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Amount of Original Less: Prepaid Advance ​ ​ Prepaid Advance ​ Issue ​ Debt ​ Liability, ​ ​ Liability ​ Discount ​ Discount ​ net of discount Balance, December 31, 2022 ​ $ 9,000,000 ​ $ 473,631 ​ $ (621,341) ​ $ 8,852,290 Proceeds from prepaid advance ​ 2,000,000 ​ — ​ — ​ 2,000,000 Original issue discount on prepaid advance ​ — ​ 105,263 ​ (105,263) ​ — Legal fees ​ — ​ — ​ (30,000) ​ (30,000) Repayments in cash ​ — ​ — ​ — ​ — Repayments in shares of common stock ​ (3,250,000) ​ (171,038) ​ — ​ (3,421,038) Amortization of original issue discount ​ ​ — ​ ​ — ​ ​ — ​ ​ — Amortization of debt discount ​ — ​ — ​ 246,320 ​ 246,320 Outstanding, March 31, 2023 ​ $ 7,750,000 ​ $ 407,856 ​ $ (510,284) ​ $ 7,647,572 ​

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2023
LEASES
Schedule of maturities of lease liabilities	​ ​ ​ ​ ​ Maturity Date ​ ​ 2023 ​ ​ 215,399 2024 ​ 103,432 Total lease payments ​ 318,831 Less: Imputed interest ​ (9,438) Present value of lease liabilities ​ 309,394 Less: current portion ​ (269,967) Lease liabilities, non-current portion ​ $ 39,427 ​
Schedule of supplemental cash flow information related to the leases	​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ ​ 2023 ​ 2022 Cash paid for amounts included in the measurement of lease liabilities ​ ​ ​ ​ ​ ​ Operating cash flows for operating lease ​ $ 63,363 ​ $ 49,176 Right-of-use asset obtained in exchange for lease obligations ​ ​ ​ ​ ​ ​ Operating lease ​ $ 51,154 ​ $ —

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2023
STOCKHOLDERS' EQUITY
Schedule of Information relating to stock based compensation	​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ March 31, ​ 2023 2022 Common stock issued for services ​ $ 6,820 ​ $ 43,160 Accrued issuable equity (common stock) ​ 107,630 ​ (65,400) Amortization of stock options ​ 40,605 ​ 15,883 Amortization of market-based awards ​ — ​ 730,048 Amortization of restricted stock awards and units ​ 765,100 ​ 519,231 Total ​ $ 920,155 ​ $ 1,242,922
Schedule of stock option activity outstanding and exercisable	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Weighted ​ ​ ​ ​ ​ ​ Average ​ Average ​ ​ ​ ​ ​ Number of ​ Exercise ​ Remaining ​ Intrinsic ​ Options Price Term (Yrs) Value Outstanding, January 1, 2023 640,216 ​ $ 1.72 ​ Granted 135,000 ​ 1.18 ​ Exercised — ​ — ​ Expired — ​ — ​ Forfeited (10,000) ​ 2.08 ​ Outstanding, March 31, 2023 765,216 ​ $ 1.62 3.6 ​ $ 24,307 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable, March 31, 2023 220,216 ​ $ 1.51 2.1 ​ $ 23,665 ​ ​ ​ ​ ​ ​ ​ ​ ​ Options Outstanding ​ Options Exercisable ​ ​ ​ ​ Weighted ​ ​ ​ Outstanding ​ Average ​ Exercisable Exercise ​ Number of ​ Remaining Life ​ Number of Price Options In Years Options $0.66 - $0.99 ​ 135,486 ​ 0.1 ​ 107,570 $1.21 - $1.50 ​ 250,000 ​ — ​ — $1.55 - $1.99 ​ 90,000 ​ 3.2 ​ 5,833 $2.05 - $2.44 ​ 289,730 ​ 3.3 ​ 106,813 ​ ​ 765,216 ​ 2.1 ​ 220,216 ​
Schedule of restricted stock awards and restricted stock units (excluding Market-Based RSU Awards)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ Restricted ​ Grant Date ​ ​ Stock Awards ​ Fair Value Non-vested RSAs, January 1, 2023 2,042,500 ​ $ 2.50 Granted 1,848,508 ​ 1.00 Vested (540,000) ​ 2.57 Canceled (75,000) ​ 2.08 Non-vested RSAs, March 31, 2023 3,276,008 ​ $ 1.84 ​
Stock options
STOCKHOLDERS' EQUITY
Schedule of stock options granted	​ ​ ​ ​ ​ ​ ​ ​ ​ For The Three Months Ended ​ ​ March 31, ​ ​ 2023 2022 Risk free interest rate ​ 3.92% - 4.52% ​ 1.18% - 2.28% ​ Expected term (years) ​ 3.5 ​ 3.5 - 3.8 ​ Expected volatility ​ 105% ​ 116% ​ Expected dividends ​ 0% ​ 0% ​ ​
Amortization of market-based awards
STOCKHOLDERS' EQUITY
Schedule of restricted stock awards and restricted stock units (excluding Market-Based RSU Awards)	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Restricted ​ Average ​ ​ Stock ​ Grant Date ​ Units Fair Value Non-vested RSUs, January 1, 2023 3,000,000 ​ $ 2.05 Granted — ​ ​ — Vested — ​ ​ — Canceled ​ — ​ ​ — Non-vested RSUs, March 31, 2023 ​ 3,000,000 ​ $ 2.05 ​

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Customer, Revenue and Vendor Concentrations (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenues | Revenue Concentrations
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage	86%	80%
Revenues | Customer B | Revenue Concentrations
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage		43%
Revenues | Customer C | Revenue Concentrations
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage		37%
Revenues | Customer D | Revenue Concentrations
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage	86%
Account Receivables | Customer Concentrations
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage	91%		95%
Account Receivables | Customer A | Customer Concentrations
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage			34%
Account Receivables | Customer D | Customer Concentrations
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage	91%		61%
Accounts Payable
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage	12%	83%
Accounts Payable | Vendor Concentrations | Vendor A
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage		69%
Accounts Payable | Vendor Concentrations | Vendor B
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage	12%
Accounts Payable | Vendor Concentrations | Vendor C
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Concentration Risk, Percentage		14%

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Raw materials	$ 732,623	$ 1,075,310
Work-in-process		2,977
Finished goods	937,011	883,748
Total inventory	$ 1,669,634	$ 1,962,035

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Company's revenue recognized in its consolidated statements of operations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Total revenue	$ 1,759,802	$ 200,499
Product sales
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Total revenue	1,629,258	172,599
Contract services
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Total revenue	$ 130,544	$ 27,900

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of basic and diluted net loss per common share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss attributable to common stockholders	$ (6,602,861)	$ (4,136,555)
Denominator (weighted average quantities):
Common shares issued	115,055,115	104,843,100
Less: Treasury shares purchased	(131,162)	(64,901)
Less: Unvested restricted shares	(2,170,717)	(2,357,889)
Add: Accrued issuable equity	124,000	76,000
Denominator for basic net loss per share	112,877,236	102,496,310
Denominator for diluted net loss per share	112,877,236	102,496,310
Basic net loss per common share (In dollars per share)	$ (0.06)	$ (0.04)
Diluted net loss per common share (In dollars per share)	$ (0.06)	$ (0.04)

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Shares were excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares were excluded from the calculation of weighted average dilutive common shares	9,565,634	7,912,126
Unvested issued restricted stock awards
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares were excluded from the calculation of weighted average dilutive common shares	3,276,008	1,925,000
Unvested market -based equity awards
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares were excluded from the calculation of weighted average dilutive common shares		3,000,000
Restricted Stock Units
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares were excluded from the calculation of weighted average dilutive common shares	3,000,000
Options
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares were excluded from the calculation of weighted average dilutive common shares	765,216	462,716
Warrants
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares were excluded from the calculation of weighted average dilutive common shares	2,524,410	2,524,410

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash	$ 7,186,034		$ 10,333,563
Working capital	414,334
Net loss	(6,602,861)	$ (4,136,555)
Cash in operations	$ 4,759,039	4,574,490
Initial advance liability (in shares)	493,972
Initial advance liability	$ 350,000
Accrued interest	20,479
Uninsured cash	6,686,034		9,709,169
Revenue recognized from performance obligations	0	0
Deferred labor costs	34,402	$ 34,402	$ 34,402
Non-current portion
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Prepaid Advance Liability	345,376
Prepaid advance	350,000
Original issue discount	18,421
Debt discount	$ 23,045

INVENTORY DEPOSITS (Details)

INVENTORY DEPOSITS (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
INVENTORY DEPOSITS
Inventory deposits	$ 264,384	$ 285,260

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Marketing and sponsorships	$ 610,572	$ 574,636
Compensation costs	250,000	375,000
Dues and subscriptions	120,224	75,889
Conferences and seminars	46,416
Deferred labor costs	34,402	34,402	$ 34,402
Professional fees	24,467	25,787
Insurance	13,813	12,776
Vendor receivables		368,069
Research and development		62,329
Other	38,437	84,120
Total prepaid expenses and other current assets	1,138,331	$ 1,613,008
Prepaid marketing expenses	$ 531,250

EQUIPMENT DEPOSITS (Details)

EQUIPMENT DEPOSITS (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
EQUIPMENT DEPOSITS
Equipment deposits	$ 1,238,486	$ 3,514,937

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Professional fees	$ 1,320,800	$ 1,180,000
Payroll and vacation	818,099	464,453
Research and development	364,549	196,409
Inventory	104,204	58,804
Board compensation	85,000	122,500
Other	58,321	49,112
Marketing and advertising fees	6,026	3,999
Legal fees	1,596	2,000
Subscriptions		65,000
Total accrued expenses and other current liabilities	2,758,595	2,142,277
Add: Accrued interest, non-current		157,054
Total accrued expenses and other current liabilities	$ 2,758,595	$ 2,299,331

ACCRUED ISSUABLE EQUITY (Detail

ACCRUED ISSUABLE EQUITY (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)
ACCRUED ISSUABLE EQUITY
Beginning balance	$ 227,956
Grant date value of share obligations	107,630
Mark-to-market	(64,108)
Ending balance	$ 271,478

ACCRUED ISSUABLE EQUITY - Addit

ACCRUED ISSUABLE EQUITY - Additional information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
ACCRUED ISSUABLE EQUITY
Estimated fair value of shares	$ 107,630
Gains (losses) related to the change in fair value	64,108	$ 43,040
Fair value of unissued share	$ 271,478

PREPAID ADVANCE LIABILITY - Pre

PREPAID ADVANCE LIABILITY - Prepaid advance liability (Details) - USD ($)		3 Months Ended
	Mar. 10, 2023	Mar. 31, 2023
Gross Amount of Prepaid Advance Liability
PREPAID ADVANCE LIABILITY
Balance, December 31, 2022		$ 9,000,000
Proceeds from prepaid advance		2,000,000
Repayments in shares of common stock		(3,250,000)
Outstanding, March 31, 2023		7,750,000
Original Issue Discount
PREPAID ADVANCE LIABILITY
Balance, December 31, 2022		473,631
Original issue discount on prepaid advance		105,263
Repayments in shares of common stock		(171,038)
Outstanding, March 31, 2023		407,856
Less: Debt Discount
PREPAID ADVANCE LIABILITY
Balance, December 31, 2022		(621,341)
Original issue discount on prepaid advance		(105,263)
Legal fees		(30,000)
Amortization of debt discount		246,320
Outstanding, March 31, 2023		(510,284)
Prepaid Advance Liability, net of discount
PREPAID ADVANCE LIABILITY
Balance, December 31, 2022		8,852,290
Proceeds from prepaid advance		2,000,000
Legal fees		(30,000)
Repayments in shares of common stock		(3,421,038)
Amortization of debt discount		246,320
Outstanding, March 31, 2023		$ 7,647,572
Yorkville
PREPAID ADVANCE LIABILITY
Proceeds from prepaid advance	$ 2,000,000
Original issue discount on prepaid advance	$ 105,263

PREPAID ADVANCE LIABILITY - Add

PREPAID ADVANCE LIABILITY - Additional Information (Details) - USD ($)			3 Months Ended
	Mar. 10, 2023	Sep. 23, 2022	Mar. 31, 2023
PREPAID ADVANCE LIABILITY
Remaining principal initial advance outstanding balance			$ 5,750,000
Remaining second advance outstanding balance			2,000,000
Interest expense			159,931
Amortization of debt discount connection with prepaid advance liability			$ 246,320
Initial advance liability (in shares)			493,972
Initial advance liability			$ 350,000
Accrued interest			20,479
Non-current portion
PREPAID ADVANCE LIABILITY
Prepaid advance liability			345,376
Prepaid advance			350,000
Original issue discount			18,421
Debt discount			$ 23,045
Yorkville
PREPAID ADVANCE LIABILITY
Prepaid advance		$ 15,000,000
Maximum prepaid advance		$ 50,000,000
Prepaid Advance, maturity period after the date of closing of advance		12 months
Percentage of interest rate per annum		10%
Percentage of interest rate upon default per annum		15%
Percentage of VWAP of common stock		135%
Percentage of lowest VWAP of common stock		95%
Period for calculating VWAP		3 days
Prepaid advance liability additional amount	$ 2,105,263
Proceeds from prepaid advance	2,000,000
Number of stock issued (in shares)			3,153,036
Aggregate proceeds			$ 3,750,968
Principal amount outstanding			3,250,000
Interest amount outstanding			$ 500,968
Initial advance liability (in shares)			493,972
Initial advance liability			$ 350,000
Accrued interest			20,479
Prepaid advance			350,000
Original issue discount			18,421
Debt discount			$ 23,045
Original issue discount on prepaid advance	$ 105,263
Yorkville | Maximum
PREPAID ADVANCE LIABILITY
Percentage of prepaid advances at annual rate	15%
Purchase price per share			$ 1.20
Yorkville | Minimum
PREPAID ADVANCE LIABILITY
Percentage of prepaid advances at annual rate	10%
Purchase price per share			$ 0.90

LEASES - Additional Information

LEASES - Additional Information (Details) - USD ($)		3 Months Ended
	Jan. 18, 2023	Mar. 31, 2023	Mar. 31, 2022
LEASES
Right of use asset for lease liability	$ 51,154	$ 51,154
Estimated incremental borrowing rate	5%
Operating lease expense		$ 65,873	$ 74,080
New lease agreement for office space in San Diego, California
LEASES
Lease term (in years)	1 year 13 days
Monthly lease rental	$ 5,047
Lease base rent	4,245
Common area maintenance fees included in monthly lease rental	$ 802

LEASES - Maturities of lease li

LEASES - Maturities of lease liabilities (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
LEASES
2023	$ 215,399
2024	103,432
Total lease payments	318,831
Less: Imputed interest	(9,438)
Present value of lease liabilities	309,394
Less: current portion	(269,967)	$ (223,645)
Lease liabilities, non-current portion	$ 39,427	$ 97,958

LEASES - Supplemental cash flow

LEASES - Supplemental cash flow information related to the leases (Details) - USD ($)		3 Months Ended
	Jan. 18, 2023	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating lease		$ 63,363	$ 49,176
Right-of-use asset obtained in exchange for lease obligations
Operating lease	$ 51,154	$ 51,154

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Chief Technology Officer CTO - Consulting Agreements	3 Months Ended
	Mar. 31, 2023 USD ($) $ / h	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
RELATED PARTY TRANSACTIONS
Consultant agreement term	8 months
Consultant rate (in hours) | $ / h	30
Related party expenses	$ 10,455	$ 0
Accounts payable - related party	$ 0		$ 0

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - (Details)		1 Months Ended		3 Months Ended
	Jan. 16, 2023 USD ($) item shares	Mar. 31, 2023 USD ($) shares	Feb. 28, 2023 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)
Commitments and Contingencies
Research and development				$ 1,388,215	$ 721,347
Patent License Agreement
Commitments and Contingencies
Research and development			$ 60,000
Percentage of royalty on net sale price			5.50%
Annual royalty payment amount			$ 20,000
Common Stock
Commitments and Contingencies
Guaranteed commission (in years)	1 year
Guaranteed commission payable	$ 200,000
Number of installments | item	4
Severance package	$ 250,000
Restricted Stock Units | Common Stock
Commitments and Contingencies
Shares issued during period shares other | shares	298,507	1,500,000
Shares issued other value	$ 400,000	$ 1,380,000

STOCKHOLDERS' EQUITY - Addition

STOCKHOLDERS' EQUITY - Additional Information (Details) - USD ($)		3 Months Ended		12 Months Ended
	May 13, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
STOCKHOLDERS' EQUITY
Common stock, par value (in dollars per share)		$ 0.0001		$ 0.0001
Grant date value of common stock issued related to consulting services provided		$ 6,820
Weighted average grant date fair value per share		$ 0.67	$ 3.23
SEPA
STOCKHOLDERS' EQUITY
Value of shares to be issued	$ 50,000,000
Common stock, par value (in dollars per share)	$ 0.0001
Commitment period (in months)	24 months
Maximum advance value of shares to be issued	$ 5,000,000
Price per share to be issued on Market Price (in percent)	98%
Number of consecutive days	3 days
Ownership Limitation (in percent)	4.99%
Exchange Cap (in percent)	19.90%
Legal and consulting services
STOCKHOLDERS' EQUITY
Shares of common stock issued related to consulting services provided		5,500		6,000
Grant date value of common stock issued related to consulting services provided		$ 6,820		$ 13,859
Restricted common stock
STOCKHOLDERS' EQUITY
Unrecognized stock-based compensation expense		$ 5,052,687
Weighted average remaining vesting period		3 years
Number of shares, granted		1,848,508
Stock options
STOCKHOLDERS' EQUITY
Unrecognized stock-based compensation expense		$ 505,926
Weighted average remaining vesting period		3 years 2 months 12 days
Market-Based Awards
STOCKHOLDERS' EQUITY
Unrecognized stock-based compensation expense		$ 3,780,078
Weighted average remaining vesting period		3 years 7 months 6 days
Common Stock
STOCKHOLDERS' EQUITY
Shares of common stock issued related to consulting services provided		5,500
Grant date value of common stock issued related to consulting services provided		$ 1
Common Stock | CEO
STOCKHOLDERS' EQUITY
Number of shares, granted		2,000,000
Withheld and cancelled shares		175,000
Aggregate value		$ 229,249
Net settlement of shares		325,000
Closing price per share		$ 1.31

STOCKHOLDERS' EQUITY - Stock-Ba

STOCKHOLDERS' EQUITY - Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
STOCKHOLDERS' EQUITY
Stock-based compensation expense	$ 920,155	$ 1,242,922
Stock-based compensation	920,155	1,242,922
Selling, general and administrative expenses
STOCKHOLDERS' EQUITY
Stock-based compensation expense	903,995	1,234,814
Research and development expenses
STOCKHOLDERS' EQUITY
Stock-based compensation expense	16,160	8,108
Common stock issued for services
STOCKHOLDERS' EQUITY
Stock-based compensation expense	6,820	43,160
Accrued issuable equity (common stock)
STOCKHOLDERS' EQUITY
Stock-based compensation expense	107,630	(65,400)
Amortization of stock options
STOCKHOLDERS' EQUITY
Stock-based compensation expense	40,605	15,883
Amortization of market-based awards
STOCKHOLDERS' EQUITY
Stock-based compensation expense		730,048
Amortization of restricted stock awards and units
STOCKHOLDERS' EQUITY
Stock-based compensation expense	$ 765,100	$ 519,231

STOCKHOLDERS' EQUITY - Summary

STOCKHOLDERS' EQUITY - Summary of options activity (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
STOCKHOLDERS' EQUITY
Number of Options, Outstanding | shares	640,216
Number of Options, Granted | shares	135,000
Number of Options, Forfeited | shares	(10,000)
Number of Options, Outstanding | shares	765,216
Number of Options, Exercisable | shares	220,216
Weighted Average Exercise Price, Outstanding | $ / shares	$ 1.72
Weighted Average Exercise Price, Granted | $ / shares	1.18
Weighted Average Exercise Price, Forfeited | $ / shares	2.08
Weighted Average Exercise Price Outstanding | $ / shares	1.62
Weighted Average Exercise Price, Exercisable | $ / shares	$ 1.51
Weighted Average Remaining Term, Outstanding	3 years 7 months 6 days
Weighted Average Remaining Term, Exercisable	2 years 1 month 6 days
Number of Options Intrinsic Value, Outstanding | $	$ 24,307
Number of Options Intrinsic Value, Exercisable | $	$ 23,665

STOCKHOLDERS' EQUITY - Stock op

STOCKHOLDERS' EQUITY - Stock options (excluding market-based option awards) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
STOCKHOLDERS' EQUITY
Options Outstanding, Exercise Price	$ 1.51
Options Outstanding, Number of Options	765,216	640,216
Options Exercisable, Weighted Average Remaining Life (In Years)	2 years 1 month 6 days
Options Exercisable Number of Options	220,216
$0.66 - $0.99
STOCKHOLDERS' EQUITY
Options Outstanding, Number of Options	135,486
Options Exercisable, Weighted Average Remaining Life (In Years)	1 month 6 days
Options Exercisable Number of Options	107,570
$1.21 - $1.50
STOCKHOLDERS' EQUITY
Options Outstanding, Number of Options	250,000
Options Exercisable, Weighted Average Remaining Life (In Years)	0 years
$1.55 - $1.99
STOCKHOLDERS' EQUITY
Options Outstanding, Number of Options	90,000
Options Exercisable, Weighted Average Remaining Life (In Years)	3 years 2 months 12 days
Options Exercisable Number of Options	5,833
$2.05 - $2.44
STOCKHOLDERS' EQUITY
Options Outstanding, Number of Options	289,730
Options Exercisable, Weighted Average Remaining Life (In Years)	3 years 3 months 18 days
Options Exercisable Number of Options	106,813

STOCKHOLDERS' EQUITY - Fair val

STOCKHOLDERS' EQUITY - Fair value of stock options granted using the Black-Scholes options and Monte Carlo valuation model (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
STOCKHOLDERS' EQUITY
Expected term (years)	3 years 6 months
Expected volatility	105%	116%
Expected dividends	0%	0%
Minimum
STOCKHOLDERS' EQUITY
Risk free interest rate	3.92%	1.18%
Expected term (years)		3 years 6 months
Maximum
STOCKHOLDERS' EQUITY
Risk free interest rate	4.52%	2.28%
Expected term (years)		3 years 9 months 18 days

STOCKHOLDERS' EQUITY - Market-B

STOCKHOLDERS' EQUITY - Market-Based Awards and Exchange for Restricted Stock Units (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) shares
STOCKHOLDERS' EQUITY
Number of shares eligible to receive upon vesting | shares	3,000,000
Grant Date Fair Value | $	$ 2.05
Restricted Stock [Member] | Market-Based Awards
STOCKHOLDERS' EQUITY
Number of shares eligible to receive upon vesting | shares	3,000,000
Grant Date Fair Value | $	$ 2.05

STOCKHOLDERS' EQUITY - Restrict

STOCKHOLDERS' EQUITY - Restricted Common Stock (Details) - Restricted common stock	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Shares of Restricted Common Stock
Non-vested balance, January 1, 2023 | shares	2,042,500
Granted | shares	1,848,508
Vested | shares	(540,000)
Canceled | shares	(75,000)
Non-vested shares, March 31, 2023 | shares	3,276,008
Weighted Average Grant Date Fair Value Per Share
Non-vested balance, January 1, 2023 (in dollars per share) | $ / shares	$ 2.50
Granted (in dollars per share) | $ / shares	1
Vested (in dollars per share) | $ / shares	2.57
Cancelled (in dollars per share) | $ / shares	2.08
Non-vested shares, December 31, 2023 (in dollars per share) | $ / shares	$ 1.84

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	1 Months Ended	3 Months Ended
	Apr. 30, 2023	Mar. 31, 2023	May 04, 2023
SUBSEQUENT EVENTS
Initial advance liability (in shares)		493,972
Initial advance liability		$ 350,000
Accrued interest		20,479
Non-current portion
SUBSEQUENT EVENTS
Prepaid advance liability		345,376
Prepaid advance		350,000
Original issue discount		18,421
Debt discount		23,045
Supplemental Agreement to the SPEA | Non-current portion
SUBSEQUENT EVENTS
Prepaid advance liability		345,376
Prepaid advance		350,000
Original issue discount		18,421
Debt discount		$ 23,045
Supplemental Agreement to the SPEA | Subsequent event
SUBSEQUENT EVENTS
Initial advance liability (in shares)	493,972
Initial advance liability	$ 350,000
Accrued interest	$ 20,479
Purchase Agreement | Subsequent event
SUBSEQUENT EVENTS
Assets acquired for consideration			$ 75,000