Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2016, for KT High-Tech Marketing, Inc. (Note: The input metadata references "KULR Technology Group, Inc.", but the filing text explicitly identifies the registrant as "KT High-Tech Marketing, Inc." and "Grant Hill Acquisition Corporation" as a former name). The company is a Delaware corporation classified as a "shell company" and "smaller reporting company." It operates as a blank check company in the developmental stage, with operations limited to issuing shares, filing registration statements, and effecting a change in control. The company intends to engage in mergers and acquisitions or market technology products (IoT, Mobile, Energy Storage) but has not yet generated revenue.
Key Financial Metrics
| Metric | Value (as of/for period ended June 30, 2016) |
|---|---|
| Revenue | $0 |
| Net Loss (3 months) | $(2,857) |
| Accumulated Deficit | $(6,919) |
| Cash and Cash Equivalents | $380 |
| Total Assets | $380 |
| Total Liabilities | $4,000 |
| Working Capital Deficit | $(2,120) |
| Shares Outstanding | 23,800,000 |
Material Changes vs. Prior Period
- Change in Control: On April 17, 2016, the company redeemed 19,400,000 shares from original shareholders. On April 18, 2016, 20,000,000 shares were issued to Michael Mo, the new sole officer and director.
- Capital Raise: Between April 19 and June 30, 2016, the company issued 3,800,000 shares to 40 shareholders for a total of $380.
- Financial Position: Cash increased from $0 at December 31, 2015, to $380 at June 30, 2016. Total liabilities increased slightly from $3,750 to $4,000 due to accrued professional fees.
- Operations: The company remains in the developmental stage with no revenue generated since inception (December 11, 2015).
Outlook, Risks, and Management Commentary
- Going Concern: The filing explicitly states that the company's continuation as a going concern is dependent on its ability to generate cash flows or obtain additional financing. The auditors have raised substantial doubt regarding the company's ability to continue as a going concern.
- Future Plans: Management plans to market and distribute technology products in IoT, Mobile, and Energy Storage sectors. They intend to file an S-1 registration statement to conduct a direct share offering.
- Risks: The company has no current operations and no commitments from third parties for equity purchases. If additional working capital is not acquired, the company will be required to significantly reduce operations.
- Unusual Items: Expenses paid by stockholders were contributed as capital ($3,170 non-cash adjustment in the cash flow statement).
Investor Verification Checklist
- Verify the discrepancy between the metadata name ("KULR Technology Group, Inc.") and the filing name ("KT High-Tech Marketing, Inc.").
- Confirm the status of the planned S-1 registration statement and any subsequent equity financing efforts.
- Assess the company's ability to secure the additional working capital required to avoid a reduction in operations.
- Review the specific terms of the change in control and the relationship of the new sole officer/director, Michael Mo, to the company.
- Monitor the status of the $2,500 accrued professional fees and whether they have been settled.