Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2016, for KT High-Tech Marketing, Inc. (also referenced in metadata as KULR Technology Group, Inc.). The Company is a Delaware corporation incorporated on December 11, 2015, operating as a "blank check" company in the developmental stage. Its primary objective is to locate and negotiate a business combination (merger or acquisition) with a target entity, specifically targeting growth markets in IoT, Mobile, and Energy Storage. As of the reporting date, the Company had no active operations or revenue-generating activities.
Key Financial Metrics
| Metric | Value (Three Months Ended Mar 31, 2016) | Value (As of Mar 31, 2016) |
|---|---|---|
| Revenue | $0 | N/A |
| Net Loss | $(1,400) | N/A |
| Accumulated Deficit | N/A | $(5,462) |
| Cash and Cash Equivalents | $0 | $0 |
| Total Assets | N/A | $0 |
| Total Liabilities | N/A | $4,000 |
| Working Capital | N/A | $(4,000) Deficit |
| Shares Outstanding | 20,000,000 | 20,000,000 |
Note: The filing does not provide data for margins or debt interest rates as there is no revenue or interest-bearing debt.
Material Changes vs. Prior Period
- Liabilities: Accrued liabilities increased from $3,750 as of December 31, 2015, to $4,000 as of March 31, 2016, representing a $250 increase in professional fees.
- Equity: Additional paid-in capital increased from $312 to $1,462 due to expenses paid by stockholders and contributed as capital ($1,150).
- Cash Flow: Net cash provided by operating activities was $0, as the net loss of $(1,400) was offset by non-cash adjustments and changes in accrued liabilities.
Outlook, Risks, and Subsequent Events
Going Concern Uncertainty
Management and independent auditors have raised substantial doubt about the Company's ability to continue as a going concern. The Company has no revenue, a working capital deficit, and relies entirely on financial support from stockholders or successful equity financing to meet obligations. If additional capital is not secured, the Company may be required to significantly reduce operations.
Subsequent Events (Post-March 31, 2016)
Significant changes in control occurred after the reporting period:
- April 17, 2016: The Company redeemed 19,400,000 shares pro rata from the two original shareholders. Former officers and directors resigned.
- April 18, 2016: The Company issued 20,000,000 shares of common stock to Michael Mo, the newly elected sole officer and director. This issuance represented 97% of the total outstanding shares (20,600,000) at that time.
Management Commentary
Management intends to market and distribute technology products (e.g., HD Security Cameras, VR/AR glasses, drones, smart home devices) in the US and Greater China Region. However, no agreements with supply partners or customers were in place as of the filing date.
Investor Verification Checklist
- Capital Adequacy: Verify if the Company has secured the additional financing required to resolve the working capital deficit and sustain operations.
- Change of Control: Confirm the current ownership structure following the April 2016 redemption and issuance of shares to Michael Mo.
- Business Plan Execution: Assess whether the Company has entered into any binding agreements with target companies or supply partners for the proposed IoT and Energy Storage markets.
- Accrued Liabilities: Determine the status of the $4,000 in accrued professional fees and whether they have been settled or assumed by new management.