Investing.com -- Shares of KULR Technology Group, Inc. (NYSE: KULR) fell 1% following a scathing report by Grizzly Research that labeled the company as an overhyped PR machine with little business success and a bleak future. The short-seller’s report, released earlier today, criticized KULR for inflating its recent earnings by prematurely recognizing revenue from licensing agreements and for consistently missing its revenue projections.

According to Grizzly Research, KULR’s management has a history of projecting significant revenue opportunities that fail to materialize. The report highlighted a specific instance where KULR anticipated a 100x revenue increase over a few years, only to fall short by at least 50%. Furthermore, the report pointed to a lack of concrete evidence that partnerships with a "tier one manufacturer" for a 500 MWh battery supply have yielded meaningful financial returns.

The analysis of KULR’s customer base revealed a steep decline, from ten customers at the end of the fourth quarter of 2024, down from the third quarter of the same year. The reliance on a small number of customers for the majority of its revenue was also seen as a significant business risk. For instance, in the third quarter of 2024, two customers accounted for most of the revenue, and by the fourth quarter, a single customer represented about 50%.

Grizzly Research also called into question KULR’s claims of successful long-standing relationships with the Department of Defense (DoD) and NASA. The report contrasted these claims with the actual contract records, which showed only modest and sporadic government contracts. The largest DoD contract was an extension with the U.S. Army totaling $2.4 million, and the total NASA awards amounted to just $1.7 million.

The report further scrutinized KULR’s contracts with non-governmental organizations, such as Lockheed Martin (NYSE: LMT ), where the revenue from contracts awarded to KULR fell far short of the company’s publicized potential revenue figures.

Grizzly Research’s investigation included interviews with former employees, which reportedly confirmed concerns about the company’s business practices, including issues with product salability, customer retention, and scalability.

In conclusion, the bearish sentiment reflected in today’s stock movement is a direct response to the Grizzly Research report, which casts doubt on KULR’s financial health and its ability to fulfill its ambitious revenue claims. Investors are reacting to the possibility that KULR’s business may not be as robust as its public statements suggest.

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