RELATED PARTY TRANSACTIONS |
12 Months Ended | |||
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Dec. 31, 2017 | ||||
Related Party Transactions [Abstract] | ||||
Related Party Transactions Disclosure [Text Block] |
See Note 9 – Stockholders’ Equity – Common Stock Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities – related parties consists of (a) a liability of $0 and approximately $78,000 as of December 31, 2017 and 2016, respectively, to the Company’s Chief Technology Officer (“CTO”) in connection with consulting services provided to the Company; (b) a liability of approximately $254,000 and approximately $274,000 as of December 31, 2017 and 2016, respectively, to Energy Science Laboratories, Inc. (“ESLI”), a company controlled by the Company’s CTO, in connection with consulting services provided to the Company associated with the development of the Company’s CFV thermal management solutions; and (c) $0 and approximately $8,000 as of December 31, 2017 and 2016, respectively, due to KT High-Tech, which was eliminated in consolidation as a result of the Share Exchange. Note Receivable On June 13, 2017, the Company collected the $85,000 note receivable from its Chief Executive Officer (“CEO”) in full as well as outstanding accrued interest in the amount of $3,488. The note receivable was related to a loan made prior to the Share Exchange. For the years ended December 31,2017 and 2016, respectively, the Company recorded $1,336 and $2,152, respectively, of interest income in connection with the note receivable. Consulting Agreements On June 2, 2014, KULR entered into consulting agreements with its CEO and CTO. The agreements provide for a monthly retainer of $6,250 for June 2014 through November 2014 and $6,500 thereafter. The term of each agreement is twelve months and provide for automatic extensions, in the absence of termination. The consulting agreements were terminated in connection with the closing of the Share Exchange. During the years ended December 31, 2017 and 2016, the Company recorded aggregate expense of $57,000 and $156,000 related to the consulting agreements. On November 11, 2017, the Company’s CEO and CTO waived $25,000 and $110,000, respectively, related to compensation previously owed to them by the Company in connection with their respective consulting agreements with KULR discussed above. As a result, the Company accounted for the waiver by reducing accrued expenses and other current liability by $135,000 with a corresponding credit to stockholders’ equity. During the years ended December 31, 2017 and 2016, the Company recorded research and development expense of $407,324 and $317,322 related to consulting services provided to the Company by ESLI associated with the development of the Company’s CFV thermal management solutions. ESLI is controlled by the Company’s CTO. |