KULR Technology Group, Inc. (NYSE American: KULR)
(the "Company" or "KULR"), a leading developer of next-generation
lithium-ion battery safety and thermal management technologies,
today announced its financial results for the fourth quarter and
full-year 2021.
“This past calendar year was a pivotal period in
our corporate history as we achieved numerous milestones across the
business,” said KULR CEO Michael Mo. “With the goal to maintain our
growth trajectory, the entire team is laser focused on executing
against key objectives in 2022. More specifically, we will continue
to focus on the core growth sectors: energy storage, e-mobility and
safe transportation of lithium-ion batteries within the full
battery management lifecycle, from manufacturing through recycling
and reuse. As we look to further commercialize our product lines
this year, legacy products and partnerships in the aerospace,
defense, government, and regulatory sectors will remain an
essential cornerstone of our business. We will invest further into
operations as we prepare for continued growth this year and
beyond.”
Fourth Quarter 2021 Financial
Highlights:
- Revenue increased by 267% to
$766,000 from the same year ago period
- As of December 31, 2021, the
Company had $14.9 million of cash compared to $8.9 million in the
same year ago period
- Gross margin was 70% in the quarter
ended December 31, 2021, compared to 76% in the same year ago
period
Fourth Quarter 2021 and Recent
Operational Highlights
- KULR appointed former NASA Johnson
Space Center senior leader, Dr. William Walker, as its new Director
of Engineering. Dr. Walker will work with the Company’s engineering
team on its next generation high-performance computing (“HPC”) and
hypersonic vehicle thermal management initiatives.
- KULR released a passive propagation
resistant (“PPR”) solution in its KULR-Tech Safe Case product
family for maritime lithium-ion battery safety. The PPR solution
meets the upcoming United States Coast Guard’s new safety
requirements for the passenger vessel industry, and provides
additional battery safety options for the cargo, fishing, and
cruise verticals. The Company’s solution prevents cell to cell
thermal runaway propagation and prevents heat, fire, and explosion
from exiting the KULR-Tech Safe Case enclosure.
- KULR received a three-year
multi-million-dollar deployment order for its PPR solution suite
from Volta Energy Products (“Volta”), a subsidiary of Viridi
Parente, Inc. (“Viridi”). The PPR solution, which includes the
patented thermal runaway shield (“TRS”) product, will be used for
Volta’s stationary and mobile lithium-ion battery power systems.
The initial deployment order totals approximately $1.6 million for
immediate delivery with higher volume shipments expected throughout
2022.
- KULR acquired the patented
intellectual property (“IP”) rights from Centropy AB (“Centropy”).
The acquisition brings advanced carbon fiber based heatsink
technology for HPC applications that strengthen KULR’s portfolio of
thermal management solutions for cloud computing, AI, and crypto
mining applications. Centropy’s cooling solutions will be
integrated into KULR’s existing technology portfolio – targeting
air and liquid-cooling of HPC applications such as crypto mining,
cloud computing, and AR/VR simulations.
- KULR received an initial order
totaling approximately $500,000 for its PPR battery systems from
the Lockheed Martin Corporation (“LMT”). This initial order was for
immediate delivery and is the starting point in the partnership as
LMT leverages KULR’s technological advancements in PPR energy
products for its Advanced Energy Systems.
- KULR joined Clarios in the U.S.
Department of Energy’s (“DoE”) lithium-ion battery lifecycle
initiative to develop the manufacturing and reuse of lithium-ion
batteries and their chemical elements in the United States for the
purpose of domestic national interest.
- KULR expanded its services with
Heritage Battery Recycling (“HBR”) as a result of HBR’s merger with
Retriev Technologies, creating the largest lithium-ion battery
recycler in North America. In addition to the existing e-bike and
scooter customer programs, KULR will also provide safe
transportation logistics to Retriev’s battery collection operations
in North America.
Fourth Quarter 2021 Financial
Results
Revenues: Revenue increased
267% to $766,000 in the fourth quarter ended December 31, 2021,
from $208,000 reported in the same year-ago period. The increase in
revenue was mainly due to the scaling up of design and test
services from larger customers. The Company continues to build its
relationships with a wide range of energy, transport and aerospace
partners and has billed 25 customers during the year ended December
31, 2021. These additions reflect management’s commitment to build
new customer relationships through a growing pool of referrals and
business development leads.
Selling, General and Administrative
(SG&A) Expenses: SG&A expenses increased to $3.8
million in the fourth quarter of 2021 from $768,000 in the
corresponding period last year. The increase in SG&A expenses
was due to the addition of management and operations team members,
sales and marketing activities, and non-cash stock-based
compensation paid to employees and consultants.
R&D expenses: R&D
expenses in the fourth quarter of 2021 increased to $705,000 from
$68,000 in the same period last year, reflecting a combination of
new engineering hires, investments in manufacturing automation, new
product developments, and research in high-areal capacity battery
electrodes and solid-state electrolyte.
Operating Loss: Loss from
operations was $4.0 million for the fourth quarter of 2021,
compared to $677,000 from the same period last year. Higher
SG&A costs offset higher sales while the gross margin decreased
from 76% in the fourth quarter of 2020 to 70% in the comparable
2021 quarter, as a result of lower margins on some larger jobs.
Net Loss: Net loss for the
fourth quarter of 2021 increased to $4.1 million, or a loss of
$0.04 per share, compared to a net loss of $859,000, or a loss of
$0.01 per share from the same period last year.
Full-Year 2021 Financial
Highlights:
- Increased revenue by 287% compared
to Full-Year 2020, mainly reflecting expansion in the
commercialization roadmap
- Increased shareholder equity to
$16.4 million in the year ended December 31, 2021, from $6.1
million in the year ended December 31, 2020
- Gross margins decreased to 54% in
the year ended December 31, 2021, from 70% in the year ended
December 31, 2020, primarily due to a change in product mix from
higher margin products to lower margin services
Full-Year 2021 Financial
Results
Revenues: Revenue increased
287% to $2.4 million in 2021 from $624,000 in 2020. The increase in
revenue was mainly due to early success in the energy storage and
battery transportation and recycling sectors. The Company continues
to build its relationships with a wide range of energy, transport
and aerospace partners and has billed 25 customers during the year
ended December 31, 2021. These additions reflect management’s
commitment to build new customer relationships through a growing
pool of referrals and business development leads.
Selling, General and Administrative
(SG&A) Expenses: SG&A expenses increased to $11.2
million in 2021 from $2.5 million in 2020. The 349% increase in
SG&A expenses consisted primarily of stock-based compensation,
marketing and advertising, salaries, payroll taxes and other
benefits, accounting and tax, consulting fees, travel and
entertainment, rent expense, office expenses, and legal and
professional fees.
R&D expenses: R&D
expenses in 2021 increased to $1.7 million from $290,000 in 2020,
reflecting an increase in employee headcount spent on R&D and
three new projects for automation, battery and drone design
initiated during 2021.
Operating Loss: Loss from
operations was $11.5 million in 2021, compared to $2.3 million in
2020. The increase in operating loss was primarily the result of
increased engineering and manufacturing workforce combined with the
move and buildout of a larger facility to accommodate continued
growth through automation. As of December 31, 2021, the Company had
52 full time employees and 5 contractors compared to 9 employees
and 4 consultants on December 31, 2020. Higher SG&A costs
offset higher sales while gross margin decreased to 54% in 2021
from 70% in 2020, primarily due to a global increase in cost of
materials and from a change in mix between higher margin products
and lower margin services.
Net Loss: Net loss for 2021
increased to $11.9 million or a loss of $0.15 per share, compared
to a net loss of $2.9 million, or a loss of $0.03 per share in
2020.
Cash Position: The Company
reported cash balances of $14.9 million as of December 31, 2021,
compared to $8.9 million in the same period last year. KULR
believes its cash position provides runway to expand operations,
support new business and fund ongoing product development.
Conference Call
The Company has scheduled a conference call for
Thursday, March 17th, 2022 at 4:30pm ET to discuss these results.
Michael Mo, KULR’s CEO; Keith Cochran, President & COO, and
Simon Westbrook, CFO, will provide a business update for the
Company and answer questions submitted by analysts in advance.
To access the call:
Dial-In Number: 1-857-232-0157Access Code: 422095
Please call the conference telephone number 10 minutes prior to
the start time. If you have any difficulty connecting with the
conference call, please contact Gateway Investor Relations at
949-574-3860.
The conference call will be available for replay here and via
the Investor Relations section of KULR’s website.
About KULR Technology Group Inc. KULR
Technology Group Inc. (NYSE American: KULR) develops, manufactures
and licenses next-generation carbon fiber thermal management
technologies for batteries and electronic systems. Leveraging the
company's roots in developing breakthrough cooling solutions for
NASA space missions and backed by a strong intellectual property
portfolio, KULR enables leading aerospace, electronics, energy
storage, 5G infrastructure, and electric vehicle manufacturers to
make their products cooler, lighter and safer for the consumer. For
more information, please visit www.KULRTechnology.com.
Safe Harbor StatementThis release does not
constitute an offer to sell or a solicitation of offers to buy any
securities of any entity. This release contains certain
forward-looking statements based on our current expectations,
forecasts and assumptions that involve risks and uncertainties.
Forward-looking statements in this release are based on information
available to us as of the date hereof. Our actual results may
differ materially from those stated or implied in such
forward-looking statements, due to risks and uncertainties
associated with our business, which include the risk factors
disclosed in our Form 10-K filed with the Securities and Exchange
Commission on March 19, 2021. Forward-looking statements include
statements regarding our expectations, beliefs, intentions, or
strategies regarding the future and can be identified by
forward-looking words such as "anticipate," "believe," "could,"
"estimate," "expect," "intend," "may," "should," and "would" or
similar words. All forecasts are provided by management in this
release are based on information available at this time and
management expects that internal projections and expectations may
change over time. In addition, the forecasts are entirely on
management’s best estimate of our future financial performance
given our current contracts, current backlog of opportunities and
conversations with new and existing customers about our products
and services. We assume no obligation to update the information
included in this press release, whether as a result of new
information, future events or otherwise.
Media Relations:Annika HarperThe Antenna
GroupKULR@antennagroup.com
Investor Relations:Tom Colton or Matt Glover
Gateway Investor RelationsMain: (949) 574-3860
KULR@gatewayir.com
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