KULR Technology Group Reports Second Quarter 2022 Financial Results
August 15 2022 - 4:15PM
KULR Technology Group, Inc. (NYSE American: KULR)
(the "Company" or "KULR"), a leading developer of next-generation
lithium-ion (“Li-ion”) battery safety and thermal management
technologies, today reported results for the second quarter ended
June 30, 2022.
Second Quarter 2022 and Recent Operational
Highlights:
- With support of its major recycling partner, KULR gained
immediate and open access to commercial partners and customers by
securing United Parcel Service ("UPS") shipping certification,
which allows for shipment of batteries utilizing the KULR Safe Case
products through UPS' vast shipping network. The permit allows the
United States Department of Transportation (“DoT”) compliant Safe
Case to be used as a safe and reusable shipping container for
Li-Ion battery transportation up to 2.1KWh (“Kilowatt-hour) and
provides the Company's major recycling partner a safe shipping
container that can handle batteries above 300Wh (“Watt-hour”).
- Completed the licensing and started the construction of FTRC
(Fractional Thermal Runaway Calorimetry) with multiple customer
engagements already in queue and three purchase orders expected to
close in September 2022.
- Secured four major commercial accounts for KULR Safe Case
products with deployment trials underway. Forecasts are for
multi-million-dollar recurring commitments over the next 18
months.
- Received a follow-on order for the space-developed phase change
material (“PCM”) heat sink technology from leading aerospace and
defense company Lockheed Martin Corporation.
- Continued to iterate the biosensing solution for the Company’s
Fortune 50 Metaverse customer. The recently revised engineering
design improves pliability, increases conductivity, and enhances
softness to the skin. The next shipment to the customer is
estimated to take place in late August 2022 with customer testing
to occur shortly thereafter.
- Announced a partnership with E-One Moli Energy Corporation
(“Molicel”) to advance KULR's total battery safety and thermal
management solutions strategy.
- Commenced installation of the fully automated battery testing
program with initial processing capability of approximately 500,000
18650/21700 lithium-ion cells annually in support of NASA’s manned
flight specification EP-WI-037. System installation will conclude
in Q3 2022 with full capability processing beginning in Q4 2022.
Screened cell capacity will be allocated to NASA and United States
Department of Defense ("DoD") battery cell deployments as well as
internal requirements related to KULR's qualified commercial cell
deployments.
- Filed two provisional patents with our development partners on
high energy cathodes and high energy density anodes incorporating
our carbon fiber substrate material.
- Company continues to develop a universal modular battery
product by combining its PPR technology and CellCheck for
E-mobility, enterprise energy storage, data center and
crypto-mining applications.
Management Commentary“KULR is
nearing the precipice of an inflection point, as the investments
made across Research and Development, facility infrastructure,
SG&A, and assembling a high-caliber workforce in the past year
are translating towards impending customer sales,” said KULR CEO
Michael Mo. “These strategic investments have resulted in the build
out of our holistic total battery safety platform, providing
customers with an extensive set of solutions to achieve battery
sustainability within their respective ecosystems. We intend to
expand our go-to-market efforts by upselling and cross-selling the
individual components of the comprehensive platform to existing and
new customers through a product sales or subscription model.
“The versatility of our holistic platform allows us
to penetrate several different sectors and markets. More
specifically, we’ve recently garnered significant customer interest
across several verticals, including energy storage, battery
recycling, electric aviation, industrial and power tools equipment,
and e-mobilities, which amass to a total of over 300 enterprise and
government organizations in the sales pipeline. Barring any
unpredictable challenges with the supply chain and other
macroeconomic factors, we are confident there will be an inevitable
ramp in sales volumes as we begin to recognize these customer
engagements from a revenue standpoint over the coming quarters. We
are encouraged by the momentum we’re seeing and remain keen on
transforming KULR into a leading platform company that enables the
sustainability of the circular electrification economy.”
Second Quarter 2022 Financial
Results Revenues: In the second
quarter ended June 30, 2022, revenue slightly decreased to $588,000
from $628,000 reported in the same period last year. The decrease
in revenue was primarily due to lower contract services and product
sales revenues in the quarter.
Cash: As of June 30, 2022, the
Company had $13.0 million of cash compared to $14.9 million as of
December 31, 2021.
Gross Margins: Gross margin was
28% in the quarter ended June 30, 2022, compared to 30% in the same
period last year.Selling, General and Administrative
(SG&A) Expenses: SG&A expenses increased to
$4.3 million in the second quarter of 2022 from $2.7 million in the
same year-ago period. The increase in SG&A expenses was
primarily due to increases in labor costs from new hires as well as
expanded marketing and advertising expenses.Research and
Development (R&D) Expenses: R&D expenses in
the second quarter of 2022 increased to $999,000 from $353,000 in
the same period last year. The increase was due primarily to an
increase in employee headcount spent on R&D and three new
projects for automation, battery, and drone design initiated in
2021.Operating Loss: Loss from operations was
$5.2 million for the second quarter of 2022, compared to $2.9
million from the same period last year. The increased operating
loss was driven primarily by increases in R&D and SG&A
expenses.Net Loss: Net loss for the second
quarter of 2022 increased to $5.3 million, or a loss of $0.05 per
share, compared to a net loss of $3.0 million, or a loss of $0.06
per share from the same period last year.
Conference CallThe Company has
scheduled a conference call for August 15, 2022, at 4:30 p.m. 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 followed by a question-and-answer
period.To access the call:Dial-In Number:
855-459-0165Access Code: 361411Please 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 28, 2022. 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.Investor
Relations:Tom Colton or Matt Glover Gateway Investor
RelationsMain: (949) 574-3860 KULR@gatewayir.com
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