KULR Technology Group, Inc. (NYSE American: KULR) (the "Company" or
"KULR"), a leading energy management platform company accelerating
the global transition to a sustainable electrification economy,
today announced its financial results for the fourth quarter and
full-year 2022.
“Often upfront costs are required to secure
exponential future growth - over the course of 2022, KULR was able
to maintain gross margins while scaling revenues and adding
significant resources to both R&D and buildout of the Company’s
technology roadmap,” said KULR CEO Michael Mo. “We continue to
capitalize and expand our organization across all facets, as we
stated we would do last year, regardless of less-than-ideal
macroeconomic factors affecting most public companies on valuation
and liquidity. We believe strongly we are on the right path of
continuing to scale, especially now with an ever larger and more
robust organization, we are able to support our growth. Our
leading-edge technology portfolio continues to grow in both breadth
as well as top line revenue, as we continue to position KULR to
capitalize on what we see as exponential global growth sweeping
across our industry for 2023 and beyond.”
Fourth Quarter 2022 Financial Highlights:
- Revenue increased by 137% to $1.8
million from the same quarterly period of the prior year
- The Company had $10.3 million in
cash as of December 31, 2022, compared to $14.9 million as of
December 31, 2021
- Gross margin was 92% in the quarter
ended December 31, 2022, compared to 70% in the same quarterly
period of the prior year
Fourth Quarter 2022 and Recent Operational
Highlights
- Secured a $2.68 million follow-on
contract as the exclusive supplier of its patented and proprietary
fail-safe Passive Propagation Resistant (“PPR”) battery solutions
for a stationary and mobile lithium-ion battery power system
manufacturer. This order represents KULR's single largest PPR
deployment order in a stationary or mobile energy product to date.
This is a follow-on order as the Customer prepares to scale towards
the full automation of its battery assembly operations, whilst KULR
expands its automated PPR component manufacturing in North
America.
- Began Phase 2 battery safety
testing for Lockheed Martin Corporation (“Lockheed”). Commenced
Second-Half 2022 Phase 2 development of its passive propagation
resistant (“PPR”) battery systems for Lockheed following a
successful Phase 1 trial in November 2021.
- Entered into an agreement to
provide its internal short circuit (“ISC”) battery safety and
testing device to the largest automotive manufacturer in the United
States. The ISC testing technology allows the manufacturer to
predict battery cell failure and then analyze the causes to build
safer batteries.
- Announced production prototype
order from top-tier power tool manufacturer for KULR SafeCase, a
reusable, safe, and high-energy battery transportation and storage
solution. This specific power-tool manufacturer is a leader in
sustainability and safety within the industrial tool and household
hardware sectors, and an active participant in many initiatives
around lithium-ion battery safety, transportation, education, and
recycling.
- Introduced an all-new modular
energy platform, KULR ONE, at CES 2023. KULR ONE is a family of
revolutionary battery packs accelerating the global transition to a
sustainable electrification economy. These new and innovative
designs bring a combination of safety, performance, intelligence,
modularity, and reliability for the world’s most demanding
applications.
- Launched its SmallSat Lithium-ion
(“Li-ion”) battery pack format to further support the NASA space
program and launch of Artemis. KULR's battery product meets top
safety requirements outlined by JSC 20793 created by NASA. The
Company continues its close relationship with NASA to help ensure
the safety of battery systems, flight, and exploration of space and
added to a Suite of Battery Safety and Testing Solutions with a New
Commercial License of NASA Technology. KULR achieved operational
readiness for its Fractional Thermal Runaway Calorimeter (“FTRC”)
within its suite of battery safety and thermal management solutions
after finalizing a commercial licensing agreement for the agency's
patent pending FTRC solution.
- Acquired the assets of VibeTech and
launched vibration reduction service, KULR VIBE. The KULR VIBE
suite of technologies utilize proprietary sensor processes with
advanced learning algorithms to both achieve precision balancing
solutions, and successfully predict component failure based on its
comprehensive database of vibration signatures. Its enhanced AI
learning algorithms pinpoint areas where excess vibrations cause a
loss of energy that can lead to system malfunctions, weakened
performance and maintenance issues.
- Secured first customer for KULR
VIBE, underscoring the solution's commercial application in the
aviation sector. Entered into a six-figure annual subscription
agreement with an industry leading, American-based commercial
helicopter operator to provide global track and balance support for
its fleet of helicopters via KULR VIBE, which provides a
proprietary AI-driven vibration reduction solution.
- Partnered with Gamma Technologies,
a global leader and innovator in multi-physics system simulation
software, to create next generation battery designs for the eVTOL
and EV markets. KULR plans to integrate Gamma Technologies’
GT-SUITE Multi-Scale Multi-Physics Simulation Platform into the
Company's holistic suite of products and services.
Fourth Quarter 2022 Financial Results
Revenues: Revenue increased 137% to $1,813,000
in the fourth quarter ended December 31, 2022, from $766,000
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.
Selling, General and Administrative (SG&A)
Expenses: SG&A expenses increased to $4,462,000 in the fourth
quarter of 2022 from $3,842,000 in the corresponding period last
year.
R&D expenses: R&D expenses in the fourth
quarter of 2022 increased to $1,187,000 from $705,000 in the same
period last year.
Operating Loss: Loss from operations was
$3,987,000 for the fourth quarter of 2022, compared to $4,013,000
from the same period last year. Higher SG&A costs offset higher
sales while the gross margin increased from 70% in the fourth
quarter of 2021 to 92% in the comparable 2022 quarter.
Net Loss: Net loss for the fourth quarter of
2022 increased to $4,459,000, or a loss of $0.04 per share,
compared to a net loss of $4,073,000, or a loss of $0.04 per share
from the same period last year.
Full-Year 2022 Financial Results
Revenues: Revenue increased 66% to $3,995,000 in
2022 from $2,413,000 in 2021. 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 36 customers during the year
ended December 31, 2022. 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 $16,673,000 in 2022 from
$11,162,000 in 2021. The 49% increase was primarily due to an
increase in marketing and advertising expenses, as well as an
increase in costs to build future capacity for planned revenue
growth.
R&D expenses: R&D expenses in 2022
increased to $3,978,000 from $1,662,000 in 2021, reflecting an
increase in employee headcount in order to build future capacity,
and R&D initiatives designed to build future revenue
growth.
As of December 31, 2022, the Company had 62 full
time employees and 16 contractors compared to 52 employees and 5
contractors on December 31, 2021.
Net Loss: Net loss for 2022 increased to
$19,436,000 or a loss of $0.18 per share, compared to a net loss of
$11,911,000, or a loss of $0.15 per share in 2021.
Cash Position: The Company reported cash
balances of $10,334,000 as of December 31, 2022, compared to
$14,863,000 as of December 31, 2021.
Conference Call
The Company has scheduled a conference call for
Thursday, March 23rd, 2023 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:
Date: Thursday, March 23,
2023Time: 4:30 p.m. Eastern time (1:30 p.m.
Pacific time)U.S. dial-in:
855-459-0165Access Code:
361411Webcast: Click here to access
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 Integrous
Communications at 1-877-255-8483.
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) is a
leading energy management platform company offering proven
solutions that play a critical role in accelerating the
electrification of the circular economy. Leveraging a foundation in
developing, manufacturing, and licensing next-generation carbon
fiber thermal management technologies for batteries and electronic
systems, KULR has evolved its holistic suite of products and
services to enable its customers across disciplines to operate with
efficiency and sustainability in mind. For more information, please
visit www.kulrtechnology.com.
Safe Harbor Statement
This 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:Mark
KomonoskiPartnerIntegrous CommunicationsPhone: 1-877-255-8483Email:
kulr@integcom.us
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