KULR Technology Group Reports Second Quarter 2023 Financial Results and Provides Full-Year Revenue Guidance
August 16 2023 - 4:09PM
KULR Technology Group, Inc. (NYSE American: KULR)
(the "Company" or "KULR"), a global leader in sustainable energy
management, today reported results for the second quarter ended
June 30, 2023.
Second Quarter 2023 Financial Results
Revenues: In the second quarter ended June
30, 2023, revenue increased to $2.7 million from $0.6 million
reported in the same period last year for an approximately 360%
increase. Contract Services revenue increased over 2300%, with
second quarter 2023 contract services revenue of approximately $0.7
million versus $0.03 million in the prior year period. Product
revenue for the quarter ending June 30, 2023, was approximately
$2.0 million from approximately $0.6 million the same period last
year for an increase of over 250%.
Cash: As of June 30, 2023, the Company had $1.3
million of cash compared to $7.2 million as of March 31, 2023.
Gross Margins: Gross margin was 37% in the
quarter ended June 30, 2023, compared to 28% in the same period
last year.
Selling, General and Administrative (SG&A)
Expenses: SG&A expenses increased to $5.6 million
in the second quarter of 2023 from $4.3 million in the same period
last year. The increase in SG&A expenses was primarily due to
increases in labor costs.
Research and Development (R&D)
Expenses: R&D expenses in the second quarter of
2023 increased to $1.4 million from $1.0 million in the same period
last year. The increase was primarily due to increases in headcount
in order to build future capacity.
Operating Loss: Loss from operations was
$6.0 million for the second quarter of 2023, compared to $5.2
million from the same period last year. The increase in operating
loss was primarily driven by increases in R&D and SG&A
expenses.
Net Loss: Net loss for the second quarter
of 2023 increased to $6.3 million, or a loss of $0.05 per share,
compared to a net loss of $5.3 million, or a loss of $0.05 per
share from the same period last year.
Management Commentary
KULR Chief Financial Officer Shawn Canter affirmed: “KULR posted
a strong second quarter with over 350% revenue growth over the same
quarter last year. KULR recorded more revenue in the first half of
2023 than all of 2022. These impressive growth figures demonstrate
our team, technology, and standard setting solutions, continue to
address mission critical needs across industries. Management is
increasingly excited by this trend in growth, pipeline, and
prospects. Given what our team is seeing today, management
estimates 2023 full year revenue between $10 million and $14
million.”
Second Quarter 2023 and Recent Operational
Highlights:
- KULR was awarded an initial $1.13M U.S. Army contract to
develop next generation high-energy battery packs employing the
KULR ONE Design Solutions (“K1-DS”) platform. KULR will utilize the
K1-DS platform to fast track this new design through prototyping
phases and into manufacturing readiness for the U.S. Army’s
advanced aviation applications. Development activities began at the
end of April 2023 and are slated to run through early 2024.
Management believes this timeline sets a new standard for what
could have historically taken several years.
- KULR received a contract from one of the world’s top-selling
automakers (“Automaker”) for testing and analysis of high-energy
battery cells for its next generation electric vehicles. KULR will
implement its KULR ONE Design Solutions (“K1-DS”) platform to
accelerate design readiness for the Automaker's advanced EV
roadmap.
- KULR partnered with a world leading provider of drone-powered
package delivery services. KULR will leverage its K1-DS platform
and proprietary technology for the development of high-capacity
lithium battery packs for use in last-mile delivery, which is the
most expensive and time-consuming part of the shipping
process.
- KULR received an additional development contract from a branch
within the United States Armed Forces to develop high-energy
battery packs for uninterruptible power supplies to mobile command
centers. This contract is another example of how the KULR ONE
Design Solutions platform offers KULR partners unique,
comprehensive solutions that management believes result in the
safest battery solutions for high energy and demanding
applications.
- KULR provided safe battery testing solutions to a top 5 global
manufacturer in the electric vertical take-off and landing
(“eVTOL") sector. The tests are to be completed in the third
quarter of 2023 and will further advance eVTOL battery safety as
federal regulators look to put forward certification rules for the
emerging eVTOL air taxi market.
- KULR announced expansion of its SafeCASE™ product line for
electric bikes and the overall consumer e-mobility market. KULR is
bringing to the consumer market the same patented technology it
provides NASA to protect astronauts on the International Space
Station and manned space missions. With over 300 million e-bikes
alone in use around the world today and growing at double-digit
percentages, the threat of battery related fires is real and
growing. KULR is actively engaged in discussions with multi-family
Homeowner Associations, lawmakers, community leaders, as well as
those that represent urban multi-story buildings to provide unique
solutions to meet or exceed current and anticipated
regulations.
Conference CallThe Company has scheduled a
conference call for August 16, 2023, at 4:30 p.m. ET to discuss
these results. Michael Mo, KULR’s CEO, Keith Cochran, President
& COO, and Shawn Canter, CFO, will provide a business update
for the Company followed by a question-and-answer period.
To access the call:
Date: Wednesday, August 16,
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. The conference call will be available for replay
here and via the Investor Relations section on KULR’s website
(www.kulrtechnology.com).
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 StatementThis press 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, 2023. 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:KULR Technology Group,
Inc.Phone: 858-866-8478 x 847Email: ir@kulrtechnology.com
Media Relations:Further PREmail:
press@furtherpr.com
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