SAN DIEGO, Aug. 15, 2022 (GLOBE NEWSWIRE) — 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, announced today its results for the second quarter ended June 30, 2022.
Second quarter 2022 and recent operational highlights:
- With the support of its leading recycling partner, KULR has gained immediate and open access to business partners and customers by obtaining United Parcel Service (“UPS”) shipping certification, which allows the shipment of batteries using the products KULR Safe Case through UPS’s extensive shipping network. . The permit allows the U.S. Department of Transportation (“DoT”) compliant Safe Case to be used as a safe and reusable shipping container for transporting Li-Ion batteries up to 2.1 KWh (“Kilowatt -hour) and provides the Company’s primary recycling partner with a safe shipping container that can handle batteries greater than 300 Wh (“Watt-hour”).
- Completion of licensing and start of construction of Fractional Thermal Runaway Calorimetry (FTRC) with several customer commitments already pending and three purchase orders expected to close in September 2022.
- Securing four major business accounts for KULR Safe Case products with deployment trials underway. The forecasts are for recurring commitments of several million dollars over the next 18 months.
- Received a follow-on order for space-developed Phase Change Material (“PCM”) heat sink technology from leading aerospace and defense company, Lockheed Martin Corporation.
- Continued iteration of the biosensing solution for the company’s Fortune 50 client Metaverse. The newly revised technical design improves flexibility, increases conductivity and improves skin smoothness. The next shipment to the customer is expected in late August 2022, with customer testing expected to take place shortly thereafter.
- Announcing a partnership with E-One Moli Energy Corporation (“Molicel”) to advance KULR’s Total Battery Safety and Thermal Management solutions strategy.
- Started installation of fully automated battery test program with initial processing capacity of approximately 500,000 18650/21700 lithium-ion cells per year in support of NASA Manned Flight Specification EP-WI- 037. System installation will be complete in Q3 2022 and full capacity processing will begin in Q4 2022. Filtered cell capacity will be allocated to NASA and U.S. Department of Defense battery cell deployments ( “DoD”) as well as internal requirements related to KULR-qualified commercial cell deployments. .
- Filing of two provisional patents with our development partners on high energy cathodes and high energy density anodes incorporating our carbon fiber substrate material.
- The company continues to develop a universal modular battery product by combining its PPR and CellCheck technology for electric mobility, enterprise energy storage, data centers and crypto mining applications.
“KULR is approaching the precipice of an inflection point as investments in research and development, facility infrastructure, sales and administration, and building a workforce of high level over the past year are translating into imminent sales to customers,” said KULR CEO Michael Mo. “These strategic investments have resulted in the creation of our holistic Total Battery Safety Platform, providing customers a comprehensive set of solutions to ensure battery sustainability within their respective ecosystems. We intend to expand our go-to-market efforts by up-selling and cross-selling the individual components of the full platform to existing and new customers through a product or subscription sales model.
“The versatility of our holistic platform allows us to penetrate several different sectors and markets. Specifically, we have recently garnered considerable interest from customers across multiple verticals, including energy storage, battery recycling, electric aviation, industrial and power tool equipment, and electric mobilities, which brings together a total of more than 300 companies and government organizations in the sales pipeline. Barring unforeseeable challenges with the supply chain and other macro factors, we believe there will be an inevitable increase in sales volumes as we begin to recognize these customer engagements from a revenue perspective over the course of of the next quarters. We are encouraged by the momentum we are seeing and remain keen to transform KULR into a leading platform company that enables the sustainability of the circular electrification economy. »
Second quarter 2022 financial results
Income: In the second quarter ended June 30, 2022, revenue decreased slightly to $588,000 from $628,000 reported in the same period last year. The decline in revenue was primarily due to lower contracted services revenue and product sales in the quarter.
Cash: As of June 30, 2022, the Company had $13.0 million in 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 period a year earlier. The increase in SG&A expenses is primarily due to increased labor costs related to new hires as well as increased marketing and advertising expenses.
Research and development (R&D) expenses: R&D spending in the second quarter of 2022 increased to $999,000 from $353,000 in the same period last year. This increase is mainly due to an increase in headcount dedicated to R&D and three new automation, battery and drone design projects launched in 2021.
Operating loss : The operating loss was $5.2 million for the second quarter of 2022, compared to $2.9 million in the same period last year. The increase in the operating loss is mainly explained by the increase 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 over the same period last year.
The Company has scheduled a conference call on August 15, 2022 at 4:30 p.m. ET to discuss these results. Michael Mo, CEO of KULR; Keith Cochran, President and Chief Operating Officer, and Simon Westbrook, Chief Financial Officer, will provide an update on the company’s operations followed by a question and answer period.
To access the call:
Call number: 855-459-0165
Access code: 361411
Please call the conference phone number 10 minutes before the start time. If you are having difficulty connecting to 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 manufacturers in aerospace, electronics, storage energy, 5G infrastructure and electric vehicles to make their products cooler, lighter and safer for the consumer. For more information, please visit www.KULRTechnology.com.
Safe Harbor Statement
This press release does not constitute an offer to sell or a solicitation of offers to buy securities of any entity. This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. The forward-looking statements contained in this press release are based on information available to us as of the date hereof. Our actual results may differ materially from those indicated or implied by these 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 about 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 provided by management in this release are based on information available at the time and management expects that internal projections and expectations may change over time. Additionally, the forecast is based 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 undertake no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.
Tom Colton or Matt Glover
Investor Relations Gateway
Main: (949) 574-3860