KULR Technology Group Announces First Quarter 2022 Financials
SAN DIEGO, May 16, 2022 (GLOBE NEWSWIRE) — 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 results for the first quarter ended March 31, 2022.
First quarter 2022 and recent operational highlights:
- Selected by a multinational technology conglomerate to provide a proprietary carbon fiber solution for the core component of electrical nerve signal sensing to control navigation in virtual environments. This foundational partnership marks KULR’s entry into the metaverse, where the company believes it has additional opportunities to support this growing industry.
- Obtained a battery safety contract with NASA to test the company’s lithium-ion cells for future batteries designed for the Artemis program, a series of US-led international manned spaceflight programs. KULR processes up to 10,000 lithium-ion cells per week and is preparing for testing by NASA, the Department of Defense (“DoD”) and others performing manned air missions.
- Awarded three additional contracts with DoD prime contractors to implement the company’s carbon fiber cathode solution for high power magnetic weaponry initiatives and other covert pulses.
- Appointed former principal chief of NASA’s Johnson Space Center, Dr. William Walker, as 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.
- Launched a Passive Propagation Resistant (“PPR”) solution in its KULR-Tech Safe Case product family for marine lithium-ion battery safety. The PPR solution meets new upcoming US Coast Guard 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 propagation as well as heat, fire and explosion from exiting the KULR-Tech Safe Case enclosure.
On May 13, 2022, KULR entered into separate transactions for a note and reserve stock purchase agreement, allowing the company to access up to $55 million in additional capital for the purchase of supplies battery cells and other key materials. The Company is securing inventory allocations in anticipation of continued demand from its key end markets. In total, KULR plans to acquire lithium-ion battery cells providing up to 500 megawatt-hours (“MWh”) of energy capacity, enough to power approximately 40,000 homes using currently available home energy storage options. In applications for the energy storage and e-mobility markets, battery cell supply would represent a $250-350 million revenue opportunity. In order to further control the supply chain and manufacturing costs and risks, the Company also intends to use these funds to bring a large part of its production capacity to North America.
Additional details regarding the transactions can be found in the company’s Form 8-K filed with the Securities and Exchange Commission.
“In the first quarter, we took demonstrable steps to support our current operations and future-proof our business in the face of current supply chain challenges and the mandatory COVID-19 lockdowns in China,” said KULR CEO Michael Mo. “During the period, we saw significant inventory build-up in China which delayed over $300,000 of revenue, which we expect to report in the next quarter. In response to these challenges and potential impediments Going forward, we have taken decisive steps to strengthen our access to capital and procure high-value, high-demand battery supplies.In the coming year, we plan to procure battery cell supplies. battery equivalent to 500MWh of energy capacity to ensure that we can continue to meet the outsized customer demand we are seeing.In the longer term, we also plan to consolidate many of our production activities in the United States.
“We continue to invest and focus on our key growth segments in energy storage, e-mobility and safe transportation of lithium-ion batteries with full lifecycle battery management. As we further commercialize these areas, we will leverage our innovative R&D capabilities and products and also reference our partnerships in the aerospace, defense, government and regulatory sectors.
First quarter 2022 financial results
Income: In the first quarter ended March 31, 2022, revenue decreased to $200,000 from $418,000 reported in the same period a year ago. The decline in revenue was primarily due to lower product revenue caused by the mandatory COVID-19 lockdowns in China, which impacted the company’s ability to ship finished goods. Lockdown protocols were eased at the start of the second quarter of 2022, allowing these products to be shipped and the company recorded revenue of $325,000 related to sales affected in the second quarter of 2022.
Species: As of March 31, 2022, the Company had $10.1 million in cash, compared to $6.2 million in the same period a year earlier.
Gross margins: Gross margin was 39% in the three months ended March 31, 2022, compared to 34% in the same prior year period.
Selling, general and administrative (SG&A) expenses: SG&A expenses increased to $3.5 million in the first quarter of 2022 from $1.5 million in the same period a year earlier. The increase in SG&A expenses is due to stock-based compensation paid to employees and consultants, labor costs, and general sales and marketing activities.
R&D expenses: R&D spending in the first quarter of 2022 increased to $721,000 from $123,000 in the same period last year. This increase is due to increased new engineering hires, investment in manufacturing automation, new product development, and research into large capacity battery electrodes and state electrolyte. solid.
Operating loss : The operating loss was $4.2 million for the first quarter of 2022, compared to $1.5 million for the same period last year. The increase in operating loss was driven by higher general and administrative and R&D expenses, combined with a gross margin decline of 46% year-on-year, due to the impact on product revenue caused by COVID-19 related lockdowns in China.
Net loss: Net loss for the first quarter of 2022 increased to $4.1 million, or a loss of $0.04 per share, from a net loss of $1.7 million, or a loss of $0.02 $ per share over the same period last year.
The Company has scheduled a conference call for Monday, May 16, 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: 1-857-232-0157
Access code: 422095
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 entirely based on management’s best estimate of our future financial performance given our current contracts, current pipeline of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.
The Antenna group
Tom Colton or Matt Glover
Investor Relations Gateway
Main: (949) 574-3860