KULR Technology Group Reports First Quarter 2022 Financial
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, is now reporting results for the first quarter ended March 31, 2022.
First Quarter 2022 and New Operations Highlights:
- Selected by a multinational technology conglomerate to provide a proprietary carbon fiber solution for the core component of centralizing electrical nerve signals to control navigation through 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.
- NASA has secured a battery safety contract to test the Company’s lithium-ion cells for future battery packages designed for the Artemis Program, a series of outer space flight programs. US -led US. KULR processes up to 10,000 lithium-ion cells per week as well as preparing for tests conducted by NASA, the Department of Defense (“DoD”), and others performing missions. flown by man.
- DoD has awarded three additional contracts to major contractors to implement the Company’s carbon fiber cathode solution for high-power magnetic and other covert firearms initiatives.
- Former senior leader of NASA Johnson Space Center Dr. William Walker as Director of Engineering. Dr. Walker will partner with the Company’s engineering team on next-generation high-performance computing (“HPC”) and hypersonic vehicle thermal management initiatives.
- Releases a passive propagation resistant (“PPR”) solution in the KULR-Tech Safe Case product family for maritime lithium-ion battery safety. The PPR solution meets future United States Coast Guard safety requirements for the passenger ship industry and provides additional battery safety options for cargo, fishing, and cruise verticals. The Company’s solution prevents cell to cell thermal runaway propagation as well as heat, fire, and explosion from escaping the KULR-Tech Safe Case enclosure.
On May 13, 2022, KULR entered into various transactions for a note and a standby equity purchase agreement, allowing the Company to access up to $ 55 million of additional capital for the acquisition of the shares. battery cell supply as well as other essential materials. The Company ensures inventory allocations in anticipation of ongoing demand from key markets in the end. Overall, KULR hopes to purchase lithium-ion battery cells that provide up to 500-megawatt hours (“MWh”) of energy capacity, enough to power approximately 40,000 units. home using existing home energy storage options. Within applications for the energy storage and e-mobility markets, battery cell supplies could be equivalent to a revenue opportunity of $ 250- $ 350 million. To further control the supply chain and production costs and risks, the Company also intends to use these funds to bring most of its production capabilities to North America.
Further details about the transactions can be found on the Company’s Form 8-K filing with the Securities and Exchange Commission.
“In the first quarter we took demonstrable steps to support our current operations and future proof of our business in the face of ongoing supply chain challenges and ordered the COVID-19 lockout in China, “said KULR CEO Michael Mo. “At the time we saw significant Chinese inventory building delayed by more than $ 300,000 in revenues, which we expect to report in the next quarter. In response to these challenges and potential obstacles in the future, we have taken a decisive action to strengthen our access to capital and procurement with high cost and high demand battery supplies.In the coming year, we expect to be able to purchase cell supplies in battery equivalent to up to 500 MWh of energy capacity to ensure we can continue to meet the outsized customer demand we see.In the longer term, we plan to consolidate many of our production activities into the US as well .
“We continue to invest and focus on our core growth areas in energy storage, e-mobility and safe transportation of lithium-ion batteries with full battery life management. having marketed these areas, we will leverage our new R&D capabilities and products and also refer our partnerships to the aerospace, defense, government and regulatory sectors.
First Quarter 2022 Financial Results
Earnings: In the first quarter ended March 31, 2022, revenue decreased to $ 200,000 from $ 418,000 reported the same year in the previous period. The decline in revenue was primarily due to the decline in product revenue due to China’s mandated COVID-19 locks, which affected the Company’s ability to ship finished goods. Lockdown protocols were simplified in the early second quarter of 2022, allowing these products to ship and the Company booking revenue of $ 325,000 in relation to affected sales in Q2 of 2022.
money: As of March 31, 2022, the Company had $ 10.1 million in cash compared to $ 6.2 million in the same year last year.
Gross Margins: The gross margin was 39% for the quarter ended March 31, 2022, compared to 34% in the same year last season.
Sales, General and Administrative (SG&A) Costs: SG&A costs increased to $ 3.5 million in the first quarter of 2022 from $ 1.5 million in the same year last season. The increase in SG&A costs was due to stock-based compensation provided by employees and consultants, labor costs, and general sales and marketing activities.
R&D costs: R&D costs in the first quarter of 2022 increased to $ 721,000 from $ 123,000 in the same period last year. The growth is due to the advancement of new engineering hire, investment in manufacturing automation, new product development, and research on high-areal capacity battery electrodes and solid-state electrolyte.
Loss of Operation: The loss from operations was $ 4.2 million for the first quarter of 2022, compared to $ 1.5 million from the same period last year. The additional operating loss was driven by higher SG&A and R&D costs combined with a year-on-year gross decline of 46%, as a result of the impacted product revenue caused by the COVID-19 lockouts. in China.
Net loss: The net loss in the first quarter of 2022 increased to $ 4.1 million, or a loss of $ 0.04 per share, compared to a net loss of $ 1.7 million, or a loss of $ 0.02 per share from the same period last year. year.
The Company is scheduling a conference call for Monday, May 16, 2022, at 4:30 pm ET to discuss these results. Michael Mo, CEO of KULR; 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: 1-857-232-0157
Access Code: 422095
Please call the conference telephone number 10 minutes before the start time. If you have difficulty connecting to the conference call, please contact Gateway Investor Relations at 949-574-3860.
The conference call is available for replay here and through the Investor Relations section of the KULR 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 portfolio of intellectual property, KULR enables leading aerospace, electronics, storage of energy, 5G infrastructure, and electric car manufacturers to make their products cooler, lighter and safer for the consumer. 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 purchase any securities of any entity. This release contains some forward-looking statements based on our current expectations, predictions and assumptions related to risks and uncertainties. The anticipated statements in this release are based on information available to us as of its date. Our actual results may differ materially from those expressed or implied in such expected statements, due to the risks and uncertainties associated with our business, which include the risks disclosed in our Form 10-K filed by the Securities and Exchange Commission on March 28, 2022. forward-looking statements include statements about our expectations, beliefs, objectives, or strategies regarding the future and can be identified by words looking forward such as “expect,” “right,” “may,” “estimate,” “expect,” “intend,” “may,” “should,” and “want” or similar words. All forecasts provided to management in this release are based on currently available information and management expects that internal projections and expectations may change over time. In addition, the forecasts fully best estimate the management 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 believe there is no obligation to update the information contained in this press release, whether as a result of new information, upcoming events or otherwise.
The Antenna Group
Tom Colton or Matt Glover
Gateway Investor Relations
Primary: (949) 574-3860