KULR Technology Group reports record third quarter 2022 financial results

KULR Technology Group, Inc.

KULR Technology Group, Inc.

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SAN DIEGO, Nov. 9, 2022 (GLOBE NEWSWIRE) — 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 reported results for the third quarter ended September 30, 2022.

Third quarter 2022 financial results

Revenues: For the third quarter ended September 30, 2022, revenue increased to $1.4 million from $0.6 million in the same period last year. The revenue increase was primarily due to an increase in contract services and product sales revenues during the quarter.

Cash: As of September 30, 2022, the Company had cash on hand of $16.2 million compared to $14.9 million as of December 31, 2021.

gross margin: Gross margin for the quarter ended September 30, 2022 was 33% compared to 74% for the same period last year. The decrease was primarily due to increased labor costs to manufacture end products, costs to source custom finished products and component material for a new product line, and shipping costs from the company’s contract manufacturer.

Selling, General and Administrative (SG&A) expenses: Selling, general and administrative expenses increased to $4.3 million in the third quarter of 2022 from $3.1 million in the same period last year. The increase in selling, general and administrative expenses was primarily due to an increase in marketing and advertising expenses and an increase in labor costs to build future capacity for planned revenue growth.

Research and development (R&D) expenses: R&D spending increased to $1.1 million in the third quarter of 2022 from $0.5 million in the same period last year. The increase was primarily due to planned headcount increases to build future capacity and other R&D initiatives aimed at building future revenue growth.

operating loss: Operating loss was $5.0 million for the third quarter of 2022 compared to $3.1 million for the same period last year. The increase in operating loss was primarily due to higher R&D and SG&A expenses.

net loss: Net loss for the third quarter of 2022 increased to $5.6 million, or a loss of $0.05 per share, compared to a net loss of $3.1 million, or a loss of $0.03 dollars per share in the same period last year.

Management Comment

“The third quarter was a turning point for KULR as we achieved record sales and began transitioning to the next chapter in our growth story,” said Michael Mo, CEO of KULR. “The prior quarters’ strategic investments in our people, R&D, and sales and marketing initiatives have effectively laid the foundation to accelerate our expansion efforts. Going forward, these investments will moderate and we expect to continue to generate strong ROI, which will translate into revenue growth. In addition, gross margin will fluctuate in the short-term as transactions are conducted with different customers for a wide range of products and services. With a strong cash position, a robust sales pipeline and a clear path to success, we remain focused on executing on the game plan over the coming quarters and beyond to realize our growth plans.”

Third quarter 2022 and current operational highlights:

  • Began Phase 2 development of Passive Propagation Resistant (“PPR”) battery systems for Lockheed Martin Corporation following a successful Phase 1 study.

  • Secured over $500,000 deployment contract from a leading Department of Defense (“DoD”) contractor, with future considerations up to multi-million dollars over the next year.

  • Secured two orders from a leading Fortune 20 e-commerce and cloud computing company for its next-generation lithium-ion battery-powered commercial drone delivery fleet.

  • Received an order from a leading Fortune 500 commercial aerospace company for KULR’s suite of battery design and safety solutions in the development of its new electric vertical take-off and landing (“eVTOL”) aircraft.

  • Announcing a production prototype order from a leading power tool manufacturer for KULR SafeCase, a reusable, safe and high-energy transport and storage solution for batteries.

  • Received Department of Transportation (“DoT”) approval to increase energy levels in three concessions from 2.1 kWh to 2.5 kWh, expanding the use of the SafeCase product.

  • Introducing KULR VIBE, an AI-driven vibration reduction solution, through the acquisition of VibeTech. KULR VIBE uses proprietary sensor processes with advanced learning algorithms to both achieve precise balancing solutions and successfully predict component failures based on its extensive database of vibration signatures. Its enhanced AI learning algorithms pinpoint areas where excessive vibration is causing energy loss that can lead to system malfunctions, performance degradation, and maintenance issues.

  • Presented at the Federal Aviation Administration’s (“FAA”) Tenth Triennial International Fire and Cabin Safety Research Conference on the need for a holistic battery safety strategy for electric aviation.

  • Join as a Platinum Member of NAATBatt International, the premier trade association of battery technology designers, manufacturers, suppliers and users in North America.

telephone conference
The Company has scheduled a conference call to discuss these results on November 9, 2022 at 4:30 p.m. ET. Michael Mo, CEO of KULR; Keith Cochran, President & COO, and Simon Westbrook, CFO, will present an update on the company’s results, followed by a question and answer period.

To access the call:
Dial-in number: 855-459-0165
Access code: 361411

Please call the conference phone number 10 minutes before the start. If you are having difficulty participating in the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call can be replayed 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 that offers proven solutions that play a critical role in accelerating the electrification of the circular economy. Leveraging a foundation for designing, 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 efficient and sustainable operations for its customers across all disciplines. Visit https://www.kulrtechnology.com/ for more information.

Safe Harbor Declaration
This press release constitutes neither an offer to sell nor a solicitation of an offer to buy securities of any company. This press release contains certain forward-looking statements that are based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this press release are based on information available to us as of the date of this release. Our actual results could differ as a result of risks and uncertainties associated with our business, which are discussed in our Form 10-K dated April 28, 2022. Forward-looking statements include statements about our expectations, beliefs, intentions or strategies regarding the future and can be recognized by forward-looking words such as “anticipate”, “believe”, “could”, “estimate”, “”. expect”, “intend”, “may”, “should” and “would” or similar words. Any projections made by management in this press release are based on information currently available and management believes internal projections and expectations are subject to change over time. In addition, the projections are based entirely on management’s best estimate of our future financial performance given our current contracts, current backlog of opportunities and discussions 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.

Investor Relations:
Tom Colton or John Yi
Gateway Investor Relations
Main: (949) 574-3860
[email protected]

Public relation:
Robert Collins/Zach Kadletz/Anna Rutter
gateway group
Main: (949) 574-3860
[email protected]

Brokers and Analysts:
Chesapeake Group
Mainline: (410) 825-3930
[email protected]

A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3a8642a7-7577-402b-b660-d3d0f2d6df55

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