KULR Technology Group Inc (NYSE:KULR) has reported record fourth-quarter and full-year 2022 financial results, due to the early success in the company’s energy storage and battery transportation and recycling sectors.
The energy management platform told investors it grew full-year revenue by 66% to $4 million as it continues to build its relationships with a wide range of energy, transport and aerospace partners, billing 36 customers during the year ended December 31, 2022.
Fourth-quarter revenues were particularly strong, jumping 137% to $1.81 million, mainly due to the scaling up of design and test services from larger customers, KULR said.
READ: KULR Technology opens new R&D center in Webster, Texas
The company noted that it achieved a gross margin of 92% for 4Q, compared to 70% in 4Q 2021. Its operating loss from operations narrowed to $3.99 million, from $4.01 million a year earlier as higher selling, general and administrative (SG&A) expenses offset higher sales. Its net loss increased to $4.46 million, taking its full-year net loss to $19.4 million, or $0.18 per share, compared to a net loss of $11.9 million, or $0.15 a share, in 2021.
It had $10.3 million in cash as of December 31, 2022, compared to $14.9 million as of December 31, 2021.
“Often upfront costs are required to secure exponential future growth - over the course of 2022, KULR was able to maintain gross margins while scaling revenues and adding significant resources to both R&D and buildout of the company’s technology roadmap,” KULR CEO Michael Mo said in a statement. “We continue to capitalize and expand our organization across all facets, as we stated we would do last year, regardless of less-than-ideal macroeconomic factors affecting most public companies on valuation and liquidity,” he added.
Fourth-quarter and recent operational highlights:
- Secured a $2.68 million follow-on contract as the exclusive supplier of its patented and proprietary fail-safe Passive Propagation Resistant (PPR) battery solutions for a stationary and mobile lithium-ion battery power system manufacturer. This order represents KULR's single largest PPR deployment order in a stationary or mobile energy product to date. This is a follow-on order as the Customer prepares to scale towards the full automation of its battery assembly operations, whilst KULR expands its automated PPR component manufacturing in North America.
- Began Phase 2 battery safety testing for Lockheed Martin Corporation. Commenced 2H 2022 Phase 2 development of its passive propagation resistant battery systems for Lockheed following a successful Phase 1 trial in November 2021.
- Entered into an agreement to provide its internal short circuit (ISC) battery safety and testing device to the largest automotive manufacturer in the US. The ISC testing technology allows the manufacturer to predict battery cell failure and then analyze the causes to build safer batteries.
- Announced production prototype order from top-tier power tool manufacturer for KULR SafeCase, a reusable, safe, and high-energy battery transportation and storage solution. This specific power-tool manufacturer is a leader in sustainability and safety within the industrial tool and household hardware sectors, and an active participant in many initiatives around lithium-ion battery safety, transportation, education, and recycling.
- Introduced an all-new modular energy platform, KULR ONE, at CES 2023. KULR ONE is a family of revolutionary battery packs accelerating the global transition to a sustainable electrification economy. These new and innovative designs bring a combination of safety, performance, intelligence, modularity, and reliability for the world’s most demanding applications.
- Launched its SmallSat Lithium-ion (Li-ion) battery pack format to further support the NASA space program and launch of Artemis. KULR's battery product meets top safety requirements outlined by JSC 20793 created by NASA. The company continues its close relationship with NASA to help ensure the safety of battery systems, flight, and exploration of space and added to a Suite of Battery Safety and Testing Solutions with a New Commercial License of NASA Technology. KULR achieved operational readiness for its Fractional Thermal Runaway Calorimeter (FTRC) within its suite of battery safety and thermal management solutions after finalizing a commercial licensing agreement for the agency's patent-pending FTRC solution.
- Acquired the assets of VibeTech and launched vibration reduction service, KULR VIBE. The KULR VIBE suite of technologies utilize proprietary sensor processes with advanced learning algorithms to both achieve precision balancing solutions and successfully predict component failure based on its comprehensive database of vibration signatures. Its enhanced AI learning algorithms pinpoint areas where excess vibrations cause a loss of energy that can lead to system malfunctions, weakened performance and maintenance issues.
- Secured the first customer for KULR VIBE, underscoring the solution's commercial application in the aviation sector. Entered into a six-figure annual subscription agreement with an industry-leading, American-based commercial helicopter operator to provide global track and balance support for its fleet of helicopters via KULR VIBE, which provides a proprietary AI-driven vibration reduction solution.
- Partnered with Gamma Technologies, a global leader and innovator in multi-physics system simulation software, to create next-generation battery designs for the eVTOL and EV markets. KULR plans to integrate Gamma Technologies’ GT-SUITE Multi-Scale Multi-Physics Simulation Platform into the Company's holistic suite of products and services.
“We believe strongly we are on the right path of continuing to scale, especially now with an ever larger and more robust organization, we are able to support our growth,” Mo concluded. “Our leading-edge technology portfolio continues to grow in both breadth as well as top-line revenue, as we continue to position KULR to capitalize on what we see as exponential global growth sweeping across our industry for 2023 and beyond.”
Conference call
KULR said it has scheduled a conference call for Thursday, March 23, 2023, at 4:30pm ET to discuss the results. CEO Michael Mo, President and chief operating officer Keith Cochran, and chief financial officer Simon Westbrook will provide a business update and answer questions submitted by analysts in advance.
To access the call:
Date: Thursday, March 23, 2023
Time: 4:30 pm Eastern time (1:30pm Pacific time)
US dial-in: 855-459-0165
Access Code: 361411
Webcast: Click here to access
KULR is a leading energy management platform company offering proven solutions that play a critical role in accelerating the electrification of the circular economy.
Contact the author at stephen.gunnion@proactiveinvestors.com