KULR Technology Group Inc (NYSE:KULR) said it is “encouraged by the momentum” in its business as it provided financial results and operational highlights for the second quarter of 2022.
The company, which develops, manufactures, and licenses next-generation carbon fiber thermal-management technologies for batteries and electronic systems, said it has garnered significant customer interest and has a sales pipeline of over 300 enterprise and government organizations.
"KULR is nearing the precipice of an inflection point, as the investments made across Research and Development, facility infrastructure, SG&A, and assembling a high-caliber workforce in the past year are translating towards impending customer sales," KULR CEO Michael Mo said in a statement.
"These strategic investments have resulted in the build-out of our holistic total battery safety platform, providing customers with an extensive set of solutions to achieve battery sustainability within their respective ecosystems. We intend to expand our go-to-market efforts by upselling and cross-selling the individual components of the comprehensive platform to existing and new customers through a product sales or subscription model,” he added.
READ: KULR Technology partners with Taiwan's Molicel to propel battery safety and thermal management solutions strategy
Mo said the versatility of its platform allows the company to penetrate several different sectors and markets, and noted that it has recently garnered “significant” customer interest across several verticals, including energy storage, battery recycling, electric aviation, industrial and power tools equipment, and e-mobilities, amounting to a total of over 300 enterprise and government organizations in the sales pipeline.
“Barring any unpredictable challenges with the supply chain and other macroeconomic factors, we are confident there will be an inevitable ramp in sales volumes as we begin to recognize these customer engagements from a revenue standpoint over the coming quarters. We are encouraged by the momentum we're seeing and remain keen on transforming KULR into a leading platform company that enables the sustainability of the circular electrification economy," he added.
KULR reported revenue of $588,000 for the second quarter ended June 30, 2022, down from $628,000 in the same period last year, with the fall primarily due to lower contract services and product sales revenues in the quarter.
Research and Development (R&D) expenses increased to $999,000 from $353,000 on the back of an increase in employee headcount and three new projects for automation, battery, and drone design initiated in 2021.
Its net loss increased to $5.3 million from $3.0 million. The company ended the quarter with cash of $13.0 million, compared with $14.9 million as of December 31, 2021.
Operational highlights in the second quarter:
- United Parcel Service (UPS) shipping certification, which allows for shipment of batteries utilizing the KULR Safe Case products through UPS' vast shipping network
- The start of the construction of FTRC (Fractional Thermal Runaway Calorimetry) with multiple customer engagements in queue and three purchase orders expected to close in September this year
- Four major commercial accounts for KULR Safe Case products with deployment trials underway. Forecasts are for multi-million-dollar recurring commitments over the next 18 months
- Follow-on order for the space-developed phase change material (PCM) heat sink technology from leading aerospace and defense company Lockheed Martin Corporation
- Continued to iterate the biosensing solution for the company's Fortune 50 Metaverse customer. The next shipment to the customer is estimated to take place in late August 2022
- Partnership with E-One Moli Energy Corporation (Molicel) to advance KULR's total battery safety and thermal management solutions strategy
- Commenced installation of the fully automated battery testing program with initial processing capability of approximately 500,000 18650/21700 lithium-ion cells annually in support of NASA's manned flight specification EP-WI-037. System installation will conclude in Q3 2022 with full capability processing beginning in Q4 2022
- Filed two provisional patents with development partners on high energy cathodes and high energy density anodes incorporating KULR's carbon fiber substrate material
- The company continues to develop a universal modular battery product by combining its PPR technology and CellCheck for E-mobility, enterprise energy storage, data center and crypto-mining applications
KULR has scheduled a conference call for August 15, 2022, at 4.30pm ET to discuss its results. The conference call will be available for replay via the Investor Relations section of KULR's website.
Contact the author at jon.hopkins@proactiveinvestors.com