San Diego, Nov. 9, 2022 (GLOBE NEWSWIRE) — KULR Technology Group Ltd. (NYSE: KULR) (the “Company” or “KULR”), a leading energy management platform company accelerating the global transition to a sustainable electrified economy, today announced the third quarter ended September 30, 2022. quarterly results.
Third Quarter 2022 Financial Results
income: Revenue increased to $1.4 million in the third quarter ended September 30, 2022, from $0.6 million in the year-ago quarter. The increase in revenue was primarily due to higher revenue from contracted services and product sales during the quarter.
cash: The company had $16.2 million in cash as of September 30, 2022, compared to $14.9 million as of December 31, 2021.
Gross profit margin: Gross margin was 33% for the quarter ended September 30, 2022, compared to 74% for the same period last year. The decrease was primarily attributable to increased labor costs to produce finished goods, the cost of procuring custom finished and component materials for new product lines, and increased transportation costs to the company’s contract manufacturers.
Selling, General and Administrative (SG&A) Fees: SG&A expenses increased from $3.1 million in the year-ago period to $4.3 million in the third quarter of 2022. The increase in SG&A expenses was primarily due to higher marketing and advertising expenses and higher labor costs to build the ability to plan for future revenue growth.
Research and development (R&D) expenses: Research and development expenses in the third quarter of 2022 increased to $1.1 million from $0.5 million in the same period last year. The increase was primarily due to plans to increase headcount to build future capabilities, as well as other R&D initiatives aimed at building future revenue growth.
Operating loss: Operating loss for the third quarter of 2022 was $5 million, compared to $3.1 million in the same period last year. The increase in operating loss was primarily due to an increase in R&D and SG&A expenses.
Net loss: Net loss for the third quarter of 2022 increased to $5.6 million, or $0.05 per share, compared to a net loss of $3.1 million, or $0.03 per share, in the year-ago quarter.
Manage comments
“The third quarter was an inflection point for KULR as we delivered record revenue results and began the transition to the next chapter in our growth story,” said KULR CEO Michael Mo. “Strategic investments in our people, R&D, and sales and marketing programs in previous quarters have effectively laid the groundwork to accelerate our expansion efforts. These investments will moderate in the future and we expect to continue to generate strong returns on investment rate, which will translate into revenue growth. In addition, gross margins will fluctuate in the near term as we do business with different customers on a wide range of products and services. With a strong cash position, strong sales pipeline and a clear path to success, we will Continue to focus on executing the game plan in the coming quarters and beyond to reflect our growth plans.”
Q3 2022 and near-term operational highlights:
- Following successful Phase 1 trials, the development of Phase 2 Passive Propagation Resistant (“PPR”) battery systems for Lockheed Martin began.
- Received deployment orders totaling more than $500,000 from a leading Department of Defense (“DoD”) contractor, with future consideration reaching millions over the next year.
- Received 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 airline for KULR’s suite of battery design and safety solutions for the development of its new electric vertical take-off and landing aircraft (“eVTOL”).
- Announcing an order from a top power tool manufacturer for the production prototype of KULR SafeCase, a reusable, safe and high-energy battery transport and storage solution.
- Received approval from the Department of Transportation (“DoT”) to increase the energy level of three special permits from 2.1 kWh to 2.5 kWh, expanding the use of SafeCase products.
- Launch of AI-driven vibration damping solution KULR VIBE through acquisition of VibeTech. KULR VIBE utilizes a proprietary sensor process with advanced learning algorithms to achieve precision balancing solutions and successfully predict component failures based on its comprehensive database of vibration signatures. Its enhanced AI learning algorithms can identify areas where excessive vibration is causing energy loss, leading to system failure, performance degradation and maintenance issues.
- Presented at the Federal Aviation Administration’s (“FAA”) 10th Triennial International Fire and Cabin Safety Research Conference on the need for a holistic battery safety strategy for electric aviation.
- Join NAATBatt International, the premier trade association for North American battery technology developers, manufacturers, suppliers and users, as a Platinum Member.
telephone conference
The company has scheduled a conference call on November 9, 2022 at 4:30 p.m. ET to discuss these results. KULR CEO Michael Mo; President and COO Keith Cochran and CFO Simon Westbrook will provide the company with a business update, followed by a Q&A period.
To access calls:
Dial-in number: 855-459-0165
Access Code: 361411
Please dial the conference phone number 10 minutes before the start time. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.
The conference call will be replayed here and through the Investor Relations section of the KULR website.
About KULR Technology Group Inc.
KULR Technologies Group Inc. (NYSE: KULR) is a leading energy management platform delivering proven solutions that play a key role in accelerating the electrification of the circular economy. With a foundation in developing, manufacturing and licensing next-generation carbon fiber thermal management technologies for use in batteries and electronic systems, KULR has evolved its overall suite of products and services to enable its interdisciplinary customers to operate in an efficient and sustainable manner. way of operation. For more information, please visit https://www.kulrtechnology.com/.
Safe Harbor Statement
This press release does not constitute a solicitation of an offer to sell or to buy any securities of any entity. This press release contains certain forward-looking statements based on our current expectations, projections and assumptions that involve risks and uncertainties. The forward-looking statements in this press release are based on information available to us as of the date of this press release. Our actual results may differ materially from those expressed in or implied by such forward-looking statements, including our March 28 filing with the Securities and Exchange Commission on March 10, as a result of risks and uncertainties associated with our business. Risk Factors Disclosed on Form -K, 2022. Forward-looking statements include statements about our expectations, beliefs, intentions or strategies for the future, which can be forward-looking by means of “anticipates,” “believes,” “may,” “estimates,” etc. words to identify. Expect, “intend”, “may”, “should” and “will” or similar words. All forecasts in this press release are provided by management and are based on currently available information, and management anticipates that internal forecasts and expectations may change over time. In addition, these projections are based solely on management’s best estimates of our future financial performance, given our current contracts, our current backlog of opportunities, and conversations with new and existing customers about our products and services. We undertake 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 Phone: (949) 574-3860
KULR@gatewayir.com
public relationship:
Robert Collins / Zach Cardlets / Anna Root
Gateway Group
Main Phone: (949) 574-3860
KULR@gatewayir.com
Brokers and Analysts:
Chesapeake Group
Main Phone: (410) 825-3930
info@chesapeakegp.com
The video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3a8642a7-7577-402b-b660-d3d0f2d6df55
