KULR Technology Group announces its record financial results for the third quarter of 2022

KULR Technology Group announces its record financial results for the third quarter of 2022

KULR Technology Group, Inc.

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SAN DIEGO, November 09, 2022 (Globe Newswire) – KULR Technology Group, Inc. (NYSE American: KULR) (the “Company” or “KULR”), a leading provider of energy management platforms accelerating the global transition to a sustainable electrification economy, today announced results for the third quarter ending September 30, 2022.

Financial results for the third quarter 2022

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

monetary: As of September 30, 2022, the company had $16.2 million in cash, compared to $14.9 million at December 31, 2021.

Gross Margins: Gross margin was 33% in the quarter ended September 30, 2022, compared to 74% in the same period last year. The decrease is primarily due to increased labor costs for the production of finished goods, costs of purchasing finished goods and component materials for a new production line, and freight costs from the contract manufacturer to the contract manufacturer.

Selling, general and administrative expenses: SG&A expense increased to $4.3 million in the third quarter of 2022 from $3.1 million in the same period last year. The increase in general and administrative expenses is mainly due to an increase in marketing and advertising expenses as well as an increase in labor costs to build the future capacity for the planned revenue growth.

Research and Development Expenditures: Research and development expenditures in the third quarter of 2022 increased to $1.1 million from $0.5 million in the same period last year. The increase is primarily due to planned increases in staff numbers for future capacity building, and other research and development initiatives designed to drive future revenue growth.

operational loss: Losses from operations were $5.0 million for the third quarter of 2022, compared to $3.1 million for the same period last year. The increase in operating losses was primarily driven by increases in research and development and general and departmental 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 per share, for the same period last year.

management comment

“The third quarter was a turning point for KULR as we delivered record revenue results and began moving into the next chapter of our growth story,” said Michael Mo, CEO of KULR. and sales and marketing initiatives, have effectively laid the foundation for accelerating our expansion efforts. These investments will moderate going forward, and we expect that we will continue to generate strong ROI that translates into higher growth. In addition, there will be volatility in gross margins in the short term as a result of doing business with different customers for a wide range of products and services. With a strong cash position, a strong sales pipeline, and a clear path to success, we remain focused on executing the game plan over the coming quarters and beyond to demonstrate our growth plans.”

Third Quarter 2022 and the most recent operational highlights:

  • The second phase of development of Passive Propagation Resistant (“PPR”) battery systems for Lockheed Martin Corporation has commenced, following the success of the first phase of the trial.

  • A secure deployment order totaling more than $500,000 from a leading Department of Defense (“DoD”) contractor, with future considerations amounting to several million dollars over the next year.

  • It received two orders from the leading e-commerce and cloud computing company Fortune 20 for its lithium-ion battery-powered commercial drone delivery fleet.

  • I received an order from a leading commercial airline in the KULR Group’s Fortune 500 list to design batteries and safety solutions in the development of new electric vertical take-off and landing (“eVTOL”) aircraft.

  • Announced ordering a production prototype from a top-tier power tool manufacturer for KULR SafeCase, a reusable, safe, high-energy battery transportation and storage solution.

  • Approval was obtained from the Department of Transportation (“DoT”) to increase power levels on three special permits from 2.1 kWh to 2.5 kWh, and to expand use of the SafeCase product.

  • KULR launched VIBE, an AI-driven vibration reduction solution, through its acquisition of VibeTech. KULR VIBE uses proprietary sensors with advanced learning algorithms to achieve accurate balancing solutions and successfully predict component failures based on its comprehensive database of vibration signatures. Its AI-powered learning algorithms identify areas where excessive vibrations cause power losses that can lead to system failures, poor performance, and maintenance issues.

  • Presented at the 10th International Conference on Fire and Cabin Safety Research organized by the Federal Aviation Administration (“FAA”) on the imperatives of a comprehensive battery safety strategy for electric aviation.

  • Join NAATBatt International, the premier trade association for North American developers, manufacturers, suppliers and users of battery technology, as a platinum member.

conference call
The company has scheduled a conference call for November 9, 2022 at 4:30 PM ET to discuss these findings. Michael Mo, CEO of KULR; Keith Cochran, president and chief operating officer, and Simon Westbrook, chief financial officer, will provide a business update for the company followed by a question-and-answer period.

To access the call:
Contact Number: 855-459-0165
Access Code: 361411

Please call the conference phone number 10 minutes before the start time. If you have any difficulty connecting to the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be available to repeat here and via the Investor Relations section of the KULR 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 an important role in accelerating the electrification of the circular economy. Leveraging the foundation in developing, manufacturing and licensing the next generation of carbon fiber thermal management technologies for batteries and electronic systems, KULR has developed its comprehensive suite of products and services to enable its customers across disciplines to operate with efficiency and sustainability in mind. For more information, please visit https://www.kulrtechnology.com/.

Safe Harbor Statement
This release does not constitute an offer to sell or the solicitation of offers to purchase any securities of any entity. This release contains certain forward-looking statements based on our current expectations, expectations and assumptions that involve risks and uncertainties. The forward-looking statements in this release are based on information available to us as of the date of this release. Our actual results may differ materially from those stated or implied by such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed with the Securities and Exchange Commission on March 28, 2022. Forward-looking statements include Statements relating to our expectations, beliefs, intentions, or strategies regarding the future and may be identified by forward-looking words such as “expect,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should” and “estimate.” “will” or similar words. All forecasts provided by management in this release are based on information available at this time and management expects that internal expectations and expectations may change over time. In addition, the forecasts are based entirely on management’s best estimate of our future financial performance in light of our current contracts and the current accumulation of opportunities and conversations with new and existing customers about our products and services We take no obligation to update the information in this press release, whether as a result of new information, future events or otherwise.

Investor Relations:
Tom Colton or John Yee
Investor Relations Portal
Main: (949) 574-3860

Public relations:
Robert Collins / Zach Kadlitz / Anna Rutter
Gate group
Main: (949) 574-3860

Brokers and Analysts:
Chesapeake Collection
Main: (410) 825-3930

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