KULR Technology (KULR) 23 Mar 232022 Q4 Earnings call transcript

Alright, everybody. Thank you so much for joining us today. I am your host, Stuart Smith. And before this call can begin, I need to read some statements for you that can be found at the bottom of every press release using the ticker symbol for the company, KULR. That’s also the same way you find this information at the Securities and Exchange Commission using the company’s named KULR Technology Group, K-U-L-R.

call solicitation constitute any of any this sell offer securities on entity. a or offers made do an not to of Statements to buy expectations, statements may uncertainties. on certain call that forward-looking This KULR’s risks contain current forecasts, and assumptions involve based

which or Exchange made call differ are business, materially as to the company the and available based filed may uncertainties on March such disclosed this associated KULR’s statements actual the risk results date XX, on implied from forward-looking of the statements hereof. to in KULR’s Forward-looking in factors due with stated risks information with the Commission those The XXXX. include Form XX-K Securities and on company’s

time regarding such and forward-looking based would internal the or call identified by information time. available include similar should provided anticipate, intend, change may on management as this words. be management forecasts over future expectations, statements Forward-looking All regarding strategies the are can the words statements on and could, and by company’s expectations may, and estimate, expects believe, expect, this or beliefs, are intentions at projections that

In addition, estimate their best on the entirely performance. financial are management’s future of forecasts

with current no result and of backlog opportunities their call, new a as the information, this their whether to of Given information about new and events update services, and current customers obligation conversations existing assumes otherwise. or contracts, products KULR included future on

by from team COO, Hills After Brothers; the call from we Partners Westbrook. Jake will from Research; Theodore their Alliance Chief management by Keith KULR O’Neill Technology are Officer, Howard joined as be today management will well Litchfield President Group, on comments CEO, questions. team as Financial for call Sekelsky the Global and opening KULR on from the Taglich me completed Halpern Cochran; of Michael be Joining Mo; and the Simon

now yours. call the turn over call is Officer, to Michael, Mo. Executive the will Chief I Michael

joining and a transition mission for through more hardware make customers solutions safer platform KULR’s is you use to We This global Mo. to recycling. the our economy. mission for energy energy energy, Stuart. electrification Michael is achieve our Thank to our energy to call develop sustainable complete and Thank achieve economy applications. advanced to software by everybody renewable the you, management less accelerate less and provide use energy efficiently, world-leading today. cooler, to these consumption use to mobility the material goals and We circuit to helping to

and XXXX highlights. QX are following year financial full The

margin to margin compared over of XX% the XX% in margin QX result revenue Our XXXX. to QX technology QX increase strong was Gross full XXX% and complete XX% for portfolio our ‘XX. to $X.XX an the KULR’s of in revenue XXXX of million, expansion XX% of an year ‘XX and was XXXX was approach XXXX ‘XX growth in XXXX. battery safety. for from XXXX. was QX to of was investment increase lithium-ion QX The long-term QX $X.XX compared gross million, our holistic XX% in in Revenue Gross

customers, OEM momentum revenue large we XXXX. As to with gain we expect accelerate traction in more growth

completion of Work for our of ISO our XX certification be you update investment, accomplished Cochran line and Keith North milestones building we on brand. all people, our important technology customers. DoD long-term NASA have I investing and the will our our KULR’s particularly team infrastructure in of screening Speaking proud automated infrastructure, and we will Instruction am in the portfolio cell America. our other XXXX the and in

At we the in had million $X.XX end XXXX, in properties equipment and compared $XXX,XXX XXXX. of to

for heavy that million ‘XX. compared in had of at investments to million the grow believe revenue year ‘XX. in capabilities equipment for and the in North $X.X business in as XXXX. we we compared have in acceleration working We At million in have in nearly in have capital ‘XX prepare in inventory XXXX to XXXX. in of growth inventory on us $X.X our to done the We end been manufacturing We solidly ‘XX, $X.X $XXX,XXX deposits a onshoring equipment our our America the tenfold end we increase

the introduced In into platform of are reliability sustainable combination accelerating CES. for year’s new a margin ONE a our electrification entering a we These phase intelligence, technology of investments global demanding the we platforms. modularity energy made out at safety, key world’s most transition economy. and the designs bring ONE this to applications. KULR revolutionary family called XXXX, is monetization battery and have packs, innovative the build all-new KULR of We to an performance,

has Since product DoD half ONE electrical and dozen in a charging vehicles, customers. the of with engagements the electric KULR applications, infrastructure January, aviation development launch

the holistic the KULR how flow we approach that methodology approach KULR NASA XX design over Embedded it to includes safe more large-format We to have lot into and thermal to This monitoring the that the know-hows goes and deep safety. mechanical test of opportunity be battery over proprietary XXXX. safety. from our most design before runs and patents ONE of when starts through thermal expect a of is years. of XX products this of process it the safety to battery behaves analysis transported batteries patents. take some battery enable analysis adopted That pending million of And cell from we the address battery comprise of It many ONE IP the data patents through solutions pack. a recycled revenue and It and is case it’s $XXX time the analysis granted last stored, in that all pumps. critical services and testing that and suite suite building design from provides products, CellCheck. FTRC runway pack. battery made, and that the It through by the real-time understanding gained

This solution the believe enabling fundamental us. market for makes market that is compliant with are technology storage safe and is reach by sure regulations. We by billion Energy $XXX opportunity to is our largest government batteries over far XXXX. the

automotive testing, testing for and for manufacturers. to for tier ISC the energy production Our the top power orders X case include Phase customers largest manufacturer safe storage Lockheed in battery U.S., Martin

achieve in we their solutions years $XXX revenue KULR AI-powered phase to of development the product begin to to together gain to traction in products integrate continue solutions. technology and software I design next million functions the expect X large We customers our these about over and and over all with for volume. excited as ONE with next ramp am very OEM

customers. a to battery real-time on CellCheck state data of provides Our provide health monitoring to technology our

is software technology VIBE, eliminates identifies, which have in that motors. loss of vibration related KULR We a recently energy acquired

incorporating usage. the KULR by of AI tools, KULR features energy we solutions efficient design also and as intelligence So productivity energy to will data VIBE such tools, and and provide analysis GPT for integrate increase our into they provide source The more in engineering ONE into to suite our flow capabilities capabilities.

please? Next, Keith Cochran provide operational Keith, will updates.

Hello, Thank thank Michael. an our KULR. joining has Appreciate you, for XXXX been call and you incredible that. today. everyone for year

some shared the as build quickly CTO senior is Dr. management fractional expanded for as In hired on as our Walker, It of Space was So, apparent charter, should technological rapidly very NASA let’s our which was thermal the William and safety initial but team and important moved to well advanced take bomb to high-performance such became computing you initiatives. that leader FTRC, runaway multiphysics next-generation delivered take at we management with He and of Walker Director vision Center a battery well look include our positioned modeling. the KULR thermal calorimetry offerings milestones Johnson former his helm that as Dr. QX, calorimetry, Engineering products our and thermal the thermal future. out into us in suite leave role. have capabilities analysis, back of

develop engineers, CubeSat Additionally, with of KULR e-bikes, is January, NASA and applications first battery former much was the team eVTOLs, broad deliver battery. CES and our a hires more. ONE product the this from highly configurable range of to at strategic with The able

starting development of the delivering the We are this in customers now half multiple second year. engaged in goal of in with with volume work

in Also QX safe delivered on and by to ‘XX in production by chain case Mexico. we risk. supply moving sleeve in our time, reduce we COVID At said our impact safe QX, that commitment lockdowns to We that noted moving we were China. quickly

for While source manufacturing we we QX into in have to a operation equipment automated still some equipment for in manufacturing during to U.S. ‘XX seek chain June. the have Furthermore, our Mexico. have our more risk exposure. remaining stability risk delivery provide dual to TRS be China, as for TRS reduce we even that in significantly China and order on the now fully we of this supply will put The is scheduled our materials placed

KULR’s ISO our found team by QX, strong very Accordingly, in significant worked ought certification. XXXX into excellence I of delivered our operational controls. The moved to closely we As remains pursuit non-conformances This organization. a excellence. the entire dedication operational milestone achieve was on demonstrating and the focus manufacturing zero

The increase As to to the well, expand the as been of customer in our area in delivering sales, KULR noted engagements. workforce service and our have chain our in call, offerings hires QX continued growth supply the engineering. critical in

This automated December Construction would NASA January or fully on Construction the National system that for QX, cells indicated man KULR capable other system test volume a testing battery lithium in battery call. only XXXXX can automated emissions of we ‘XX. and performance our on branches. all meets would for testing fully in be the and by allows to launch XXXXX to cells begin capability, the required operations The many shipping system XX. would Work have install and Moving end-to-end ion share which I and KULR tested begun cell We of in meeting have of required DoD XX

fully organization. a in due and the our operational a permitting. our completed team first March. of was them delivered to calls week NASA, dedicated in we incur had delay major slight ops did While Accordingly, milestone the final to screened January, first This fully was the by system delivered February

QX KULR the KULR VIBE. of introduction also announced in

have very has service helicopter support announced, a agreement extremely the major to say pleased to response a We long-term KULR been operation. previously are positive. we signed

We industrial operators. favorable had operators and have drone also Corps the with flight Marine numerous engagements commercial

We see are develop do reduction funnel the align expect and significant has sales numerous wins new superior vibration for team very to very the We to the soon. demonstrations technology. with a customer pleased balancing and made customer progress

Moving on our advanced operational for previously the of on services the battery Texas The of delivery of cells efficiency, to pack and various development. platforms QX. testing and noted remained start-up the facilities focus and

Texas are that fully to and to We already locations begun both growth. coolers top to operational pleased contribute are line in say have

personnel, hire battery strategic have in continued We also area technology. specifically of to the

to slow and the and been will to as hires XX platforms that of With the our are hires a has line hires. strategic over employees has engineering the able fuse the our in replacement top strategic currently hiring for on developed focus company we past team attract years. KULR and our retain moving said, X growth ‘XX to

We stand last two. minor the have this deliver are currently ‘XX, a FY and to we staffed well poised vision. year capital plan outlays ‘XX for to only compared our deliver We well to

I KULR you where for At employees, is appreciate this to say I our enthusiasm incredible. moment, thank their would we big want our a valued simply to is to recognize shareholders, going like also dedication you. and

These has has is for as developments now growth poised the with growth positioned QX and on significant While capital ‘XX multiple in line know top I in for investment the current have are deployed. back as vision time presented and ‘XX. the delivered to far solid KULR tough, they platform also market but company developments delivered

team you. Thank to Our for is delivering you. KULR committed

KULR’s highlights. the turn share call financial to Westbrook, Simon now over will Simon? who I will

as of CFO. reported was issues. the of the to quarter of Simon This increased shipments our XXX% the in increase quarter Westbrook, ended XX, result is in an XXXX, following product We million $XXX,XXX improvement current in December $X.X constraint revenue compared supply that a

marketing XXXX. expense to and $X.X the SG&A general expenses compensation a test assembly due increase from and paid admin fees XXXX XX% to was of The from in the fourth equipment, in employees quarter well was continuing increased corresponding kicking to in-house Selling, as and advertising of quarter of XXXX, million and of investment non-cash stock-based to of and quarter last expansion reflecting the expenses, fourth quarter XXXX. that million combination the and in the of in as and of automated in consulting million XXXX expenses begun and production XX% new out increased $X.X consultants new headcount R&D the production in manufacturing our and facilities. additional fourth expenses $X.X in quarter $XXX,XXX facilities

from offset $X.X operations and quarter by an projects. $XX,XXX The operating in over the the and loss year. to of the revenue, in in in increase Our the increases fourth decreased of million by X.X% million $X current fourth in quarter included development just from increase research loss payroll XXXX

decreased Our XXXX this X%, the million year. net of was loss XXXX. the to to by per fourth $X.XX $X the the fourth million in just in quarter $X.X for XXXX quarter compared in share net loss of comparable for And $X.XX over quarter our period of fourth

Finance-related costs increased due advances. $XXX,XXX prepaid largely [indiscernible] in to by

the our well XX, On control compared of logistics in into of manufacturing they cash we believe worldwide with continuing Vascepa, draw operations to XXXX, Thank as and at face the million you. to account are under ensure greater December of our positioned terms uncertainties. reported million new last support capacity expand consolidate in the U.S. XX cash side, year. further the over operations December company to of the business $XX.X $XX.X balances Taking advances

And the now Michael. to I’ll back turn call

Thank call to questions turn I’ll by Simon. answer you, you Stuart, – analysts. the for our to

Very Alright. good.

the one of I let will beginning the call, members the will answer team at analysts, which several by stated KULR the them different we’re management each of decide and joined of question. As

first me introduce that, now yours. With Brothers. let the Howard, is Taglich Halpern Howard from call

have a for questions company. the You few

great want of the momentum to I year I on you. building and think heard what do I And into call. congratulations, for clarify Thank this the next.

cumulatively years, revenue? you over generating $XXX said the You next in million X anticipate

Yes, aspiration the our for – this is platform. Michael is is Yes. KULR ONE Mo. Howard, This this

future by our we aspiration. the think – product and what could as is be We engagement for XXXX we them. With current engagement think that the launching this million – start is in $XXX

you terms Okay. then is this give it it And VIBE could in deploy customer you long does with across take have, whole to their materialize? just an of how brand-new example how And – and to just, it if going to I fleet? take long guess,

I’ll take hey, that one, Michael. Yes,

current actually we’ve with entire So fleet. our deployed the customer, across that already

has universal So a announced their track system helicopters. that particular customer for we that in balance and

technology so support ready to our their fleet. was And already entire completely

Or the And deployment? customers be how a very are that quick seeing is will that on systems just on similar it you complex customer it or... with their depends

handful base have of of are service. our that place are And just For what helicopters, major there, that deployments used the helicopter particular I out would call solutions there mass all those really is them already to in helicopters a XXX%. in we for support

place that You have to them will understand use able sensors help one vibrations thing about most track of we these we provide helicopter us, improve already their services they in data the and that and to take to be data imbalance. provide, they which will their can we hardware so eliminate rapidly have of

at one different for the least you I guess, platforms just, there last have for Is one should And customers. different so driver because fiscal year? as any sell Okay. to to one many current being that big on of types focus we this

So say... I would

of can on and top that. maybe take Keith, you one, Yes, add kind this of I’ll

would think is momentum, power, announced talked design we the we the like so of package have I engagements including that all KULR customer customer that’s showcase I about, what XXXX. gaining most is product and the ONE, have, solutions And package Keith KULR capabilities traction in of that’s is that one on the unit, package. already and a solutions recently incorporating this. see So announcements – that we into many that the the I think CES This we where of lot for some ONE

of actually on in to XXXX So KULR this track parallel leading VIBE second that is kind one. by half XXXX

think, upsell more the engagement then get entire to the into, of all I as yes, are that and who solution. yes. cross-sell half make later into traction, will And start our like And but system those – opportunity customers platforms these KULR be value drivetrain already year, for We the e-mobility when battery VIBE and see customers. will those the that in us. e-mobility getting higher especially eVTOL high-performance using you motors be efficient, to So customers, for

keep great the and Thanks, guys. Okay, work. up

Howard. you, Thank it. Yes. Appreciate

Alright. Thank you, Howard.

we from will to Hills us? Theodore, O’Neill Research. you are Theodore on Now Litchfield with move

and congratulations Yes on quarter. good the

you. Thank

Yes.

you production the process? million demand month, the you got the for it’s three to to be last questions. outfitted of going type announced the me how $X.XX within opening Webster, R&D seeing prototypes are leads fit you talk do like prototyping state-of-the-art on center these Texas, XXth, So, an get that and runs you sales when occur? equipment, you in One, where could And with will production the about and orders

the take will one, Yes. I Hey Michael, for that thanks and question.

we to with has So, the services the high across packs And the in to battery of major defense, for that push And already for is in industries. have we prototype is automotive, KX you. on projections huge a of and based focuses one in engaged design our under given facilitate systems ‘XX ‘XX, shared these projections of designs the battery And much for development systems of space many larger already the for Michael energy scale going engineers. internal companies umbrella the aviation, reliability and markets. the demand electrification for are supporting growth our storage it’s prototype

as been are large well So, car interest is the There tremendous services. assemble design collaboration that capabilities KX that retailers have we to the in and with for team able major manufacturer, team our energy all looking also a table. the brought mobility engineering as and the body of in marine we some and has amount to storage vessels applications,

built? when going are production you get do get And where Great. those to orders,

of size the order. the upon depends it Well,

that the to our a production. large it’s be own So, order If tight if production, we in actually would built order, outsource mass within intend laboratories. it’s a small lot

electric order, equipment? it’s construction that million following up Okay. this construction Is designed and being heavy $X.XX press release on the partly And for product mobile about other says specifically applications. power

No, not…

specifically We backup for medical equipment, can emergency data that. services, institutions financial support centers, etcetera. not It’s just also power need Yes. that systems, including critical

question my is, more combination website it motors, I VIBE voltage And is try Okay. or to modulation little or and a And went else? to software to it. the sensors Is about a current wanted controls last how to on know something that KULR of understand I this works.

serve technology can spins. that the VIBE and really. a and from balance industries is almost KULR pretty vibration and Not much anything it platform multifaceted many remove can

those for on as [ph], system in that’s and example, are the sensors Helos place For of track already part balance board.

So, coming we information need just have or we sensors. to improve from used those already we When from products remove the or vibrations imbalance. technology the track other that

have also balancing use we We those perform with are able sensors in along our of environments, anti-vibration own the to to that to software those and products. be able our

in Does that already some to that well the I and to the add there sits is there mean you air, does mean but added so cases, components beyond get understand understand for for other as sensors? – that stabilizing how the sensors the I obviously, have sensors, product have that are in

certain but we for Early the customers. in will applications, sensors, actually build our fixtures

So, of to that. we and able track are balance the perform only not

We are certain materials. use example, lasers, remove for in cases, to able to

order have balance rates In show team The very the the should – can that of is the them visual the the straightforward it hardware system, certainly able businesses, inside exact for sensors representation other helicopter build complex, product are can in that and but us. put business more for them. We place properly. where a we can with to be do to placed and we be placement in

what to adjustments. down we are to of the steps trying do are is able X.Xx get So, And to vibration. we

very Thanks much. Okay. Great.

on yes, deeper a Keith of I if that, I think people dig of to is want what top VIBE. into KULR So may lot add Ted, saying,

XXXX, well. that think KULR to develop existing embed Keith what’s very of into board going say built new online, embedded that like I that’s wind onto that’s too applications. and do these that it’s work like into KULR to and computer vehicle So, stuff sensor the other will and can some and forward, talked applications the is But software that, integrated either low-cost farm is or VIBE EV fit VIBE to about. like There applications just applications more XXXX, to also itself new KULR that’s industrial then exciting coming ONE into equipment battery sensors fair that be the inside KULR VIBE with helicopters and our on our monitoring unit applications opportunity the as already

the for to the that benefit and keeping they as give you motors where and So, more will work and we and the rotors becomes see of together unit as efficient, maximum package. vehicles sensor energy then really intelligence become an the the keeping power the safe smooth the these by part running opportunity cool of batteries KULR the and it, be going and forward well ONE cool then source

sense. Okay. That makes Thank you.

you. Thank Alright.

Sekelsky. are is you to We now Jake with with us? are Alliance Global be going Jake joined by Partners. Jake,

Hey Yes. my questions. taking Thanks team. and Michael for

Jake. Hi

facility down So of qualify available. the at you has chain the a government for battery been KULR the in supply programs think funding road? across lot at there out on-shoring which the the that’s around either just There of your in horizon any that becoming looking is I Texas. Are looking think might chain, there supply important

on bill. of we putting mean is that, more the think forward. we a frankly, on something This I XXXX, Bipartisan XXXX and in is haven’t going Infrastructure I focus programs, couple biggest put of are lot focus lot one a A in Yes. but the

$XXX somewhere is around think I billion.

multiple chunks So, of year, there sizable companies a is I that. last know got phases. bunch of

domestic supply our chain in place. North America have we Now,

financing applying we that government initiative DoD or financing that for also I additional in funding There source. think that ARPA can is DOE, available. and start

the America, actively we those support. be government supply North very after the showcasing chain and going start base, will U.S. manufacturing really we as So,

Yes.

funding third in now. based the to with opportunities to of out engaged being specialized add get part that this those freed currently government to that’s of able Just are DOE and that, three up we some

quite system, different able address them the now them to is month opportunities So, and to going Each down that the be but on been narrowing there bit engineering we about those opportunities list money through the behind that. last solid that and of for take we pursue. are of to a working have hours with put

So, proposals But is that something best make that sure and on we radar yes, are out we are trying our on. we is working it to there. our put it

any just to demand good you And hear. That’s follow-on seems bit. up is might then to Do on looking look in like next? the the ramp here possible you have customer it announced what million Is half second later this demand QX, at Okay. visibility you $X.X order year in from or that follow-on going XXXX? orders like it starting into additional see or earlier a

I we customers. steal from don’t want thunder the that to certain Yes. will say

you them a let will test takes customer while these systems going quite be have that themselves. life. just and and high come Once think think product regulations, it I the for to into certifications certify cycle its But it’s long is to and it’s to and stickiness with it. as a this compliant in, hope very I with So, others, I run designed design, speak and

of customer high half will follow-on for acceptance has high exploration product. I we And not So, one be this year. products definitely that that very market high has their have a offers then surprised of it’s for the we would second and hope those have And of hope. or lot

Fair enough.

all guys. again Okay. Thanks me. for That’s

does And that these the today this questions. you us who on conclude for joined call handling call. Alright. you, Jake. and Thank for course, you, thank of Theodore have Keith and all Thank Michael

operator this at thank will call, So the you so the we to time, end ask much again. once and

Appreciate everyone. Thank you.

you. Thank

conclude does today’s This call you. conference webcast. Thank and

for may at wonderful participation. You and disconnect day. a you this Thank have time your