KULR - Earnings call transcript Q3 2021 | KULR Technology Group, Inc.

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Operator

Welcome and thank you for joining us for the KULR Technology Group Incorporated November 2021 Shareholder Update Call and Discussion of the Third Quarter 2021 Financial Results. KULR Technology Group is a publicly traded company listed on the New York Stock Exchange under the ticker symbol KULR. Therefore, it is important that I start this call with a reading of the Safe Harbor statement covering this call.

Now this call does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This call may contain certain forward-looking statements based on the company's current expectations, forecasts and assumptions that involve risks and uncertainties.

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

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

of performance, Technology backlog information a addition, new forecast about this best no made information, are in entirely existing KULR and products and contracts, the to future update current obligation or as events management's otherwise. assumes included on call, current customers company's financial result and their estimate of whether with new their services. In Group of future conversations opportunities the any given

statements. now KULR. the the statements President call shareholders and from and Q&A Michael opening Simon today's KULR; Stuart Executive addresses is Now the joined call will by Michael your Mo. were yours. consist Chief Cochran, and over of honored turn Westbrook, I Officer call Smith, to moderator KULR; and be emailed in am Keith for of other to closing from will a by I questions finally CFO for followed management call I'm Michael, of And COO host session, today. Mo, parties that where and management interested

Michael Mo

is QX Stuart. thanks shareholder investor Michael you Mo, join call. our to update thank XXXX today time This to so and much, Hey, everybody's

sort will our about for provide and QX developments. financial provide talk on recent first Cochran I’ll call, talk Keith then updates Q&A Westbrook and highlights business today's session For then highlights about Simon have over updates. we'll QX, revenue we as operation am report year-over-year, execute I as to we to by and QX increase that significant continue and call business about today. XXX% KULR’s very our investments conclude our talk strategy. pleased make

foundation Our gross of us mix of validation This term of strategy our a product is of thermal strategy exciting execution for working and and an U.S. for technologies and margin XX%, the regulatory closed only figures, international was with not inception, that's co-develop delivering solid Department important KULR’s which prime is the future long the management cutting KULR, the to also quarter. been favorable for contractors edge really the because Department U.S. of term NASA, and collaboration testing growth. quarter agencies but Defense, alongside organizations. financial Since while Energy function all of has at long

into intent to technologies Our incorporate regulatory also these and mass applications. market roadmaps was

across multiple into we energy growth. IP our on to accelerate and to markets, verticals and storage technologies as these electric deployed leverage streams transportation, we As capitalize look revenue mass multiple our such revenue

used been Our This XXXX. station battery solution ground, only success. DDR by protecting to since to of market technology data safe that believe and a of This the was all safety example QX been a of these U.S. X.X tablet and battery DOT provide the got air from batteries is be showing we thermal hours up is has space for Department in Then with we KULR-Tech laptop, Transportation of and worked long it signs NASA keep battery and We and astronauts’ to the done. runaway safe propagation energy that how to received capabilities. permits and that by the commercial XXXX. testing in Safe boat batteries With has process of Case case strategy transported capacity. special permits is that in has tested on kilowatt perfect used work, rail, international we prototype recycling,

X,XXX space we Heritage Now Retriev in KULR customer power collection locations. over across into technology proven with with over transportation world. are Battery of fleet locations, has DOT North and America. Recycling X,XXX taking to with partnered this provide safe commercial become the permits units They special largest in Heritage recently North Recycling lithium-ion operations the XXX battery Technologies a XXX,XXX facility America. over battery to employees recycler merged Battery

this recycling Clarios very reuse of lithium-ion asset KULR excited from in States. within the largest battery is project provide of the United Energy transportation of their lifecycle and Clarios batteries in U.S., the initiative batteries in and battery the reuse. full lithium-ion safe Department also in through develop through joined KULR this manufacturing, elements and maker lead lithium-ion will partnership. about are battery We management chemical cycle in manufacturing the the U.S. life the to

efficient KULR, Our for provider sustainability battery key safety battery a goal more provide total and pathology increase into to migration analyze economy. is global a battery systems, circular solution the to management, making

our very, Day Safe In We We're announced this the project our addition in about of product and excited this to continue very Solutions to September other XX. Battery product, make products the and KULR-Tech significant we product. CellCheck in Case strides developments.

limiting silicon that can over fast improve key technology. thicker a now a battery smartest will provider Solutions step new be We loading battery well development updates advancing with faster chemistries be This structures lithium integrated want performance of architecture you solid charging in thermal on. KULR existing and KULR that carbon kind, state matrix anode believe we batteries. started we As would management. technologies. fiber electrolyte. party with heating expect factor make total for as our as using XXXX. strategic also be app and share you more architecture work lithium-ion is the killer research where charging for development the the metal. we data with and produce generation and Battery battery fast energy We developing initiative thermal with the is structures believe later thermal also that management cathode a battery system us Keith long-term Day, charging structures to significant early capabilities. shop testing carbon and the its At the energy give share We'll and and this fiber also to factors and as can to some higher higher in AI another with testing that battery position next the you Right This density one-stop is with for with power safety we solutions more management performance a for to of cells

that working apply fiber advanced exciting solution we're our very performance carbon on computing that was developed high applications. Another to to is for program development hypersonic

the cooling utilize hypersonic matrix. a liquid with management Our X-XX proprietary team vehicle our fiber carbon worked thermal on system,

power to for to heat energy look cloud applications. and more forward Now AI, the we're with efficiently, such of to the profitably. away working the updates liquid on simulation computing, same virtual run from chip allow with therefore applying key somebody as cool or server will sustainably reality that share computer We to take technology This will the without mining and more chip crypto efficiently effectively is chips metaverse you data future. problem. to amount more The and applications or consume processing run faster high to cost the and the allowing air, overheating more the in or less centers near call

American events our to one have largest Schwab. options. its financial shareholders Northern for and and Trust shareholder November in that approximately of doing KULR but strongest thrilled some market so our come million X% approximately significant May and X.X have We're them other York QX we the approximately just capital Street, purchase in history. our also which State Vanguard KULR cash from was it’s us. $X.X position and there shares, was of by of start exchange On as celebrated And closing our is the the an long institutional November, as KULR to New mission. X, QX part aggregate Funds October Charles received such honored way day American feel the the That XXXX financing. was of Combine we're position NYSE alongside options with our in side, we bell getting at end $XX in honored Stock a trading OTCQB the KULR institutional debt, million on We've NYSE to days, Exchange. its warrants all ownership. exciting with cash to ringing And very shareholders, now no On of million on July on On largest the instance. with exercise XX, started a like at uplifting also our of since

getting new facility just Cochran Keith our started update on and new please. of will an programs. Keith, team, development the Speaking of get our of growth

Keith Cochran

Hello, and transition operations facility now KULR our pleasure thanks Shawline today. product appreciate operations completed the development. at you related was closed to Ridge. share attending everyone. larger to Nancy And my We to for It following that. the call with highlights has the with new all

installed testing machine will our fully to the preparing and floor in the strategic and manufacturing launch operational automated of QX. running factory processing accommodate as shop reserve, are our increasing materials labs, were normal. services and certified We which Our power in and be battery machinery,

operational in QX. fully We are being anticipating

our growth. in our noted anticipated in the investments safely also significant financials, we're and SG&A needed As efficiently necessary making support to

support the and product We engineering, have development quality, added demands. accommodate QX services upcoming to and product in sales

greatly vision team. also attract been talented date, have and our to to extremely We very for to eager We're reduce able cybersecurity our third-party exposure increased To passionate with KULR. support support an our infrastructure IT threats. to we've

first count of XXXX. since provides the the California, conference and out platform to Also, KULR check on automotive to and Day, Battery recorded KULR live you will event Battery San as revolutionary a website watch at Solutions in year event, new to we head please and shared, for encourage product you details. live of current to a announced Day at as our December beginning its miss be the delivered of the Our or in provide Solutions safety. development be battery attend upcoming our that if demonstration significant half advanced believe this Diego, support further improvements rollout in the stream. Michael X CellCheck tripled a of management and And we is platforms the CellCheck battery

financial over Westbrook Simon Next highlights. go Simon? the will

Simon Westbrook

Thanks Keith.

of quarter just of This we revenues third So reflect management's revenues results to These to new existing last in KULR The new contracts. products and revenue mainly customer continuing increase year. and due increase was relationships. we two same efforts large ended of increase in over this year. compared with generated reported $XXX,XXX September period XX XXX% the an $XXX,XXX the of in was sales develop

and increased of On SG&A the this advertising quarter third the the of from travel was in year increased primarily following period. expenses, consulting to $XXX,XXX year end expenses year increase XXX% to marketing our in compensation SG&A $XX,XXX expenses increase third front, and fees, prior COVID of other the restrictions from $XXX,XXX R&D quarter miscellaneous $X.X last year. XXX% to an level, expenses. due of expense, in of In stock-based The corresponding XXXX by million the a this expenses,

increased have We developments. to product R&D accelerate significantly spending our our

in loss million $XXX,XXX XXXX. partially Our of quarter increased loss for of the last as a million was third period net to increase cent favorable And of comparable revenues. of operations $X.X the compared impacted million of for compared year XXXX. $X.X the to compared our by to net in XXXX higher of this for the loss impact from for share $X.XX to $X quarter this the The period for was offset our $X.XX period year, loss of to came third quarter year. net the expenses comparison comparable third by a SG&A And per comparable

months million shares, development at at million cash well balances very cash May year, product received from XX is positioned new position the we and financing. of at had lease, warrants XX, approximately our KULR compared this part business of and with last the growth operations, to of October of exercise support in X.X our ongoing expand September This of $X.X funding which our purchase an to $XX $X.X million initiatives. cash aggregate to to November of December Looking million year's KULR XXXX. fund

So over Michael. now, to you

Michael Mo

open for Stuart, we're Thank you, now questions. Simon.

Operator

All right. Thank gentlemen. you,

KULR’s state business question, first Cochran KULR’s state solid to by I'm going batteries, the development will it you used Keith ask and technology as affected in The how solid says, of be batteries?

Keith Cochran

about as being be a offer Stuart. I most to thanks, be to to the Yes, alternative XXXX, then we solid the really have large the sale lithium-ion lithium-ion. for adopters significant be begin Therefore, platforms appears premium EV technology batteries appreciate The timeframe XXXX state commercialized even -- will itself batteries cost early advantage. aggressive question. for estimates and anticipate a to and

the impact to deploy also any be right to pretty the lengthy KULR cells. anticipate to negative don't the anticipate family that and from into lithium-ion solid now We and state we any Therefore products products, don't state. period solid transition batteries have really KULR

certainly at we for to to technology platforms looking closely However, applications able our in production. be solid development current battery are and state use

Operator

All right. Very good.

the for It significant sense you question transport to about their it revenue through KULR. for that market of what Clarios says safe full batteries So is Clarios. has Keith? the your with recent for generate partnership sounds give next believe you potential lifecycle? lithium-ion provide Could partnership is a us like the potential products your of with the you

Keith Cochran

question. Well, studied internally. we you. this have that's certainly Yes. great Well, a Thank

recycling So of number the the $X.X lithium-ion And for estimated believe billion about is reach battery $XX I projection billion XXXX. is in about XXXX. the roughly to

a X.X recalled life. our be for available our total should by Based XXXX, about kilowatt estimate the and transportation huge the where storage and studies, that that are XXXX. packs defective, to $XXX it's is -- to in today obviously the and internal cells hours to rise this million KULR battery TAM, of solutions market recycled, market up in participates of roughly damaged, current in we million or end So $XXX and which on

want and this stride, market However, internal our is with I published our partners. on data in reviews the we based estimate have the done to do

We a have the question. industry not of study definitively yet level. that answers done an you. granular confirms have to your TAM Hope Thank this

Operator

the progress do with see is All ahead, the when could right. some KULR respect partnership Heritage announced think to business says, partnership we the recently Very the surrounding has Go partnership next Heritage? and good. and slowed Heritage the Well, it about question with you details Keith. combination

Keith Cochran

Yes.

This the recycling we Okay. on combination XXXX. of opportunities recycling now in the Retriev for raw as retrieve question. with on and environmental The back little customers increased that hopefully market update name lithium-ion for I'll number and goes solution pursuing into you give the partnership their has pickup the a thanks we'll existing cell are the lifecycle Retriev pool production And to appraised based pilot for actually and with customers had keep business from Heritage keeping from that. and a the contracts acquiring full we're together. within then manufacturer is resulting through in as multiple materials. to early And everybody this battery go

Operator

guidance? prior steps issue what XXXX? formal All guidance you to expect do right. issuing to do for if think you to Michael, not, be taken And Michael? need

Michael Mo

our Yes. XXXX backlog date, to Thanks formal To in not and we business. have any gain for that more expect question. do issue but to we issuing guidance as we start momentum guidance

please stay So tuned.

Operator

it recycling with formalize and any All U.S. compared somewhat the with you logistics the to is battery and legislation to ball able being right. on Europe. taken respect like provide regulatory Very of seems behind good. color Are industry? the the regulations aspect steps to Keith,

Keith Cochran

in States. Yes. Well, on been recycling been historically tell would Thanks, focus a United battery there's to you Stewart. that compared I the has as it that Europe probably true greater

focus the Energy And federal such picking policies is proposing the Columbia, lithium Maine, and Department you as in of requirements level, the that seriously promoting feel However, of all are do York, with and recycling which on District various EPA at of regulations. upstream are and states, I have the collection United New batteries. strict States California,

national in including I create in its that capabilities lithium major released the is on And challenges and out as which heavily investing don't to battery XXXX intended address recently price battery to also of forecasted applications. industry new more various Retriev. system. batteries resilient recycling to such Department eased battery recycling Thank recycling strategy our lithium-ion the EPA recycling you. million stronger, the to And to lithium-ion know Energy, to Heritage strategy's leave the a market the effective recycle XXXX, waste meet want and I example, ion lithium have partners $X.X ways recycling For and cost that solid focus intended announced you

Operator

you, is here's your competitors? Keith, direct who And do this question consider for you

Keith Cochran

one quite that of have difficult is offering as and diverse Well, to we engineering for services. KULR answer a very products

such competitors limited We that that also there to unique try participate see to in, that's we very KULR. we target in no markets and have we very for a solution that are voids

X.X and quite game safe the And at again, on screening, are be For tend hours margin to cases commodity automation focus example, to going in higher of cell our we unique. not our frank, only kilowatt markets. where town. kind special battery we're tech permit We're after plays

mass So those you. we're some in But for of are sure. markets those very differentiated markets. Thank

Operator

you used other means if KULR and mines developed switch Michael, can is is, come materials to and jointly that a the can right, plan, data to mines, since product incentive a All question chip you are what cryptocurrency would going are and in use with or maker? data up chips, to energy be follow-on between a and cool how in the centers that lowering to explain be your using centers

Michael Mo

Yes.

for question. great look that a solving We power -- applications. So, these problem computing HPC at to is high improve

the the you to and key the without chip processing away the just more allowing same power. energy will the whether chip efficiently the less So consume to the with to emerging or you take it's or air, from faster can -- liquid run heat is to cooling therefore overheating,

sustainably, and driven the by efficiently, operating switching achieved So to by the for you less had faster profitably. energy consumption the that switch to profitable. will cooling is performance, and data which lowering question achieved and by therefore allow center faster its and cost, is which And the chip running incentive more was, run the server more

a faster can the these the platform mining, crypto becomes. run independent profitable of faster can it you turn chipsets more for the So vendors. and We're developing chip, you cryptocurrencies, this

on multiple cooled platforms, across that this chip question. multiple So and across our we're developing answer and own thing liquid air multiple and the Hope vendors, cooled. across mediums,

Operator

last that or thoughts question. Very Michael, the good. closing was comments? Well, Any

Michael Mo

everyone Well, I'd today. like your to time for thank

in your have to sincerely call of those OTC shareholder, our investors, and especially support who faith us Joining since appreciate days. with all our our We been KULR.

We are our to in make development in technology We in foundation the building in significant growth infrastructure, a in financial that product great position roadmap. years. solid investments people, our our to believe accelerate we're coming our

have a So much. wonderful, holiday And great thank season. so you

Operator

Thank everyone. you for

we Joining questions forward holidays the to your future, Simon on everyone. as thank us Michael like today look sent Michael, said, happy to to KULR I'd more and Keith, call, the of in and and

KULR Technology (KULR) 19 Nov 212021 Q3 Earnings call transcript