KULR - Earnings call transcript Q4 2021 | KULR Technology Group, Inc.

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Operator

All right, everybody. Thanks so much for your patience and waiting on the line.

We will now begin the KULR Technology Group Fourth quarter and Full Year 2021 Earnings Call for today, Thursday, March 17 2022.

Let me give you an overview of the phone call. The call is going to consist of opening statements from Michael Mo, CEO, Keith Cochran, President and COO, and Simon Westbrook, CFO. answer us a today. then that of will joined have company questions group from analysts The But I'm the going we to before get read Safe this Harbor call started, statements. found the as release, as on the statements you every for well Safe filings of bottom of know can Many be company. at the the press Harbor

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

Forward-looking based differ to date available statements implied from this made of Actual hereof. on or call call. materially on the the this as company are those information may results stated the on

want filings the Moe the of time. At yours. to find SEC, I again, to the on would you company. for Michael the company releases well more as to the the as like this call. is for Michael, the learn if call at the press bottom Now, introduce

Michael Mo

was year thank I our I'm today Year pivotal path. appreciate us you joining and for QX that our significant in on earnings Stuart. Hey, report XXXX to press and release XXXX you, happy for all call. KULR of Yeah. a growth Full

continued We increased our by quarter, the fourth expansion in XXX% strong revenue [ph] $XXX,XXX. year-over-year to

XXXX. total over $X.X of revenue million, year a XXX% whole achieved the is growth we For over XXXX, of which

build foundation its strongest million of have in in beyond. our XXXX. of results $XX.X compared XXXX had These continue also history, position the its and solid sheet $X.X financial KULR the million approximately to on of in put XXXX growth We balance at to a and approximately cash has end financial

into made team. three grew moved our significant in fold. During new management workforce We development. and infrastructure facility expanded XXXX, And times our by we We larger. our a four that's executive people, over product our we investments

and Case, Safe marketplace product including All partnership and developments progressing with automation our new is technologies. Safe CellCheck, number architecture are system, product a the launches KULR-Tech launched traction development a of we The new product in through cell well. Additionally, development. efforts, significant battery screening, retrieve gaining these Case

they're United the We battery Battery end-to-end believe for Solutions, Safe acquisition States. of in very drive battery significant growth key the excited segments. the energy in market largest Case opportunities We're about recycler the XXXX. growth recycling, KULR us battery commercial supporting for storage growth in transportation XXXX, and With We and would recent the business markets. the the battery recycling drivers storage see as in

with will to storage in Our products DoD Products Energy Martin us Advanced theme partnership Volta positions deliver support [ph] that energy Continue for support in KULR of customers. Lockheed services growth the Energy Systems and significant the market. commercial

consumer incorporate batteries see In emissions power electric customers. adoption electronics, the and launches meet transportation propelled line expanding market, as continued to positioned energy KULRs migration products see of and government product tools, governments our management clean, economy. the are with sustainable as technologies over new and in we net thermal that world which we a and used facilitate DoD XXXX, pledged of and battery mobility. and expect few uniquely such e-bikes growth the zero addition, the to In expect agencies aviation we're to PPR to mobility, products our storage Case transportation to in and companies for business KULR accelerate design In circular micro next customer global proprietary around and decades. micro recycling e-mobility, and the the Safe to

international Department testing the with close US while agencies, technologies NASA, working regulatory to the been US collaboration has DoD, cutting-edge Our in management co-develop alongside long-term and thermal and of Energy, organizations. strategy

that mass roadmaps Our serve market goal is applications. multiple can to technologies regulatory incorporate into these

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

accelerate and and flywheel expect in All XXXX. about We expect excited this possibly to year are into in this very to we our all, continue effect continue growth XXXX.

Next, KULR, Keith our CEO, on will please. give Keith, an President, update business Cochran operations.

Keith Cochran

Thanks, thanks Michael. call. all And today's that. attending for We appreciate

a with to is of growth, said, and in our Michael at new October three forecasts support The our facility testing and Diego, of battery times that in QX relocated XXXX facility, Shawline we'll located launch As larger we 'XX. capabilities California. adequate to XXXX room new San Street, than personal automated cell facility previous

enclosed and lab, shop, Additionally, the areas independently we support machine FTI flocking lab. battery to installed testing lab,

XXXX KULR employees of on annually. intend earlier about XX In X, people 'XX, system requisitions today XX. growth. We meet OXX support January I KULR our had March technicians. cell the regards instruction validated work employees, to equipment installed current battery equipment, for XX, and XXX,XXX Based support stringent have core outlook, growth specification implemented ISO contract. a time of been facility requirements. and initial in full the cells requirements cell the we is as 'XX to organization the primarily seek the via of additional With NASA testing commitments of testing Defense. earlier, June employee to also working of on engineering has Certification KULR working the will entire 'XX. grown an and XX battery and has [indiscernible] to began of in for designed many have the to sales, standard Department the permanent This to and is of Automated modular, mentioned with entire platform open automated projects capability QX in the NASA QX in processing the testing XX mentioned battery for of

hire We growth the platforms. we top are KULR been to talent continue pleased to able that of have accelerating

Both KULR individuals hires to knowledge with now support Engineering, KULR have Applications. their recent Battery of our KULR and energy permanent already outsource Will careers of example with platforms. using it's - and Walker, by KULR IT bring will our our improve for appropriate. enhance is solutions Peter employees Director additional QX infrastructure cybersecurity. An add of continue had cybersecurity. Marketing as all of 'XX, William In to leverage engaged and Technical management distinguished as as collective outsource to where Dr. needed Engineer, renewable Some aspects Hughes, to include NASA, of leverage

based professional been As This and to vital IT a current outsource best of those in improvement subcontractor is net score Defense our believe opens of is the opportunities to IP The estimated state-of on the for controls. our this programs, has it KULR for improvement art KULR Department of of activity that of path systems scale has activity programs. this additional a XXX an points. DoD support services organization. critical result We over

update our financial an give will Westbrook Simon CFO, highlights. KULR on Simon? Next,

Simon Westbrook

our Keith. the up for reflected in strengthening of invested quarter in Thanks, growth and whole both a Well, year, in business. results Yeah. our fourth This building we team XX, prepare infrastructure year was December ended ramp we our of out XXXX heavily our and as future this XXXX. the for

For the in quarter, $XXX,XXX our quarters. revenue increased from $XXX,XXX the to comparable

$XXX,XXX loss $X.X which our to from charge. increased went net per million, compensation increased from from$XXX $XXX,XXX share per million $X.X margin share. gross And $XXX,XXX. increased Operating net non-cash And to $X.XX million stock $X.XX from a loss to included expenses million. to $X.X Our

revenue from For $XXX,XXX to increased $X.X ended million. XX, the whole year December

$X.X increased million. from $XXX,XXX margin to gross Our

which $X.X increased of compensation stock $XX.X expenses from to operating $X.X Our included million non-cash million, million expense.

operations, compared with December last million increased at $XX.X loss leaves fund new and to end product our you. loss year, and increased development Stuart. share have $X.X million $X.XX in to the we expand per to from share. in net Back $XX.X which the net year, to And $X.X Our well million ongoing of per million. $X.XX support positioned XX XXXX. from At cash investment Thank business us

Operator

Thank got Alliance welcome this right. are At Director time, this Global Partners. All on Jake, Managing call. we a from going and Simon. you're Jake Senior He's Analyst. We've Sekelsky, you, call. Research to the to he's

You read of your question couple Please for us. first have a out questions.

Jake Sekelsky

and Hey, for Simon, Keith, thanks questions. taking Yeah. my Michael,

the most cost we've Can and touch quarter think various can the Just through that margin to to take looking you some last a mitigate inflation at inflation? you're on more general sensitive of us just steps two. you standpoint cost or really maybe margins further inputs maybe you here, pressure, board in industries walk any some across from the over seen cost

Michael Mo

Yeah…

Simon Westbrook

Okay…

Michael Mo

Go ahead, Simon.

Simon Westbrook

Yeah, problem. no

do a supply sensitive for know, have costs for chain, us. global we obviously, sensitive is you pricing transportation are us. So, also Materials,

As such, we've taken some mitigating factors.

that flexibility we customers to only bring helps. end. relocating very found making the logistics partners lead those begun we - Mexico, Now, Hope we're good outsource our cost, improve some manufacturing, down partners the chain supply there. of time in the our up rapidly move have to not also the for into And process but our of

Jake Sekelsky

you Do obviously And Yes. growth these bit last so. at That's guys continues constant well, ramp? to guys SG&A. done sounds looking year focused a mean, the throughout year, in helpful. over been of somewhat XXXX? to revenue expect as you on hiring remain you've like this as you can just quite or obviously growth I are then It as mode have levels

Simon Westbrook

going of as internal know, of choose grow definitely do But In You outsource some a continue makes well I organization. that we'll we leverage. combination we're our Jake, that as sense, to hires, comments, to leverage. prepared mentioned my we in order do outsource – in to as that

of past the this think has been year us bones company. I building the about So for

we've engineering know, lot added senior program, VP and place, system of management of brought You talent. HR entire in and Sales a in

in this for fruits created now year are of starting that primarily portfolio of labor. all has the All we're being really that platforms realized, second half see outstanding of the the of of us, a really

heavy the as a think I personnel-wise lot done company. far we've the the as senior infrastructure lifting of for So

engineering, a and probably the also definitely growth some off know, so And sales there side. see you but of we'll on see of in especially personnel, we'll bit our tailing technicians automation little there, and

Operator

O'Neill Litchfield He All Litchfield welcome Theodore, we've Research. have Hills the next analyst. is we right, research call. to got, Theodore a from so

couple You questions for a management the have team. of

Theodore O'Neill

Thanks.

just previous I expect these was you with expenses to did catching growth increases? do about your But up And question, covered much in been up and question lot how XXXX cost here. business doing it, you as to as you've XXXX? first you see a go hiring my of do they I wondering, So think

Michael Mo

Yeah.

from great hey, Theodore, So, you. to hear

the because built. a side. And been percentage of the a this has of you expect hire sooner lot the the product know, very financial to better we versus the manufacturing see a very expect So as high then, We and was increase catch revenue foundation. There's really foundation build heavy saying, - in at up, lot Keith lifting, of year-over-year process you our talent, don't percentage or or two or And expense continue a was We people, the engineering in on then you significant lot know, investment to and really a moment, don't development. of, XXXX infrastructure, growth and increase us know, will make later, of we'll cost growth good position. in heavy XXXX, we XXXX. lifting, size, the put growth

Theodore O'Neill

testing you And a differentiate can battery give - your how Okay. cells products, market, in into versus used you ones test the us to differentiate on be automated look currently production? current

Michael Mo

do can Yeah, certainly that. sure, I

I there's lot today, automotive do know, cells. there of that You think for testing have manufacturers a internal out

somewhat put markets. You packs before cells for EV the know, test limited into a parameter those those they for or they

programmed very for that and very, operation cell rigid has tested and are designed and you needs manufacturers. the with of is down solution said, car the whereby big your in various know, all thing wide support they you of service know, simply when mission You I as able versus be use, that automotive Also, example, a the customized think on a problems the every know, to to underwater, the a government in into can't And to risk. a or for solution three to space great the applications standards of battery house they, flight applications. proven by operating ensure mission-critical in solutions to that's have OEMs or It's agencies, been different break specifications KULR of The meet That's cells go testing variety submersible. sell side just the differentiator. you're one becomes road. KULR the

you KULR, well, know, a So cell-by-cell the information different at little of we testing a all track as level. say, know, I of you kind it's because would

with they and our system, customers of dial through time have cells see event, some that any sent were So OEM able dive go If our the data. manufacturer they've and we exactly they're what process. performance the sell at of an back so the that the in into particular do and can our to see can all bring of deeper parameters ever discussions for then type that

Operator

is we're got few equity by questions. That's now be Noble, to floor he's call John, Well, is principal going Juan at analyst the joined Brothers. yours. yours. right. Tablets All a The

Juan Noble

for few questions, could call. Obviously, answer year commercialization the and fourth and looks Hi, up nicely. results. Congratulations taking ramping thanks just a it's questions like this on Michael, in this. or whoever And quarter

As XXX that they you storage know, planned And does XXXX. XX,XXX looking far still still to up units in to to between to as XXXX? in are Volta's battery to increase XXXX bring units market

Michael Mo

XXXX Yeah, They're the XXXX. hi. yes. very the plan Yeah, ramp and answer for is on bullish up

as of Rentals largest a Sunbelt like include National couple think customers, that January, in confident KULRs, PPR we the and leader we're I Rentals. the by and matter highest fact, million their product views market. is you and in know, will now one companies our equity equipment more know, of billion believe product we these be investors, Grid actually a they financing, companies the And point as Grid energy strategic strategic company. rating which industry, in incorporating $XX and As in in utility rental $XXX shareholders announced has it Sunbelt of is received are, the safety National storage a of design, you the the

on very bullish they're the So product.

Juan Noble

area. and a And with do future your you that's and that's good power hear. big potential via very mining, rights the could Obviously, to from have acquisition applications. what products Centropy of Great, high IP sales on Bitcoin computing crypto believe

know, with wanted you yourselves of to years what few grasp, do market from be. where you this And and type this say, see a could Just now?

Michael Mo

that's no, question. great a Yeah,

existing kind performance to incorporating spot high you for can platform the existing applications in defense incorporate We enhance You this, really applications, know, kind into of the know, this high the, acquisition as IPs, well. not across mining the aerospace IP core is power like multiple KULR. sweet performance into want performance to Bitcoin of just of computing the on our you really acquisition but kind touring space, and acquire

know. to So we more actually goal in start to both horizontal the vertically that. stack. of the to the IPs end-to-end, lot along build that you solution see of And go that really there is a market, acquire for line the applications best the products and we is the to And breed

that you'll to us that's So you strategy. see continue - on execute

Juan Noble

could you little Transportation's believe great. Okay, And about the case the from Department Safe possible transport? for you a Tech just potential question, one talk permit is US market battery final of authorizing your KULR

Keith Cochran

I'll you Michael, take Yeah. one. Juan, Hey, question. Hi, Yeah. your that for thank

lithium I think battery XXXX in the expand billion. let past, a I've market little bit a for But XX% growing hit it's the Right on me this now, about but a in ion say was total further. at $X recycling, little CAGR.

range we Safe batteries, know, a the recall what government reclaim wide services, defective which $XX of provide lot XXXX. protection of you to provides And market the to of facilitating So, damage, recycling is expect a With and grow incentives, our Tech that know, cases billion against. that. behind you industry by including

special KULR solution applications. And permits of DoT are this really we in is solid these for our our business outlook. gains make where So and perfect the seeing types

Operator

the Well, do All again, this call want be KULR directly to questions. today. at wraps our out to And website, again, archived well entire right, on reach once your company website. an with I out investor will for point can that the that questions you of as recording up the call Technology

full most Group been Simon, year management so to Thank joining fourth for as and today. us. XXXX you you shareholders here well your Thank thank investors the and Keith, And us the KULLR Have quarter call. all, you of in joined Technology that Michael belief week. our analysts listening You've and team, the earnings company. and your much support of to our a for rest to as wonderful

KULR Technology (KULR) 18 Mar 222021 Q4 Earnings call transcript