KULR - Earnings call transcript Q2 2022 | KULR Technology Group, Inc.

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Stuart Smith

All right, everybody. Welcome to the KULR Technology Group Second Quarter 2022 Earnings Call.

Now before the call begin, please pay attention to the following. This call does not constitute an offer to sell or solicitation of offers to buy any securities of any entity. This call may contain certain forward-looking statements based on KULR’s current expectations, forecasts and assumptions that involve risks and uncertainties.

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

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

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

for Now kulrtechnology.com. this call replay will at available conference the website company's be

Officer the Simon yours. Westbrook, currently questions KULR in You Group, analysts Relations tab the Group of and can floor CEO Financial from of on field Michael, Keith go the on or Technology to Cochran, the the and KULR will Later company. Investor With is Technology covering of management Technology Operating Chief tab. Officer KULR call Group. Mo, several Chief co-Founder Presentations and me visit the call Michael President today,

Michael Mo

in subscription and aviation, different us amounts over in standpoint recently platform that which with into to sustainability revenue sales More supply macroeconomic coming pipeline. I versatility holistic earnings In past infrastructure, co-Founder Technology an our the believe Michael garnered sharing, made I that SG&A the growth we're for path. build Thank research enterprise call. total we've our energy of that comprehensive battery by holistic inflection workforce. an Mo, And battery the and customer confident we by we'll year, is XXXX begin battery or existing in investments remain company we want the We're a for we're in of that enables leading today the ramp KULR customers inevitable quarters. CEO economy. transforming customers encouraged these strategic from this the engagements go-to-market have assembling chains, we're volume, to the new thanks of seeing, keen momentum selling recognize factors, have intend high of you, our be on facility including to our respective start to providing significant this safety point other XXX off The development, circular across We sales in of and of as e-mobilities, markets. challenges QX, unpredictable KULR's tools and Stuart. industrial things platform government customer with KULR and recycling, storage, joining equipment, allows electric of within ecosystems. us platform, verticals, and that sustainability efforts any power investments achieve upselling sales across a model. of Group. platform through we Hi, at to and to their the sectors interest solutions several and total These over significant extensive several and expand to individual product caliber resulted by our specifically, components penetrate set out and cross organizations Barring electrification a

of We close deployment start of the Parcel Service shipment customer solution licensing recycling hours. commercial of FTRC commercial and completed up the the already by network. allows shipping With to accounts for partners and customers and from NASA safe for batch have facility. permit four products UPS of KULR safe securing certification, reusable XXXX. of major runaway purchase DoT thermal calorimetry shipping construction quarter allows trials KULR to September We X.X underway. orders three access the the batteries will case pipeline, open using to major The the throughout partner, lithium-ion compliance batteries products, We case support safe with United testing are kilowatt and case in engagements safe secured our which the a multiple be fractional immediate as expected the gain and shipping in used

We over high-performance Forecasts Moli announced e-mobility key recurring phase KULR's to and PCM advance the of applications. defense and for with Corporation. the sync and safety are Corporation megawatt for received Martin aerospace Energy leading secure thermal technology offer the and Lockheed XX partnership solutions order management follow-on dollar a E-One company supply for developed battery We material from eVTOL to change hour commitments multi-million the battery quarters. total coming space

to We substrate fiber continue expand carbon application a material. of the

the to feel conductivity the skin. to Fortune enhance to XX solution and for customer bio fine the continue tune We Metaverse sensing the increase

new expect samples in We QX, testing and XXXX. place take to

development substrate partner battery For cathodes our incorporating high-energy material. those high-energy been fiber density carbon two new with provisional development, on patents architecture and filed have and our

results storage, enterprise continue produce for and expect universal year. combining the storage, architecture modular the we PPR to the applications. of by We crypto a and propagation in the battery sustainable mining energy data all of for to the and system by developments passive energy datacenter one end path these our E-mobility architecture develop CellCheck our On publish to technology

with Cochran, Next, Keith, XXXX. in and some share our exciting QX, please. you COO, will operational President Keith achievements

Keith Cochran

initiating advanced, KULR's the cells today's of call. perfectly automated This The will battery approximately ISO is of And completing NASA's development in fully highly and capability. operational XX,XXX will 'XX. system fully could an This 'XX. 'XX, cell installation coolers capacity KULR timing battery ISO with for or forward and requirements. Department of annually, aligns pursuit be I deployments well XXXX QX, and QX, battery to certification and tremendously advanced offerings. those The by related even [ph] operational system XX team provide exceptional in June supports accomplishment NASA testing Defense the Michael. excellence a certification. attending will in QX, as capability thanks cell for took complete The full Thanks, KULR-certified demonstrate as organization used support processing process for highlights dedication now demands construction the This KULR's successfully of with to XXX,XXX internal manufacturing controls.

continues In applications. QX, 'XX, updates three human with experienced hired range team Senior talent. sales, to employees a I'll now, forward technologies to particular, an and of related hired support additional support high-quality lithium-ion our broad in provide chain Moving some engineering. expand to packed across we've XX KULR supply In Engineers battery permanent KULR's additional developments resources. strategically to

XX% and a the was lead, a Accordingly, product Marketing platforms expanding interest, new KULR a of Director our four of and has imperative commercial major the trials in products sales. Further, safe increase Coast team manufacturer's and customer now increased excess marketing for sales marketing delivered to internal expanded sales also an KULR With which that organization. in accounts case currently we to in active XXX in sales and technical in representative That East increase team sales of and customers. with the the underway. support Product addition a QX, added it XX, sales team deployment landing funnel, strength manager was said, KULR's successful

Simon, development, maintains software robust and volume please. While are I KULR outsourcing will strategy who manufacturing. financial successfully grown for over turn coolers also have to we highlights. a our will share now internal call team, TRS Simon, the

Simon Westbrook

lower Keith. the We current in revenue everybody. highlights of the sales quarter, financial revenues in $XXX,XXX ending XXXX. contract services, product the was due and in primarily decrease I'm Thanks, the And summarize of compared going to hello, second of quarter. quarter June the quarter. X% A reported to $XXX,XXX to

Our getting SG&A and increase fees $X.X marketing $X.X XXXX. to XX% in and and facilities. corresponding expenses and quarter second and employees new of office expenses of out million of the non-cash was increased advertising of from paid The SG&A additional expansion production compensation the in consulting our in expenses, million XXXX, consultants, stock-based quarter the to to due

second a began in Our current test headcount, of R&D production equipment, and quarter from and of reflecting in-house $XXX,XXX investment last an XXXX. in expenses in XXXX, combination the of quarter $XXX,XXX our XXXX, assembly continuing quarter to the facilities in increased and and automated of XXX% new and manufacturing the

and the quarter new million advertising development increase fees million second Our and loss related in XXXX. The payroll, accounting XX% to research $X.X second introduction in marketing increases quarter $X.X operating and for million from of the systems, loss to $X.X increased included XXXX, travel, professional of from projects. of for expenses, operations the

continuing logistics of $XX financial Our million face net per quarter from reported leaves quarter for equity the XXXX. XX, was XXXX. company in agreement. second XXXX, $X Back June funding we the and $XX.X compared greater United our $X.XX, new balances worldwide support us year, in share operations loss This of loss the have well That comparable in to June On $X.XX XXXX second million, my established uncertainties. at the in to $X.X summary. the net Stuart. XX, by $XX million to a States business increased the over XXXX. quarter XXXX to positioned of concludes to million million second operations, June compared for expand consolidate ensure you purchase standby XX% as And in control our quarter with Since cash the of XX manufacturing this of

Stuart Smith

Thank you, Simon.

the Senior be there? Global by are our Jake, Q&A we Analyst he's Now Partners. with Alliance section Jake Sekelsky, call. to of and we'll Director Managing move on And will you first Research joined

Jake Sekelsky

thanks team, I'm for Michael here. question. my Hey, taking and

Stuart Smith

Okay, Jake. Go ahead.

Jake Sekelsky

been So, something a across that guys on has bit touched environment, the companies impacting you the broader board. inflationary

impact that margins your to across curious pressures if forward, all? how you're this any lines? cost touch seeing get wondering might Just just gross going at And on business

Keith Cochran

Cochran. Keith the is This from and question ahead you. I'll Thank Jake. Hi, take you. go that

energy safe inflationary accordingly, policies 'XX away labor Mexico. the in process are which and logistics a are and QX, impact minor effects costs we began China, our the and nearshoring action on took manufacturing having increase resulting negative from for We capabilities our to moved of the have in cases offsets reduced seeing Mexico. cost logistics now significantly, This our costs. And current

of positive to this customers. begun services that business engineering businesses, only a adjusted on cost for materials as or have maintain team. most We've note, negotiate to wages costs increase, our and increase reduce to to volume been pricing base for our cutting able we our have adjustment were paying able been better our costs labor our the quotes. for has But reflect we've been As in for in

Jake Sekelsky

have Got it. I two helpful. questions. That's quick

Sorry?

Stuart Smith

asking another you Just if have question.

Jake Sekelsky

Yeah.

how curious are more you like industrial consumer-based is rollout E-mobility? And CellCheck. a applications that scale? on partnership So going. is on interest just storage in quickly Or type seeing there more And interest

Michael Mo

a regards those rollouts be us quick storage, of front industrial we're with update energy. and now, runner one Right that's where Yeah, seeing of to CellCheck. we're be just that Each our for really the unique. putting on kind will custom and

we integrating technology so, partners get need from designs that actually the are their our And go. add into system

to So us that identified and for be it's able for us little a But capabilities we've market. into that. bit do products of to out the long to cycle a get

Jake Sekelsky

Fair enough.

Thanks, guys. all Okay. end. my That's on

Stuart Smith

Jake. you, Thank

Now we're Litchfield to Theo, on He's are on Research. Theo you the with call? O'Neill. going move to Hills

Theo O'Neill

am. Yes, I

Stuart Smith

your Go question. with ahead

Theo O'Neill

-- batteries the is, have, going the roll to have plan and as a early The customer. of do make those? And for next amount build question product what XX you to months? question are to you. over applications for I the to out I Thank in have you've Michael, be your a XX that's used secured And how fair

Michael Mo

Yeah. Hi, Theo.

going our very of battery the critical high-quality that's going know, customers, also own for you to chain the is reliable As be to whole very but supply critical for for cells our critical with industry, be roadmap. success

build cells cells, solutions the the the for So safest in those to include markets, data we We're cells. platform security, of will based cylindrical a battery and very type and product also and long well platform relationship defense the aerospace target offerings. it we've our And as valued they which established market analysis have a these on reliability, partnership as high-quantity, have optimizing with. thermal these on also characteristic high-performance comprehensive designs The these for customers, cells. power energy the

our be play. will go that to So first

these with target power customers industrial also equipment cells. applications these E-mobility and for We power high

Stuart Smith

All now got to to Brothers, right. Noble. is going Taglich with We're Juan, are you Juan Thank you, He a questions and Theo. us? for on few us. he's with move

Juan Noble

far get My questions. from again an least as the early add question, supposed in get it first the your was thanks to taking back order XXXX. million for announcement am. Volta, in and was for top-line I year, And call Yes, to I my that as at want to $X.X made about to

you're quarter? So amount any this I'm track just the second of curious revenue in to still XXXX, of this in if add show and on up

Michael Mo

for thanks joining. Juan, And So, for question. thanks the

we forth. other in that practice, amount, general well in very But and specific on terms to XXXX orders volume into the in also so of a won't expect As on in engagements their any dollar we and customer closely, and of we're timing, Volta, XXXX. customer working for business comment second half ramp

the call of or starting So mentioned of to I is the that revenue these opportunities rest seeing of for this customers starting show earlier, year. type to the we're number inflection a point that rent

Stuart Smith

question. another you've Juan, got it looks like

Juan Noble

for followXon from was order. you And that technology. any would products that revenue phase if from can looking to quantify In regard the actually to from you material change expected get other that's received you? wondering you are be heat-sink Yes. KULR Lockheed, the Lockheed order believe I there that

Keith Cochran

for Yeah, dollar to battery time don't on also We continue But of them a partner get been customer going Juan. that suite today as with a do with battery comment late we well. They've our their advanced specific solutions. not amount. for long orders' for hey, we I'll opportunities as growth as additional even us, systems just to Again, we're as group general that support one. thanks pick any practice. Lockheed,

ship those excited that about and where give moving relationship that relationship Volta we pretty in it's know I'll QX, to flow you strong out, begun did just let you going. and some and have that product So, shipments forward. to just

Juan Noble

All guys. you. right, Thank

Stuart Smith

Juan, do as well? you have final question

Juan Noble

components do. prospects? fiber hoping to the little electrical metaphor. such could sensing about if the products in talk carbon the the I Yes, navigation core nerve have signals virtual was you environments the a You control of I for as that

So be I hoping able to you was might on expand that.

Michael Mo

cetera. part the play exciting sensitivity, conductivity, to pick the material Juan. emerging into This higher fiber of we're our applications. skin enhancing the fine for field us. said Like to so and et very I tuning earlier the a and higher up and skin is It's carbon remark substrate, Sure, application to signal, also different for and utilize the the types multiple platform with in moisture

fine tuning done So right now. a is lot of being development

this fiber testing happen to let's QX, for whole how We the see of direction of And material just different in those expect carbon It's and very us. new kind advance samples XXXX. advancing the is applications exciting substrate applications. to work. the Yeah, a

Juan Noble

did So, would you third feel I by hear completed testing quarter, as correctly? the be that you

Michael Mo

XXXX will and XXXX product test. these plus guys. completing, sure it's but I schedule the we definitely -- feedback. samples then -- the say that's to up for maybe And Yeah, likely about have to the customer customers for testing I'm a for -- most kind not it's of the launch

Juan Noble

Okay.

Stuart Smith

portion right. XXXX Group concludes Juan, is want the this for concludes I the questions. Q&A to you, for earnings second KULR it website. call. conference the of reiterate KULR Technology quarter Technology replay available going Thank call. also be And All call That at your to

technology.com. K-U-L-R Just

you today, so You to Westbrook, Mo, your Investor much can and Relations behalf our or a Simon of we'd Tab tab. Cochran, participation go thank good the evening. to visit Michael in Keith the management like Presentations On for call also have

KULR Technology (KULR) 15 Aug 222022 Q2 Earnings call transcript