- Earnings call transcript Q3 2022

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Stuart Smith

Welcome everyone to the KULR Technology Group Third Quarter 2022 Earnings Call.

Before I begin this call, I would like to read the Safe Harbor statement that covers this call. 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.

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

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

that are over to the Group. of the are, the will call Technology no with the and the like and on existing to a host covering current for new backlog Stuart company me contracts, Group; future Michael on KULR Mo, Keith services. or your information, estimate of Technology Later management's of In are conversations I’m obligation field today CFO Group; about current currently of and customers and KULR otherwise. entirely call their Smith, their the analysts With best Westbrook, to future result with for financial CEO on given addition, of from assumes KULR you. information forecasts this new performance and Technology in COO this President Cochran, of and Simon whether a update KULR opportunities events call as I that, questions KULR's company. the turn products would Michael, call, panel included call,

Michael Mo

my Thank million. of we on for report the This We I an I'm quarter to with [indiscernible] Michael record QX balance weather. you, cash revenue for $X.XX $XX.X that reached today. point sheet. KULR pleased apologize as to is a million voice I'm was bit Mo. Stuart. inflection ended the

energy global build to to sustainable well-positioned the platform management electrification a accelerate are to We leading economy. transition

As accelerate we are we and ahead. our the have making the prepare people throughout significant in infrastructure growth shareholders and to our communicated investments year, to

and QX, down X.XX manufacturing million in North to America. of have compared We automation million [ph] deposits doubled infrastructure in in with XXXX. In vendor $X.XX QX

moderate We to as next we all our phase that expect to growth the of we have trajectory enter investments monetize made. investments

the engage and different wide typically into function business, XX% enter will quarter. to monetization more the we of services margin profile, of whereas Aerospace of fluctuate have customers gross DoD gross profile the to As growth. XX% customer phase coming topline commercialization our in will range range This growth with quarters. during is our in the a us and higher drive margin and products mass market engagements will products a of

margin in try -- monetize our in We segments to normalize expect gross to productions. volume multiple as market enter XXXX customers

million of nearly inventory prepare compared in our quarter QX and to QX the for $XXX,XXX production we XXXX XXXX. remainder for $X.XX XXXX, the and of our same we As to tripled customers ago deposits of year $XXX,XXX into in volume

Department cross-sell the continue commercial our customer We over XXX we increase solutions and these largest expect we world's The approval with the with to has customers. total marketing engagements our across industrial our as to companies product some KULR by products, X.X. energy end one direct to increase of Expanding levels. of KULR package received largest project will KULR kilowatt upsell relationship to partners KULR these In for outdoor the the to the from and major best-in-class KULR utilize inventory higher awarded the reps. portfolio, September, permits QX QX lithium-ion engagements battery the of manufacturing expand our from energy to sales recently safe expands hour current with of with and high build of three and case support expect special from team level and the sales Molicel, battery its customer end X.X by upgrades rating. three permit the in in level cells to storage usage safety Transportation of to partnership companies landscaping safe power rider lithium-ion shipment world from and our access batteries. modules to has through Through with with

hours The value has and customer accelerates KULR could current access revenue production energy supply strengthen part years. the $XXX with in exceed applications within our to provide North million potential of localization annually Molicel As ability XXX-megawatt to solutions total securing X America. capacity battery of to that strategic our relationship, over supply further high initiatives to

very Consumer in We the world. CES, products: showcase XXXX. is is January in the upcoming three This electronic are Electronics about largest We to new KULR VIBE. excited Show, the plan show First

motors focused expanding VIBE as KULR company algorithm system. As interface, management sustainable DoD solutions. such a VibeTech a the helicopter platform. a new sensors integrated utilize energy itself to AI you to new energy scale learning customer farm. demo as mass know, energy-efficient AI wind VIBE new from vertically data VIBE renewable with reduce The product, wireless new applications will This run to a and a market, architecture recently with allow applications solution up KULR is more sensors for that we acquisition. energy industrial on KULR We and is completed KULR patented vibration from

platform full on in operation [indiscernible] with showcased capabilities. also computing a AI cloud new We

the rating We a new for monitoring in-depth applications safety that energy capabilities. capabilities these source will unveil integrates product and with based all terrestrial higher

updates more Keith and share acquisition the KULR VIBE the for quarter. Keith, you will operational with please? on Next, Cochran

Keith Cochran

those our thanks today. appreciate call for you. Thanks, Michael, joining We and

This great what will I share off, First at tell be KULR. to our every day. almost I time team is a

products NASA of into I requirements is the team true the cells all-man performance One of required we and test our and energized multiple Construction Work the other for branches. of only DoD capability, will sense year. highly we accomplishment for which deployment the meeting testing the NASA the XXXXX fully production, the will close KULR Construction cells XX. missions the working begin lithium-ion XXXX. battery XX will of volume particularly January December, battery been cell have automated into KULR the by on deliver many and platform years. tested of to have proud we XXXXX team from system of last is as testing the in The complex of X as coming are capable automated Our meets operation shipping system fully team high very launch in in of head feel deliver that

near VIBE, spends platform KULR mentioned. The balance Another incredible algorithm acquired as with Michael precise device is that self-learning intelligence provide had uses technology any or virtually service to to thereby VIBE recently the fix to calculations artificial offering vibrations. was exciting a in will expand rotates, problems for created we originally and eliminating to and this track military continue KULR future. balance helicopters,

think many I However, of to will mission renewable ask relates this KULR's supporting energy. how

imperative The So drone findings. by of just increase increase VIBE the that based it's share to are vibration in same When reality me lift Certification, a and also technology, creating motors results like did a I XX% is a team quality optimized. a and demonstrating KULR performance tremendous life operating balanced highest preparation July, by increase completed management performance. The would that mission-critical system. of blades explain at recently performance XX%. battery The VIBE zero friction a is were The same the of utilizing ISO the let nonconformance blades, and and battery our and energy commitment on still motors, technology. of vibrations certified KULR level KULR in a to battery the demonstrate that. and delivered of maximize impedance. eliminated with the to quality benefits XXXX to the life that and device job certification

in able of a maintain Lastly, competition to very markets and for tight KULR talent. talent has of growth support recruit during intense been period and our labor that high-quality

to as thankful are to Simon our KULR. the over And a time comments. of with turn said, it for great Westbrook like We that, it's at I'd be for And I to financial very team. dedication

Simon Westbrook

quarter Thanks, financial going on quarter to versus the year comments Keith. year. the third last I'm provide third some this

reported Firstly, improvement XX, in to This $X.XX of year. view, quarter September XXXX. XXX% $XXX,XXX following of issues the in from ended we quarter as the current supply in increase the an a revenue last shipments compared was point revenue million increased a of constraint of result

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

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

costs increased per $X.XX million due million of third the the Our a the last quarter of 'XX net the million year. $X.XX the and related to period from was remainder third retirement by of Finance The XX% one-time $X.X net quarter charge XXXX. increased share for for of related loss million $X.X largely the in to comparable note. to quarter third $X.X promissory by compared in the as $X $XXX,XXX, financing to XXXX loss

year. company would result, well-positioned At have per September greater excluding net compared the of over logistics XX uncertainties. this to the of EPS a a This this operations, the balance at charge. cash leaves have one-time $X.XX of new operations to outstanding. The consolidate control expand share, business us ensure $XX.X As been continuing face no support million last and in manufacturing reported $XX.X now September a our million worldwide year, in we U.S. loss debt with XX

you. to back Now

Stuart Smith

Simon. And statements conclude our management. by does you, Thank opening that

by with the the several We currently who Global the them, Analyst to are we connect Alliance joined analysts is but are are again, covering session. moment. at Director, on unable company, one Senior move Managing at Jake to Sekelsky going Partners us of Research to Once Q&A

However, we advance. did receive his questions in

So the first here question. is

As increases, expect density do to case? on expanded permits energy for batteries you safe the higher focus seek

Michael Mo

some It also capacity. take energy them batteries the you Yes, modular. Yes. higher know, industrial I means automotive that. applications and as making making their are more

XX of capacity expanding So we on line to the accommodate energy hours. working product kilowatt are [indiscernible] higher

Stuart Smith

Very good.

question moving a Now on to regarding VibeTechnologies.

recently show Should You the growth VibeTech. expect acquisition this we topline of XXXX? from announced in to up

Keith Cochran

Yes, take is Stuart, that. will I Absolutely. This Cochran. Keith

final agreement We with are services. company long-term large the a aviation sign-off support to commercial a in KULR of VIBE

You be are this can look once fully the that documents to forward quarter. sometime executed, during which should announcement

to DoD Additionally, we secure funded underway projects, that also working we during support currently QX. to have and business many engagements are

Stuart Smith

Thank you, Keith.

Here adopted, term? more widely the industry is safety in the question We've a near the mature be next start seen over drone partnerships become focus vertical we expect should Jake. and here. to additional Should battery primary from this and

Keith Cochran

will take Stuart. I as Yes, well, that

short remarks, now we that nothing launch those service to of KULR the Accordingly, of those of demos. full conversations with we in finding potential VIBE, midst shared the witnessed and scale in are in the customers. agreements my have now to astounding the have I results As been are

battery the are increase provide industry and to Additionally, CellCheck, design in incorporate drone to safety pad architecture TRS we the dramatically in of and [indiscernible]. discussion

Stuart Smith

Excellent.

by going we Now Theodore, Hills Theodore the analysts to that's us be on you are call? with Litchfield Research, are joined O'Neill. for

Theodore O'Neill

Yes, Thank I’m. you.

Stuart Smith

question, your Theo. ahead with Go

Theodore O'Neill

Right.

You can you hear me?

Stuart Smith

can. Yes, we

Theodore O'Neill

over give you drone of for update the rollout your Great. customers' next that us some an production sort planned on of program? schedule or the commercial Can milestones months XX

Michael Mo

storage specifically that XXXX fast production product we the next that drones charging, embedded with what Keith together rate charge XXXX, what can't schedule, is used that about. can talked on rates can with power and customer that We in demo for that be an say will specific large discharge commercial kind of battery expect strong is energy months. for but high wins central to vehicle unveil to the comment just This integrated we we the design be or KULR and CES VIBE we high be and Theo. Hi, intelligence any unit the expect Yes. unit, XX and that [indiscernible] in capabilities CellCheck in

Theodore O'Neill

to wants in to what of say even customer this next their revenue you the there months? XX that protect understand be I possibility there is plans any Can XX So your are, out but will much?

Michael Mo

is. there Yes,

Theodore O'Neill

very Thanks Okay. much.

Michael Mo

you. Thank

Stuart Smith

All analyst are we right. Brothers. line? on an Howard you Thank Taglich We're now by the to you, from Theodore. Howard to going And are Halpern. move joined

Howard Halpern

Yes, John. John typically questions, not did I'm. available one I'm pinch with me he's leave a hitting but today, is, the broad for question. the but asking he

flesh reach You've this years? that lot in next your key next put in drive really could potential growth to the you out put X have a million elements of you of $XXX to, years year, work goal in over but year X and next I guess, the what significant revenue place the

Keith Cochran

Stuart. your there Yes, that. are question. Yes, of four Howard, for thanks appreciate this take will one, areas products. I I

areas our line a that materials, our use automated our will on allocation Those We in and safe TRS KULR a for testing our Molicel. cells the case, have service of XXXX. sight line lithium-ion are of lithium-ion hard drive early of top battery

pickups excited We about. its throughout VIBE it in further customer which QX, further have announcements the We expecting coming also are base topline as very KULR from new product are we year. ramps

see the foundational to that are growth in today. to in company, the and have a revenue base platform XXXX. is will think we place that we significant really pretty I They expect

Howard Halpern

Okay.

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

Keith Cochran

it. much, Howard. I appreciate so Thanks

Stuart Smith

Well, will call. that today. wraps as question-and-answer well comments gentlemen, I'm our the call our our now, portion operator it going turn who to as out from to our That over close management. concludes for

Operator

conclude and Thank call webcast. does today's participation. your and conference you, Thank for you gentlemen. This ladies

a your again. You time, may day. Thank wonderful lines disconnect have at you and this once

KULR Technology (KULR) 10 Nov 222022 Q3 Earnings call transcript