KULR - Earnings call 3 2023 | KULR Technology Group, Inc.

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Stuart Smith

Welcome to the KULR Technology Group Third Quarter 2023 Earnings Call. I'm your host, Stuart Smith, and with me on the call today is the CEO of KULR Technology Group, that's Michael Mo. Company President and COO, Keith Cochran will be also joining us; and the CFO, the Chief Financial Officer, Shawn Canter.

As you probably know, KULR Technology Group is a publicly traded company listed on the NYSE American under the ticker symbol KULR.

As such, before we begin the call today, please listen to the following safe harbor statement covering this call.

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

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

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

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

yours. Michael the of now I KULR will to Technology that, Group, is Michael, call turn Mo. CEO the over call the With

Michael Mo

XXXX. the Group. and is KULR to another QX that . I'm Michael we revenue QX Co-Founder joining of Thank you, Mo, earnings XXXX the of Technology in Stuart. call. quarter Thanks, pleased record achieved report KULR for This CEO I'm everyone,

grew grew contract XXX% year-over-year While our X,XXX% revenue our over over $X revenue million, overall to year-over-year. approximately service

our services model and with design testing and start business customers. Our process for customer engagement

by revenue contract indication in revenue expect which our our overall potential, We to sales service growth of largely early be growth strong product driven rep. an be will

see services in transportation battery design ONE KULR product recycling platform in continues to storage, Our sales strong space, and electric markets. energy growth and

In addition, are growth defense our and to the markets our contributing for of management into aerospace the acceleration thermal proprietary products XXXX.

Space heavy the across ONE received safety and ONE of KULR NASA KULR QX to platform broad levying SmallSat the has on Our board Battery X requirements in due the industry. interest CubeSat

and to ONE a As new contract customer deliver company QX unit program XXXX. of the KULR mission, in space executed result, the flight account for has a begins XXXX a a for

the to on our where and record utmost is our importance. of platform, that funnel multiple quarterly Based to positioned potential markets shows $XX million. current be between performance growth largely $XX verticals, across ONE well revenue and KULR continued multiple million growth fueled our customer and XXXX sales multibillion-dollar broadening which and is market sustainability safety, fast-growing our deepening QX by is serve of the engagements

expected over production $XX and XX% with in research selected forecasted electric manufacturer by the markets, are design of to the and American the years. platform. few KULR a truck market According truck to X reach ramp-up Here over batteries its CAGR the electric of next manufacturer by of is U.S. grow a SUV billion to XXXX. electric at to is a analyze KULR achievements. This the some our highlights truck substantial has next-generation test top ONE solutions

by transportation developing a program KULR collaboration safe focused groundbreaking and utilizing Solutions Cirba between platform materials. recycling [indiscernible] national is global and nationwide equipment batteries solutions lithium-ion batteries announced manufacturers to on by transport original for battery and store, a lithium-ion markets The to for billion to and Cirba services. logistics collaboration KULR recycling KULR grow battery project program. $XX SafeCASE and Cirba exclusive Solutions, an nationwide The The XXXX.

secured a purchase advanced battery a battery NASA agreement NASA from part order cell of automated service. for latest KULR multiphase automated cell testing order third is KULR's screening The for system.

provide In products. addition aviation battery comprehensive market service The to self-testing NASA, cell to and reach is global $X companies battery for by engaged with their we're testing over electric anticipated battery to XXXX. billion

next-generation safety $X $X.X and Nano's to Forge with revenue partnership strategic estimated partnership Nano opportunity. million Design enhanced to for a KULR strategic formed will Forge ONE Solutions performance. technology. utilize The cell battery proprietary be million platform a battery to partnership This and KULR packs is develop battery

recycling. U.S. announced the bipartisan low Department American to welcome $X announcement intends Recently, second seeking main funding businesses funding production in ] of to make and produce The this U.S. Energy additional batteries. North [ is a us battery support it of billion American of to to available round infrastructure

We expect be in to well this positioned U.S. Department participate Energy programs. of partnership to

that By partnered migration. as drone Velos is the that's to VIBE to UAV are increase up to sensitive KULR $XX by Velos added to XXXX. billion We Rotors KULR for also with solution KULR platform [indiscernible] visual reach vibration payloads reducing optical projected provide balance of service aircraft migration LiDAR significantly to VIBE data quality to highly enhancement important cameras. for improved an [indiscernible] an high-resolution and the drone UAV the reduce and and clarity XX%, drone market

financial Canter, Shawn? Next, QX will highlights. go over Shawn our CFO,

Stuart Smith

Revenue periods. approximately million $X the record adding record-setting $X.X to you, year. a second of last quarter, revenue approximately quarter represents This doubling Mike. compared the posted increase in more million or the quarter. the third another the second to quarter was row, for XXX% the of Thank KULR than revenue . in X approximately comparing

tripling months approximately XXXX, for approximately in approximately million increase to of months X a $X.X X comparing million revenue XXX% of periods. compared $X.X or more of a first same than the first XXXX, KULR revenue, of generated the the For

$X.X up same Our quarter product revenue from this the quarter year. was approximately about last million, XX%

was Our service quarter million, approximately X,XXX% quarter the about same last up $X.X from revenue this year.

revenue opportunities. of product mentioned service as scalable As earlier, a our Mike can viewed be revenue foreshadowing

XX% in the a was margin gross been Achieving for has team. of margin last KULR the third mid-XXs the in from year. gross same goal Our a XX%, period up quarter the

additional continue to based We to pricing gross mix, scale. and revenue our work increase margin on

per was revenue in versus almost quarter customer last quarter same year. paying up approximately the the XX% $XXX,XXX, Our

For customer the was QX, paying customers approximately with to up revenue up from last the of XXX%, paying months growing $XXX,XXX, X-month XX% over ending XX, year. X number per the our same period

human Our first revenue from which indicating from productivity. was XX% quarter this quarter and the year, quarter per in employee up XX% approximately is the increasing $XX,XXX, the second capital of

used Turning and down investing months approximately and or XX%, XX%, X.Xx. of almost is want from to is operations the highlight for our cash about capital while used combined that revenue all operations by approximately X We versus XXXX, to allocation. cash down from increasing first XXXX XXX% our

in focus our the productivity believe is to numbers. beginning and optimization We show on resource

management what believe and today, we Given fourth quarter on are with sees track estimates. comfortable XXXX we analysts' revenue

that Stuart, our comments. concludes

the we're questions think now. for ready I

Stuart Smith

for the to Research. Shawn. Litchfield the to turn going Equity over All that, Research O'Neill. right. I'm Theodore at is He Thank call you Hills now Principal of

Theodore O'Neill

good Congratulations on the quarter.

more revenue. than X majority of the Or and of your touched several for coming? you're of customer on question that you Is plan? your customer to the last suggesting no customers you customers. had that this I diversity often revenue, has half up number as in you've ask, make going was have the been one prepared is part But are of quarters, about responsible So just more increased remarks there there the saying here,

Shawn Canter

I'll Thanks I'll question. Maybe the Shawn. for take -- it's that one.

Stuart Smith

you If cellphone from could, a if interference some we little... getting we're you, could find

Shawn Canter

Our Sure. revenue, to grow it we expect X ways.

Stuart Smith

from the your response it better. ahead and Go like beginning, might be with start sounds It please?

Shawn Canter

new XX% can I period seeing -- example, would period grow revenue, see we it diversity, customers XX, customer more so existing by revenue grow believe numbers customer [Technical our that [Technical Difficulty] for say, already you total adding Difficulty]. we diversity. expect in we grow as down and customers, for XX% both ending went our with than increased We to XX%, that's the And increased diversity. September indicating of the representing from revenue to

we KULR's requirements be in use they products compliance to make patented that requirements. paying their our And about They And our often which many need up and products customers XXX%, last rely these I'll point, so and regulatory is market. products revenue, grew can about noting those again, satisfy it's one who of just up both customers XX%. on maybe worth satisfy to

while up its sometimes ramping And may we so relations thus own have can Maybe believe there. can that we a particular needs production be customer certainly more be sticky. and I'll it products, customer it any these [indiscernible] leave very our of

Stuart Smith

you this Stuart, your ahead mind. is interrupting. we will better need next move a you we you don't Shawn, location, again get with Theodore, go if for I to to apologize please. again, question, before to

Theodore O'Neill

of amount actually understand able to fair Yes, I was it. a

us give question. So was it. integrate that you're answer and AI your ]platform an of Cell to that if can Check [ I how also overview wondering planning you into did

Terry Cochran

Theodore. question that Yes, I'll one. there, I your take lot appreciate Thanks it. a for

Check over Cell correlation platform addition, analytics for looking [ cetera. performance provide battery health factors information capability, real-time we designed sensor on Our ] of for et time, information changes, to deeper as use in to And of a versus numerous path. the allow temperature data such is degradation impacts for of

access now much help we'll draw simultaneously, course, there's points for to product using that easier of multiple use enhancement. for data that opportunities AI to So analyze

AI our that But into used platform, the further balance in with said, adjustments real-time actually to the sense. be be ability this for made for do integrated check analysis KULR optimal achieve to provide And have solution that of that data, incredible into integrated our VIBE refine will AI that's those. our our and we So but if not and hardware, makes software. for the allows algorithm to

Theodore O'Neill

XX, goes Army what's extended, on October KULR? production, would October there XX, extended. being said the be you for When opportunity said contract you And it is announced Okay. the you into which

Michael Mo

take This Yes. that. Thanks, I'll is Theodore. Michael.

energy we So production nature, And Army with safety started of the very contract power on to But battery. top interested extended. top We a the that. of battery prototype Army have and the The current increasing start development is lithium-ion UPS density late lithium-ion concern. is into a and on XXXX, XXXX. and airborne expect contract contract in is likely development it in applications. other

know world. you consumer of largest batteries As that one the the they're may in

So million once to approximately from and out Army their about meet is that safe larger opportunity platform. applications opportunity for the up we much battery to $XXX we believe current produce lithium-ion a needs, the the prove them across these can much, opportunity opens we energy the

Stuart Smith

We'll at to Alliance Jake Global That's and Analyst Director Thank Senior Managing now Partners. Sekelsky. you, Research on Theodore. move

Unknown Analyst

what curious the been sometimes Starting phase. it's announcement with just American haven't And here. I'm larger to tough might maker. recognize wondering I with specifics thoughts implementation look phase know I'm are time from like I that disclosed. parties. when partners what But to line your are just the the the testing the contract truck EV product gauge

Michael Mo

Yes.

We to have in customer, perform started the year. of likely we're with test QX the and engaging this

based engagement So in we to XXXX. and results, quarter test . continue analyze that's the the customer right we're and after with now, to we chance results. on the the have those will And our going

Unknown Analyst

Okay.

to cut curious able are expenses further revenue. while And like there. continue touched quite next but down So feel be where a without if like think could this running year? bit there hitting you into has you growth looks then, consumption you ground sacrificing additional guys, to still obviously any sounds Shawn, it I come heading you're just bit, it the were a you areas cash I'm on grow year-over-year,

Shawn Canter

give better in connection. my try Sorry, time? a the get patched question me just one me they just phone to Can more you to to

Unknown Analyst

Yes, no problem.

on down you I'm guys could feel So into without a you consumption sacrificing you where I sacrificing just bit next revenue saying, like cut areas year. growth earlier some on cash just there's year-over-year, obviously. curious this expenses touched without further growth, was additional if any coming heading

Shawn Canter

we'll tell that of do Well, reviewing more our efficient. more in order are and and and continue Sure. to procedures I that become can constantly we you processes to all

scale, those margins, think continue that, we see and hopefully move I are I to our and addition as continue we'll we improve as improve forward. to in think able that, growing to you'll to gaining be

work of across resources various our is far, growing on lot I optimizing focusing think while this and focusing so will continue. So a we've done on platforms our

can So we're area run and we how efficiently. there's targeting. all at no always more We're looking the leanly specific areas and

Terry Cochran

on let there, Keith the just for Jay. me is Shawn, add question This thanks and Cochran, there.

in keep most is other variable that. of outsourced use product for is cost. In to thing we other manufacturing words, revenue our The mind

investment significant to So personnel. lot scale and we're able without of a into machinery

a So we that flex on down can cost basis. variable up and

the So approaches started one the that's of strategic we beginning. from

Stuart Smith

Research. of Emerging And Growth now the welcome Michael Sr. and we're going Legg He's Managing to Director Benchmark

Unknown Analyst

up was future of little. also talk in strong, revenues I a believe, we indicator contract -- came Shawn. Can an R&D But service R&D is revenues,

contract a there, it's we little say pipeline Can you customer that. than opportunities in anything talk what talked first or about bit different I R&D we services? about the think if have

the then the SG&A from you at talk cut decline, then quarter, you those And what you're where X.X SG&A and on there. And out down expenses X.X last ability levels? to these to keep doing can

lastly, about cash the then talk flow and that? And up just and inflows coming of a cash outflows you bit can types the any position, cash to we how we're going little handle and near term have

Shawn Canter

Mike, Sorry, in there. a questions of lot

about So is I an growth. one think that R&D and indication was how the first of

we're satisfy contracts here, that increasing that obviously us. and with And those and are those the demand going Mike yes, I seeing those too. doing that order the our are to so customers associated after jump work and Keith demand we after in customer But expenses think from pull R&D -- going and in solutions

think I So right. you're

I think possible. we I don't are while -- cognizant maintaining we for certainly do to don't our trying What to keep Jake, certainly we growth. mentioned want want that, as lean are as as our sacrifice -- costs is of to we

we demand. customer in And that so satisfying where will appropriate, invest

think second was question SG&A. the around Yes. I

said, so efficiency, or cost And as we we where to improve on which savings. in our I front, processes results at reduce can look all cost of that continue

continue will that. We do to

Terry Cochran

bit. on a Let here. this me is jump Keith Cochran Yes. in little This

able been some getting to is things mean. we're costs. point really that is of we've out doors to very I good of the CCAR to we've full, recent that One we're of coming to of the starting proactively some we're in able that announcements us really come made beat OEMs. have And get most we're that other what a of capabilities. having reason the that large people do the the if to do industry. brand know from recognition marketing And of have We're to not you to kind our been cut on now actually to They're cooler down

area marketing future. the So least for really That's is reduce able that an costs. foreseeable sustainable, to at we've been

and taking that R&D. back now redeploying So we're that into capital

last of business, we're made And the ONE of great R&D then that the the on the side getting in we've leverage years KULR X.X investment platform. from

pack, those to where the to to R&D because, get so much we're it's almost efficient And replication battery we're is what from work starting we get situations of more a see one there able dollars pack with done. into next battery previous

So that improves the efficiency.

question So just kind little of -- I hope that bit. answers a your

Unknown Analyst

Yes. up, cash No, stand? that's we then on the uses and that perfect. And just and . the you cash can over where just coming go

Shawn Canter

Yes. Keith. Thanks,

So optimize -- grow cost. in business, terms to the continue our we cash, you as of

to partnerships -- looks our So the current is what growing appropriate, internally. feel demand to between our various extent position terms the do cash -- And customer cash, visibility to pipeline we the that finance receivables, experiencing. to in we good meet of of like, we'll our in have a like business and we're external generated that continue our we'll initiatives, the continue growth to use to to continue the that and flow we're financing

Unknown Analyst

Congrats on the quarter.

Stuart Smith

from play questions I senior of Howard have to questions Taglich my Howard not Howard. we Halpern. available will analyst is to Unfortunately, equity He Next, with the best so is ask Brothers. today, his part do a

to recent this you provide opportunity Velos enhancement most with accelerate added into companies other an well UAV KULR of announcement you service other your helicopter as branch offering VX provide VIBE an the first the as to verticals. the question. will the Do with Here's out believe Velos rollout helicopter as to to

Terry Cochran

great one. Velos is I partner, say them. And with we working this want and to enjoy take first I'll a really off, just Guys,

the So thanks the appreciate Velos lot. a And also, We thanks them for to team. question.

answer answer to an So is your yes. question, unequivocal the

positive fact, KULR meeting just week, for VIBE OEM. display this In we very drone a had the to capabilities

quite yes, OEMs been diversity which the But space. into So we've there the of we're the while. getting from a placed in little and from for space, drone interest away drone helicopters a

our sensing technology. wireless using We're

data now. in ] balance, We use And define customers to to standard are track the KULR our Velos provide deployed phone. optimal the the by allowing over onboard the us sensor readings the sensor into uses aircraft for simply helicopters, calling to to [ and for as technology solution

to on that adopted technology. have that load can the also we and so We field use onto platforms the for run iOS to technology needing the folks out in Android our tablets are

Stuart Smith

long-term All what Nano And Ford are your the opportunities? right. talk about with Can progressing? relationship you how is

Michael Mo

think makes I -- technology that Forge Yes, their coating a with Nano batteries [indiscernible]. special

line those is they're with then packs screening make to on battery safe and use of Design performance So ONE and getting categorize our data cells. we batteries, the more customers. partnership their Solutions joint to And KULR partners them our help use their battery [indiscernible] to out

a opportunity great So is for this synergistic us.

there's earlier, battery that's to grant about And U.S., these program also into specialty think to their DOE perfect is the fit into cell mentioned new the I automated incorporate $X a screening As I that build line mega-factory our that billion. cells applications. participate in

So $X.X and once more opportunity for think and much have the next million grow a running. the years. of it about And they they couple factory that million up starts $X substantially can to with -- I

Stuart Smith

right. line of terms to facilities driving performing time All your is, in from are next your deployment? question how new design The

Terry Cochran

and Well, to we've added improve our the to facilities are well, performing very capabilities time market. further

reducing by the testing suppliers. can we prove to. control significant provides in facility. X outsourced new cell having as the full in pack as added ] out and XD with CNC tab battery lead additional own printers, cycler capabilities our our expedite of Arvid owned, need advantage [ tooling, family battery have well also We're and we equipment, and welders, a as [ We ] This testing times

this. in-house to us critical So we for for thought infrastructure that in invest was

Stuart Smith

on above, you talk the relative about I touched position operational of All your to status know in right. Michael's this but Shawn, driving capital question breakeven. let's

Shawn Canter

talked say, the clear Okay. it's I'm guess get first Well, evidenced working we've should we by and we've to trends is efforts, an optimize people can. sure our this is I I as we're quickly we've it's our -- operational And everybody, structure. point guess to to I earlier that the breakeven growth previously and as continued as noted cash very hard and that thing up obvious cost to put about,

growth. continue We to on work

I resource on the we to initiatives milestones, -- line We certain but year. optimization. can't think guarantee we'll think, a that continue what possible today of much will, in operational breakeven have we having of and next guess and have we Obviously, in And I partnerships revenue think pipeline, good second work potentially on to the we meet sight certain I we they're have in place. the to which based visibility, the we we customer that are various very see quarter

as there for And working as milestone hard get so team. that can. very and KULR we would we're quickly be to the big a Obviously,

And goal. so we'll continue to work towards that

Stuart Smith

family? one headline All the a New question November prevent awareness from to [ Howard's tragedy offering Post of runway fire is such their is to of York a attempting right. And electric yesterday, as power company drive skewter to It order that brand battery of ], is, final New there. victims lithium-ion X City the used thermal York This in shield a by generations how XX. sparked was killed an pulled

is the of company brand drive runway shield question. awareness his How thermal to is offering? that attempting So their

Terry Cochran

products about to to safer Howard think, tragedy, sad and and products. capabilities KULR management mission know well are types aware these the to aware that's is prevent the And -- make yes, really save hear tragedies. as of I and core you're core here. we well we're battery off, lives for But the I KULR think that of KULR's of first thermal I SafeCASE our -- a as mission Well,

that's with work We somebody that a of to don't taking want We regulatory certainly discreetly agencies. seen be advantage tragedy. as

that do directly so our regulatory the we with folks that we advertising control when So do and environment. forth,

to So already. pretty not those more industry doing scenes. are a It's the think we're We little bit behind well awareness. drive that

already our customers have products. consuming variety a SafeCASE of We

awareness think the now. do improve to there And awareness so situation is agencies we're our what good we I bring them. to But have and brand products with trying regulatory the pretty of

Stuart Smith

right. Very All good.

of final call thank for would would Keith the Group. to like And was I Michael of that us and mentioned, Technology to the of question. you Cochran Canter on they like thank I Shawn joining course, today. KULR As Mo, all

call Thomas, I our now operator, will out. to the over close it turn you as to

Operator

your participation Thank thank you you today. for very and much, once again

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

KULR Technology (KULR) 14 Nov 232023 Q3 Earnings call transcript