KULR - Earnings call transcript Q2 2024 | KULR Technology Group, Inc.

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Stuart Smith

Welcome, everyone, to the KULR Technology Group Second Quarter 2024 Earnings Call. KULR Technology Group is traded on the New York Stock Exchange under the ticker symbol KULR. In just a moment, I will be joined by the CEO of the company, Michael Mo, as well as by the CFO of the company, Shawn Canter.

As usual, like the calls in the past, today's call will cover opening comments from both Michael Mo and Shawn Canter, and then it will be followed by a Q&A session where the company representatives will answer questions that were e-mailed in to the company for this call.

Now, before we get started on the call, we do need to cover the Safe Harbor statements. constitute buy to entity. any not of or does to offers securities call an sell offer solicitation This of any call that statements expectations, forward-looking contains the This current company's based forecasts risks involve on assumptions and uncertainties. and certain

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

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

otherwise. With turn the to call Mo. forecasts of customers information, existing this backlog whether opportunities is Michael result and call, no with I'll of products best In estimate Michael, new and assumes given on current over obligation or contracts, with of their are events yours. as new company management's the entirely on and the update to the performance, conversations included addition, current their future information their financial The about conversations services. call future a -- that,

Michael Mo

prototyping to revenue number million, service XX% XX, increased revenue [ achieved approximately the QX XX% XX% joining increased QX. XXX% Service $X.X paying some sequentially record of Thank and to $X.XX highlights XX% customer everyone million, to volume increased QX, significant This growth increased talent and today. and that capabilities investments like year-over-year XX. to to located to year-over-year our a one Thanks in Center service our with Texas. Total span over wins. to up Excellence financial revenue made of In XXXX, year-over-year to customer the customer Mo. by testing, you, us Engineering and driving entire XX. In KULR second in-house half under we are year-over-year comprehensive positioned revenue year-over-year These production, customer of go new investments product well I'd roof. in for design, enhance KULR. for operational is I all Michael Stuart. ] here. providing from believe product revenue revenue and the solutions of life within our are Webster, XXXX battery we of resume Battery cycle of critical goal growth the to

to testing engineering battery and space for NASA contracts, to Webster, Johnson X.X our defense, to have X During an battery space level engineering service is now customers. We It's mobility Texas analysis; new ecosystem of to growing Blue rapid approximately Space, testing; demands team provide production miles and surrounding XX,XXX services. design, industries location and and and majority battery aerospace, others. of our the ideal and shop many production functions: and Origin meet as This companies next battery this foot expanded of the cell designed perform to supporting is key space in testing our pack turnaround the vast and one-stop design battery electric we aerospace moved This facility. specifically into from quarter, Space square design [indiscernible], exploration. was like key such Axiom Center state-of-art and

battery are a thermal credibility in testing understanding Our in establishing key capabilities lithium-ion our batteries. mitigating factor runaway in and design

their include KULR triggers. this work formats already vehicles. Once have These KULR design at impact QX, various chemistries, safer of the electric testing are testing approximately cell of Texas architecture. and to pack capacity our we quarter $X end reaction of and These Japanese complete improvements on award-winning our leads secured different automaker better the million battery contract test, next-generation service ONE services that to various quarter. cell in as data FTRC high-margin This is accumulated for The directly cells for as level evident growing customers. extensive estimate a to thermal this us from well the high-energy runaway We and facility we informs services our tests. by the we data NASA's ongoing per as analysis top build-out set abuse for batteries

cutting-edge and solutions are complemented assembled experts, in area. advanced design team design critical battery analysis Our key deliver by to differentiator. this capabilities us modeling We seasoned a of and analysis allow a tools, computer

[ to the cell and have KULR protection system components Space, as ] Runaway heating radiation-tolerant us efficiently. allows as speed and quality. ejector onsite which production battery a KULR own system expert KULR's we ISC QX, for provide with ONE customers Space level, our proprietary all a Guardian continue [ for cell, assembly technologies by more ONE these competitive We're new our capabilities ONE products space machine, infrastructure big precision robust design KULR KULR thermal scale and analysis customers. quickly to management KULR into mitigation. developed these build also require incorporating advantage such our batteries. In Being ONE we and capabilities. and for addition expanded our battery process exploration In At for to customers us a is We runaway body trigger develop and Thermal teams shop to ONE fabrication we enhanced Air and our Shield our integrating and Guardian and one-stop production ]

revenue. know, our product an you is early potential As indication service revenue of

motivation bring and the near driver why capabilities for engineering our in preparing is one-stop customers by go Space the This according to revenue industry. space record in billion space our by market opportunity. space these to trillion service production driven achieved service into market service in is to battery and QX, shop KULR these estimated be we and have The to $X.X for of As to capabilities service investing strategically McKinsey. going XXXX. for grow This big to build ONE we're the our revenue to economy customers. A our future. been carefully we XXXX, prototype commoditization invest $X.XX production to is by is The is

platform important ONE an We Space role market. KULR expect to play our in this

key as growth include economy the as such already the Many and private are of core growing tremendous the and government in the players and Some Northern customers. SpaceX this and continued these driving and space Grumman; Vast. prime Origin; rapidly of Boeing like such Axiom new of upcoming in companies Voyager contractors traditional growth companies Space, Blue

applications. QX, JSC-XXXXX design technology being During battery safety-first in certification spaceflight KULR of Space by investments missions. and we other battery partners goal significant ONE Voyager upcoming scalable with readiness made which the our for is for of level is already NASA architecture the developed Space KULR achieving human a the utilized architecture, ONE Space The

in to the the QX ONE SmallSat efforts Space requirements meet of mission commercialization specific the architecture and also industries. Our of focused CubeSat KULR on

off-the-shelf available Space space XXX The the developments balance is in safety first deliver market demand watt-hour meet off-the-shelf XXXX. be This engineered of cost commercial that an and quality, rigorous is will performance, of commitment These advanced the at battery exploration positioning ONE fall industry to the solution the a version version KULR to of of optimal and advantage, [indiscernible]. underscore provide beyond. a solutions to

VIBE. KULR to Next

In applications. apply addition VIBE see and traditional delivery to opportunity to good fan drone KULR server helicopter computer markets, industrial fans the and we to

computing cooling demands does with consumption, energy the air and power exponentially both liquid for more thermal so systems. AI As and need

of We're on used centers speed AI energy, enough For fans performance air an servers. is and Stanley, our rack vibration, of by working highest to than GPUs. NVIDIA NVIDIA's Open rack vibration providing drive to critical air cool servers. by existing AI We're used to at high-end system GBXXX cooling, to fans current fans generate of AI HXXX opportunity. therefore, more the Fan reliability. more speed. is the Project make More on There performance XXx working $XX,XXX, airflow, cost use XX% rotor Facebook's liquid air to removing to cooling airflow for limited and for less be and cool KULR more with an less Compute VIBE that data costs lies higher because its the cooling run latest higher XXx Blackwell, about cooling performance the system Morgan fan cooling chips. maturity the also noise than can can By the the of chips. According speed

customers new and results performance half report XXXX. the to of expect We in second

will Next, financial highlights. over Shawn? go Shawn Canter

Shawn Canter

Mike. Thanks,

up revenue of up refer over details. year revenue quarter online. XX-Q we growing revenue is up from second KULR customers up XXX%; to Form Our to slide XX%. are XXX%; KPIs; themes full customer over X I'd shows and like almost XXXX annual two, key business. trends per relevant paying that XXXX: to highlight revenue sheet. This growth now is growing for spending up one, balance XXXX a available focused it on: cash; less KULR XXX%; total and revenue three, XXX%; more product service stronger the for Please

of XXXX. the revenue XX-month trailing the first is Here from chart, quarter starting

line. growth When see can XXXX since get you first doesn't through As happen of you quarter trend. a the up XXXX. of straight the perspective, XX second almost in XXX% growth the can a quarter Trailing see, months revenue you always is

from Going in. now, let's broader zoom a perspective,

in quarter cash plus using up is end liabilities KULR's reduction is cash. XX%. combined June up first sheet: X is of the XXXX, Comparing activities June from operating used to you, used to receivable of X%. stronger. Back the XX% XXXX XXXX, down Stuart. activities revenue a comparing is months down the of cash the Cash XX%. is XXXX, versus quarter getting balance XXXX sheet use Second accounts down ending of Cooler less balance cash XX%. KULR's investing end for XX%; and

Stuart Smith

for right. All that. you Thank

question-and-answer of on Now the let's move to call. portion the

first of Here submitted question one shareholders. is the by your

F.XXXX for H.R. Lithium-Ion detailed who this bills give Tesla Torres the cathode candidate So, to of the Also, and like the bill Consumer Setting seems wants sponsor, perfectly Standards whether top to be you it. Ritchie right in both leading Can us you Act, information it Cybertruck? see for KULR and is the it bill. put Batteries KULR a regarding for any to this with Representative and question as there. and XXXX Regarding building answer KULR I'll candidate? a new is fits

Michael Mo

that. take Yes, I'll this Mo. is Stuart, Michael right. All

stakeholders We have engaged in with this area. various

our national Our ] expertise [ on thermal teams, officials helped department and organizations, local runaway mitigation. offering

teams, design been point. the are response built-in battery with provide has our regardless of [ safe ] ensuring packs batteries, ] thermal safe designs turnkey for multifaceted. challenge transportation solution their assist of to obligation runaway starting and storing their from [ for protection, packs battery We -- case so So other safely

crucial it's application. as hope know, in responders, details as well who been as aviation, customers have development automotive, the this for and which first yet, fully defense released also, for We can't and [indiscernible] legislation cathode new not continues safety. as comment aerospace the prioritize specific Cybertruck So we sectors far on Tesla

Stuart Smith

want There that new to on just just or you cathode? said was you you I and little Okay. of a can part. bit last comment cannot, interference, clarify the

Michael Mo

Cannot.

Stuart Smith

Understood.

Great. Okay.

we to the next about KULR last year, haven't the on And much VIBE. move over Let's heard question.

Why and it here? KULR is this clients? savings present for like can a cost demonstrate KULR software-based to way found Thinking hasn't low-cost to more money would success you And in seem large. fuel I a do actual if to or terms couple companies fan potential to business. a As running a to revenue. energy save cases generate of to to save a I'm of can save center a The save seem going run very here to as $XX, use examples, helicopter, spend fly probably $X that data solution,

Michael Mo

take well. that I'll So, as

So industrial server we to apply to and opportunity good fans KULR see VIBE applications.

Facebook's fan also on OCP, the cooling now more and We're fans chips. to working vibration, Open with on more airflow, run to We're higher at are AI servers. less energy, used speed which removing the high-performance Project servers. used cool is by can that Compute providing their less working [indiscernible] therefore, So fans by higher speed

the testing of So in we second the XXXX. -- sorry, I'm half report results on customers hope new also XXXX to

Stuart Smith

Michael. you All Thank great. Okay, that, right. for

like company, small expanding thus, costly seems your manufacturing its way grow of to Licensing product does to fit going the like a How revenue. a is technology to KULR this business. seems way OEMs best its capacity into strategy your So and forward? grow

Michael Mo

That's is and Space sort of capabilities one-stop large for Texas Guardian important So agile is and our why the very KULR competitive technical customers, in for important us. Especially customer for advantage ONE a being facility. KULR fast investing too. our we're being a all shop ONE big and in

to frequently In own government a KULR [ which KULR battery partner their collaborate -- and these prototype, current departments have companies expertise also So design their to rapid next-generation design to and them cases, and becomes [ for which KULR's groups new for help market. with complement them their that paves the ] additional these accelerate that offerings explore time ] trusted way introduce designs, their testing design KULR capabilities. and to also

So us. it's very for important

Stuart Smith

right. All

question, its not, when? partnership why happened? automotive Next expect If can and If announce so, soon? we to KULR what then

Michael Mo

and time we've low us EV I area ONE for EV Yes. batteries stated is the for margin. think its KULR because before, -- lead focus of market a also long not

units case testing the battery with we automotive our technology. serving However, many safe are and of

are these high with us continue the serve market services. with to for We'll and these good margins and automotive business growth. So products good

Stuart Smith

right. All

plans stock decline then. What price the reverse question Next are reached per that over share? value years to ago started stock X the $X.XX the in when

Shawn Canter

revenue. that it, history. I'll ago. on for and $XX XXXX, bit first November XXXX, of was with $X.XX, Exchange KULR answer calendar that take the years start And of York little in one, of about June Since KULR price million $X was in million It's maybe revenue; a about Stock year then, It's an $X.X high New in about traded stock XXXX, KULR XXXX, XXXX. Stuart. generated Shawn. over revenue; the American interesting million to I'll little in X question. of closing and a In

in. Look, best drones. since for various KULR electric about military, space, in stock more down stocks The vehicles, in don't operational ever reflect performance like predict markets similar been to When is only price the annual XXXX, a that best batteries when Management view, the I go it the trend. grown pretend planes, to that's XXXX. point and for grown revenue. in. position customer I ever KULR segments in energy-intense XXXX does, it to a any does up satisfaction won't from an So electric been growth I From cooler XXX% though, I able reflect and know. across it's electric have the is that industrial, demands KULR have the The of serves of number be future. serves think only position reasons. would operational guess, it's thinks will that?

Stuart Smith

that, All good. right. Very Thank you for Shawn.

equity question, company ongoing borrowing So, bank fund next will KULR management use or via of funding of the until end cash from year? operations to the the the

Shawn Canter

for are requirements for evaluate take needs As one, stronger. trend in shareholders. through KULR's balance KULR highlighted balance is good And what getting I opportunities KULR's on of That the is don't those good Why lens I prepared balances stronger my sheet Mike? ultimately, serves a risk. We keeps operations. funding this things operating and remarks, of It and sheet. this

Stuart Smith

right. All

the So so why the its they speak to standard? not great, outreach If company products here's the the to industry are next vehicle question. manufacturers? are Can

Michael Mo

Being an it's a Stuart. time, long Yes, and takes hard. standard industry

case our We our and de will are automotive facto testing these and become sell products standards engagements battery serving automotive over allow technology, time. X KULR to we services which with more to customers. And Tier customers safe hope

Stuart Smith

to batteries impact expect does solid-state Next the question, future of production KULR the mass how business?

Michael Mo

Yes.

batteries testing of for and chemistries all sizes are We customers.

to the expect to them our also battery solid-state ONE more come we batteries KULR So, into platform. as and the design same do market,

growth. to impact a it So should our positive be future

Stuart Smith

Okay.

of about? listed the please Additionally, any Understanding not KULR might can in you new expand interest any NDAs, we investors. that customers. agreements, names customer engagements know share might question, QX constraints non-disclosure already that on earnings XX customer Next report, the

Michael Mo

Yes.

on quarter. product shared as now are our So, them base, OEMs is their to this up with Many largest XX% remarks, we in prepared of and the which continue our customer them of next-generation the some we world, working grow in platforms. we're year-over-year

] keep these space to our ] storage do across energy applications. [ and So product applications, best that developments And [ it's speed we up their government their important are applications, also then development. confidentiality

very So exciting it's right a now. time

Stuart Smith

Okay. Thank for you that.

Next does of KULR? the Europe East question, and the Middle impact in the war how revenue

Shawn Canter

I'll take this one, Mike.

our accordingly. seen continue We'll negative to and So or impacts any supply monitor on far, I'm certainly to of. we what's going chain aware pipeline haven't that adapt

batteries regarding Our drone vibration both implicated what's manufacturers work world, may by the and in of on with control course. be going

safer be would drones batteries become and seem need and systems commonplace, the As control for artificial high-power to intelligence-based growing. mobile vibration more

might April this Ukraine. in it you Stuart, release, fact, In remember, the was press a think back in about that referenced was I KULR

Stuart Smith

And for stations station pointing current call, here anything then. on and question projects? earnings details any you in had listed comes is that out, QX Space Can or Yes. space that KULR thanks product. the provide next KULR you a private remember, the can relation to Shawn. slide there I ONE or In do future the space that share

Michael Mo

Yes, Stuart.

We customer private designing our technology. space battery with stations have

fact, trying then different this. private matter their are do to and of out a now I space that do think stations governments to companies to As own subcontract

applications to and very, So the in space it's This which market ecosystem we ecosystem -- more new is see definitely actually space growing very trillion. the to a is many Space, KULR $X.X economy quickly. ONE be forecast is economy use

see huge in So opportunity we this.

Stuart Smith

All right.

If prevent use? products are fires? But products the that such KULR that website, so, can help this. question website I with can -- storage as say, reviewing have That's operating are company's in will used batteries preface can can after to that, transportation batteries. from car the guys forgive of I see, can to You but on naivete They after the but and they that cars my in be this and wanted used the see, on here be shareholder. in reviewing their

Michael Mo

this for transportation. I the of application the case storage think production, used to are and question shareholder the safe batteries, doing battery about is the Yes, battery. the from life recycling store cycle storage, shipping this they and doing

We and expanding fire HAZMAT are application the with country. departments safe professionals around case the

So the these multiple technology and you'll of more adoptions more across of applications. battery see

Stuart Smith

more have questions X about see, here. Let's we

So here's the second to question. last

tiniest While you contract has has of under you EV the years. disclose last and of news companies led This who investors NDA, about lot released telling news KULR there of with? values understand have cannot with. us for a investors the number Can that by working speculation EV to come the most in the been in general couple retail working us of automakers you are among about give excitement to is taste company

Michael Mo

So of let some engagements. these customer me recap

I so think #X OEMs, be talked the the automotive about U.S., automaker in and maker world, the top in electric will talked so #X U.S. Japanese we we OEMs the talked the about SUV automotive about German that in and

So, our shareholders recap give about who with. idea kind working of that some should we're

Stuart Smith

Canter So has do It our mentioned. question. here Shawn with is final something to

the specific sales lead are mentioned be XXXX to can question. YouTube where engagements Shawn or future expected from examples foreshadowing business future led any Here's seen Canter November QX opportunities. service the you interview to Can have service as to share in that business sales? product product

Shawn Canter

I on think this name one has my already it.

XXXX first engagements are batteries of and ONE Space the sample results to part our design throughout and through service customers. We the to These with are ship of XXXX. KULR customers starting cells

to usually see about XXXX since in to XX production. to expect second in programs months We get XX and of time up of to to take of Thanks. the more ramp these XXXX that half lead

Stuart Smith

shareholders expressing for close That was Canter, the sending call. interested and questions. in I of final and know the our operator question. I out to my today, turn excellent. behalf to guests I back and now Shawn call speak for the Well, Mo on the gratitude parties their our will Michael over both

Operator

This webcast. call conclude you. Thank conference today's and does

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

KULR Technology (KULR) 12 Aug 242024 Q2 Earnings call transcript