KULR Technology Group, Inc. (NYSE:KULR) Q4 2023 Earnings Call Transcript April 12, 2024 4:30 PM ET Company Participants Stuart Smith - Investor Relations Michael Mo - Chief Executive Officer Shawn Canter - Chief Financial Officer Conference Call Participants Theodore O’Neill - Litchfield Hills Research Michael Legg - Benchmark Company Stuart Smith Welcome everyone to the Full Year 2023 Earnings Call for KULR Technology Group, Inc. Incorporated. The company is traded on the New York Stock Exchange, the NYSE ...

Market Growth and Projections - Global energy storage systems market projected to grow from $210 billion in 2021 to $435 billion by 2030[13] - Global lithium-ion battery recycling industry expected to grow from $4.6 billion in 2021 to $22.8 billion by 2030[13] - Private space exploration market sector expected to reach $1,110.8 billion by 2030[13] - Global vibration motor market estimated at $6.5 billion in 2023, forecasted to reach $24.1 billion by 2032 with a CAGR of 14.1%[23] - KULR's battery recycling and management market projected to reach over $21 billion by 2025[26] - KULR's thermal management systems market estimated at $24 billion by 2025[13] - KULR's aircraft maintenance market size expected to grow from $82.7 billion in 2023 to $127.2 billion by 2032[13] Technological Advancements and Innovations - KULR VIBE technology demonstrated a 23% increase in battery life and a 45% lift increase in mission-critical drone tests[22] - KULR has an exclusive manufacturing and distribution agreement with NREL for the patented ISC device, which enables predictable Li-ion battery cell failures for safer research and development[70] - The CRUX Cathode, composed of carbon fiber velvet, generates powerful electron pulses for applications like microwaves, x-rays, and laser radiation, with customizable physical configurations[71] - KULR's PPR design offers lightweight and flexible solutions for high-energy battery cells, providing a competitive edge in thermal runaway mitigation[72] - KULR's FTI thermal interface material provides high bulk thermal conductivity and low contact pressure requirements, offering a competitive advantage over silicone-based solutions[73] - The ISC device triggers true internal shorts in battery cells, enabling accurate problem identification and competitive testing advantages over traditional methods[74] - Company developed Lithium-Ion Battery Thermal Runaway Shield (TRS) in partnership with NASA JSC, preventing thermal runaway propagation in Li-ion batteries[62] - Company installed a fully automated battery cell testing platform in January 2024, capable of handling 500K cells annually, meeting NASA and DOD specifications[63] Financial Performance and Capital Raising - Company reported record annual revenues of $9.8 million for 2023, a 145% increase compared to $4.0 million in 2022[42] - Company completed two public offerings in 2023: 8,214,285 shares at $0.35 per share (gross proceeds $2.875M) and 5,175,000 shares at $0.20 per share (gross proceeds $1.035M)[44] - Company repaid all remaining principal and interest on prepaid advance liability after December 31, 2023[43] - Company entered into two merchant cash advance agreements in 2024, receiving $504,900 and $502,200 with repayment obligations totaling $804,600 each[55][56] - Revenue for the year ended December 31, 2023 increased by 146% to $9,830,166 compared to $3,994,634 in 2022, driven by growth in both product sales and contract services[194] - Product sales revenue increased by 161% to $6,903,988 in 2023 from $2,643,325 in 2022, with the number of customers growing from 33 to 39[195] - Contract services revenue increased by 117% to $1,167,391 in 2023 from $1,351,309 in 2022, with the number of customers growing from 14 to 17[197] - Cash balance decreased to $1,194,764 as of December 31, 2023 from $10,333,563 as of December 31, 2022, with working capital deficit of $(2,994,753) compared to $6,055,477 in 2022[211] - The company entered into two merchant cash advance agreements in 2024, receiving a total of $1,007,100 in cash and agreeing to repay a total of $1,609,200[185][186] Operational and Infrastructure Developments - KULR Texas facility expanded from 4,800 ft² to 17,560 ft² to support customer base and engineering team growth[34] - KULR's IT infrastructure improved with a NIST score increase of over 140 points[36] - As of December 31, 2023, KULR had 57 full-time employees and 3 contractors, following a 15% workforce reduction to focus on profitability[76] - Company expanded direct sales and marketing teams, including hiring a VP of Sales with expertise in Aerospace and Defense sectors[59] - Company appointed a Vice President of Sales in January 2023, issuing 298,507 shares of restricted common stock with a grant date fair value of $400,000[182] - Company appointed a Chief Financial Officer in March 2023, issuing 1,500,000 shares of restricted stock with an aggregate grant date fair value of $1,380,000[183] Intellectual Property and Patents - Company holds six granted patents, an exclusive license to four third-party patents, and has ten pending patent applications as of December 31, 2023[61] - KULR holds six U.S. patents, six pending patent applications, and exclusive licenses for four patents, with expiration dates ranging from 2024 to 2035[78] - The company faces risks related to intellectual property protection, including potential unauthorized use by third parties, which could harm its competitive position and market share[100][101] - Pending patent and trademark applications may not be approved, and existing patents may not provide a competitive advantage, potentially leading to increased competition[101][102] - The company relies on trade secrets and proprietary manufacturing expertise, but these could be independently developed or breached, jeopardizing critical intellectual property[103][104] - Intellectual property infringement claims could result in significant legal costs, damages, and potential restrictions on product commercialization[105][106][107] Risks and Challenges - Company received NYSE noncompliance notice due to stockholders' equity of $1.2M as of September 30, 2023, and submitted a compliance plan with a deadline of June 20, 2025[45][46][47] - Substantial doubt about the company's ability to continue as a going concern for the next 12 months, potentially leading to liquidation and investor losses[125] - NYSE American notified the company of non-compliance with listing standards due to stockholders' equity below $6 million, with a compliance plan accepted until June 20, 2025[128] - NYSE American issued a warning regarding the company's stock trading price below $0.20 per share, requiring sustained price improvement or a reverse stock split by August 12, 2024[129] - The company's common stock will continue to trade on NYSE American with a ".BC" designation indicating non-compliance with listing standards[130] - Potential delisting from NYSE American could result in limited market liquidity, reduced analyst coverage, and difficulty in raising future capital[131] - The company may require additional capital to support business growth, with potential dilution of existing stockholders if equity is issued[138] - The company's operations are highly dependent on key executives, and the loss of several key individuals simultaneously could significantly impact revenue and profits[99] - Economic downturns could reduce demand for the company's products, lower prices, and negatively impact profitability[111][112] - Rising raw material and energy costs, driven by global macroeconomic factors, could pressure profit margins if the company cannot pass these costs to customers[113] - Manufacturing disruptions due to extreme weather, industrial accidents, or regulatory changes could materially affect the company's operations[114] - Cybersecurity risks, including data breaches and IT system vulnerabilities, could disrupt operations and harm the company's reputation and financial condition[116][117] - Compliance with evolving corporate governance and public disclosure regulations, such as Sarbanes-Oxley, may increase costs and divert management attention from revenue-generating activities[122][124] - The company faces risks from global conflicts, including potential supply chain disruptions, increased material costs, and adverse macroeconomic conditions[190][192] Corporate Governance and Shareholder Information - The company's Chairman and CEO holds 38.36% of the voting power, allowing significant influence over corporate decisions[145] - The company's Board of Directors can issue up to 20 million shares of preferred stock without shareholder approval, potentially diluting common stock voting power[146] - The company issued 730,000 shares of Non-convertible Series A Voting Preferred Stock to the Chairman and CEO, Michael Mo, with conditions tied to his continued leadership[179][180] - Shareholders approved resolutions allowing the issuance of over 20% of common stock and a potential reverse stock split with a ratio range between 1-for-2 and 1-for-80[189] - The company's common stock trades on the NYSE American LLC Exchange under the symbol "KULR"[164] - The company has approximately 116 record and street shareholders as of April 9, 2024[167] - The company has not paid any dividends and intends to reinvest all available funds for business growth and development[168] Financial Metrics and Expenses - Gross margin percentage decreased to 37% in 2023 from 59% in 2022, primarily due to increased costs from additional headcount, materials, and depreciation of automation equipment[201] - R&D expenses increased by 48% to $6,195,400 in 2023 from $4,196,313 in 2022, driven by planned increases in headcount and new facility expenses[204] - Selling, general and administrative expenses increased by 21% to $19,882,402 in 2023 from $16,453,776 in 2022, primarily due to labor costs and facility expansion[207] Cybersecurity and Risk Management - The company maintains a cyber risk management program integrated with its enterprise risk management system, based on the NIST Cybersecurity Framework[156]

SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 12, 2024 KULR TECHNOLOGY GROUP, INC. (Exact name of the registrant as specified in its charter) | Delaware | 001-40454 | 81-1004273 | | --- | --- | --- | | (State or other jurisdiction of | (Commission | (IRS Employer | | incorporation) | File Number) | Identification No.) | (Commission File Number) (IRS ...

Full-Year 2023 Revenue Up 146% Year-Over-Year SAN DIEGO, April 12, 2024 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (NYSE:KULR) (the "Company" or "KULR"), a global leader in sustainable energy management, today announced its financial results for full-year 2023. Full-Year 2023 Financial Results: Revenues: Revenue increased 146% to $9,830,166 in 2023 from $3,994,634 in 2022. The increase in revenue was mainly due to early success in the energy storage and battery transportation and recycling sectors. The ...

KULR Technology Group, Inc. (NYSE:KULR) Q3 2023 Earnings Conference Call November 14, 2023 4:30 PM ET Company Participants Stuart Smith - Investor Relations Michael Mo - Chief Executive Officer Keith Cochran - President and Chief Operating Officer Shawn Canter - Chief Financial Officer Conference Call Participants Theodore O'Neil - Litchfield Hills Research Jake Sekelsky - Alliance Global Partners Howard Halpern - Taglich Brothers Stuart Smith Welcome to the KULR Technology Group Third Quarter 2023 Earnings ...

FORM 10-Q (Mark One) Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40454 KULR TECHNOLOGY GROUP, INC. (Exact name of registrant as specified in its charter) (State or Other ...

KULR Technology Group, Inc. (NYSE:KULR) Q2 2023 Earnings Conference Call August 16, 2023 4:30 PM ET Company Participants Stuart Smith - Investor Relations Michael Mo - Chief Executive Officer Keith Cochran - President and Chief Operating Officer Shawn Canter - Chief Financial Officer Conference Call Participants Howard Halpern - Taglich Brothers Stuart Smith Welcome to the KULR Technology Group Second Quarter Earnings Conference Call. KULR Technology Group is a publicly traded company on the New York Stock ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40454 KULR TECHNOLOGY GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 81-1004273 ...

KULR Technology Group, Inc. (NYSE:KULR) Q1 2023 Earnings Conference Call May 15, 2023 4:30 PM ET Company Participants Stuart Smith - CEO, SmallCapVoice.com, Inc. Michael Mo - Co-Founder, Chairman, CEO & President Terry Cochran - President & COO Shawn Canter - CFO Conference Call Participants Jacob Sekelsky - Alliance Global Partners Howard Halpern - Taglich Brothers Theodore O'Neill - Litchfield Hills Research Stuart Smith Welcome, everybody, to KULR Technology Group First Quarter 2023 Earnings Call set for ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Address of Principal Executive Offices) Registrant's telephone number, including area code: 408-663-5247 (Former name, former address a ...