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:0-20852 2000 Technology Parkway Newark, New York 14513 (Address of principal executive offices) (Zip Code) ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements and management's analysis of the company's financial condition and results of operations [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Ultralife Corporation's Q1 2023 unaudited financials report $171.2 million in assets, $31.9 million revenue, a net loss, and negative operating cash flow due to inventory increase [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Details Ultralife Corporation's financial position, showing assets, liabilities, and equity as of March 31, 2023, and December 31, 2022 Consolidated Balance Sheet Highlights (In Thousands) | Account | March 31, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$171,154** | **$168,430** | **+$2,724** | | Cash | $5,605 | $5,713 | -$108 | | Inventories, net | $47,311 | $41,192 | +$6,119 | | **Total Liabilities** | **$54,750** | **$52,027** | **+$2,723** | | Long-term debt | $21,126 | $19,310 | +$1,816 | | **Total Shareholders' Equity** | **$116,404** | **$116,403** | **+$1** | [Consolidated Statements of Loss and Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Loss%20and%20Comprehensive%20Income%20%28Loss%29) Presents Ultralife Corporation's financial performance for the three-month periods ended March 31, 2023 and 2022 Q1 2023 vs Q1 2022 Performance (In Thousands, except per share amounts) | Metric | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Revenues | $31,916 | $30,373 | +5.1% | | Gross Profit | $7,436 | $6,958 | +6.9% | | Operating Income (Loss) | $26 | ($295) | +$321 | | Net Loss Attributable to Ultralife | ($346) | ($168) | -$178 | | Net Loss Per Share (basic & diluted) | ($0.02) | ($0.01) | -$0.01 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes Ultralife Corporation's cash inflows and outflows from operating, investing, and financing activities for the quarter Cash Flow Summary for Three-Month Periods (In Thousands) | Activity | March 31, 2023 | March 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,365) | ($3,222) | | Net cash used in investing activities | ($497) | ($371) | | Net cash provided by financing activities | $1,800 | $1,223 | | **Decrease in Cash** | **($108)** | **($2,363)** | - The primary reason for negative operating cash flow in Q1 2023 was a significant increase in inventories of **$6.0 million**[14](index=14&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Offers detailed explanations and supplementary information supporting the consolidated financial statements - As of March 31, 2023, the company had **$7.7 million** outstanding on its Term Loan Facility and **$15.6 million** on its Revolving Credit Facility, and was in full compliance with all debt covenants[25](index=25&type=chunk)[28](index=28&type=chunk) - The effective tax rate for Q1 2023 was **28.4%**, a significant decrease from **60.9%** in Q1 2022, primarily due to the geographic mix of operating results[46](index=46&type=chunk) Segment Revenue Breakdown (Q1 2023 vs Q1 2022, In Thousands) | Segment | Q1 2023 Revenue | Q1 2022 Revenue | Change | | :--- | :--- | :--- | :--- | | Battery & Energy Products | $28,470 | $29,150 | -2.3% | | Communications Systems | $3,446 | $1,223 | +181.8% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 revenue growth driven by Communications Systems, operational impacts from a cybersecurity attack, improved gross margin, and strategic focus on backlog fulfillment and debt reduction [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Analyzes key drivers of revenue, gross profit, and operating expenses, highlighting segment performance and backlog - A cybersecurity ransomware attack in Q1 2023 significantly impacted the company's ability to process orders and ship products, with no ransom paid and a **$100 thousand** insurance deductible recorded[83](index=83&type=chunk)[90](index=90&type=chunk) - Battery & Energy Products revenues decreased by **2.3%** due to the cybersecurity attack's impact on medical and government sales, partially offset by a **21.3%** increase in oil & gas market sales[92](index=92&type=chunk) - Communications Systems sales grew **181.8%**, primarily due to shipments for a large vehicle-amplifier adaptor order from a global defense contractor[94](index=94&type=chunk) - Total backlog was **$108.1 million** at March 31, 2023, with **$96.1 million** scheduled to ship in the remainder of 2023, representing a **30.2%** increase over the comparable prior-year period[95](index=95&type=chunk) - Gross margin increased to **23.3%** from **22.9%** year-over-year, reflecting higher volume in Communications Systems, tempered by inefficiencies from the cyber attack and higher material costs[96](index=96&type=chunk) [Adjusted EBITDA](index=22&type=section&id=Adjusted%20EBITDA) Reconciles net loss to Adjusted EBITDA, a non-GAAP measure used to assess operational performance - Adjusted EBITDA is a non-GAAP measure used by management to evaluate operating performance by excluding items like interest, taxes, depreciation, amortization, and stock-based compensation[104](index=104&type=chunk) Adjusted EBITDA Reconciliation (In Thousands) | Line Item | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net loss attributable to Ultralife | $(346) | $(168) | | Interest expense | 424 | 134 | | Income tax benefit | (133) | (251) | | Depreciation expense | 762 | 816 | | Amortization of intangible assets | 209 | 328 | | Stock-based compensation expense | 139 | 189 | | Cyber insurance deductible | 100 | - | | **Adjusted EBITDA** | **$1,155** | **$1,103** | [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's cash position, sources and uses of funds, and overall financial flexibility - Cash decreased by **$108 thousand** during Q1 2023 to **$5.6 million**, primarily due to the cybersecurity attack and strategic inventory procurement[109](index=109&type=chunk) - Cash used in operations was **$1.4 million**, driven by a **$6.0 million** increase in inventory to manage supply chain challenges and prepare for customer orders[110](index=110&type=chunk) - Financing activities provided **$1.8 million** in cash, reflecting draws on the credit facility to manage the sales impact of the cyber attack and fund inventory purchases, offset by **$500 thousand** in term loan payments[112](index=112&type=chunk) - The company has an effective S-3 shelf registration statement allowing it to offer and sell up to **$100 million** in securities for general corporate purposes, including potential acquisitions[115](index=115&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) The Principal Executive and Financial Officers concluded that disclosure controls were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[120](index=120&type=chunk) - No changes occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[121](index=121&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section includes supplementary information, primarily detailing exhibits filed with the report [Item 6. Exhibits](index=26&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including required certifications and Inline XBRL financial data - The report includes required CEO and CFO certifications under Rule 13a-14(a) / 15d-14(a) and Section 1350[123](index=123&type=chunk) - Financial statements and notes are provided in iXBRL (Inline eXtensible Business Reporting Language) format as Exhibit 101[123](index=123&type=chunk) [Signatures](index=27&type=section&id=Signatures) Confirms the official signing and authorization of the Form 10-Q report by the company's Principal Executive and Financial Officers - The report was signed and authorized on May 4, 2023, by the company's Principal Executive Officer and Principal Financial Officer[127](index=127&type=chunk)

Financial Data and Key Metrics - Consolidated revenues for Q1 2023 totaled $31.9 million, a 5.1% increase compared to $30.4 million in Q1 2022 [8] - Government defense sales increased by 24.7%, while commercial sales decreased by 1.7% compared to the same period last year [8] - Consolidated gross profit for Q1 2023 was $7.4 million, up 6.9% from the previous year, with a gross margin of 23.3% compared to 22.9% in Q1 2022 [10] - Operating profit was breakeven, inclusive of a $0.1 million one-time insurance deductible, compared to an operating loss of $0.3 million in Q1 2022 [11] - Net loss for Q1 2023 was $0.3 million or $0.02 per share, compared to a net loss of $0.2 million or $0.01 per share in Q1 2022 [12] - Adjusted EBITDA for Q1 2023 was $1.2 million or 3.6% of sales, compared to $1.1 million or 3.6% in Q1 2022 [12] Business Segment Performance - Battery & Energy Products segment revenues were $28.5 million, a 2.3% decrease compared to $29.2 million in Q1 2022 [8] - Medical and government defense businesses within this segment declined by 8.5% and 4.7%, respectively, partially offset by a 21.3% increase in oil and gas market sales [8] - Gross margin for this segment was 22.9%, a sequential increase of 130 basis points from Q4 2022 [10] - Communications Systems segment revenues were $3.4 million, a 181.8% increase compared to $1.2 million in Q1 2022 [9] - Gross margin for this segment was 26.8%, up from 19.4% in Q1 2022 [11] Market and Backlog Data - Total backlog at the end of Q1 2023 was $108.1 million, with $96.1 million due to ship over the remaining 9 months of 2023, representing a 30.2% increase compared to $73.8 million in the same period last year [8] - Battery & Energy Products backlog was $87.9 million, virtually identical to the $88.6 million backlog at the end of Q4 2022 [9] - Communications Systems backlog was $20.2 million, down 9.8% from $22.4 million at the end of Q4 2022 [9] Strategic Direction and Industry Competition - The company is focused on executing its backlog and improving gross margins, with initiatives such as price realization activities, extending the sales and operations planning process, and improving new product launches [14][15] - On the Battery & Energy side, the company is developing products for medical wearables, IoT, and utility monitoring applications, with new products expected to launch in 2023 [16][17][18] - On the Communications Systems side, the company is working on advanced amplification and power products for military applications and is close to initial commercial orders for its EL8000 server case and power system [19] - The company is also exploring opportunities in electrification and 5G markets, leveraging its cell design expertise and power system capabilities [19] Management Commentary on Operating Environment and Outlook - The company faced operational inefficiencies in Q1 due to a cybersecurity attack, which delayed production and impacted the ability to take full advantage of the backlog [4][5] - Despite the challenges, the company saw improvement in gross margins and remains focused on returning to profitable growth [14][20] - Supply chain issues persist, particularly with specialty parts, but there are signs of improvement in component lead times and part availability [14] Other Important Information - The cybersecurity attack resulted in a $100,000 insurance deductible, which was recognized in operating expenses [7] - Inventory increased by $6.1 million or 14.9% over Q4 2022, with $5.1 million of the increase occurring at the Newark and Virginia Beach locations [12] - The company ended Q1 2023 with working capital of $52.5 million and a current ratio of 2.8 [13] Q&A Session Summary - No specific questions were asked during the Q&A session, and the call concluded with closing remarks from the CEO [20][21][22]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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: 0-20852 ULTRALIFE CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other ...

Ultralife Corporation (NASDAQ:ULBI) Q4 2022 Earnings Conference Call March 2, 2023 8:30 AM ET Company Participants Jody Burfening - IR Michael Manna - President and CEO Philip Fain - CFO Conference Call Participants Josh Sullivan - Benchmark Company John Deysher - Pinnacle Operator Good day, and thank you for standing by. Welcome to the Ultralife Corporation Fourth Quarter 2022 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be ...

Ultralife Corporation (NASDAQ:ULBI) Q3 2022 Earnings Conference Call October 27, 2022 8:30 AM ET Company Participants Jody Burfening - Investor Relations Michael Popielec - President and Chief Executive Officer Philip Fain - Chief Financial Officer Conference Call Participants Josh Sullivan - The Benchmark Company, LLC Operator Hello and welcome to Ultralife Corporation Third Quarter 2022 Earnings Release. My name is Pricilla and I will be your coordinator for today's event. Please note this call is being r ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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: 0-20852 ULTRALIFE CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation of 16-1387013 (I.R.S. Employer Identification No.) (315) 332-7100 (Registrant's telephone number, including area code:) 14 ...

Ultralife Corporation. (NASDAQ:ULBI) Q2 2022 Earnings Conference Call July 28, 2022 8:30 AM ET Company Participants Jody Burfening - Investor Relations Michael Popielec - President and Chief Executive Officer Philip Fain - Chief Financial Officer Conference Call Participants Operator Good day, and welcome to this Ultralife Corporation Second Quarter 2022 Earnings Release Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Miss. Jody Burfening. Please g ...

(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, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission file number: 0-20852 ULTRALIFE CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or ot ...

Ultralife Corporation (NASDAQ:ULBI) Q1 2022 Earnings Conference Call April 28, 2022 8:30 AM ET Company Participants Jody Burfening - Investor Relations Mike Popielec - President and Chief Executive Officer Phil Fain - Chief Financial Officer Conference Call Participants Josh Sullivan - The Benchmark Company Operator Good day, and welcome to this Ultralife Corporation First Quarter 2022 Earnings Release Conference Call. At this time, for opening remarks and introductions, I'd like to turn the call over to Ms ...