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, 2021 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 16-1387013 ( ...

Financial Data and Key Metrics Changes - For Q1 2021, consolidated revenues totaled $26 million, a slight increase from $25.8 million in Q1 2020, driven by strong battery sales to medical and government defense customers, offset by declines in oil and gas and communication systems sales [11][12] - Gross profit was $7 million, down from $7.3 million in the previous year, with a gross margin of 26.9% compared to 28.4% [15] - Operating income decreased to $1 million from $1.5 million year-over-year, resulting in an operating margin of 3.7% versus 5.7% [19] - Net income was $0.7 million or $0.04 per share, compared to $1.1 million or $0.07 per share in Q1 2020 [23] Business Line Data and Key Metrics Changes - Battery & Energy Products segment revenues were $22.1 million, a 6.5% increase year-over-year, with medical battery sales up 32.2% and government defense sales up 30.3%, while oil and gas market sales declined by 30% [12][28] - Communication Systems segment revenues were $3.9 million, a decrease of 23.6% from the previous year, primarily due to the completion of prior year orders for the US Army [14] Market Data and Key Metrics Changes - Government defense sales increased by 5.6%, while commercial sales declined by 3.1% year-over-year [15] - The sales split between commercial and government defense was 65:35, reflecting higher US government defense sales [13] Company Strategy and Development Direction - The company is focused on increasing revenue growth through diversification, market expansion, new product development, and strategic capital expenditures [27][25] - The Battery & Energy Products business aims to penetrate global commercial and international government defense markets to mitigate reliance on the US government defense market [28] - New product development is a priority, with 22% of revenues coming from products introduced in the last three years [33] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of COVID-19 reduced Q1 2021 sales by approximately $2 million, but the increase in medical battery sales for critical applications has been significant [11][12] - The company remains optimistic about future growth opportunities, particularly in the medical and defense sectors, as they continue to engage with customers and pursue new contracts [44][58] Other Important Information - The company strengthened its balance sheet with cash increasing by 28% to $13.7 million and debt decreasing by 27% to $1.1 million [24] - The company is well-positioned to fund organic growth initiatives and pursue accretive M&A opportunities [25] Q&A Session Summary Question: Can you help organize the portfolio of organic initiatives by maturity timeframe? - Management indicated that several products, including Smart U1 batteries and new ER thionyl chloride cells, are already in production, with initial revenues expected to ramp up over the next 6 to 12 months [51][52] Question: How should we think about the progression of margins as development programs mature? - Management suggested that it typically takes 6 to 9 months to reach full production rates and improve margins on new products, with current gross margins impacted by product mix [54][55] Question: How exposed is the company to the return of elective surgeries? - Management confirmed that approximately half of the 32% increase in medical sales is related to elective surgeries, indicating a solid recovery in that area [61] Question: What indicators are being monitored for recovery in the oil and gas market? - Management highlighted the importance of rig counts and WTI prices as key indicators, noting a steady increase in both [63][64] Question: What is the status of the IDIQ contracts and their potential revenue opportunities? - Management is optimistic about the testing timelines for IDIQ contracts, expecting to complete testing for the next-gen products by late summer and fall [95]

Part I: Financial Information [Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(unaudited)) Q1 2021 revenues slightly increased to $26.0 million, net income decreased, and operating cash flow improved to $3.9 million [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to $136.4 million, liabilities fell, and shareholders' equity increased to $117.9 million Consolidated Balance Sheet Highlights (In Thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $63,520 | $64,496 | | **Total Assets** | **$136,390** | **$137,701** | | **Total Current Liabilities** | $16,635 | $18,706 | | **Total Liabilities** | **$18,529** | **$20,778** | | **Total Shareholders' Equity** | **$117,861** | **$116,923** | [Consolidated Statements of Income and Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q1 2021 revenues were flat at $26.0 million, while gross profit and operating income declined, leading to lower net income Q1 2021 vs. Q1 2020 Income Statement (In Thousands, except per share data) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | **Revenues** | $25,973 | $25,814 | | **Gross Profit** | $6,978 | $7,334 | | **Operating Income** | $952 | $1,485 | | **Net Income Attributable to Ultralife** | $671 | $1,059 | | **Diluted EPS** | $0.04 | $0.07 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved to $3.9 million in Q1 2021, resulting in a $3.0 million increase in cash balance Q1 2021 vs. Q1 2020 Cash Flow Summary (In Thousands) | Activity | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $3,903 | $(365) | | **Net cash used in investing activities** | $(489) | $(445) | | **Net cash used in financing activities** | $(420) | $(322) | | **Increase (Decrease) in Cash** | $3,009 | $(1,296) | | **Cash, End of period** | $13,662 | $6,109 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail debt compliance, effective tax rate changes, and segment performance, with Battery & Energy Products growing - The company is in full compliance with its debt covenants as of March 31, 2021, which include a consolidated fixed charge coverage ratio and a senior leverage ratio[26](index=26&type=chunk) - The effective tax rate for Q1 2021 was **24.2%**, compared to **22.9%** for Q1 2020, with the change primarily due to the geographic mix of earnings. The company has significant domestic NOL carryforwards of **$47.8 million**[45](index=45&type=chunk)[46](index=46&type=chunk) Segment Revenue (In Thousands) | Segment | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Battery & Energy Products | $22,111 | $20,761 | | Communications Systems | $3,862 | $5,053 | | **Total** | **$25,973** | **$25,814** | Revenue by Source (In Thousands) | Source | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Commercial | $14,345 (55%) | $14,802 (57%) | | Government/Defense | $11,628 (45%) | $11,012 (43%) | [Management's Discussion and Analysis (MD&A)](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses slight revenue growth, gross margin decline, lower operating income, COVID-19 impact, and liquidity - The COVID-19 pandemic had an estimated net negative impact in Q1 2021, reducing sales by approximately **$2.0 million**, operating income by **$0.9 million**, and diluted EPS by **$0.04**[80](index=80&type=chunk) - Battery & Energy Products revenues grew **6.5%**, driven by a **32.2%** increase in medical sales and a **30.3%** increase in government/defense sales, but offset by a **30.0%** decrease in oil & gas market sales[90](index=90&type=chunk) - Communications Systems revenues decreased **23.6%**, primarily due to the completion of large delivery orders to the U.S. Army in 2020 that were not repeated in Q1 2021[91](index=91&type=chunk) - The company filed a shelf registration statement on Form S-3, effective April 2, 2021, allowing it to offer and sell up to **$100 million** in securities for general corporate purposes, including potential acquisitions[114](index=114&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Q1 2021 revenues increased slightly, driven by Battery & Energy Products growth, while gross margin declined - Consolidated gross margin decreased by **150 basis points** to **26.9%**, primarily reflecting sales mix, costs to transition new products to higher volume, and higher freight costs[83](index=83&type=chunk)[92](index=92&type=chunk) - Operating expenses increased by **3.0%** to **$6.0 million**, driven by a **6.4%** increase in R&D and a **9.6%** increase in sales and marketing, reflecting investments in new product development and market launches[84](index=84&type=chunk)[95](index=95&type=chunk) [Adjusted EBITDA and Adjusted EPS (Non-GAAP)](index=23&type=section&id=Adjusted%20EBITDA%20and%20Adjusted%20EPS) Non-GAAP Adjusted EBITDA decreased to $2.0 million and Adjusted EPS fell to $0.05 per diluted share in Q1 2021 Adjusted EBITDA Reconciliation (In Thousands) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net income attributable to Ultralife | $671 | $1,059 | | Add: Interest, Taxes, D&A, Stock Comp. | $1,341 | $1,463 | | **Adjusted EBITDA** | **$2,012** | **$2,522** | Adjusted EPS Reconciliation | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Diluted EPS (GAAP) | $0.04 | $0.07 | | Deferred tax provision per share | $0.01 | $0.01 | | **Adjusted Diluted EPS (Non-GAAP)** | **$0.05** | **$0.08** | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Cash increased by $3.0 million to $13.7 million due to strong operating cash flow and a litigation settlement - Cash increased by **$3.0 million** during the quarter, primarily due to **$3.9 million** generated from operations, which included net proceeds of **$1,593 thousand** from a class action lawsuit[109](index=109&type=chunk)[110](index=110&type=chunk) - As of March 31, 2021, the company had no amounts outstanding on its **$30 million** Revolving Credit Facility and was in full compliance with all debt covenants[115](index=115&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[119](index=119&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[120](index=120&type=chunk) Part II: Other Information [Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data - The report includes CEO and CFO certifications (Exhibits 31.1, 31.2, and 32) and financial statements formatted in Inline XBRL (Exhibit 101)[122](index=122&type=chunk) [Signatures](index=28&type=section&id=Signatures) The Form 10-Q was signed by the CEO and CFO on April 29, 2021 - The Form 10-Q was signed and authorized on April 29, 2021[127](index=127&type=chunk)

Ultralife Corporation (NASDAQ:ULBI) Q4 2020 Earnings Conference Call February 4, 2021 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 Gary Siperstein – Eliot Rose Wealth Management Operator Good day, and welcome to the Ultralife Corporation Fourth Quarter 2020 Earnings Release Conference Call. At this time, for opening remarks and introductions, I’d like to turn the call ...

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, 2020 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) Q3 2020 Results Earnings Conference Call October 29, 2020 8:30 AM ET Company Participants Jody Burfening - Lippert/Heilshorn & Associates, Inc. Michael Popielec - CEO and President Philip Fain - CFO, Treasurer, and Corporate Secretary Conference Call Participants Gary Siperstein - Eliot Rose Wealth Management Operator Good day and welcome to the Ultralife Corporation Third Quarter 2020 Earnings Release Conference Call. Today’s conference is being recorded. At this time, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from ____________ to ____________ 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 September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ULTRALIFE CORPORATION 2000 Technology Parkway Newark, New York 14513 (Address of principal executive offices) (Zip Code) (I.R ...

Ultralife Corporation (NASDAQ:ULBI) Q2 2020 Earnings Conference Call July 30, 2020 8:30 AM ET Company Participants Jody Burfening - Lippert/Heilshorn & Associates, Inc. Michael D. Popielec - CEO and President Philip A. Fain - CFO, Treasurer, and Corporate Secretary Conference Call Participants Gary Siperstein - Eliot Rose Asset Management Operator Good day and welcome to the Ultralife Corporation Second Quarter 2020 Earnings Release Conference Call. At this time, for opening remarks and introductions, I'd ...

Ultralife Corporation Investor Presentation Michael D. Popielec PRESIDENT & CEO Philip A. Fain CFO & TREASURER Updated July 30, 2020 1 IMPORTANT REMINDER – FORWARD LOOKING STATEMENTS This presentation may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to ...

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, 2020 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 ot ...