KULR Technology (US:KULR)2024-11-13 21:14Market Growth Projections - Global energy storage systems market projected to grow from $210B in 2021 to $435B by 2030[123] - Global lithium-ion battery recycling industry expected to grow from $4.6B in 2021 to $22.8B by 2030[123] - Private space exploration market sector expected to reach $1,110.8B by 2030[123] - Thermal management systems market size projected to grow to $24.8B by 2025[123] - Aircraft maintenance market size expected to reach $127.2B by 2032, up from $82.7B in 2023[123] - Global wind turbine monitoring systems market forecast to increase by $8.72B at a CAGR of 19.34% between 2023 and 2028[133] - Global vibration motor market forecasted to reach $24.1B by 2032[134] Company Financial Performance - Revenue for the three months ended September 30, 2024 increased by $144,771 or 5% compared to the same period in 2023, reaching $3,185,778[151] - Product sales revenue for the three months ended September 30, 2024 decreased by $1,131,269 or 60% compared to the same period in 2023[152] - Contract services revenue for the three months ended September 30, 2024 increased by $247,273 or 22% compared to the same period in 2023[154] - Gross profit for the three months ended September 30, 2024 increased by $919,998 or 69% compared to the same period in 2023, with gross profit margins rising from 44% to 71%[161] - R&D expenses for the three months ended September 30, 2024 decreased by $589,325 or 32% compared to the same period in 2023[164] - Selling, general and administrative expenses for the three months ended September 30, 2024 decreased by $1,877,405 or 41% compared to the same period in 2023[167] Company Financing and Liquidity - Company issued 12,822,356 shares of common stock for aggregate gross proceeds of $3,431,090 from July 3, 2024, through September 30, 2024[136] - Company issued 13,045,200 shares of common stock for aggregate gross proceeds of $4,319,699 from October 1, 2024, through November 12, 2024[136] - The company entered into a $2.35M licensing agreement for its KULR Xero Vibe technology, including a $1.1M minimum guaranteed license and royalty fee[142] - The company reported a working capital deficit of $1,157,755 as of September 30, 2024, compared to $2,994,753 as of December 2023[171] - Net cash used in operating activities for the nine months ended September 30, 2024 was $12,498,818, primarily due to a net loss of $12,903,168[172] - Net cash used in investing activities for the nine months ended September 30, 2024 was $211,005, a significant decrease from $993,699 in the same period in 2023[173] - Net cash provided by financing activities for the nine months ended September 30, 2024 was $12,427,476, primarily due to proceeds from SEPA Advance Notices ($9,104,950), ATM equity financing ($3,327,372), and notes payable ($2,563,900)[174] - Future cash requirements for current liabilities as of September 30, 2024 include $4,375,171 for accounts payable and accrued expenses, $1,245,529 for secured notes payable, and $507,959 for lease payments[175] - Future cash requirements for long-term liabilities as of September 30, 2024 include $930,361 for operating and finance leases and $266,604 for notes payable[176] - The company's primary source of liquidity has historically been cash generated from equity and debt offerings, with recurring net losses and declining working capital raising substantial doubt about its ability to meet future financial obligations[178] - The company entered into an At the Market Offering agreement on July 3, 2024, raising $4,319,699 from the sale of 13,045,200 shares of common stock between October 1, 2024, and November 12, 2024[179] - As of the filing date of the Quarterly Report, the company's outstanding notes payable have been reduced to $1,060,831[179] - The company has no additional commitments for future debt or equity financings, raising substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements[180] - The company's unaudited condensed consolidated financial statements do not include adjustments for recoverability of assets or classification of liabilities if the company cannot continue as a going concern[181] - There are no off-balance sheet arrangements that have a material effect on the company's financial condition, results of operations, or capital resources[182] Technology and Innovation - KULR VIBE technology demonstrated a 23% increase in battery life and a 45% lift increase in drone applications[132] Regulatory and Compliance - The company received a notice of noncompliance from NYSE due to stockholders' equity of $1,200,172 as of September 30, 2023, and has until June 20, 2025 to regain compliance[147][150]