KULR Technology (US:KULR)2021-08-25 03:15Financial Data and Key Metrics Changes - KULR's Q2 revenue increased by over 200% year-over-year, generating $0.6 million in sales compared to the same period last year [6][21] - The company reported a net loss of $3 million for the quarter, up from a net loss of $0.4 million in the same period last year [24] - Cash balances at the end of June were $12.2 million, compared to $8.9 million at the end of December 2020, indicating a strong financial position [25] Business Line Data and Key Metrics Changes - The increase in revenue was primarily due to higher sales of KULR products rather than services [21] - Selling, general, and administrative expenses rose to $2.8 million from $0.4 million year-over-year, reflecting a more than 500% increase due to marketing and consulting expenses [22] - R&D expenses increased over 400% to $300,000 compared to $60,000 in the same period last year, driven by headcount and process improvements [23] Market Data and Key Metrics Changes - KULR received three U.S. Department of Transportation special permits for the safe transportation of lithium-ion batteries, allowing for up to 2.1 kilowatt hours of energy capacity, which is seven times the capacity of competitors [9] - The company is focusing on commercialization opportunities in the battery transportation and energy storage markets, aiming to provide total battery safety solutions [10] Company Strategy and Development Direction - KULR's long-term strategy involves co-developing thermal management technologies with NASA and other government agencies, aiming for mass market applications [7] - The company is evolving its business model to focus on near-term commercialization opportunities in battery transportation and energy storage [10] - KULR aims to position itself as a key technology solutions provider in the transition to a global circular economy [10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in their current cash position, stating it is sufficient to fund near-term plans without needing additional capital [27] - The company is optimistic about its role in the battery recycling ecosystem and is working to engage customers in this area [29] - Management believes that their technology will address critical battery safety and thermal stability issues over the next 5 to 10 years, positioning KULR as a leading solutions provider [30] Other Important Information - KULR appointed retired 3-star Lieutenant General Stayce Harris as an Independent Director, enhancing the board's expertise [11] - The company is developing a smart battery system that integrates hardware and software for better monitoring and management of battery safety [15] Q&A Session Summary Question: Can you fund your near-term plans with the current cash position? - Yes, the current cash position is sufficient to execute product development and business plans [27] Question: How does the recycling arm of your business impact everyday life? - The battery safety case will play a significant role in the battery recycling ecosystem, with recent special permits allowing for safe transportation of batteries [28][29] Question: What problems in the EV battery space do your products currently solve? - KULR's technology addresses battery thermal stability and safety issues, with plans to develop next-generation batteries for faster charging [30] Question: How will the price of materials affect profit margins? - While there are some price increases in materials and transportation, the impact on business is minimal, and pricing adjustments can be made if necessary [31] Question: Are you planning to work with other racing teams through your partnership with Andretti? - The partnership with Andretti is in early stages, focusing on developing products for the industry [32] Question: What is KULR doing with Molicel? - KULR is working with Moli Energy battery cells to serve aerospace and defense customers [36]