Release Date: August 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- KULR Technology Group Inc (KULR, Financial) achieved a 39% sequential revenue growth in Q2 2024, reaching $2.43 million.
- Engineering service revenue increased by 76% year-over-year, marking a record full quarter.
- The company expanded its capabilities with a new 17,500 square foot facility in Webster, Texas, enhancing its battery design and testing services.
- KULR secured a contract with a top Japanese automaker for testing high-energy battery cells for next-generation electric vehicles.
- The company is strategically investing in its production capabilities to support future growth, particularly in the space economy, which is projected to reach $1.8 trillion by 2035.
Negative Points
- KULR's stock value has declined since reaching a high in November 2021, despite significant revenue growth.
- The company faces challenges in becoming an industry standard, particularly in the automotive sector.
- KULR has not yet found significant success with its KULR Vibe software solution, which could be a low-cost revenue generator.
- There is uncertainty regarding the impact of future mass production of solid-state batteries on KULR's business.
- The company is under non-disclosure agreements, limiting its ability to disclose specific customer names and contract values, which may affect investor transparency.
Q & A Highlights
Q: Can you provide information regarding bills HR 1797 and S.1008, and whether KULR is a top candidate for these? Also, is KULR building the new cathode for Tesla in the Cybertruck?
A: Michael Mo, CEO: We have engaged with various stakeholders, offering expertise on thermal runaway mitigation. We provide battery packs with built-in thermal runaway protection and SafeCase for safe storage and transportation. We hope the legislation continues its efforts, but specific details are not fully released yet. We cannot comment on the new cathode development for Tesla Cybertruck.
Q: Why hasn't KULR found more success with KULR Vibe, and can you demonstrate actual cost savings to potential clients?
A: Michael Mo, CEO: We see opportunities for KULR Vibe in server fans and industrial applications. By removing vibration, fans can run at higher speeds with less energy, providing more cooling. We are working on fans used by Facebook's Open Compute Project servers and high-performance AI servers. We hope to report results and new customers in the second half of 2025.
Q: How does licensing technology to OEMs fit into KULR's strategy for growth?
A: Michael Mo, CEO: Being a one-stop shop for KULR ONE Space and KULR Guardian customers is a competitive advantage. We invest in technical capabilities for rapid testing and prototyping, introducing KULR's expertise to new departments and designs. This approach helps accelerate time to market and explore additional KULR offerings.
Q: Can we expect KULR to announce its automotive partnership soon?
A: Michael Mo, CEO: The EV market is not a focus for KULR ONE batteries due to long lead times and low margins. However, we serve automotive units with battery testing and SafeCase technology, which are high-margin and growing businesses. We will continue to serve the automotive market with these products and services.
Q: What are the plans to reverse the decline in stock value since it reached $3.60 per share?
A: Shawn Canter, CFO: KULR has grown significantly, with revenue increasing by 300% from 2021 to 2023. The markets we serve have grown, and KULR is in its best operational position. Stock prices fluctuate for various reasons, but we believe our operational performance will eventually be reflected in the stock price.
Q: Will KULR management use cash via equity, funding, or borrowing to fund operations until the end of the year?
A: Shawn Canter, CFO: KULR's balance sheet is getting stronger. We evaluate funding needs to serve operating requirements and maintain a stronger balance sheet, which is beneficial for operations and shareholders.
Q: How does KULR expect the future mass production of solid-state batteries to impact the business?
A: Michael Mo, CEO: We test batteries of all chemistries and sizes. As more solid-state batteries enter the market, we expect to integrate them into the KULR ONE battery platform, positively impacting future growth.
Q: Can you share any customer names or new engagements that might interest investors?
A: Michael Mo, CEO: Our customer base has grown by 50% year-over-year. Many are large OEMs, and we work with them on next-generation product platforms. We maintain confidentiality but are excited about developments across various applications.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
