KULR Technology Group, Inc. (AMEX:KULR) Q4 2023 Earnings Call Transcript

KULR Technology Group, Inc. (AMEX:KULR) Q4 2023 Earnings Call Transcript April 12, 2024

KULR Technology Group, Inc. reports earnings inline with expectations. Reported EPS is $-0.04 EPS, expectations were $-0.04. KULR Technology Group, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Stuart Smith: Welcome everyone to the Full Year 2023 Earnings Call for KULR Technology Group, Inc. Incorporated. The company is traded on the New York Stock Exchange, the NYSE under the ticker symbol KULR. I will be joined on the call today by the CEO of the company, that's Michael Mo, and the Chief Financial Officer of the company, Shawn Canter. The call will proceed as follows: we will get opening statements from both members of the management team; after those opening statements have concluded, we will welcome onto the call various analysts who will also be asking their questions directly to the company. At the conclusion of the Q&A portion of this call, we will then wrap up the call. With that, before the call can begin, please listen to the following statements.

A technician soldering components for frequency control products in a modern electronics lab.

This call does not constitute an offer to sell or solicitation of offers to buy any securities of any entity. This call may contain certain forward-looking statements based on KULR’s expectations, forecasts, and assumptions that involve risks and uncertainties. Forward-looking statements made on this call are based on the information available to management as of the date hereof. The company's actual results may differ materially from those stated or implied in such forward-looking statements due to risks and uncertainties associated with their business which include risk factors disclosed in their Form 10-K with the Securities Exchange Commission on March 28, 2023. Forward-looking statements include statements regarding their expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as anticipate, believe, could, estimate, expect, intend, may, should, and would or similar words.

All forecasts are provided by management on this call are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, the forecasts are entirely on management's best estimate of their future financial performance given their current contracts, current backlog of opportunities, and conversations with new and existing customers about their products and services. The company assumes no obligation to update the information included on this call, whether as a result of new information, future events, or otherwise. With that, I will now turn the call over to the CEO of the company, Michael Mo. Michael, the call is yours.

Michael Mo: Thank you, Stuart. Thank you everybody for joining us today. 2023 was the most challenging, yet pivotal year for KULR. For most of 2023, we're working on paying down approximately $8 million of prepaid advanced convertible note that we owe to [YA] (ph). This outstanding debt really limited KULR’s ability to access capital in a market that had already been the most difficult for small cap companies in recent history. The difficulties in accessing capital really limited our ability to grow our business as we had to reduce our workforce by 15% and worked with our customers and partners closely to manage our operations. During 2023, we completed two equity financing for a total of approximately $3.5 million. We experienced significant shareholder value erosion during that process.

We're not interested in doing that again. I'm happy to report that we have retired the entire prepay advance convertible note on March 27th of this year. Despite these challenges, 2023 was a transformational year for KULR as we achieved record revenue growth and built a solid foundation to grow in 2024 and beyond. 2023 total revenue increased 146% year-over-year to reach a record $9.8 million. Total number of customers increased from 36 to 53. Product sales revenue increased 161% and number of product sales customers grew from 33 to 39. Engineering services revenue increased 117%. Total number of engineering service customers grew from 14 to 17. In addition to the tremendous growth in our business, we have built an industry-leading technology platform for battery safety and thermal management and a world-class engineering team to execute our plan.

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