|KULR Technology Reports Second Quarter 2019 Financial Results|
CAMPBELL, Calif., Aug. 14, 2019 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (OTCQB: KULR) (the "Company" or "KULR"), a leading developer of next-generation thermal management technologies, today reported its financial results for the second quarter ended June 30, 2019.
Second Quarter 2019 and Subsequent Highlights:
Announced agreement with Lockheed Martin, a leading aerospace and defense company, to provide its purpose-built phase change (PCM) heat sink for a confidential aerospace application.Partnered with Centre De Technologies Avancées, an industry leading vehicle research organization, to implement KULR's advanced LYRA ISC battery testing device to improve electric vehicle battery safety.Presented several of the Company's breakthrough battery safety and testing products at the Advanced Automotive Battery Conference in San Diego, California on June 24-27, 2019Conducted due diligence on the previously announced Securities Purchase Agreement of TECHTOM Co., Ltd., a Japanese limited liability company. After thorough review, the Company has decided against the acquisition.Announced ticker symbol change from "KUTG" to "KULR" on the OTCQB exchange operated by OTC Markets Group.Engaged MZ Group to lead a comprehensive strategic investor relations and shareholder communications program across all key markets.Second Quarter 2019 Financial Summary
Total revenue for the three months ended June 30, 2019 was $56,310, compared to revenue of $171,091 in the same year-ago quarter. The revenue decrease was primarily due to a decrease in the volume of product sales, as well as the decrease in service contract completions during the second quarter of 2019.Gross profit for the three months ended June 30, 2019, was $27,760, or 49.3% of revenues, compared to gross profit of $137,621, or 80.4% of revenues, for the same year-ago quarter. This decrease was primarily due to a reduction in sales of higher margin products as compared to the 2018 period.Total operating expenses, consisting of research and development, sales and marketing, and general and administrative expenses, were $0.6 million in the second quarter of 2019, compared to $0.8 million in the same year-ago quarter. The decrease is primarily due to decreased professional fees of approximately $41,000 resulting from the termination of multiple consulting agreements and non-cash stock-based compensation expense, partially offset by increased travel expenses.Net loss in the second quarter of 2019 totaled $0.6 million, or $(0.01) per share, compared to a net loss of $0.6 million, or $(0.01) per share, in the same year-ago quarter.Cash and cash equivalents and short-term deposits were $0.1 million as of June 30, 2019, compared with $0.1 million as of March 31, 2019.
"In the second quarter of 2018, we made several meaningful strides towards leveraging our proven technology into several multi-billion-dollar commercial markets," said Michael Mo, Chief Executive Officer of KULR Technology Group. "Today, I am pleased to report that we are currently engaged with more than 25 world-class companies across our target sectors, all of which are at various stages of testing and development."
"Our core technology, proven out and vetted through partnerships with NASA and various tier-1 aerospace operators, addresses vast unmet market opportunities in the electric mobility, battery safety and testing, consumer products and aerospace industries. KULR's technical successes are complemented by our capital-light model and disciplined approach to capital allocation, enabling us to grow revenues while realizing tremendous economies of scale. We strongly believe that we are positioned for a breakout year as we look to transition select developmental partnerships into volume production customers and look forward to long-term shareholder value creation as we continue to execute upon our goals," concluded Mo.
About KULR Technology Group, Inc.
KULR Technology Group, Inc. (OTCQB: KULR), through its wholly-owned subsidiary KULR Technology Corporation ("KULR"), develops and commercializes high-performance space-used thermal management technologies for electronics, batteries, and other components across an array of applications such as electric vehicles and autonomous driving (collectively as E-Mobility), AI/Cloud computing, energy storage, and 5G communication technologies. KULR's proprietary, core technology is a carbon fiber material with roots in aerospace and defense that provides superior thermal conductivity and heat dissipation in an ultra-lightweight and pliable material. By leveraging this break-through cooling solution and its longstanding development partnerships with NASA, the Jet Propulsion Lab and others, KULR makes E-Mobility and other products safer and cooler. globenewswire.com
Safe Harbor Statement
This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our parent entity's Form 10-K filed on April 17, 2018. Forward-looking statements include statements regarding our 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. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.