KULR boosts cash balance in 3Q, expects tailwind for its products as US adopts clean energy, EVs, battery cycling

KULR Technology Group Inc (OTCQB:KULR), citing a strong balance sheet and available cash, said Friday that it expects the incoming US administration to accelerate a transition to clean energy, “providing a tailwind” for the firm’s products, solutions, and services.

The San Diego, California-based company said it had increased its cash balance by over $2 million to $2,809,656 at the end of September, compared to $767,906 on June 30, 2020.

The firm raised $2,300,000 of gross proceeds through the issuance of notes payable, of which $375,000 was subsequently repaid. It also raised $1,395,000 of gross proceeds through the issuance of common stock.

READ: KULR Technology inks MOU with smartphone component supplier to produce internal short circuit technology

For the third quarter ended September 30, 2020, the company posted revenue of $136,849. The decrease in revenue was “mainly due to a large DOD contract of about $355,000…The customer has pushed the next shipment of product to 2021,” said the company.

“With the recent US election, we believe the incoming administration will most likely accelerate a transition to clean energy and steer the US away from an economy reliant on fossil fuels,” KULR Technology CEO Michael Mo said in a statement.

“We expect to see a strong focus on decarbonization of the electric and transport sectors, which will advance the market penetration of electric mobility, energy storage, clean tech, and battery recycling — all providing tailwind for KULR’s products, solutions, and services.”

The KULR boss noted that given the challenges presented by the coronavirus (COVID-19) pandemic, the firm has focused on solidifying its design and test capabilities, building its network of strategic business partners, and strengthening its balance sheet.

“During the first half of 2020, we experienced delays with our product development partnerships due to COVID-19. Conditions improved in the third quarter and we’re pleased to report that work has resumed on certain key product development projects,” said Mo.

“COVID-19 aside, given the innovative nature of our portfolio of thermal management solutions, the process for designing in to next-generation electronics and battery systems has been lengthy and challenging. However, we anticipate that our work will result in higher volume productions and a more consistent revenue growth in 2021.”

Here are some highlights from the third quarter:

• Partnered with a global electronics and battery maker to build Internal Short Circuit (ISC) battery testing technology and to license KULR’s thermal runaway shield technology to the partner in a commercial phase;
• Provided the Federal Aviation Administration with ISC technology to evaluate passenger lithium-ion battery malfunctions that can cause fire and smoke aboard aircrafts;
• Partnered with Airbus Defense and Space for use of KULR’s passive propagation resistant (PPR) solutions for research into lithium-ion battery safety and testing in flight applications;
• Signed a dual-use technology development agreement with NASA’s Marshall Space Flight Center (MSFC) to build 3D-printed battery systems for manned and robotic space applications; and
• Partnered with Silicon Valley-based Drako Motors to use FTI fiber cooling technology for the Drako GTE, a new ultra-high-performance electric supercar

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors