KULR Technology Group (NYSE-AMER: KULR, $KULR) stock is a more than attractive investment proposition; it's a compelling one. The company has several freshly-inked new deals, an agreement to access up to $55 million in capital, and a new contract that puts it into the center of the Metaverse after announcing a deal with an international technology conglomerate to create technologies to navigate that emerging and dynamic sector.
But while that working partnership may incentivize investors to consider the KULR value proposition sooner than later, they have plenty more firepower in their revenue-generating arsenal to support the consideration. In fact, during Q2 alone, KULR announced two deals that could contribute to a surge in revenues in the back half of 2022.
New Deals Deliver New Revenues
One is a working agreement with E-One Moli, a lithium-ion battery producer, where KULR intends to purchase over 700MWh of battery capacity as part of its production process overhaul. Its second is an add-on order of its Phase-Change Material (PCM) from aerospace and defense giant Lockheed Martin ($LTM).
The better news is that that additional contract with Lockheed Martin could lead to even bigger deals and validates KULR meeting Lockheed's technology-specific needs. Not only that, it's still just one of several value drivers exposing a valuation disconnect between KULR's share price and its core intrinsics.
Presence In The Metaverse
Part of that value comes through a deal that enhances KULR's ability to drive revenues from the transformational Metaverse sector. It's a sector likely to be worth hundreds of billions, if not trillions in revenues, by the end of this decade. And KULR may have found its niche in the space.
They announced securing a contract to supply proprietary carbon-fiber solutions essential in producing the core components in groundbreaking nerve sensor technology. According to reports, these sensors could represent the future of navigating digital environments and provide a new and preferred approach to using virtual reality to navigate the internet.
Not only can this contract be sizeable, but in creating a relationship with an industry giant, though still unnamed, KULR could be the beneficiary of more potentially lucrative deals. Remember, while its current client is unknown, they have been identified as a leading conglomerate. Is it Meta ($FB)? At this point, nobody but KULR and its client knows. However, what can be inferred is that KULR, regardless of the client, is in the right sector at the right time and could become an integral part of producing products needed to accelerate the growth and adoption of the Metaverse.
Moreover, in addition to this initial deal opening KULR up to a future of potentially lucrative collaborations with original equipment manufacturers in the Metaverse sector, it also significantly strengthens KULR's reputation in adjacent industry spaces, potentially creating new revenue streams in the process.
Still, the Metaverse is just one booming sector in the revenue-generating crosshairs.
NASA Deal Could Send Revenues Into Orbit
KULR also announced continuing its relationship with NASA to help develop battery safety technology specific to NASA's needs. Its most recent working agreement has KULR assisting in developing battery safety parts in the space agency's Artemis program, the newest U.S.-led international manned spaceflight program. KULR has already been processing upwards of 10,000 lithium-ion battery cells weekly.
That deal could help create additional client interest, with this newest contract part of a developing chapter in KULR's working partnership with NASA. In fact, in addition to drawing attention from other agencies with manned spaceflight programs, such as the Department of Defense (DoD), they could see interest from private exploration companies like SpaceX ($TSLA) and Blue Horizon ($AMZN).
For now, the DoD is an excellent lead.
Deal With DoD Can Keep On Giving
And while the DoD was on its client list before KULR's most recent update, KULR is positioned to benefit financially from that association after announcing new contracts with DoD prime contractors to assist in developing new covert weaponries. These projects use the company's carbon fiber cathode solutions, enabling the advancements of projects in high-power magnetic and pulse weaponries.
Similar to others, this deal can also help strengthen KULR's reputation as the go-to vendor for specialized products and services. Not only that, as a development partner in several programs, KULR stands to earn and participate in follow-on contracts and programs. So, while the here and now capitalizes on excellent business opportunities, KULR's pipeline could also be fortified.
Better still, while that deal puts a multi-billion dollar long-term market in its sights, there are more shots on goal.
Leading The Space Maritime PPR Technology
Targeting another massive sector opportunity, KULR announced the release of its new Passive Propagation Resistant (PPR) KULR-Tech Safe Case solution, the latest in its maritime battery safety technology line. This product is more than a continuation of its compelling and unrivaled battery-safety technology; it's also the only known battery-safety product meeting new and stricter requirements set by the U.S. Coast Guard for maritime safety.
That makes KULR's PPR Safe Case more than market-leading; it's a product likely to escape competitive threats with IP protecting the technology embedded to prevent battery fires and even deadly explosions aboard marine vessels in various industries. And those thinking the opportunity to drive potentially massive revenue increases isn't a near-term proposition, think again. In addition to its initial requirements for certain commercial vessels, the USCG is expected to expand the criteria to those in the cruise line, shipping, and fishing industries.
Hence, the combined market opportunity is enormous.
A Massive $55 Million Funding Agreement
Of course, these deals can't go too far without having the cash to accelerate their pace. KULR won't have that concern after announcing a funding agreement to access upwards of $55 million in capital to shift KULR from accelerating to hypergrowth mode.
And KULR is already making that shift, allocating funds to improve production capacity within the lithium-ion battery cell industry targeting surging demand in the energy storage and e-mobility sectors. Wasting no time, KULR is ramping up to capitalize on and maximize existing market opportunities, which are substantial. And more than being timely to the market, the more excellent news is that KULR is pacing ahead of the competition, where billions in revenues are already in play.
Still, while its funding is likely to help generate significant near and long-term growth for KULR, investors shouldn't ignore that the deal is also a result of its financing partners expecting a sizeable return on their investment. In fact, the potential is already being discussed, with skyrocketing demand in key end markets positioning KULR to tap into a revenue-generating opportunity expected to be worth more than $350 million.
A Revenue Tailwind With Streamlined Overhead
And in addition to KULR ramping up its operations and targeting new ones, it's also streamlining them by relocating much of its production capabilities to North America. That initiative reduces overhead, increases operating margins, and help eliminate the potential continuation of logistical supply-chain headwinds. In other words, KULR is using its cash wisely and, better yet, as an investment in its future.
Thus, with many small-cap companies fighting for market survival, it's comforting for KULR investors to see that KULR is thriving. And with multiple contracts generating and adding new revenues to an already record-setting 2021, 2022, regardless of what its share price indicates, could be its best year in history. If so, today's share price may present a value too good to ignore.
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