Soulstring Media covers KULR Technology Group's innovative thermal management solutions as broad industry interest increases its adoption
Miami Beach, Florida--(Newsfile Corp. - April 26, 2021) - KULR Technology Group, Inc. (OTCQB: KULR) stock is racing its way higher – literally. Year-to-date, company shares have increased by roughly 50.3%*. And if the company continues to ink deals with companies like NASA, Airbus, and Andretti Technologies, that trend may continue. Why have investors turned bullish on the stock? Most likely because KULR posted an exceptional Q4, it commercializes game-changing thermal management technology and has inked several potentially lucrative 2021 contracts. (*share price increase calculated at close of trading 4/22/21)
Better still, KULR is paving its way to further penetrate into the aerospace market, with NASA choosing the company to fit the Perseverance Mars rover with its innovative carbon-fiber thermal management solutions. In combination with its thermal management and heat dissipation technology, KULR also created custom-designed phase change heat sinks designed to absorb and mitigate rapid temperature changes, keeping sensitive components such as lasers and sensors within desired temperature ranges to avoid signal distortion or other complications. And if KULR can be trusted to protect a multi-billion dollar space project, its chances for business success here on earth appear pretty good as well.
Actually, that's happening now. KULR's thermal management technology is earning interest from another hot market – auto racing, particularly in the electric vehicle (EV) circuit. There, KULR recently inked a deal with Andretti Technologies to establish a thermal management testing and design platform for high safety rated, high-performance battery solutions specially designed to meet the rigorous technical requirements of Andretti's global racing enterprise. KULR said in a joint release that the partnership will also focus on co-developing and co-marketing motorsports' battery and safety technologies to automotive partners for mass-market EV applications. KULR believes the deal can become a strong value driver later this year.
In The Right Markets At The Right Time
Based on public and private sector business activity, KULR is in the right markets at the right time. And despite its small-cap price of roughly $2.15, KULR is advancing several large-cap like programs. Beyond aerospace and racing, KULR is capitalizing on massive industry opportunities through its development and commercialization of high-performance thermal management technologies for batteries, electronics, and other components. Those market opportunities range from consumer electronics to high-end platform integration. The better part of its focus, though, is that KULR is positioned to maximize multiple revenue-generating opportunities through a diversified product mix and strategy.
With its technology not easily explained, it may be best to trust those that understand the industry language. Thus, with NASA, the Jet Propulsion Lab, and Andretti United Team E racing having deals in place with KULR, it's a fair assumption that its core thermal conductivity and heat dissipation technology is not only effective in its designed applications but it also living up to its reputation for being a potential lifesaver through its inherent ability to reduce the risk of fire and explosion.
The better news could be that KULR's technology is needed in markets far beyond those clients mentioned. In fact, by mitigating the effects of thermal runaway propagation that lead to fire and explosions, KULR is well-positioned to capitalize on significant market opportunities by providing thermal management solutions for electric vehicles, cloud computing, 5G communication technologies, and energy storage for commercial markets. Also, the technology is attracting considerable attention from defense contractors, who recognize and understand its value in military applications such as directed energy weapons and high-power missile programs. Contracts in that sector often run in the hundreds of millions to billions of dollars.
For 2021, KULR has set its strategies to target those high-dollar markets. And, while those ambitions are forward-looking to a degree, KULR is doing well in the here and now. Currently, KULR is commercializing solutions serving a diversified client base in the thermal management and energy storage markets. And its success in doing so is showing up in its revenue streams.
In fact, KULR's year-over-year growth is impressive. And with the tailwind of strong revenues closing out 2020, the company expects revenue-generating momentum to continue in 2021.
Revenues Spike On Partnerships
As noted, KULR technology can be challenging to explain. But the results from its work are not.
Notably, despite massive pandemic-related headwinds last year, KULR turned in Q4 revenues that increased by more than 298% compared to the same period in 2019. That surge came as deals made through its aerospace and government business gained traction. The better news is that KULR expects the trend to continue by maximizing recently announced agreements with Andretti Technologies, NASA, Airbus Defense and Space, and the FAA..
Moreover, with more normalized business activity expected later this year in both the public and private sectors, KULR has positioned itself for potentially exponential growth. The point to remember is that KULR technology is not being referred to as a luxury option; it's being considered a product safety feature necessity. It's that differentiation and realization by industry giants that keep both KULR stock and its technology interesting to follow.
And it's not only clients that recognize the technology's value. The Consumer Product Safety Commission reported that KULR's design solutions could be instrumental in stopping fires and explosions in lithium-ion battery packs. Also positive, a report conducted by the Naval Surface Warfare Center Carderock Division confirmed that KULR's thermal management solutions can prevent cell-to-cell propagation. In other words, in highly specialized conditions and applications, KULR technology is proven to provide safety. Those two affirmations could have a meaningful impact on earning wide scale industry adoption as well as government and defense contract awards. If so, KULR could benefit from deals known to run well into the millions of dollars.
Noteworthy, too, KULR is taking care of business on the corporate side.
Operational Efficiencies And Growing Revenues
KULR's revenue growth is being matched with operational efficiencies. In Q4, KULR improved comparable period gross margins from 48% to 80%, increased shareholder equity from a deficit of $525,612 at the end of Q3 to a surplus of $6,118,552 by the end of December, and completed a direct offering in January for $8 million to fund 2021 growth opportunities.
The cumulative effect from the operational improvements could help to accelerate growth with more revenues falling toward the bottom line. Also, a Department of Defense contract that was pushed into 2021, continued organic growth through multiple accretive agreements, and enviable margins are expected to bring the company closer to break-even this year.
A respectable list of clients is helping push that mission.
Multiple Market Opportunities
KULR already has an impressive and growing list of clients. And they are also doing something most of their industry peers can't claim – compete effectively in multiple billion-dollar markets.
Its focus toward the Energy Storage Market, for instance, is a $59 billion revenue opportunity. But it's expected to get even bigger, with Lux Research predicting that the market will become a $554 billion revenue opportunity by 2035. The excellent news is that KULR already targets core opportunities within that segment, designing products to serve mobility applications, electronic devices, and stationary storage. Its presence now can translate into competitive advantages later.
Another substantial market is the $8.8 billion Thermal Management Market. There, KULR is capitalizing on opportunities created by increasing demand for reliable microelectronics and lithium-ion batteries. Consumer demand for products in that sector is surging.
Again, KULR is intending to drive revenues through its passive propagation resistant (PPR) battery design. That technology prevents fire and explosion by providing a single cell thermal runaway from exiting the battery enclosure. The better news is that the technology could earn demand from battery storage and transportation, electrical transportation, 5G mobile and cloud computing infrastructure, and aerospace and defense markets. Keep in mind that as these devices become more robust in design, the need for thermal management increases.
Incidentally, even at 2021 levels, those markets combine to deliver a more than $41 billion revenue opportunity. However, factoring expected growth of 15%- 21% into the equation, the statement made earlier is confirmed – KULR has put itself in the right markets at the right time.
Could Its Innovation Generate A Breakout Year
The good news for KULR is that despite its current company size, they are exceptionally well-positioned to accelerate growth by having the infrastructure, products, and expertise to bring development stage projects to the market. In other words, its maturation is intentional and by design. Also notable is that they have developed a formidable industry presence while also paying attention to its capital structure. The company has only 46.5 million shares in the float and trades with ample liquidity of roughly 355,000 shares exchanging hands per day.
Better yet, with revenues growing, a diversified product portfolio, and a presence in multiple billion-dollar sectors, KULR inherently has numerous shots on revenue-generating goals. Perhaps best of all, KULR could conceivably be successful by successfully penetrating just one of its targeted markets. However, its innovative solutions make that limited expectation very shortsighted.
In fact, based on its publicly announced progress, KULR is likely to do much better. And with its industry-changing technology being adopted in aerospace, communications, electric vehicles, and national defense markets, 2021 could prove to be the breakout year for KULR.
Media Contact:
Soulstring Media Group
ken@soulstringmedia.com
Disclaimers: Hawk Point Media, and affiliate of Soulstring Media Group, is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Media strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, Hawk Point Media, its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found by clicking HERE.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/81554
