HOUSTON - KULR Technology Group, Inc. (NYSE American: KULR), a leader in thermal management solutions, has secured a contract from the U.S. Navy to enhance its Internal Short Circuit (ISC) technology. The upgraded ISC devices will be capable of activating at higher temperatures, a crucial step for ensuring safety across military and commercial applications, especially in aviation.
The ISC technology, co-developed with NASA and the National Renewable Energy Laboratory (NREL), allows for controlled thermal runaway in lithium-ion cells, which is a safer and more precise testing method compared to traditional approaches. The high-temperature activation of the ISC devices aligns with the stringent safety requirements of the Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA), simulating extreme conditions that batteries may encounter during operation.
KULR's CEO, Michael Mo, emphasized the importance of this advancement, stating that the high-temperature ISC technology will elevate safety protocols and provide critical data as electric aviation advances towards regulatory certification and market entry.
This contract reinforces KULR's position as a vital contributor to battery safety advancements. The company's ability to evaluate large-format cells and battery packs during thermal runaway positions it to support the aviation sector in adhering to safety standards and moving safely towards market introduction.
KULR Technology Group's comprehensive suite of services includes in-house battery design expertise, a complete cell and battery testing suite, and the capability to produce energy storage systems efficiently and cost-effectively. These services cater to the needs of space, aerospace, and defense sectors, delivering commercial and custom energy storage solutions.
The information for this article is based on a press release statement from KULR Technology Group, Inc.
In other recent news, KULR Technology Group reported a record third-quarter revenue of approximately $3.19 million, a 5% increase from the previous year. This rise in revenue was accompanied by a significant growth in the customer base, improved gross margins, and a robust financial position. Despite a 60% decline in product revenue due to order timing and expected delays, the company saw a 22% increase in service revenue and secured a new licensing deal to enhance energy efficiency in data centers.
CEO Michael Mo highlighted the company's expansion in the space battery market and the development of the KULR ONE space battery, set to start volume production in 2025. KULR Technology Group also plans to leverage AI to enhance operations and introduce new products in 2025. The company has diversified its customer base to mitigate risks and established contract manufacturing partnerships to scale production quickly.
The company reported that operating expenses were reduced by 38% year-over-year, and gross margins improved significantly to 71%. The loss per share narrowed to $0.01, an 80% improvement from the previous year. These recent developments indicate a focus on growth markets and operational efficiency, despite challenges with product revenue.
InvestingPro Insights
KULR Technology Group's recent contract with the U.S. Navy for enhanced Internal Short Circuit (ISC) technology aligns with the company's innovative approach in the thermal management solutions sector. However, investors should consider both the potential and the financial realities of the company.
According to InvestingPro data, KULR's market capitalization stands at $88.59 million, reflecting its position as a smaller player in the industry. The company's revenue for the last twelve months as of Q3 2023 was $9.7 million, with a modest revenue growth of 4.2% over the same period. This growth, while positive, suggests that KULR is still in its early stages of commercialization.
InvestingPro Tips highlight some important factors for investors to consider. The company is "quickly burning through cash," which is not uncommon for tech companies investing heavily in R&D, but it does raise concerns about long-term sustainability. Additionally, KULR "operates with a moderate level of debt," which could impact its financial flexibility as it pursues growth opportunities like the Navy contract.
On a more positive note, KULR has shown "strong returns over the last month" and "over the last three months," indicating growing investor interest, possibly fueled by developments like the Navy contract. The stock's "significant return over the last week" could be a direct response to this news.
It's worth noting that KULR is "trading at a high revenue valuation multiple," which suggests that investors are pricing in substantial future growth. However, this also means the stock may be sensitive to any setbacks or delays in commercialization efforts.
For those interested in a deeper dive into KULR's financials and prospects, InvestingPro offers 12 additional tips, providing a more comprehensive view of the company's investment profile.
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