May 18, 2021 (AB Digital via COMTEX) -- To those on the fence about taking early advantage of KULR Technology Group's (OTC Other: KULR ) contribution to multiple billion-dollar battery safety markets, its presentation at the Benzinga Global Small-Cap Conference last week should push you over the top. In stunning fashion, KULR showed the devastating effects of NOT including its thermal management solutions into the more powerful current ion-battery design. In fact, the compelling interview below gives explosive reasons why its technology will likely be adopted sooner rather than later.
And we're not only talking aerospace applications, which is getting most of the KULR coverage. Its thermal management and heat dissipation solutions are needed in mass markets, with Microsoft (NASDAQ: MSFT ) taking the lead to include it in its Surface Pro aboard the International Space Station. Its inclusion there is expected to lead to massive adoption on earth. In fact, the company is quietly building a broad following to make that happen. Its recent earnings report supports that claim.
KULR's Q1 showed remarkable growth, with revenues increasing over 400% compared to its same period last year. From a revenue perspective, sales surged to $410,000 from $77,509 a year ago and were accompanied by gross profit rising 170% to $140,000 for the period ending March 31st. While that shows impressive past performance, its presentation last week provided investors ample reasons to be more bullish than ever about the back half of this year. In fact, the visuals bring into focus just how vital and mainstream KULR technology can be. So much so that the Benzinga host referred to the technology as being "mandatory" for battery safety.
The excellent news for KULR, and its investors, is that its technology is becoming much less a secret. And adoption by clients from auto racing to military defense could help serve up exponential growth in the coming quarters. CEO Michael Mo explains why in this conference video.
Video Link: https://www.youtube.com/embed/Jrcq_ymSBt0
Broad Market Applications for KULR Technology
Better still, KULR's recent earnings report shows that growth is already surging. And with deals already in place with Andretti Technologies, Airbus /zigman2/quotes/200706109/delayed EADSY +1.83% , NASA, Lockheed Martin /zigman2/quotes/200691238/composite LMT +0.98% , and Leidos, KULR is exceptionally well-positioned to have a breakout year. Those deals could be a part of the reason why analysts covering KULR expect a near 70% gain in its share price this year.
In a bullish report from Taglich Brothers, its 12-month share price target was revised higher by 40% to $3.50. That revision is based on Taglich modeling KULR's substantial revenue growth, its growing list of tier-one clients, and its tangible proof that its thermal management and heat dissipation technology could capitalize on multiple market opportunities this year. Better still, they are so bullish on the technology that they expect a tripling of revenues by the end of Q4.
But, after watching the Benzinga presentation and noting the technology's diverse applications, those estimates could turn out to be conservative.
In fact, its carbon fiber thermal management solutions included on Mars Rover Perseverance 2020 validates its standing as having a best-in-class solution to protect billion-dollar assets. Even better, the FAA is evaluating its technology for in-flight applications and its effect to mitigate ion-battery malfunctions. Indeed when the FAA speaks, companies have no choice but to listen. And with KULR demonstrating irrefutable proof that its technology can substantially reduce the risk of fire and explosion, expect its inclusion in ion battery design in the aviation sector. And that's just a single but massive, revenue-generating opportunity.
KULR is also working with the Marshall Space Flight Center, evaluating a dual-use opportunity to integrate its technology into 3D-printed battery systems for manned and robotic space applications. And those programs add to working relationships with Leidos and Lockheed Martin to develop hypersonic and directed energy defense applications.
And there are several more projects that make its current $2.08 share price and $208 million market cap appear substantially low. Here are a few:
Partnerships That Drive Value
In what could jumpstart other deals in the surging electric vehicle sector, KULR recently announced an agreement with Andretti Technologies and its EV racing car subsidiary. There, its thermal management and heat dissipation technology are being recognized as a vital inclusion to mitigate the risk of fire and explosion in batteries. Expectations are for significant market penetration in that sector. Better still, KULR believes it can utilize a strategy from Tesla's (NASDAQ: TSLA ) playbook by developing products with high-performance specialized needs and then modifying that design to serve mass markets.
Another deal could drive exponential growth in the global electronics and battery sector. While KULR didn't provide a name, they highlighted that a leading supplier of electronic components in smartphones such as the iPhone could soon include KULR technology. Obviously, that market could generate massive revenues from millions of consumer products. The consumer device market also opens the door to expanding its sale of ISC battery testing technology and licensing its innovative TRS technology to clients bringing battery-powered products to market.
Further, with Volta Energy and Drako, opportunities to extend its reach in battery safety technology for grid and stationary energy storage modules and as a supplier partnership for NASA-grade fiber cooling technology are also in play. With new regulations being imposed on the battery industry, KULR expects the deal with Volta, in particular, to ramp considerably starting in Q3.
Other billion-dollar markets are already in play.
A $70 Billion Energy Storage Market In-Play