KULR Technology Group, Inc.

Welcome and thank you for joining us for the Cooler Technology Group Incorporated November 2021 shareholder update call and discussion of the third quarter 2021 financial results. Cooler Technology Group is a publicly traded company listed on the New York Stock Exchange under the ticker symbol KULR. Therefore, it is important that I start this call with a reading of the safe harbor statement covering this call. This call does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This call may contain certain forward-looking statements based on the company's current expectations, forecasts, and assumptions that involve risks and uncertainties. Forward-looking statements made on this call are based on the information available to Cooler Technology Group as of the date hereof. The company's actual results may differ materially from those stated or implied in such forward-looking statements due to risks and uncertainties associated with the company's business." which include risk factors disclosed in the company's Form 10-K filed with the Securities and Exchange Commission on March 19, 2021. Forward-looking statements include statements regarding the company's expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as anticipate, believe, could, estimate, expect, intend, may, should, and would or similar words. All forecasts are provided by management on this caller based on information available at this time, and management expects that internal projections and expectations may change over time. In addition, any forecasts made are entirely on management's best estimate of their future financial performance, given their current contracts, current backlog of opportunities, and conversations with new and existing customers about the company's products and services. Cooler Technology Group assumes no obligation to update the information included in this call, whether as a result of new information, future events, or otherwise. Now, today's call will consist of opening statements from management, followed by a Q&A session where management addresses questions that were emailed in from shareholders and other interested parties, and finally, closing statements. I'm Stuart Smith, your host and moderator for the call today, and I am honored to be joined by Michael Moe, Chief Executive Officer of Cooler, Keith Cochran, President and COO of Cooler, and Simon Westbrook, CFO for Cooler. I will now turn the call over to Michael Moe. Michael, the call is yours.

Hey, thank you so much, Stuart. This is Michael Moe. And thanks to everybody's time today to join our Q3 2021 shareholder investor update call. For today's call, I will first talk about our Q3 business highlights and provide updates on recent developments. Keith Cochran will provide operational updates. Simon Westbrook will then talk about financial highlights for Q3 updates. Then we'll have Q&A session as you talked about sort and conclude our call today. I am very pleased to report that Cooler's Q3 revenue increased by over 300% year over year as we continue to make significant investments and execute our business strategy. Our gross margin was 74%, which is a function of favorable product mix for the quarter. This is really an important and exciting quarter for all of us at Cooler. not only because of the financial figures, but also the validation of our long-term strategy and the execution that's delivering solid foundation for future growth. Since inception, Kohler's long-term strategy has been to co-develop cutting-edge thermal management technologies alongside NASA, U.S. Department of Energy, and U.S. Department of Defense prime contractors while working in close collaboration with regulatory agencies and international testing organizations. Our intent was to incorporate these technologies into regulatory roadmaps and also mass market applications. As we deploy these technologies into mass markets, such as energy storage and electric transportation, we look to leverage our IP across multiple verticals and capitalize on multiple revenue streams to accelerate our revenue growth. Our battery safe case is a perfect example of how that strategy is showing signs of success. This technology was tested by NASA and has been used on the International Space Station to keep the astronauts' laptop and tablet batteries safe from battery thermal runaway propagation since 2019. Then we worked with U.S. Department of Transportation to provide the safety testing data on protecting commercial batteries up to 2.1 kilowatt hours in energy capacity. With that work, we received DOT special permits for recycling, used, DDR, and prototype batteries to be transported by ground, rail, boat, and air in Q3 of 2021. This has been a long process, and we got it done. We believe that cooler tech safe case is the only solution in the market that has all these permits and capabilities. Now we're taking this space-proven technology with DOT special permits into the commercial world. Kohler partnered with Heritage Battery Recycling to provide safe transportation of battery collection operations across North America. Heritage Battery Recycling has over 100,000 customer locations, 2,500 employees, and a fleet over 1,300 power units in over 100 facility locations. They recently merged with Retreat Technologies to become the largest lithium-ion battery recycler in North America. We are very excited about this partnership. Kohler also joined Kleros in the US Department of Energy lithium-ion battery lifecycle initiative to develop the manufacturing and reuse of lithium-ion batteries and their chemical elements in the United States. Kleros is the largest lead-acid battery maker in the US. In this project, Cooler will provide safe transportation of lithium-ion batteries within the full battery management lifecycle from manufacturing through recycling and through reuse. Our goal is to provide a total battery safety solution for more efficient battery systems, increase sustainability, and end-of-life battery management, making Cooler a key technology provider in the migration to the global circular economy. In addition to the cooler tech safe case product, we continue to make significant strides in our other product and developments. We announced cell check product at our battery solutions day on September the 21st. We're very, very excited about this project and this product as we believe it to be the smartest AI power battery management system of its kind integrated with our thermal management technologies. This is another significant step for us to position Cooler as the one-stop shop of total solutions provider for battery thermal energy and safety management. Keith will give you some more updates later on. At the Battery Solutions Day, we also share with you that we started a research and development initiative using carbon fiber structures to produce battery cells with higher energy density and faster charging capabilities. We believe fast charging will be the killer app for next generation batteries. Right now, overheating is a key limiting factor in advancing fast charging technology. We've been developing and testing a new battery architecture with a carbon fiber matrix that can improve the thermal performance and also make thicker cathode structures with higher loading factors and also anode structures with silicon and lithium metal. We want this architecture to work with existing lithium-ion battery chemistries as well as solid-state electrolyte. This is a long-term strategic development for cooler that we expect to share more performance in testing data with you in early 2022. Another very exciting development that we're working on is to apply our advanced carbon fiber solution that was developed for hypersonic program to high-performance computing applications. Our team worked on the X51 hypersonic vehicle with a liquid cooling thermal management system. I utilize our proprietary carbon fiber matrix. Now we're working on applying this technology to cost effectively cool high power computer chips for applications such as cloud computing, AI, virtual reality simulation, or somebody will call metaverse and crypto mining applications. The key is to take away the heat more efficiently from the chip to the liquid or air and therefore allowing the chip to run faster without overheating or consume less energy with the same amount of processing power. This will allow the server and data centers to run more efficiently, more sustainably, and profitably. We look forward to share more updates with you in the near future. On the capital market side, there was also some significant events during Q3 and since. On July 9th, Cooler celebrated its uplifting to the NYSE American Exchange by ringing the closing bell at the New York Stock Exchange. That was a very exciting day for all of us. And in October and November, Cooler received approximately $6.5 million in cash from exercise warrants to purchase an aggregate of 2.6 million shares, which was part of our May 2021 financing. Combine that with our approximately $11 million dollar cash position at the end of Q3 and with no debt, Cooler is in its strongest financial position in its history. On November 17th, options start trading on Cooler on the NYSE American options. And we also honored to have Vanguard Funds, now our largest institutional shareholder with approximately 3% ownership. We're so thrilled and honored to have them as one of the largest shareholders. alongside other institutional shareholders such as State Street, Northern Trust, and Charles Schwab. We've come a long way since our OTCQB days, but we feel like we're just getting started on our mission. Speaking of just getting started, Keith Cochran will give an update on the growth of our team, our new facility, and development of new programs. Keith, please.

Hello, everyone, and thanks for attending the call today. We appreciate that. It is my pleasure to share with you the following highlights related to operations and product development. Cooler has completed the transition to our new larger Shawline facility, with all operations now closed at Nancy Ridge. Our labs, machine shop, and materials processing and manufacturing are fully operational and running as normal. We are preparing the factory floor and increasing our power services to accommodate the launch of our strategic battery reserves automated testing machinery, which will be installed and certified in Q1. We are anticipating being fully operational in Q2. As noted in our financials, we're also making the necessary investments in SG&A needed to safely and efficiently support our significant anticipated growth. We have added engineering, quality, product development, and sales support in Q3 to accommodate the upcoming product and services demands. We have also increased our IT infrastructure with third-party support to greatly reduce our exposure to cybersecurity threats. To date, we've been able to attract an extremely talented and passionate team who are very eager to support our vision for Cooler. Our current headcount has tripled since the beginning of the year to support the product development and rollout of our new platforms to be delivered in the first half of 2022. And as Michael shared, Cooler announced Cell Check at our Battery Solutions Day event. As we believe this to be a revolutionary platform that provides significant improvements in battery management and safety, Cooler will provide a live demonstration of Cell Check at the upcoming Advanced Automotive Battery Conference on December 7th in San Diego, California. And we encourage you to attend or watch the live stream. Also, if you missed Battery Solutions Day, please check out our recorded event and website for further details. Next, Simon Westbrook will go over the financial highlights. Simon?