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KULR Technology Group’s Two Transport Special Permits in June Send Share Price 28% Higher (NYSE-Amer: KULR)

KULR Technology Group (NYSE American: KULR) is set to close June roughly 28%* higher after announcing it received two special permit authorizations from the US Department of Transportation to transport prototype lithium cells and batteries aboard cargo aircraft. More impressive than its June gains is its year-to-date increase, which currently prices shares about 92% higher. And those gains are well-earned. (*share price of $2.69 on 6/28/21 12:27 EST)

In fact, KULR appears to be in a state of hyper-growth, evidenced by its 439% increase in comparative Q1 revenues. Better still, several deals made during Q1 and Q2 position the company to do even better in the back half of this year. And with its successful $8 million capital raise, up list to the NYSE-American exchange, and ability to secure hard-to-get permits, KULR looks to be in its best operating position ever to maximize near and long-term growth. And they will have the opportunity to explain why that is at its Inaugural 2021 KULR Battery Solutions Day planned for September 21, 2021. 

The excellent news there is that they likely have a lot to say. In fact, the continued development of its battery safety technology earned its third patent covering Thermal Runway Shield (TRS) technology. This critical patent protects its passive propagation resistant solution, which has been designed, tested, and shown to reduce the hazardous risks associated with thermal runaway in lithium-ion battery packs. NASA, by the way, already uses this TRS technology to transport to and store batteries aboard the International Space Station. Consider that some pretty strong validation.

Better still, from a competitive perspective, the new patent expands the comprehensiveness of its battery safety technology, covering disastrous battery failures that could put KULR in a position to soon dominate the battery safety sector.

Thus, despite KULR stock higher by roughly 28% in June and 92% YTD, investors expect that the back half of the year can be a breakout period for the company. That's based on industry players and investors viewing the demonstrative presentation of its battery safety technology. Watching the videos shows how powerful KULR technology is...and why it's needed.

Special DoT Transport Permits Could Accelerate Revenue Growth 

As noted, KULR received two special permits from the US Department of Transportation in June that puts KULR in an excellent position to capitalize on a new source of revenue. In fact, those permits make them one of a handful of companies permitted to transport lithium-ion and metal batteries for recycling. And with lithium-ion battery use seeing exponential growth in the consumer markets, the permits can be a lucrative long-term value driver. 

In fact, beyond their need to power everything from lawnmowers to power tools, lithium-ion batteries also require special handling for disposal and recycling purposes. And with millions of them already in the markets and millions more to come, the revenue-generating potential in the lithium-ion disposal markets can be substantial. Better still, this new revenue stream adds to the momentum already in place. In fact, KULR's new revenues will add the massive Q1 growth, which, by the way, came well before the permits were issued. Keep in mind, this isn't a trash haul service. And like how bio-hazard clean-up crews can charge thousands of dollars for a crime scene clean-up, the transport and disposition of these batteries comes at a premium cost as well.

Remember, too, KULR's 439% Q1 comparative revenue gains came ahead of its strengthened balance sheet, enhanced operating facility, and news of its new smart battery product targeting the $127 billion commercial drone market. Thus, combining everything we know today, KULR is ideally positioned to capitalize on multiple initiatives to drive potentially exponential revenue increases in the coming quarters. 

There's more.

Substantial Opportunities In-Play

Leveraging near-term permit-related opportunities is one thing but using its $8 million raised during May puts much more into play. The great news there is that the capital raise adds to the already strong business infrastructure.

Referencing its Q1 conference call, KULR clarified that it is well-capitalized to accelerate growth through a diversified commercialization strategy. They also highlighted its new facility that is roughly 4 larger than its current location, allowing KULR to significantly expand bookings and client engagements. That's happening now.

As the official thermal management and battery safety technical partner for Andretti Technologies, the advanced technology arm of Andretti Autosport, KULR is tapping into a potentially massive EV market. Better still, to maximize that opportunity, KULR is developing a thermal management testing and design platform to provide high-performance, specially adapted battery solutions to meet the rigorous technical requirements of Andretti's global racing enterprise. 

Even better, the two are combining expertise to co-develop and co-market battery and safety technologies to automotive partners for mass-market EV applications. That deal is timely. Last month, General Motors (NYSE: GM) expanded its entrance into the sector with a $35 billion investment toward EV and autonomous car production. Thus, focusing on low-hanging market opportunities on the battery side of the industry could lead to earning a sizable share of that market. And with the Andretti name associated with the deal, their cooperative program could gain traction sooner rather than later. 

However, the EV automobile sector is just one part of its ambitions. KULR could already be one of the best-positioned companies to capitalize on business from the burgeoning public and private space sector. Notably, its carbon fiber thermal management solutions are included on Mars Rover Perseverance 2020, validating its technology as a best-in-class solution to protect billion-dollar assets. 

Opportunities here on earth are compelling as well. 

Taking Battery Safety Technology In-Flight

A program that could substantially impact KULR's growth comes from its in-flight applications, where its technology explicitly shows its ability to mitigate ion-battery malfunctions. According to a KULR presentation, the FAA is evaluating its technology for use in aircraft. And considering the cost can be insignificant compared to the overall production spend for an aircraft, the FAA's role to protect the public from catastrophic failures is put into focus. Moreover, knowing that they are evaluating the battery safety technology makes it hard to turn away, especially when aware of the potential for explosion and fire from lithium-ion battery use. 

KULR is also evaluating a dual-use opportunity with the Marshall Space Center to integrate its technology into 3D-printed battery systems for manned and robotic space applications. Other programs with Leidos and Lockheed Martin to develop hypersonic and directed energy defense applications are also in the development stages. And while those markets can be substantial, its technology applied to the microelectronics sector could deliver the biggest bang for the buck. 

Notably, KULR has a big foot in the door with NASA, as the agency utilized KULR’s passive propagation resistant solutions aboard the International Space Station to protect Microsoft (NASDAQ: MSFT Surface Pro tablets. Why? Because data showed the importance of having its technology prevent thermal runaway propagations onboard the ISS. And that's a second point of validation. 

Still, the best news for KULR and its investors is that the company is committed to growth and creating shareholder value. And while deals with Andretti Technologies, Airbus (OTC: EADSY), NASA, Lockheed Martin (NYSE: LMT), and Leidos are impressive, KULR is far from peaking. And analysts are taking notice.

Analysts Revise PT Higher

In fact, with a revised-higher share price target of $4.50, analysts at Taglich Brothers model for a 67% upside to its current levels. In their report, they reference substantial revenue growth, a growing list of top-tier clients, and its patent-protected thermal management and heat dissipation technology as a means of meeting what is expected to be extraordinary market demand. Notably, Taglich expects that with its enhanced facilities, KULR can triple revenues by the end of this year. 

Indeed, Taglich is on the right track. And after combining revenue-generating potential from deals made with Andretti Technologies, Volta Energy, and Drako, their estimates could prove conservative. Also, KULR's determination to extend its reach in battery safety technology for grid and stationary energy storage modules opens additional market opportunities. In fact, KULR guided that the deal with Volta could start to ramp considerably in the current and coming quarters. An update could be imminent. 

Investors are also paying attention to a potentially massive agreement with a leading supplier of electronic components in smartphones. Although KULR didn't include a company name in its presentation, the takeaway is that KULR technology has the potential to be incorporated into hundreds of millions of consumer products, including phones, over the next several years. If that happens, KULR's valuation would undoubtedly surge. Listen closely for an update during its Q2 conference call. 

This begs the question: What's not to like about this emerging, well-diversified company? The answer...nothing. From its strong balance sheet to its compelling technology, KULR is a growth stock worthy of investor attention. 

A KULR Breakout In 2H 2021?

In fact, the sum of the parts leads many investors to expect a breakout later this year. The programs set up in Q1 and Q2 are now preparing to generate meaningful revenues. Moreover, KULR is in the news regularly for either earning a permit or developing another potentially best-in-class product or service. 

The better part of this company, from a risk-adjusted basis, is that they target multiple shots on goal from numerous billion-dollar markets. And best of all, its technology is so valuable, and market protected that it could enjoy massive multi-industry adoption without concern of competitive poachers. Indeed, whether it's a sum of the parts equation or a stand-alone single market valuation, KULR is positioned to surge. And at these levels, the stock may present quite a bargain price.

 

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