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1 Presented by KULR Technology Corp July 2018 Company Presentation

Company Presentation - kulrtechnology.com€¦ · 2 Forward Looking Statements This presentation and other written or oral statements made from time to time by representatives of

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1

Presented by KULR Technology Corp July 2018

Company Presentation

2

Forward Looking StatementsThis presentation and other written or oral statements made from time to time by representatives of KT High-Tech Marketing, Inc. and/or its wholly owned subsidiary KULR Technology Corporation

contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking

statements reflect the current view about future events. Statements that are not historical in nature, such as our revenue forecast, and which may be identified by the use of words like “expects,”

“assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could be,” "future" or the negative of these terms and other words of similar meaning, are forward-looking statements. Such

statements include, but are not limited to, statements contained in this presentation relating to our expected sales, cash flows and financial performance, business, business strategy, expansion,

growth, products and services we may offer in the future and the timing of their development, sales and marketing strategy and capital outlook. Forward-looking statements are based on

management’s current expectations and assumptions regarding our business, the economy and other future conditions and are subject to inherent risks, uncertainties and changes of

circumstances that are difficult to predict and may cause actual results to differ materially from those contemplated or expressed. We caution you therefore against relying on any of these

forward-looking statements. These risks and uncertainties include those risk factors discussed in Part I, “Item 1A. Risk Factors” of our Annual Report on Form 10-K or other filings we filed with the U.S.

Securities Exchange Commission (the “Public Reports”). Any forward-looking statements are qualified in their entirety by reference to the factors discussed in the Public Reports. Should one or more

of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended

or planned.

Important factors that could cause actual results to differ materially from those in the forward looking statements include: a decline in general economic conditions nationally and internationally;

decreased demand for our products and services; market acceptance of our products; the ability to protect our intellectual property rights; impact of any litigation or infringement actions brought

against us; competition from other providers and products; risks in product development; inability to raise capital to fund continuing operations; changes in government regulation, the ability to

complete customer transactions and capital raising transactions.

Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We cannot guarantee future results, levels of activity,

performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to

conform these statements to actual results.

Forecasts

All forecasts are provided by management in this presentation and are based on information available to us at this time and management expects that internal projections and expectations may

change over time. In addition, the forecasts are entirely on management’s best estimate of our future financial performance given our current contracts, current backlog of opportunities and

conversations with new and existing customers about our products.

Reference Material

This overview is delivered solely as reference material with respect to our company. This document shall not constitute an offer to sell or the solicitation of an offer to buy securities in our company in

any jurisdiction. The information herein is based on data obtained from sources believed to be reliable. Although we believe that the sources are reliable, we have not independently verified such

data. The trademarks included herein are the property of the owners thereof and are used for reference purposes only.

3

Making Electronics Cooler, Lighter, and Safer

Space Proven Technology Transforming The World of Electronics

44

Prologue

Overheating Is A Serious Problem In The Electronics Industry

• Modern CPUs have become more capable but energy consumption and heat production have grown rapidly

• Heat impairs performance and can result in failure and shortened life of electronics

• Demand for more powerful, higher energy density battery packs has grown rapidly

• Devices are getting more compact and capable

• Effective compact and lightweight thermal management solutions for electronics and energy storage (lithium-ion battery pack) are in high demand

“Lithium-ion Battery Demand Grows Despite Overheating Danger, Travel Limits”

- Arizona State University, Dec 27, 2017

“HP Recalls Laptop Batteries Due to Overheating Issues”

- Engadget, Jan 4, 2018

“Apple Store Reportedly Evacuated After iPhone Battery Overheats”

- CNET, Jan 9, 2018

“Self-Driving Cars Use Crazy Amounts of Power, And It’s Becoming a Problem”

- Wired Magazine, Feb 6, 2018

“Tesla Spontaneously Catches Fire With No Crash”-CNN, Jun 18, 2018

“Why Is My Phone So Slow? Common Causes Explained”

-Android Authority, July 6, 2018

“Samsung Galaxy 9 Phone Catches Fire, Burning Florida man”

- ABC News, July 11, 2018

5

Company Summary

• KULR Technology’s high-performance, passive thermal management technologies forelectronics and energy storage applications have a unique patented carbon fiberarchitecture that outperforms traditional solutions

• Our team has 20+ years experience producing high-caliber thermal managementsolutions for space and defense customers (NASA, JPL, Raytheon, and Boeing)

• Progressing towards commercializing disruptive cooling solutions on a larger scale with aprimary focus on high value space, industrial, defense and electric vehicle markets

• Secondary objective to commercialize within the consumer electronics, mobile andcloud computing markets

• Existing and potential customer engagements with a diverse group of world-classcompanies and organizations

• Various stages of next-generation product development anticipated to result in major

design wins

• Highly proven management team with extensive experience leading internationaltechnology companies

KULR tech inside International

Space Station’s NICER

telescope and 2020 Mars Rover

6

Company Fact Sheet Key Partnership Strategy Global Strategy

• Founded in 2013

• Parent assigned trading symbol in June 2018 (OTC: KUTG)

• Plan to apply for uplisting to major stock exchange in 2019

• 20+ motivated employees and growing

• 10 talented engineers and growing

• Active developmental partnership with NASA

• Exclusive license with NREL, a national laboratory of the U.S. Department of Energy

• Manufacturing scalability through global partnerships

• Innovative licensing and business partnership model to expand business worldwide

• Working with a diverse group of international companies and agencies to develop best-in-class thermal management solutions

• Licensing, Design Services, OEM, and Subscription Revenue Model

KULR Technology In Motion

7

Vision Statement

Provide next level cooling solutions for next-generation electronics

Making the world of electronics cooler, lighter, and safer

8

Carbon Fiber Cooling

Thermal Management Product Line

1. “FTI” – Fiber Thermal Interface (material)

2. “TRS” – Thermal Runaway Shield

3. PCM Heat Sink

Exceptional High Performance Thermal Management Products

“Demands for battery performance are really high, but right now KULR is a star

in finding ways to reduce the risk of dangerous overheating.”

- Goti Deng, UBTech Chief Strategy Officer

From The Wall Street Journal, “NASA’s Work to Head Off Battery Blazes in

Space Finds Uses on Earth”, July 21, 2017

9

Fiber Thermal Interface (“FTI”) Material

Carbon Fiber Cooling Exceptional High Performance Thermal Management Products

Features FTIThermal

GreaseThermal Pad PCM

Low Thermal

Resistance0.45 C.cm2/W 2.0 C.cm2/W 3 – 5 C.cm2/W 0.5 C.cm2/W

Bulk Thermal

Conductivity20 – 50+ W/m.K 2 – 5 W/m.K 2 – 4 W/m.K 3 – 8 W/m.K

Bond Line

Thickness0.3 – 4.0mm 0.05 – 0.1 mm 0.1 – 5.0 mm 0.2 – 1.0 mm

Low Contact

Pressure5 – 20 psi 20 psi+ 10 – 30 psi+ 30 psi

Compressibility Yes No Yes No

• Increases power densities of board layout while enhancing thermal stability and reliability

• High temperature tolerance in harsh working conditions

• Low contact pressure required relieving mechanical stress

• Ultralight weight and suitable for a wide range of electronics applications

Source: “Space Proven Carbon Fiber Thermal Management Solutions Unleash High-Performance

Device Performance”, KULR, Thermal Live 2017

10

Thermal Runaway Shield (“TRS”)

• Passive vaporizing heatsink enclosure prevents thermal runawaypropagation between lithium ion cells in a battery pack

• Lightest weight, effective lithium ion battery heat sink solutiontested by NASA to date

• Broad applications in the high energy density storage spaceespecially where weight and size restrictions are of concern (i.e.electric vehicles, bikes, and planes)

Carbon Fiber Cooling Exceptional High Performance Thermal Management Products

“KULR’s solution is the lightest weight battery heat sink option NASA has

evaluated to date, that has excellent promise to prevent thermal runaway

propagation with the highest energy density COTS Li-ion cell designs. To

date, NASA has not found a design solution with as much promise for

preventing Li-ion battery TRP with as positive temperature margins on the

adjacent cells while also being very lightweight.”

- Dr. Eric Darcy, NASA Johnson Space Center Battery Systems Lead (from

Space Tech Expo 2017)

11

PCM Heat Sink

• Reduces electronics system temperature excursions,extending life of key components

• Saves system weight/volume by reducing or eveneliminating the need for active cooling

• Lengthens system peak operating times

• Much lighter weight and more compact in comparisonto traditional metals used for thermal capacity

• Suitable for high-end electronics applications wheretemperature extremes need to be moderated

Carbon Fiber Cooling Exceptional High Performance Thermal Management Products

12

Competitive Advantage

KULR is a global leader in carbon fiber based thermal management solutions

• Years of R&D has resulted in great improvements to technology and manufacturing processes,improving design and lowering manufacturing costs

• Outperforms traditional solutions in virtually every category important to the world of electronics

• Cost-effective solutions for many high-performance electronics applications

• First mover advantage

• Patents on key manufacturing processes and carbon fiber architectures make barrier to entry high

• Strategic relationships with far-reaching individuals, internationally recognized companies, andgovernment agencies expands the Company’s footprint

13

Fast Growing Thermal Management Market To Reach $14.7B in 2021*

Target Markets

*BCC Research Report 2016, Thermal management market size

“I have always believed in KULR’s technology to solve challenging thermal problems. What KULR is doing with batteries, vehicles, and other markets is

really important and I look forward to contributing to their growth.”

- Xia Zuoquan, Co-founder and Director of BYDBusiness Wire, Press Release July 11, 2018

• Space, Industrial, and Defense along with Electric Transportation categories are our primary target markets

• Focus on innovative licensing and business partnership models to

expand position in key markets worldwide

1414

Developmental Partnerships

KULR to Exclusively Commercialize Lithium-ion Battery Safety Testing Devices (ISC) Developed by NASA and NREL

• NASA standards - Crewed Space Vehicle Battery SafetyRequirements, Rev D 2017 (Testing Standards) – Internal ShortCircuit (ISC)

• ISC is one of the most consistent, reliable testing solutions fortriggering thermal runaway

• Received 2016 R&D 100 Award

• Partnership opportunities with battery cell manufacturers,regulatory bodies (standards) and OEM customers who relyon consistent, reliable testing methodologies

• Anticipated to be a significant source of revenue

• Increases visibility of KULR’s TRS as a superior, safer, lightweightheat sink and energy storage solution.

1515

Developmental Partnerships

Multiple Developmental Stage Partnerships With World Class Companies and Organizations

Vertical MarketNumber of

Engagements

Stage of Customer

Development

Space/Industrial/Defense 9 1, 2, 3, 4, and 5

Electric Transportation 3 1 and 3

Consumer Electronics 5 1, 2, 4, and 5

Mobile and Cloud Computing 3 1 and 4

1

2

3

4

Design Win

Prototyping

Iterations of

Sampling &

Testing

Initial sample testing based on product specs

(i.e. size, weight, and thermal requirements)

5

Stages of Customer Development

Note: Engagements include FTI, TRS, and/or PCM heat sink product development

1616

Growth

Major Inflection Point Ahead of Rapid Growth Phase

• Build upon foundation of high value space, industrial, and defense customers

• Focus on mid-stage developmental contract with global automaker for next-generation electric vehicles

• Target global commercialization of ISC device (NREL and NASA partnership) and TRS solutions

• Rapid growth phase over next three years with accelerated expansion of engineering staff

• Secure large scale design-wins across multiple vertical markets

• Establish KULR as best-in-class thermal management solution provider

• Shareholder value creation through sustained quarter-over-quarter growth

Bank of America Merrill Lynch sees

space industry growing from $350

billion to $2.7 trillion in 30 years

Bank of America Merrill Lynch sees

oil demand peaking by 2030 as

electric vehicle market booms

17

Management Team

Michael Mo, Chief Executive Officer

• Family co-founded IC software simulation company, Epic Design Technology (acquired by Synopsis

for $427M in 1997)

• Co-founded Sympeer Technology in 2005 (acquired by Amlogic in 2007)

• Managed supply chain representing 70% of China's OTT set top box market

• Established business relationships with high profile tech leaders in the U.S. and China

• MS in Electrical Engineering from UC Santa Barbara.

Dr. Timothy Knowles, Chief Technology Officer

• 30+ years of thermal management R&D experience having performed work on some of the most

challenging aerospace and industrial applications

• Led team that built the X-38 battery heat sink, Mercury Messenger PCM heat sink, NICER telescope

PCM heat sink, and 2020 Mars Rover heat sink

• Conceived and developed KULR's proprietary Carbon Fiber Cooling solutions and was awarded

hundreds of contracts from numerous customers including NASA, JPL, Raytheon, and Boeing.

• PhD in Physics from UC San Diego

Simon Westbrook, Chief Financial Officer

• Founded and served as an officer of Aargo, Inc, a company specializing in financial consulting

services to corporations in various tech related industries

• Served as CFO of Amber Network and Sage, Inc. (Nasdaq: SAGI)

• Held senior financial positions at Creative Technology (Nasdaq: CREAF) and Atari (AMEX: ATC)

• Multiple initial and secondary public offerings and public and private M&A transactions

• Masters of Economics from Trinity College, Cambridge University

18

Management Team

Stuart Ching, VP of Sales

• Former Vice President of World Wide Sales for semiconductor company ARM Holdings (acquired

by Softbank for $32B in 2016)

• Led sales team of 165 employees responsible for generating over $1.2B in bookings and revenue

• Senior business leader with a proven record of creating and leading over achieving global

strategic sales teams with billion dollar revenue targets

• Alumnus of Stanford Graduate School of Business

Michael Carpenter, VP of Engineering

• Former Director of PCM Heat Sink Group and Safety Officer for Energy Science Laboratories Inc

• Served as Quality Manager and Facility Security Officer in the Defense Industrial Security Program

from 1988 to 1995

• B.S. in Applied Mechanics from the UC San Diego

19

Advisory Board

Morio Kurosaki

• President of IT-Farm Corporation in Japan

• One of earliest members of Western Digital Corporation’s

Japanese division

• Founded Aisys Corporation, a firm helping Silicon Valley

startups gain entry into the Japanese market

• Served as advisory board member of ARM and Nvidia Japan

Xia Zuoquan

• Co-founder and currently a director of BYD one of the worlds

largest electric vehicle and rechargeable battery

manufacturers

• 10% stakeholder in UBTech, a leading in AI and humanoid

robot manufacturer, recently valued at $5 billion

• Forbes World’s Billionaire List

• Early round investor in KULR Technology

Xia Zhongrui

• Former President of Hua Hong Micro-Electronics Corp

• Directed development of Shanghai government computer

system and promoting IT throughout China

• Developed China’s first 8-inch semiconductor processing line

• Director of semiconductor company Spreadtrum

Communications

Dr. Gang Chen

• Carl Richard Soderberg Professor of Power Engineering

• Department Head Mechanical Engineering – Massachusetts

Institute of Technology (MIT)

• Member of US National Academy of Engineering

• Fellow of American Association for Advancement of Science

and American Physical Society

20

Evolution of KULR Technology

1980

01

1990

03

2000 2010

09

Today

Product development

with world-class partners

and start of business

expansion into diverse

markets, including those

that are consumer facing.

2018

NASA and NREL Partnerships

NASA testing of TRS heatsink

battery enclosure is best-in-class.

Exclusive worldwide license of

NREL ISC testing device.

2017/2018

KULR Technology

Company founded; obtains exclusive worldwide

license of ESLI technologies and retains ESLI

team. CEO, Michael Mo recognizes increasing

need for improved cost-effective “cooling” tech

within broad high performance electronics

and battery markets.

KULR products are the solution.

2013

Mercury Messenger

Carbon-fiber core PCM

heat sink inside Mercury

Messenger satellite.

2004

Carbon Fiber Innovation

First prototype of core

carbon fiber thermal

management technology.

1990

International Space Station

KULR PCM heat sink tech

inside ISS NICER telescope.

2017

ESLI

Energy Science Laboratories

Incorporated founded;

specializes in materials science

R&D on behalf of mainly

government agencies.

1980

Dr. Timothy Knowles

Joins ESLI team and will play a

major role in developing key

carbon fiber architecture and

products for thermal

management of electronic

components.

1983

Advancements in R&D

Performance enhancing

Improvements made to core

technology and new product

offerings developed. ESLI will go on

to win over 500 contracts post-mid-

1990s with many agencies including

the US Military, NIH, NASA, JPL,

Raytheon and Boeing. Multiple

patents filed and obtained.

Mid-1990s thru early 2000s

0602

04

05

Advancements in R&D

Breakthrough in manufacturing process

of core tech, reducing production costs;

broad market viability. Development of

new ultra compliant and light-weight

“soft” TRS product. Multiple patents filed.

2016/2017

07

08

21

Disruptive Electronics and Battery Cooling Solutions

Ready for the Challenge