Ultralife Profile
Ultralife Corporation offers products and services ranging from power solutions to communications and electronics systems to customers across the globe in the government, defense and commercial sectors.
With an emphasis on strong engineering and a collaborative approach to problem solving, the company designs and manufactures power and communications systems, including rechargeable and non-rechargeable batteries, charging systems, communications and electronics systems and accessories, and custom engineered systems related to those product lines. The company continually evaluates ways to grow, including the design, development and sale of new products; the expansion of the company’s sales force to penetrate new markets and territories; and seeking opportunities to expand through acquisitions.
The company sells its products worldwide through a variety of trade channels, including original equipment manufacturers (‘OEMs’), industrial and defense supply distributors, and directly to the U.S. and foreign defense departments. The company enjoys strong name recognition in its markets under its Ultralife Batteries, Lithium Power, McDowell Research, AMTI, ABLE, ACCUTRONICS, ACCUPRO, ENTELLION, SWE Southwest Electronic Energy Group, SWE DRILL-DATA, SWE SEASAFE, Excell Battery Group, and Criterion Gauge brands. The company has sales, operations and product development facilities in North America, Europe and Asia.
Segments
The company operates through two operating segments: Battery & Energy Products and Communications Systems.
The Battery & Energy Products segment includes Lithium 9-volt, cylindrical, thin cell and other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories.
The Communications Systems segment includes RF amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design.
Battery & Energy Products
The company manufactures and/or markets a family of Lithium Manganese Dioxide (Li-MnO2), Lithium Manganese Dioxide Carbon Monofluoride (Li-CFx/MnO2) hybrid and Lithium Thionyl Chloride (Li-SOCl2) non-rechargeable batteries, including 9-volt, HiRate cylindrical, ThinCell, and other form factors. Applications for the company’s 9-volt batteries include: smoke alarms, wireless security systems and intensive care monitors, among many other devices. The company’s HiRate and ThinCell Lithium non-rechargeable batteries are sold primarily to the military and to OEMs in industrial markets for use in a variety of applications, including radios, emergency radio beacons, search and rescue transponders, pipeline inspection gauges, portable medical devices, wearable medical products, Bluetooth tracking devices and other specialty applications. Military applications for the company’s non-rechargeable HiRate batteries include manpack and survival radios, night vision devices, targeting devices, chemical agent monitors and thermal imaging equipment.
The company’s Lithium Thionyl Chloride batteries, sold under the company’s ABLE and Ultralife brands as well as a private label brand, are used in a variety of applications, including utility meters, wireless security devices, electronic meters, automotive electronics and geothermal devices. The chemistry of Lithium batteries provides significant advantages over other available non-rechargeable battery technologies. These advantages include higher energy density, lighter weight, longer operating time, longer shelf life and a wider operating temperature range. The company’s non-rechargeable batteries also have relatively flat voltage profiles, which provide stable power. Conventional non-rechargeable batteries, such as alkaline batteries, have sloping voltage profiles that result in decreasing power output during discharge. While the price of the company’s Lithium batteries is generally higher than alkaline batteries, the increased energy per unit of weight and volume of the company’s Lithium batteries allow for longer operating times and less frequent battery replacements for the company’s targeted applications.
The company’s ability to design and produce lightweight, high-energy Lithium-ion and Nickel Metal Hydride (NiMH) rechargeable batteries and charging systems in a variety of custom sizes, shapes, and thicknesses offers substantial benefits to the company’s customers. The company markets Lithium-ion and Nickel Metal Hydride rechargeable batteries comprising cells manufactured by qualified cell manufacturers. The company’s rechargeable products can be used in a wide variety of applications, including communications, medical and other portable electronic devices.
Within this segment, the company also seeks to fund the development of new products that the company hopes will advance its technologies through contracts with both government agencies and private sector third parties.
The company continues to be awarded development contracts with public and private customers resulting in intellectual property that will enhance the company’s efforts to commercialize new products that the company develops.
Communications Systems
Under the company’s McDowell Research and AMTI brands, the company designs and manufactures a line of communications systems and accessories to support military communications requirements and under Ultralife Corporation brand provide system integration products and services.
The military systems include RF amplifiers, power supplies, power cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems and integrated communication systems for fixed or vehicle applications, such as vehicle amplifier-adaptors (‘VAA’) for multiple programs. These programs include Vehicle Installed Power Enhanced Rifleman Applique (‘VIPER’) systems, the U.S. Army Leader Radio Program, the U.S. Army’s Security Force Assistance Brigades (‘SFABs’) and SATCOM systems. All systems are packaged to meet specific customer needs in rugged enclosures to allow for their use in extreme environments. The company markets these products to all branches of the U.S. military and foreign defense organizations that the company is permitted to sell the company’s products to, as well as the U.S. and international prime defense contractors.
Commercial products offered as of December 31, 2022 under the Ultralife brand integrate information technology equipment and power conversion capability into rugged cases, supporting use in various industries. The company markets these products to automotive, cellular carriers and manufacturing industries.
Products, Services and Technology
Battery & Energy Products
A non-rechargeable battery is used until discharged and then replaced. The principal competing non-rechargeable battery technologies are Carbon Zinc, Alkaline and Lithium. The company manufactures a range of non-rechargeable battery products based on Lithium Manganese Dioxide, Lithium Manganese Dioxide Carbon Monofluoride hybrid, and Lithium Thionyl Chloride technologies.
Non-Rechargeable Batteries
The chemistry of Lithium batteries provides significant advantages over available non-rechargeable battery technologies, which include lighter weight, longer operating time, longer shelf life, and a wider operating temperature range. The company’s non-rechargeable batteries also have relatively flat voltage profiles, which provide more stable power. Conventional non-rechargeable batteries, such as Alkaline batteries, have sloping voltage profiles that result in decreasing power during discharge.
The company’s non-rechargeable products include the following product configurations:
9-Volt Lithium Battery: The company’s 9-volt Lithium battery delivers a unique combination of the highest-available energy density and stable voltage, which results in a longer operating life for the battery and, accordingly, fewer battery replacements. While the company’s 9-volt battery price is generally higher than conventional 9-volt Carbon Zinc and Alkaline batteries, the enhanced operating performance and decreased costs associated with longer battery life make the company’s 9-volt battery more cost effective than conventional batteries on a cost per unit of energy or volume basis when used in a variety of applications.
The company markets its 9-volt Lithium batteries to OEM, distributor and retail markets including industrial electronics, safety and security, and medical. Typical applications include smoke alarms, wireless alarm systems, bone growth stimulators, telemetry devices, blood analyzers, ambulatory infusion pumps and parking meters. A significant portion of the sales of the company’s 9-volt battery is to major smoke alarm OEMs for use in their long-life smoke alarms. The company also manufactures its 9-volt Lithium battery under private labels for a variety of companies. Additionally, the company sells its 9-volt battery to the broader consumer market through national and regional retail chains and online retailers.
The company’s 9-volt battery manufacturing capacity is adequate to meet forecasted customer demand over the next three years.
Cylindrical Batteries: Featuring high energy, wide temperature range, long shelf life and operating life, the company’s cylindrical cells and batteries, based on Lithium Manganese Dioxide, Lithium Manganese Dioxide Carbon Monofluoride hybrid and Lithium Thionyl Chloride technologies, represent some of the most advanced Lithium power sources available. The company markets a wide range of cylindrical non-rechargeable Lithium cells and batteries in various sizes under both the Ultralife HiRate and ABLE brands. These include D, C, 5/4 C, 1/2 AA, 2/3 A, CR123A and other sizes, which are sold individually, as well as packaged into multi-cell battery packs, including the company’s leading BA-5390 military battery, an alternative to the competing Li-SO2 BA-5590 battery, a widely used battery type in the U.S. armed forces for portable applications. The company’s BA-5390 battery provides 50% to 100% more energy (mission time) than the BA-5590, and it is used in approximately 60 military applications. With the introduction of the company’s Lithium Carbon Monofluoride hybrid chemistry, the company offers a D-cell that has 100% more energy than the competing Li-SO2 D-cell.
The company markets its line of Lithium cells and batteries to the OEM market for commercial, defense, medical, asset tracking and search and rescue applications, among others. Significant commercial applications include oil and gas, pipeline inspection equipment, automatic re-closers and oceanographic and subsea devices. Asset tracking applications include Radio Frequency Identification (‘RFID’), cellular, and Bluetooth systems. Among the defense uses are manpack radios, night vision goggles, chemical agent monitors and thermal imaging equipment. Medical applications include Automated External Defibrillators (‘AEDs’), infusion pumps, wearable patient monitoring and telemetry systems. Search and rescue applications include Emergency Locator Transmitters (‘ELTs’) for aircraft and Emergency Position Indicating Radio Beacons (‘EPIRBs’) for ships. Oil and gas applications include battery packs for downhole and directional drilling applications, such as Measurement While Drilling (‘MWD’) and Logging While Drilling (‘LWD’) and pipeline inspection and monitoring.
Thin Cell Batteries: The company manufactures a range of thin Lithium Manganese Dioxide batteries under the Thin Cell brand. Thin Cell batteries are flat, lightweight batteries providing a unique combination of high energy, long shelf life, wide operating temperature range and very low profile. The company is marketing these batteries to OEMs for applications, such as displays, wearable medical devices, toll passes, theft detection systems, and RFID and Bluetooth tracking devices.
Rechargeable Batteries
The company’s Lithium-ion batteries generally have high energy density and a long cycle life.
Lithium-ion Cells and Batteries: The company markets a variety of Lithium-ion cells and rechargeable batteries comprised cells manufactured by qualified cell manufacturers. These products are used in a wide variety of applications, including communications, medical and other portable electronic devices.
Battery Charging Systems and Accessories: To provide the company’s customers with complete power system solutions, the company offers a wide range of rugged military and commercial battery charging systems and accessories, including smart chargers, multi-bay charging systems and a variety of cables.
Multi-Kilowatt Module: The company’s Multi-Kilowatt Module Lithium-ion battery system is a large format battery utilizable for energy storage, battery back-up, and remote power applications. This product is a direct replacement of 1.25 kWh and larger capacity lead acid batteries in 24V or 48V applications. It can be connected in multiples to obtain higher-voltages and is capable of over 3,000 cycles while maintaining 80% of its capacity.
Technology Contracts: The company’s technology contract activities involve the development of new products or the enhancement of existing products through contracts with both government agencies and private sector third parties.
Communications Systems
Under the company’s McDowell Research and AMTI brands, the company designs and manufactures a line of communications systems and accessories to support military communications systems, including RF amplifiers, power supplies, power cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems and integrated communication systems for fixed or vehicle applications, such as vehicle amplifier-adaptors. The company packages all systems to meet specific customer needs in rugged enclosures to allow their use in extreme environments and under the company’s Ultralife Corporation brand provide system integration products and services for commercial requirements.
The company offers a wide range of military communications systems and accessories designed to enhance and extend the operation of communications equipment, such as vehicle-mounted, manpack and handheld transceivers. The company’s communications products include the following product configurations:
RF Amplifiers: These amplifiers are used to extend the range of manpack and handheld tactical transceivers, and the company’s RF amplifiers include both mounted and dismounted versions and many related accessories and kits, which can be used on mobile or fixed site applications.
Integrated Systems. The company’s integrated systems include vehicle mounted systems; SATCOM systems; rugged, deployable case systems; and multiband transceiver kits. These systems provide enhanced capabilities which enable communications operators to provide links to support Command, Control, Communications, Computers, Cyber and Intelligence, Surveillance and Reconnaissance (‘C5ISR’).
Power Systems: The company’s power systems include: AC/DC power supplies with battery backup for tactical manpack radios and power adaptors and chargers. The company can provide power supplies for virtually all tactical communications devices.
The commercial products as of December 31, 2022 were the integration of information technology capability into rugged cases, supporting use of high computing capability in various configurations. The company markets these products to automotive, cellular carriers and manufacturing industries.
Communications and Electronics: The company’s communications and electronics services include the design, integration, and fielding of portable, mobile and fixed-site communications systems.
Sales and Marketing
The company employs a staff of sales and marketing personnel in North America, Europe and Asia. The company sells its products and services directly to commercial customers, including OEMs, as well as government and defense agencies in the U.S. and abroad; and has contractual arrangements with sales agents who market the company’s products on a commission basis in defined territories.
The company also distributes some of its products through domestic and foreign distributors and retailers. These sales are generated primarily from customer purchase orders. The company has several long-term contracts with the U.S. government and other customers.
A significant portion of the company’s business comes from sales of products and services to the U.S. and foreign governments through various contracts. These contracts are subject to procurement laws and regulations that specify policies and procedures for acquiring goods and services.
The company has one major customer, L3Harris Technologies, a large global defense primary contractor, which comprised 17% of the company’s total revenues in 2022.
Battery & Energy Products
The company targets sales of its non-rechargeable products to manufacturers of security and safety equipment, medical devices, search and rescue equipment, specialty instruments, oil and gas downhole drilling and pipe inspection equipment, point of sale equipment and metering applications, as well as users of military equipment. The company’s strategy is to develop sales and marketing alliances with OEMs and governmental agencies that utilize the company’s batteries in their products, commit to cooperative research and development or marketing programs, and recommend the company’s products for design-in or replacement use in their products. The company is addressing these markets through direct contact by the company’s sales and technical personnel, use of sales agents and stocking distributors, manufacturing under private labels, and promotional activities.
The company seeks to capture a significant market share for the company’s products within the company’s targeted OEM markets, which, if successful, will result in increased product awareness and sales at the end-user or consumer level. The company is also selling its 9-volt battery to the consumer market through retail distribution channels. Most military procurements are done directly by the specific government organizations requiring products, based on a competitive bidding process. Additionally, the company is typically required to successfully meet contractual specifications and to pass various qualifications testing for the products under contract by the military.
The company markets its products to defense organizations in the U.S. and other countries. In September 2019, the company was awarded an indefinite-delivery/indefinite-quantity contract from the U.S. Government’s Defense Logistics Agency for up to five years to provide the company’s BA-5368 batteries. The company is scheduled to complete First Article Testing under this contract in the second half of 2023.
The company targets sales of its Lithium-ion rechargeable batteries and charging systems to OEM customers, as well as distributors and resellers focused on the company’s target markets. The company responds to Requests for Proposals (‘RFPs’) to design products for OEMs, and the company’s design capabilities, product characteristics and solution integration will encourage OEMs to incorporate the company’s batteries into their product offerings, resulting in revenue growth opportunities for the company.
The company continues to expand its marketing activities as part of the company’s strategic plan, a comprehensive forward-looking document which sets forth the company’s strategic growth plans, tactical actions and financial projections over a rolling three-year period, to increase sales of the company’s battery and energy products for commercial, standby, defense and communications applications, as well as hand-held devices, wearable devices and other electronic portable equipment. A key part of this expansion includes increasing the company’s design and assembly capabilities, as well as building the company’s international network of distributors and value-added distributors.
Communications Systems
The company targets sales of its communications systems, which include power solutions and accessories to support communications systems such as RF amplifiers, power supplies, power cables, connector assemblies, amplified speakers, equipment mounts, case equipment and integrated communication systems, to military OEMs and the U.S. and allied foreign militaries. The company sells its products directly and through authorized distributors to OEMs and directly to defense contractors and the U.S. and foreign militaries. The company markets its products to defense organizations and OEMs in the U.S. and internationally.
Sales targets for commercial products include integrated systems for information technology equipment to support fixed, mobile and deployable locations. The company sells its products directly to commercial businesses in the U.S.
Patents, Trade Secrets and Trademarks
The company holds thirty-six patents issued in the U.S., six patents issued in the European Union member states, four patents issued in the European Union, four patents issued in India, four patents issued in Japan, four patents issued in South Korea, four patents issued in the United Kingdom, three patents issued in Canada, three patents issued in China, three patents issued in Taiwan, two patents issued in Norway, one patent issued in Australia, one patent issued in Hong Kong, one patent issued in Iceland, and one patent issued by the World Intellectual Property Organization.
The company sells its products under a number of trademarks, that the company owns. The following are registered trademarks of the company: Ultralife, Ultralife Thin Cell, Ultralife HiRate, Ultralife & design, Ultra, LithiumPower, LithiumPower & Design, SmartCircuit, Smart Circuit, Smart Circuit & design, We Are Power, AMTI, ABLE, ACCUTRONICS, ACCUPRO, ENTELLION, Intelligent Power Vault, McDowell Research, RPS, POW-R BMS, POW-R TOTE, POW-R-BMS, SWE Southwest Electronic Energy Group, SWE DRILL-DATA, SWE DRILL-DATA, SWE DRILL-DATA OBSERVER, SWE SEASAFE, SWE SEASAFE (& DESIGN), SWE SEASAFE + DIRECT, SWE SOUTHWEST ELECTRONIC ENERGY GROUP ADVANCED BATTERY SOLUTIONS & DESIGN, and THE NEW POWER GENERATION.
Safety; Regulatory Matters; Environmental Considerations
The transportation of non-rechargeable and rechargeable Lithium batteries is regulated in the U.S. by the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (‘PHMSA’), and internationally by the International Civil Aviation Organization (‘ICAO’) and corresponding International Air Transport Association (‘IATA’), Dangerous Goods Regulations and the International Maritime Dangerous Goods Code (‘IMDG’), and other country specific regulations. These regulations are based on the United Nations Recommendations on the Transport of Dangerous Goods Model Regulations and the United Nations Manual of Tests and Criteria. The company ships its products pursuant to PHMSA, ICAO, IATA, IMDG and other country specific hazardous goods regulations.
The company’s commercial chargers are substantially in compliance with the European Union’s Restriction of Hazardous Substances Directive.
The company ships its products pursuant to the requirements of the European Union’s Battery Directive ‘on batteries and accumulators and waste batteries and accumulators.
The company’s compliance system is sufficient to meet the company’s requirements under China’s ‘Management Methods for Restricted Use of Hazardous Substances in Electrical and Electronic Products’.
In addition to the environmental regulations previously described, the company’s products are subject to the U.S. and international laws and regulations governing international trade and exports, including but not limited to the International Traffic in Arms Regulations (‘ITAR’), the Export Administration Regulations (‘EAR’) and trade sanctions against embargoed countries.
The company’s 9-volt battery, among other sizes, is designed to conform to the dimensional and electrical standards of the American National Standards Institute. Authorized certification bodies, such as Underwriters Laboratories, Intertek and SGS have certified several of the company’s products.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 Section 1502 (the ‘Dodd-Frank Act’) requires public companies to disclose whether tantalum, tin, gold and tungsten, commonly known as ‘conflict minerals,’ are necessary to the functionality or production of a product manufactured by a public company and if those elements originated from armed groups in the Democratic Republic of Congo or adjoining countries. To comply with the Dodd-Frank Act, as implemented by SEC rules, the company is required to perform due diligence inquiries of the company’s suppliers to determine whether or not the company’s products contain such minerals and from which countries and source (smelter) the minerals were obtained.
Research and Development
For the year ended December 31, 2022, the company expended $7,874 on research and development, including costs of $793 on customer sponsored research and development activities, which are included in cost of products sold.
History
Ultralife Corporation was founded as a Delaware corporation in 1990. The company was incorporated in 1990.
