Mullen Automotive Announces Preliminary Third Quarter Results
August 09 2022 - 8:30AM
via InvestorWire -- Mullen Automotive, Inc. (NASDAQ: MULN)
(“Mullen” or the “Company”), an emerging electric vehicle (“EV”)
manufacturer, announces preliminary third-quarter results. In
addition to recent highlights and successes for the Company and its
EV programs, Mullen is in a strong financial position, with
approximately $99 million in cash and cash equivalents on hand as
of Aug. 8, 2022.
Financial Highlights
- Asset growth of 391%
- Asset growth was primarily from cash from financing activities
along with increased property and equipment.
- Positive working capital $27,656,446
- Working capital was a positive variance due to the paydowns in
current notes and cash received from financing activities.
- $318 million in financial commitments
- The committed capital positions Mullen for growth over the
remainder of 2022 and 2023.
- Change in debt –77%
- The 77% debt reduction minimizes debt overhang problem and
implies that equity holders can invest in a company positioned for
growth and sound financial performance.
- 281% increase in R&D spending
- Company has increased its spending for R&D, which primarily
relates to engineering costs for the Mullen FIVE and Mullen EV
cargo van programs.
Program Highlights
The following are program highlights related to the company,
Mullen FIVE EV Crossover and Mullen EV Cargo Van programs.
- Mullen is pleased to announce progress recently made in both
engineering and manufacturing areas by advancing our solid-state
battery technology to the pack level and continuing to build up our
battery assembly operation.
- Mullen recently opened Irvine, California-based automotive
center and is extensively hiring for expansion requirements related
to Mullen FIVE EV program.
- Mullen is expanding its presence into the Midwest with the
addition of the Detroit EV Technology team, focusing on development
of EV technologies for Mullen’s portfolio of commercial vans.
Mullen has already hired close to 20 new employees for the Midwest
operations and expects to have upward of 50 employees by the end of
this year.
- FIVE EV program development continues with work progressing in
BIW, interior, thermal packaging and infotainment.
- Mullen Class 1 EV Cargo Van successfully updated with larger
optional 79.2 kWh battery pack, which can extend range up to 200
miles.
- $7 million of robotics and testing equipment added to Tunica’s
AMEC facility in support of Mullen EV Cargo Van program. This
includes establishing unique robotic applications to further
enhance existing manufacturing processes and state of-the-art PLC
and robotic interface for training.
- Mullen signed a binding agreement with DelPack Logistics, LLC,
an Amazon Delivery Services Partner, to purchase up to 600 Mullen
Class 1 and 2 EV cargo vans over the next 18 months. The first 300
fully homologated for the United States Mullen Class 2 EV Cargo
Vans can be delivered to DPL by Nov. 30, 2022.
- Mullen continues successful patent work with recently submitted
provisional patent application on PERSONA technology for the Mullen
FIVE EV Crossover. PERSONA is the heart of the vehicle technology
in the Mullen FIVE and includes facial recognition and vehicle
personalization for the driver and passengers.
“It’s an exciting and pivotal time for Mullen as we continue to
experience exceptional growth,” said David Michery, CEO and
chairman of Mullen Automotive. “We’ve been focused on expanding our
capital positions, resources and efforts in all key business areas,
and we are really seeing it come together with our recent
expansions and successes.”
About MullenMullen is a Southern
California-based automotive company that owns and partners with
several synergistic businesses working toward the unified goal of
creating clean and scalable energy solutions. Mullen has evolved
over the past decade in sync with consumers and technology trends.
Today, the Company is working diligently to provide exciting EV
options built entirely in the United States and made to fit
perfectly into the American consumer’s life. Mullen strives to make
EVs more accessible than ever by building an end-to-end ecosystem
that takes care of all aspects of EV ownership.
Forward-Looking StatementsCertain statements in
this press release that are not historical facts are
forward-looking statements within the meaning of Section 27A of the
Securities Exchange Act of 1934, as amended. Any statements
contained in this press release that are not statements of
historical fact may be deemed forward-looking statements. Words
such as "continue," "will," "may," "could," "should," "expect,"
"expected," "plans," "intend," "anticipate," "believe," "estimate,"
"predict," "potential" and similar expressions are intended to
identify such forward-looking statements. All forward-looking
statements involve significant risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements, many of which are
generally outside the control of Mullen and are difficult
to predict. Examples of such risks and uncertainties include but
are not limited to whether the specified debt reduction will result
in equity holders or others making investments in the Company;
whether the Company will achieve its contemplated growth and sound
financial performance; whether the Company’s expansion, opening
facilities in multiple locations, will be beneficial to the
Company; whether the Company will have 50 employees by the end of
the year; whether the larger optional 79.2 kWh battery pack will
extend vehicle range up to the anticipated limits; whether
the fully homologated for the United States Mullen Class 2 EV Cargo
Vans will be delivered to DelPack Logistics by Nov. 30, 2022; and
whether Mullen will be successful in its Patent and Intellectual
Property initiatives. Additional examples of such risks and
uncertainties include, but are not limited to:
(i) Mullen’s ability (or inability) to obtain additional
financing in sufficient amounts or on acceptable terms when needed;
(ii) Mullen's ability to maintain existing, and secure
additional, contracts with manufacturers, parts and other service
providers relating to its business;
(iii) Mullen’s ability to successfully expand in existing
markets and enter new markets; (iv) Mullen’s ability to
successfully manage and integrate any acquisitions of businesses,
solutions or technologies; (v) unanticipated operating costs,
transaction costs and actual or contingent liabilities; (vi) the
ability to attract and retain qualified employees and key
personnel; (vii) adverse effects of increased competition
on Mullen’s business; (viii) changes in government
licensing and regulation that may adversely
affect Mullen’s business; (ix) the risk that changes in
consumer behavior could adversely affect Mullen’s
business; (x) Mullen’s ability to protect its
intellectual property; and (xi) local, industry and general
business and economic conditions. Additional factors that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements can be found in the most
recent annual report on Form 10-K, quarterly reports on Form 10-Q
and current reports on Form 8-K filed by Mullen with
the Securities and Exchange
Commission. Mullen anticipates that subsequent events and
developments may cause its plans, intentions and expectations to
change. Mullen assumes no obligation, and it specifically
disclaims any intention or obligation, to update any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by law.
Forward-looking statements speak only as of the date they are made
and should not be relied upon as representing Mullen’s plans and
expectations as of any subsequent date.
Contact:Mullen Automotive, Inc.+1 (714)
613-1900www.MullenUSA.com
Wire Service Contact:InvestorWire (IW) Los
Angeles, Californiawww.InvestorWire.com212.418.1217
OfficeEditor@InvestorWire.com
- Mullen in strong position as EV programs expand
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