Mullen Automotive, Inc. (NASDAQ: MULN), an emerging electric
vehicle (“EV”) manufacturer, today announced financial results for
its fiscal third quarter for the three and nine months ended June
30, 2023.
Recent Company Updates:
The Board of Directors of the Company has
authorized a stock buyback program, pursuant to which the Company
may, until December 31, 2023, purchase up to $25 million in shares
of its outstanding common stock. The shares may be repurchased,
from time to time, in the open market or in privately negotiated
transactions depending upon market conditions and other factors,
and in accordance with applicable regulations of the Securities and
Exchange Commission. The authorization of the stock buyback program
does not obligate the Company to purchase any shares and may be
terminated or amended by the Board at any time prior to its
expiration date.
The Company ended fiscal third quarter on June
30, 2023, with stockholders’ equity of $351.8 million, compared to
$157.0 million on Sept 30, 2022, which represents an increase of
124%.
During the quarter ended June 30, 2023, the
Company successfully secured $100 million in funding from its
Series D preferred stock investors which completes all remaining
investment obligations to the Series D holders. With this latest
investment, the Company’s cash and cash equivalents exceed $200
million as of July 3, 2023, bolstering our liquidity and supporting
our move from prototype to production for commercial vehicles.
During the quarter ended June 30, 2023, the
Company recorded its first revenues on the sale of Campus EV Cargo
Vans.
The Company will host a commercial EV production
launch event on August 24, 2023. This event will commemorate the
production of our first Class 3 commercial vehicles and showcase
the Tunica, Mississippi commercial assembly plant. Select media,
customers, dealers, suppliers, and local government leadership have
indicated plans to attend.
Mullen will be resuming its Mullen “Strikingly
Different” tour this summer, featuring additional EV vehicles,
including the Mullen FIVE EV Crossover, FIVE RS High Performance EV
Crossover, Mullen GT Electric Sports Car, Mullen ONE Commercial
Class 1 EV Cargo Van, Mullen THREE Commercial Class 3 Electric
Truck, and Bollinger B2 Pickup Truck. The second stage of the tour
starts on August 20, 2023, in Austin, Texas and will span multiple
U.S. cities, showcasing Mullen’s cutting-edge electric vehicles to
a broad audience.
In July 2023, Mullen announced that Bollinger
Motors, in which the Company holds a majority ownership, has
received final approval for a $3 million grant from the state of
Michigan. This grant aims to promote job creation and economic
development, further solidifying Mullen’s commitment to driving
progress and growth in the electric vehicle industry.
Mullen implemented a 1-for-9 reverse stock split (“Reverse Stock
Split”) of its common stock on August 11, 2023, in an effort to
regain compliance with Nasdaq’s $1.00 minimum bid price requirement
for a period in excess of ten to twenty consecutive business
days.
During the quarter ended June 30, 2023, Mullen
delivered the first dealer demonstrator Mullen-GO™ Commercial Urban
Delivery EV to Newgate Motor Group and subsequently received a
30-unit purchase order for their sales region of Ireland and the
UK. The Company expects further sales growth with Newgate and other
distributors in Europe.
Commenting on the third quarter and recent
developments, CEO David Michery said, “We are very proud to report
Mullen’s move from prototype to production for our Class 3
commercial vehicle. This milestone marks the next phase of our
journey towards transforming the electric vehicle landscape and
driving sustainable mobility solutions.”
Tunica, MS Assembly Facility
Mullen Class 1 and Class 3 commercial vehicles
will be assembled in Tunica, MS
- Commercial vehicle assembly
equipment has been transferred from Mishawaka, IN to Tunica, MS
facility for commercial Class 1 and Class 3 builds
- Tunica Manufacturing plant has
undergone extensive updating/capital improvements in preparation
for start of manufacturing and start of salable production for
Class 3 trucks in the quarter ended September 30, 2023
- Hired required additional plant
staff to begin production
Mishawaka, IN Manufacturing Plant Home to
Mullen FIVE and Bollinger B1 and B2
- Commercial vehicle assembly
equipment has been transferred from Mishawaka, IN to Tunica, MS
facility for commercial Class 1 and Class 3 builds
- Initiated the movement of Class 1 EV Vans to Tunica, MS for
final assembly
- Enterprise data infrastructure updated with installations
including fiber optics, new servers and security systems to support
volume manufacturing
Bollinger Motors - Oak Park, MIClass 4 – 6
Commercial Vehicles | Bollinger B1 SUV and B2 Pick Up Truck
- Completed “design validation”
engineering phase of the B4 chassis cabs for prototype builds
planned for the quarter ended September 30, 2023
- Showcased B4 at the ACT Expo in
Anaheim, CA and at Home Delivery World show in Philadelphia,
PA
- Hired Jim Connelly, formerly from
General Motors, as Chief Revenue Officer
- Received
approval from the state of Michigan for a $3 million grant aimed at
promoting job creation from the Michigan Strategic Fund Board.
Overall headcount increased by 45% percent in anticipation of
upcoming production requirements
Mullen Commercial Vehicle Program - Troy,
MIClass 1 and 3 Commercial Vehicles
- The Company has received $263
million in purchase orders for Mullen Class 1 and Class 3 EV Vans
and Trucks from Randy Marion Automotive Group. We expect initial
revenues from Class 3 vehicle deliveries during the quarter ended
September 30, 2023
- All regulations from the
Environmental Protection Agency (“EPA”) have been met for Class 3
truck launch and we await final certification approval from the EPA
expected in the quarter ended September 30, 2023
Mullen Consumer Vehicle Program - Irvine,
CA Mullen FIVE EV Crossover Program
- Pulling ahead development and
production of the high-performance Mullen FIVE RS limited-edition
This vehicle will be a limited production run and be a truly unique
performance-oriented vehicle
- Production design of the Mullen
FIVE and FIVE RS will be revealed at CES 2024 in Las Vegas
- Demonstrator
vehicles will be available for viewing and test drives on the
“Strikingly Different” EV Tour
Mullen-GOMullen’s urban
commercial delivery vehicle, which is designed to bridge the gap
between the growing demand for quick deliveries and space
constraints in dense cities throughout Europe.
- On July 17,
2023, we announced a 30-unit purchase order for the Mullen-GO™
(“Mullen-GO”) Commercial Urban Delivery EV from Newgate Motor Group
(“Newgate”). Newgate, one of Ireland’s most recognized dealership
groups, has been named to lead marketing, sales, distribution, and
servicing for the Mullen-GO in Ireland and the United Kingdom
Mullen Advanced Energy
OperationsMullen Automotive forms Mullen Advanced Energy
Operations, LLC (“MAEO”), in partnership with Global EV Technology,
Inc. and EV Technologies, LLC (collectively, “EVT”)
- On July 10,
2023, the Company issued a notice terminating the Letter of
Agreement (“LOA”) dated April 17, 2023. The termination notice,
which was sent after numerous attempts by the Company to obtain
adherence by EVT to the terms of the LOA, references several
breaches by EVT including (1) failing to execute documents
evidencing an irrevocable, royalty free, worldwide exclusive
license of the Technology and related intellectual property, in
perpetuity, to MAEO, (2) refusing to conduct any tests of the
Technology at a Mullen approved facility after the LOA, (3)
repeatedly refusing to honor the terms of the Mutual Non-Disclosure
Agreement signed April 14, 2023, and (4) failing to disclose all
claims or threatened legal actions by any third parties related to
the Technology
Financial Results
Following is our unaudited Condensed
Consolidated Balance Sheets, unaudited Condensed Consolidated
Statements of Operations and unaudited Condensed Consolidated
Statement of Cash Flows for the quarter ended June 30, 2023. Shares
of common stock issued and outstanding and additional paid-in
capital have been adjusted retroactively to reflect the 1-for-9
reverse stock split effective on August 11, 2023.
Cash flow is the focus of this financial
narrative, and the goal is to point out the significant amount of
non-cash operating expenses contributing to the GAAP (Generally
Accepted Accounting Principles) losses reported for the three and
nine months ended June 30, 2023.
Although we benefited from increased cash flow
during the three and nine months ended June 30, 2023, we also
recorded significant amount of non-cash operating expenses
contributing to the GAAP (Generally Accepted Accounting Principles)
losses. The presentation below specifically addresses the cash flow
statement adjustments to reconcile from GAAP to cash flow totaling
$272.0 million and $698.4 million for the three and nine months
ended June 30, 2023, respectively.
Three Months Ended June 30,
2023
The net loss attributable to common stockholders
after preferred dividends was $308.9 million, or $11.14 net loss
per share, for the three months ended June 30, 2023, as compared to
a net loss attributable to common stockholders after preferred
dividends of $7.1 million, or $4.26 loss per share, for the three
months ended June 30, 2022.
The Consolidated Statement of Cash Flows detail
provides the amount of cash spent during the quarter. The net cash
used in operating activities was $46.1 million for the three months
ended June 30, 2023:
|
|
|
|
Three Months Ending
June 30, 2023 |
|
|
|
Operating Activities |
|
$ |
(46,060,560 |
) |
Investing Activities |
|
$ |
(10,029,665 |
) |
Financing Activities |
|
$ |
196,774,970 |
|
There was $272.0 million of non-cash expenses
included in the GAAP net loss for the three months ended June 30,
2023. In addition, investment in working capital (changes in
operating assets and liabilities) was $6.6 million for the three
months ended June 30, 2023.
|
|
|
|
Non-Cash Adjustments for
Three Months Ending June 30, 2023 |
|
|
|
Depreciation and amortization |
|
$ |
2,467,557 |
|
Stock-based compensation |
|
|
23,318,347 |
|
Issuance of warrants to suppliers |
|
|
(6,814,000 |
) |
Issuance of shares for services |
|
|
(5,792,343 |
) |
Revaluation of derivative liabilities |
|
|
(6,308,517 |
) |
Non-cash financing loss on over-exercise of warrants |
|
|
8,934,892 |
|
Initial recognition of derivative liabilities |
|
|
254,962,774 |
|
Non-cash interest and other operating activities |
|
|
89,594 |
|
Non-cash lease expense |
|
|
1,179,043 |
|
Amortization of debt discount |
|
|
148,674 |
|
Loss/(gain) on extinguishment of debt |
|
|
(206,081 |
) |
Total non-cash adjustments to
operating cash flow |
|
|
271,979,940 |
|
Changes in operating assets and
liabilities |
|
|
(6,614,140 |
) |
Net loss before accrued preferred
dividends and noncontrolling interest |
|
|
(311,426,360 |
) |
Operating Cash Flow for the Three Months Ending June 30, 2023 |
|
$ |
(46,060,560 |
) |
|
|
|
|
|
Nine Months Ended June 30, 2023
The net loss attributable to common stockholders
after preferred dividends was $792.7 million, or $55.44 loss per
share, for the nine months ended June 30, 2023, as compared to a
net loss attributable to common stockholders after preferred
dividends of $523.1 million, or $694.20 loss per share, for the
nine months ended June 30, 2022.
Considering the $698.4 million of non-cash
expenses, it is useful to review the Consolidated Statement of Cash
Flows to better understand the cash expenditures for the nine
months ended June 30, 2023.
Net cash used in operating activities was $113.6
million for the nine months ended June 30, 2023:
|
|
|
|
Nine Months Ending
June 30, 2023 |
|
|
|
Operating Activities |
|
$ |
(113,627,945 |
) |
Investing Activities |
|
$ |
(107,449,762 |
) |
Financing Activities |
|
$ |
364,134,630 |
|
|
|
|
|
|
Operating cash flow for the nine months ended
June 30, 2023, was $113.6 million which was comprised of $698.4
million of non-cash addbacks to reconcile net loss before accrued
preferred dividends and noncontrolling interest to net cash used in
operating activities. Additionally, we invested $5.3 million into
working capital (change in operating assets and liabilities).
|
|
|
|
Non-Cash Adjustments for
Nine Months Ending June 30, 2023 |
|
|
|
Depreciation and amortization |
|
$ |
10,991,239 |
|
Stock-based compensation |
|
|
71,015,371 |
|
Issuance of warrants to suppliers |
|
|
6,814,000 |
|
Non-cash financing loss on over-exercise of warrants |
|
|
8,934,892 |
|
Revaluation of derivative liabilities |
|
|
89,462,559 |
|
Initial recognition of derivative liabilities |
|
|
504,373,115 |
|
Non-cash interest and other operating activities |
|
|
(1,656,288 |
) |
Non-cash lease expense |
|
|
2,095,635 |
|
Amortization of debt discount |
|
|
148,674 |
|
Loss/(gain) on extinguishment of debt |
|
|
6,246,089 |
|
Total non-cash adjustments to
operating cash flow |
|
|
698,425,286 |
|
Changes in operating assets and
liabilities |
|
|
(5,257,590 |
) |
Net loss before accrued preferred
dividends and noncontrolling interest |
|
|
(806,795,641 |
) |
Operating Cash Flow for the Nine Months Ending June 30, 2023 |
|
$ |
(113,627,945 |
) |
MULLEN AUTOMOTIVE INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
September 30, 2022 |
|
ASSETS |
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
214,012,136 |
|
|
$ |
54,085,685 |
|
|
Restricted cash |
|
|
13,419,872 |
|
|
|
30,289,400 |
|
|
Accounts receivable |
|
|
308,000 |
|
|
|
— |
|
|
Inventory |
|
|
12,146,844 |
|
|
|
— |
|
|
Prepaid expenses and other current assets |
|
|
15,154,205 |
|
|
|
1,958,759 |
|
|
TOTAL CURRENT ASSETS |
|
|
255,041,057 |
|
|
|
86,333,844 |
|
|
Property, equipment and leasehold improvements, net |
|
|
91,750,519 |
|
|
|
17,786,702 |
|
|
Intangible assets, net |
|
|
111,957,534 |
|
|
|
93,947,018 |
|
|
Deposit on ELMS purchase |
|
|
— |
|
|
|
5,500,000 |
|
|
Receivable from related party |
|
|
1,876,013 |
|
|
|
1,232,387 |
|
|
Right-of-use assets |
|
|
5,504,851 |
|
|
|
4,597,052 |
|
|
Goodwill |
|
|
92,834,832 |
|
|
|
92,834,832 |
|
|
Other assets |
|
|
1,010,712 |
|
|
|
362,643 |
|
|
TOTAL ASSETS |
|
$ |
559,975,518 |
|
|
$ |
302,594,478 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
12,411,851 |
|
|
$ |
6,398,423 |
|
|
Accrued expenses and other current liabilities |
|
|
8,385,380 |
|
|
|
7,185,881 |
|
|
Dividends payable |
|
|
374,445 |
|
|
|
7,762,255 |
|
|
Derivative liabilities |
|
|
150,318,473 |
|
|
|
84,799,179 |
|
|
Liability to issue shares |
|
|
8,870,227 |
|
|
|
10,710,000 |
|
|
Lease liabilities, current portion |
|
|
2,217,059 |
|
|
|
1,428,474 |
|
|
Notes payable, current portion |
|
|
7,306,107 |
|
|
|
3,856,497 |
|
|
Other current liabilities |
|
|
103,372 |
|
|
|
90,372 |
|
|
TOTAL CURRENT LIABILITIES |
|
|
189,986,914 |
|
|
|
122,231,081 |
|
|
Notes payable, net of current portion |
|
|
- |
|
|
|
5,164,552 |
|
|
Lease liabilities, net of current portion |
|
|
3,709,616 |
|
|
|
3,359,354 |
|
|
Deferred tax liability |
|
|
14,436,974 |
|
|
|
14,882,782 |
|
|
TOTAL LIABILITIES |
|
$ |
208,133,504 |
|
|
$ |
145,637,769 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Preferred stock; $0.001 par value, 500,000,000 preferred shares
authorized |
|
|
|
|
|
|
|
Preferred Series A; 200,000 shares authorized; 1,036 and 1,924
shares issued and outstanding at June 30, 2023 and September 30,
2022 respectively |
|
|
1 |
|
|
|
2 |
|
|
Preferred Series C; 40,000,000 shares authorized; 1,210,056 and
1,360,321 shares issued and outstanding at June 30, 2023 and
September 30, 2022 respectively |
|
|
1,210 |
|
|
|
1,360 |
|
|
Preferred Series D; 437,500,001 shares authorized; 363,097 and
4,359,652 shares issued and outstanding at June 30, 2023 and
September 30, 2022 respectively |
|
|
363 |
|
|
|
4,359 |
|
|
Common stock; $0.001 par value; 5,000,000,000 and 1,750,000,000
shares authorized at June 30, 2023 and September 30, 2022
respectively; 86,762,748 and 3,704,303 shares issued and
outstanding at June 30, 2023 and September 30, 2022
respectively |
|
|
86,763 |
|
|
|
3,704 |
|
|
Common stock owed but not issued; $0.001 par value; 17,125,589 and
zero shares at June 30, 2023 and September 30, 2022
respectively |
|
|
17,126 |
|
|
|
— |
|
|
Additional paid-in capital |
|
|
1,950,179,828 |
|
|
|
948,594,920 |
|
|
Accumulated deficit |
|
|
(1,689,954,794 |
) |
|
|
(889,907,455 |
) |
|
Non-controlling interest |
|
|
91,511,517 |
|
|
|
98,259,819 |
|
|
TOTAL STOCKHOLDERS' EQUITY |
|
|
351,842,014 |
|
|
|
156,956,709 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
559,975,518 |
|
|
$ |
302,594,478 |
|
|
MULLEN AUTOMOTIVE INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
Nine months ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
REVENUE |
|
|
|
|
|
|
|
|
|
|
|
|
|
Vehicle sales |
|
$ |
308,000 |
|
|
$ |
— |
|
|
$ |
308,000 |
|
|
$ |
— |
|
|
Cost of sales |
|
|
(248,669 |
) |
|
|
— |
|
|
|
(248,669 |
) |
|
|
— |
|
|
Gross Margin |
|
|
59,331 |
|
|
|
— |
|
|
|
59,331 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative |
|
|
31,777,812 |
|
|
|
10,896,800 |
|
|
|
144,186,161 |
|
|
|
53,067,316 |
|
|
Research and development |
|
|
22,088,011 |
|
|
|
7,324,365 |
|
|
|
51,188,991 |
|
|
|
9,665,126 |
|
|
Total Operating Expense |
|
|
53,865,823 |
|
|
|
18,221,165 |
|
|
|
195,375,152 |
|
|
|
62,732,442 |
|
|
Loss from
Operations |
|
|
(53,806,492 |
) |
|
|
(18,221,165 |
) |
|
|
(195,315,821 |
) |
|
|
(62,732,442 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financing costs -
initial recognition of derivative liabilities |
|
|
(248,413,090 |
) |
|
|
— |
|
|
|
(504,373,115 |
) |
|
|
(269,344,178 |
) |
|
Gain / (loss) on derivative
liability revaluation |
|
|
(241,168 |
) |
|
|
34,583,523 |
|
|
|
(89,462,559 |
) |
|
|
(107,705,006 |
) |
|
Gain / (loss) extinguishment
of debt, net |
|
|
206,081 |
|
|
|
— |
|
|
|
(6,246,089 |
) |
|
|
33,413 |
|
|
Loss on financing |
|
|
(8,934,892 |
) |
|
|
— |
|
|
|
(8,934,892 |
) |
|
|
— |
|
|
Gain / (loss) on sale of fixed
assets |
|
|
1,346 |
|
|
|
(50,574 |
) |
|
|
386,377 |
|
|
|
(50,574 |
) |
|
Interest expense |
|
|
(608,332 |
) |
|
|
(5,346,766 |
) |
|
|
(5,414,185 |
) |
|
|
(29,906,225 |
) |
|
Penalty for insufficient
authorized shares |
|
|
— |
|
|
|
(3,495,000 |
) |
|
|
— |
|
|
|
(3,495,000 |
) |
|
Other income / (loss),
net |
|
|
826,378 |
|
|
|
(12,317,169 |
) |
|
|
2,044,258 |
|
|
|
(12,317,169 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before income tax
benefit |
|
|
(310,970,169 |
) |
|
|
(4,847,151 |
) |
|
|
(807,316,026 |
) |
|
|
(485,517,181 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit/
(provision) |
|
|
(456,191 |
) |
|
|
— |
|
|
|
520,385 |
|
|
|
— |
|
|
Net loss before
accrued preferred dividends and noncontrolling
interest |
|
|
(311,426,360 |
) |
|
|
(4,847,151 |
) |
|
|
(806,795,641 |
) |
|
|
(485,517,181 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
noncontrolling interest |
|
|
(2,568,126 |
) |
|
|
— |
|
|
|
(6,748,302 |
) |
|
|
— |
|
|
Net loss attributable
to stockholders |
|
|
(308,858,234 |
) |
|
|
(4,847,151 |
) |
|
|
(800,047,339 |
) |
|
|
(485,517,181 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued preferred
dividends |
|
|
(13,125 |
) |
|
|
(2,285,792 |
) |
|
|
7,387,811 |
|
|
|
(37,541,085 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common stockholders after preferred dividends |
|
$ |
(308,871,359 |
) |
|
$ |
(7,132,943 |
) |
|
$ |
(792,659,528 |
) |
|
$ |
(523,058,266 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share |
|
$ |
(11.14 |
) |
|
$ |
(4.26 |
) |
|
$ |
(55.44 |
) |
|
$ |
(694.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted |
|
|
27,720,475 |
|
|
|
1,674,607 |
|
|
|
14,296,659 |
|
|
|
753,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MULLEN AUTOMOTIVE INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(unaudited) |
|
|
|
|
|
|
|
|
|
Nine Months Ended June 30, |
|
|
2023 |
|
|
2022 |
|
Cash Flows from
Operating Activities |
|
|
|
|
|
|
Net loss before accrued preferred dividends and noncontrolling
interest |
|
$ |
(806,795,641 |
) |
|
$ |
(485,517,181 |
) |
Adjustments to reconcile net
loss attributable to shareholders to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
10,991,239 |
|
|
|
918,855 |
|
Stock-based compensation |
|
|
71,015,371 |
|
|
|
32,479,710 |
|
Issuance of warrants to suppliers |
|
|
6,814,000 |
|
|
|
— |
|
Non-cash financing loss on over-exercise of warrants |
|
|
8,934,892 |
|
|
|
— |
|
Revaluation of derivative liabilities |
|
|
89,462,559 |
|
|
|
124,868,232 |
|
Initial recognition of derivative liabilities |
|
|
504,373,115 |
|
|
|
269,344,178 |
|
Non-cash interest and other operating activities |
|
|
(1,656,288 |
) |
|
|
3,879,496 |
|
Amortization of debt discount |
|
|
442,091 |
|
|
|
19,584,041 |
|
Loss on asset disposal |
|
|
— |
|
|
|
50,574 |
|
Loss/(gain) on extinguishment of debt |
|
|
6,246,089 |
|
|
|
(33,413 |
) |
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Other current assets |
|
|
(15,319,813 |
) |
|
|
5,446,031 |
|
Other assets |
|
|
1,063,800 |
|
|
|
(1,960,058 |
) |
Accounts payable |
|
|
6,013,276 |
|
|
|
(2,129,901 |
) |
Accrued expenses and other liabilities |
|
|
4,835,588 |
|
|
|
(10,119,169 |
) |
Deferred tax liability |
|
|
(445,808 |
) |
|
|
— |
|
Right of use assets and lease liabilities |
|
|
397,585 |
|
|
|
(31,989 |
) |
Net cash used in operating activities |
|
|
(113,627,945 |
) |
|
|
(43,220,594 |
) |
|
|
|
|
|
|
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
Purchase of equipment |
|
|
(14,328,228 |
) |
|
|
(10,968,389 |
) |
Purchase of intangible assets |
|
|
(204,660 |
) |
|
|
(305,043 |
) |
ELMS assets purchase |
|
|
(92,916,874 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(107,449,762 |
) |
|
|
(11,273,432 |
) |
|
|
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
Proceeds from issuance of notes payable |
|
|
170,000,000 |
|
|
|
12,142,791 |
|
Proceeds from issuance of common stock and prefunded warrants |
|
|
196,999,970 |
|
|
|
40,151,308 |
|
Proceeds from issuance of preferred stock |
|
|
— |
|
|
|
63,925,000 |
|
Reimbursement for over-issuance of shares |
|
|
17,819,660 |
|
|
|
— |
|
Proceeds from note receivable |
|
|
— |
|
|
|
15,000,000 |
|
Payment of notes payable |
|
|
(20,685,000 |
) |
|
|
(15,655,983 |
) |
Net cash provided by financing activities |
|
|
364,134,630 |
|
|
|
115,563,116 |
|
|
|
|
|
|
|
|
Increase in cash |
|
|
143,056,923 |
|
|
|
61,069,090 |
|
Cash, cash equivalents and restricted cash, beginning of
period |
|
|
84,375,085 |
|
|
|
42,174 |
|
Cash, cash equivalents and restricted cash, ending of period |
|
$ |
227,432,008 |
|
|
$ |
61,111,264 |
|
|
|
|
|
|
|
|
Supplemental disclosure of Cash Flow
information: |
|
|
|
|
|
|
Cash paid for interest |
|
$ |
122,500 |
|
|
$ |
1,500,106 |
|
Supplemental Disclosure for Non-Cash
Activities: |
|
|
|
|
|
|
Refinance of indebtedness |
|
$ |
— |
|
|
$ |
28,867,187 |
|
Preferred shares issued in exchange for convertible debt |
|
$ |
— |
|
|
$ |
23,192,500 |
|
Convertible notes and interest - conversion to common stock |
|
$ |
153,222,236 |
|
|
$ |
17,356,500 |
|
Exercise of warrants recognized earlier as liabilities |
|
$ |
391,057,576 |
|
|
$ |
420,626,121 |
|
Reclassification of derivatives to equity upon authorization of
sufficient number of shares |
|
$ |
47,818,882 |
|
|
$ |
— |
|
Waiver of dividends by stockholders |
|
$ |
7,387,810 |
|
|
$ |
— |
|
Warrants issued to suppliers |
|
$ |
6,814,000 |
|
|
$ |
— |
|
Common stock issued to extinguish liability to issue stock |
|
$ |
66,752,533 |
|
|
$ |
— |
|
Extinguishment of financial liabilities by sale of property |
|
$ |
231,958 |
|
|
$ |
— |
|
Extinguishment of operational liabilities by sale of property |
|
$ |
767,626 |
|
|
$ |
— |
|
Debt conversion to common stock |
|
$ |
1,096,787 |
|
|
$ |
— |
|
Prepaid stock-based compensation |
|
$ |
3,909,404 |
|
|
$ |
— |
|
Preferred stock converted to common stock |
|
$ |
273,364 |
|
|
$ |
— |
|
Prefunded warrants converted to common stock |
|
$ |
250,466 |
|
|
$ |
— |
|
About Mullen:
Mullen Automotive (NASDAQ: MULN) is a Southern
California-based automotive company building the next generation of
electric vehicles (“EVs”) that will be manufactured in two
Company-owned United States-based assembly plants. Mullen’s EV
development portfolio includes the Mullen FIVE EV Crossover, Mullen
Commercial Class 1 and 3 EVs and Bollinger Motors, which features
both the B1 and B2 electric SUV trucks and Class 4-6 commercial
offerings. On September 7, 2022, Bollinger Motors became a
majority-owned EV truck company of Mullen Automotive, and on Dec 1,
2022, Mullen closed on the acquisition of all of Electric Last Mile
Solutions’ (“ELMS”) assets, including all IP and a
650,000-square-foot plant in Mishawaka, Indiana.
For more information, please visit
www.MullenUSA.com. Mullen uses its investor.mullenusa.com webpage
and links as a means of disclosing material non-public information
and for complying with its disclosure obligations under Regulation
FD.
Forward-Looking Statements
Certain 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,” and “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 ELMS and
Bollinger transactions will prove successful, whether the Mullen-GO
(formerly I-GO initiatives) in the UK and Ireland or elsewhere
in Europe will prove successful, whether the respective parties
obligations under the Randy Marion Automotive Group purchase order
will be met and revenues will be received when expected, delays in
the anticipated design, certification, manufacturing, or delivery
of vehicles, whether the second leg of the “Strikingly Different”
test-drive tour event will take place within the time frame
expected; or whether development of the Mullen FIVE RS will be
implemented in time for the anticipated second part of the
test-drive tour. 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) Mullen’s ability to maintain compliance with
continued listing requirements of the NASDAQ Capital Market; and
(xii) 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) 613-1900
www.MullenUSA.com
Investor Relations Contact
investor@Mullenusa.com
Media Contact
media@Mullenusa.com
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