Company reports financial results and current business update
Stockholders’ equity
Commenting on the results for the three months ended
Our net loss attributable to common stockholders after preferred dividends was REDUCED from
Michery continued, “At our
In
In closing, we continue to make strong progress and advancement across the commercial vehicle segment and entire EV industry overall.”
Recent Highlights Include:
- In
January 2024 , the Company regained compliance with the Nasdaq minimum bid price requirement. The Company expects to regain full Nasdaq compliance following theFeb. 29, 2024 , annual stockholder meeting. - The Company also achieved important milestones, including receiving CARB, federal EPA and NHTSA certification for its Class 1 and Class 3 vehicles, and
IRS approval as a “qualified manufacturer,” making its vehicles eligible for up to$7,500 in federal EV tax credits per vehicle. - Mullen announced the completion of a light-weight service truck body for the All-Electric Mullen THREE, which was developed in collaboration with Phenix Truck Bodies & Van Equipment and Knapheide Manufacturing.
Mullen Advanced Energy, LLC submitted a pre-application to theU.S. Department of Energy Advanced Technology Vehicles Manufacturing (“ATVM”) Loan Program to support its expansion into domestic battery material processing and manufacturing.- In
November 2023 , Mullen opened a battery module and pack development facility inFullerton, California , with the goal of scalingU.S. -made EV battery module and pack production. The Company is focused on reducing reliance on foreign battery components.
- Production of the Mullen Class 3 vehicle began in
August 2023 and Class 1 vehicle production began inNovember 2023 . - As of
Jan. 31, 2024 , Mullen has invoicedRandy Marion Automotive $17.3 million for Class 1 EV cargo vans, Class 3 EV trucks and CAMPUS EVs. - Mullen and RRDS submitted a final Ruling Request Application for substantial transformation of its Class 1 EV cargo van to the
U.S. Border Patrol and expects a final ruling byFeb. 20, 2024 . If Mullen receives a favorable final ruling, the Company will be immediately eligible to sell Class 1 EV cargo vans to all branches of theU.S. government.
Class 4 – 6 Commercial Vehicles | Bollinger B1 SUV and B2 Pick Up Truck
Bollinger Motors (“Bollinger”) has received first vehicle orders for 40 B4, Class 4 EV trucks for a combined total order valued at approximately$6.0 million .- The Company expects to begin B4, Class 4 vehicle deliveries in the second half of 2024.
Mullen Consumer Vehicle Program -
Mullen FIVE EV Crossover Program
- Development and production of the high-performance Mullen
FIVE RS (“FIVE RS” or “RS”) limited-edition has been fast-tracked for completion and launch in Q4 2025 in the European market. This vehicle will be a limited production run delivering over 200-plus mph and 1.95 sec 0-60 mph. - The Company debuted the high-performance Mullen
FIVE RS onJan. 9, 2024 , at CES 2024 in Las Vegas.
Mullen-GO(TM)
Mullen’s micro urban commercial delivery vehicle, the Mullen-GO(TM) (“Mullen-GO”), is designed to bridge the gap between the growing demand for quick deliveries and space constraints in dense cities throughout
- In 2023, the Company announced a 30-unit purchase order for the 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 inIreland and theUnited Kingdom .
Fullerton Battery Tech Assembly Facility
- In
November 2023 , Mullen opened a battery module and pack development facility inFullerton, California , with focus on scalingU.S. -made EV battery module and pack production. - The Company is focused on reducing reliance on foreign battery components.
Solid-State Polymer Battery Pack Update
- In
December 2023 , Mullen completed the solid-state polymer cell to vehicle pack integration for the Mullen ONE EV cargo van. - Battery pack testing began and is on track for road testing in the first quarter of calendar 2024. The solid-state battery pack is expected to increase range to more than 190 miles, a 73% increase from the current range, providing a superior, clean and safe alternative to current lithium-ion batteries and representing a significant increase over industry standards.
Financial Results – Three Months Ended
The net loss attributable to common stockholders after preferred dividends was approximately
For the quarter ended
During
Through
(dollars in thousands) | ||||||
Units delivered | Amount Invoiced | |||||
Total Vehicles Invoiced | 396 | $ | 17,298.1 | |||
Revenue Recognized | 25 | $ | 366.0 | |||
Revenue to be Recognized | $ | 16,932.1 | ||||
Invoiced for the year ended | ||||||
Type | Units delivered | Amount Invoiced | Revenue recognized | |||
Urban Delivery (UD0) | 25 | $ | 366.0 | $ | 366.0 | |
Mullen 3 (UU) | 10 | $ | 652.2 | $ | - | |
Total | 35 | $ | 1,018.2 | $ | 366.0 | |
Invoiced for the quarter ended | ||||||
Type | Units delivered | Amount Invoiced | Revenue Recognized | |||
Mullen 3 (UU) | 131 | $ | 8,543.8 | $ | - | |
Urban Delivery (UD1) | 100 | $ | 3,363.5 | $ | - | |
Total | 231 | $ | 11,907.3 | $ | - | |
Invoiced in | ||||||
Type | Units delivered | Amount Invoiced | Revenue recognized | |||
Urban Delivery (UD1) | 130 | $ | 4,372.6 | $ | - | |
Total | 130 | $ | 4,372.6 | $ | - | |
The total cash spend (sum of operating and investing activities) for the three months ended
Three Months Ended | |||||||||
2023 | 2022 | ||||||||
Net loss | $ | (63,993,379 | ) | $ | (378,460,745 | ) | |||
Non-Cash Adjustments | 23,284,793 | 347,745,650 | |||||||
Working Capital Investment | (19,182,967 | ) | (2,018,943 | ) | |||||
Net cash used in operating activities | $ | (59,891,553 | ) | $ | (32,734,038 | ) | |||
Net cash used in investing activities | $ | (6,865,681 | ) | $ | (93,718,182 | ) | |||
Net cash provided by financing activities | $ | - | $ | 150,000,000 | |||||
Change in cash | $ | (66,757,234 | ) | $ | 23,547,780 | ||||
The detail of non-cash adjustments to Statements of Operations for quarters ended
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Three Months Ended | |||||||
2023 | 2022 | ||||||
Stock-based compensation | $ | 13,903,416 | $ | 40,753,410 | |||
Revaluation of derivative liabilities | 6,728,981 | 40,781,976 | |||||
Depreciation and amortization | 4,343,960 | 4,794,327 | |||||
Amortization of debt discount | 160,664 | 74,577 | |||||
Deferred income taxes | (1,726,238 | ) | - | ||||
Loss/(gain) on asset disposal | (125,990 | ) | - | ||||
Other financing costs - initial recognition of derivative liabilities | - | 255,960,025 | |||||
Gain on conversion of derivative liabilities to common stock | - | (9,965,728 | ) | ||||
Non-cash financing loss on over-exercise of warrants | - | 8,934,892 | |||||
Loss/(gain) on extinguishment of debt | - | 6,412,171 | |||||
$ | 23,284,793 | $ | 347,745,650 |
We invested an additional
Changes in operating assets and liabilities: | ||||||||
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Accounts receivable | $ | 671,750 | $ | - | ||||
Inventories | (13,912,516 | ) | - | |||||
Prepaids and other assets | (1,781,132 | ) | (8,457,324 | ) | ||||
Accounts payable | 1,317,232 | 7,724,852 | ||||||
Accrued expenses and other liabilities | (3,044,392 | ) | (1,576,292 | ) | ||||
Right of use assets and lease liabilities | (2,433,909 | ) | 289,821 | |||||
$ | (19,182,967 | ) | $ | (2,018,943 | ) | |||
Turning to our balance sheets and liquidity, we had
Current notes payables were
Total stockholders’ equity remained relatively flat at
Following are our Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows for the quarters ended
CONSOLIDATED BALANCE SHEETS | ||||||||
(unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 81,512,264 | $ | 155,267,098 | ||||
Restricted cash | 7,426,972 | 429,372 | ||||||
Accounts receivable | — | 671,750 | ||||||
Inventory | 30,719,529 | 16,807,013 | ||||||
Prepaid expenses and prepaid inventories | 23,863,455 | 24,955,223 | ||||||
TOTAL CURRENT ASSETS | 143,522,220 | 198,130,456 | ||||||
Property, plant, and equipment, net | 86,916,241 | 82,032,785 | ||||||
Intangible assets, net | 103,569,927 | 104,235,249 | ||||||
Related party receivable | 2,733,998 | 2,250,489 | ||||||
Right-of-use assets | 13,400,598 | 5,249,417 | ||||||
28,846,832 | 28,846,832 | |||||||
Other non-current assets | 2,186,704 | 960,502 | ||||||
TOTAL ASSETS | $ | 381,176,520 | $ | 421,705,730 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 15,458,604 | $ | 13,175,504 | ||||
Accrued expenses and other current liabilities | 38,166,937 | 41,201,929 | ||||||
Dividends payable | 423,163 | 401,859 | ||||||
Derivative liabilities | 20,714,620 | 64,863,309 | ||||||
Liability to issue shares | 11,489,068 | 9,935,950 | ||||||
Lease liabilities, current portion | 2,137,882 | 2,134,494 | ||||||
Notes payable, current portion | 7,622,156 | 7,461,492 | ||||||
Refundable deposits | 426,972 | 429,372 | ||||||
Other current liabilities | — | 7,000 | ||||||
TOTAL CURRENT LIABILITIES | 96,439,402 | 139,610,909 | ||||||
Liability to issue shares, net of current portion | 1,527,153 | 1,827,889 | ||||||
Lease liabilities, net of current portion | 9,230,806 | 3,566,922 | ||||||
Deferred tax liability | 2,165,062 | 3,891,900 | ||||||
TOTAL LIABILITIES | $ | 109,362,423 | $ | 148,897,620 | ||||
Commitments and Contingencies | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock; | ||||||||
Preferred Series D; 437,500,001 shares authorized; 363,097 and 363,097 shares issued and outstanding at | 363 | 363 | ||||||
Preferred Series C; 40,000,000 shares authorized; 1,211,757 and 1,211,757 shares issued and outstanding at | 1,212 | 1,212 | ||||||
Preferred Series A; 200,000 shares authorized; 648 and 648 shares issued and outstanding at | 1 | 1 | ||||||
Common stock; | 5,885 | 2,872 | ||||||
Additional paid-in capital (*) | 2,134,106,479 | 2,071,110,126 | ||||||
Accumulated deficit | (1,923,556,935 | ) | (1,862,162,037 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY ATTRIBUTABLE TO THE COMPANY'S STOCKHOLDERS | 210,557,005 | 208,952,537 | ||||||
Noncontrolling interest | 61,257,092 | 63,855,573 | ||||||
TOTAL STOCKHOLDERS' EQUITY | 271,814,097 | 272,808,110 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 381,176,520 | $ | 421,705,730 | ||||
(*) Adjusted retroactively for reverse stock splits | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(unaudited) | ||||||||
Three months ended | ||||||||
2023 | 2022 | |||||||
Operating expenses: | ||||||||
General and administrative | $ | 43,234,052 | $ | 64,996,011 | ||||
Research and development | 16,169,967 | 8,622,009 | ||||||
Loss from operations | (59,404,019 | ) | (73,618,020 | ) | ||||
Other income (expense): | ||||||||
Other financing costs - initial recognition of derivative liabilities | — | (255,960,025 | ) | |||||
Loss on derivative liability revaluation | (6,728,981 | ) | (40,781,976 | ) | ||||
Loss on extinguishment of debt, net | — | (6,412,170 | ) | |||||
Gain on sale of fixed assets | 75,990 | — | ||||||
Gain on lease termination | 50,000 | — | ||||||
Interest expense | (258,023 | ) | (2,828,089 | ) | ||||
Other income, net | 545,416 | 645,881 | ||||||
Net loss before income tax benefit | (65,719,617 | ) | (378,954,399 | ) | ||||
Income tax benefit | 1,726,238 | 493,654 | ||||||
Net loss | $ | (63,993,379 | ) | $ | (378,460,745 | ) | ||
Net loss attributable to noncontrolling interest | (2,598,481 | ) | (2,184,959 | ) | ||||
Net loss attributable to stockholders | $ | (61,394,898 | ) | $ | (376,275,786 | ) | ||
Accrued accumulated preferred dividends | (21,303 | ) | (638,677 | ) | ||||
Net loss attributable to common stockholders after preferred dividends | $ | (61,416,201 | ) | $ | (376,914,463 | ) | ||
Net Loss per Share | $ | (15.32 | ) | $ | (6,233.08 | ) | ||
Weighted average shares outstanding, basic and diluted | 4,007,791 | 60,470 | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
2023 | 2022 | |||||||
Cash Flows from Operating Activities | ||||||||
Net loss | $ | (63,993,379 | ) | $ | (378,460,745 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock-based compensation | 13,903,416 | 40,753,410 | ||||||
Revaluation of derivative liabilities | 6,728,981 | 40,781,976 | ||||||
Depreciation and amortization | 4,343,960 | 4,794,327 | ||||||
Amortization of debt discount | 160,664 | 74,577 | ||||||
Deferred income taxes | (1,726,238 | ) | — | |||||
Gain on asset disposal | (125,990 | ) | — | |||||
Other financing costs - initial recognition of derivative liabilities | — | 255,960,025 | ||||||
Gain on conversion of derivative liabilities to common stock | — | (9,965,728 | ) | |||||
Non-cash financing loss on over-exercise of warrants | — | 8,934,892 | ||||||
Loss on extinguishment of debt | — | 6,412,171 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 671,750 | — | ||||||
Inventories | (13,912,516 | ) | — | |||||
Prepaids and other assets | (1,781,132 | ) | (8,457,324 | ) | ||||
Accounts payable | 1,317,232 | 7,724,852 | ||||||
Accrued expenses and other liabilities | (3,044,392 | ) | (1,576,292 | ) | ||||
Right of use assets and lease liabilities | (2,433,909 | ) | 289,821 | |||||
Net cash used in operating activities | (59,891,553 | ) | (32,734,038 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Purchase of equipment | (6,865,681 | ) | (726,482 | ) | ||||
Purchase of intangible assets | — | (74,826 | ) | |||||
ELMS assets purchase | — | (92,916,874 | ) | |||||
Net cash used in investing activities | (6,865,681 | ) | (93,718,182 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Proceeds from issuance of convertible notes payable | — | 150,000,000 | ||||||
Net cash provided by financing activities | — | 150,000,000 | ||||||
Change in cash | (66,757,234 | ) | 23,547,780 | |||||
Cash and restricted cash (in amount of | 155,696,470 | 84,375,085 | ||||||
Cash and restricted cash (in amount of | $ | 88,939,236 | $ | 107,922,865 | ||||
Supplemental disclosure of Cash Flow information: | ||||||||
Cash paid for interest | $ | — | $ | 3,056 | ||||
Supplemental Disclosure for Non-Cash Activities: | ||||||||
Exercise of warrants recognized earlier as liabilities | $ | 50,875,649 | $ | 84,799,179 | ||||
Right-of-use assets obtained in exchange of operating lease liabilities | $ | 8,932,159 | $ | 617,820 | ||||
Convertible notes and interest - conversion to common stock | $ | - | $ | 59,402,877 | ||||
Debt conversion to common stock | $ | - | $ | 1,096,787 | ||||
About Mullen
To learn more about the Company, visit www.MullenUSA.com.
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," "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 (i) whether increased demand across CAMPUS, Class 1 and Class 3 EVs and PowerUP charging trucks will continue; (ii) whether Mullen will achieve its battery module and pack development objectives, including the timing and anticipated range increases for the development of the solid-state battery packs; (iii) whether the Company will regain full Nasdaq compliance as expected; (iv) the outcome of Mullen Advanced Energy’s pre-application to the
Contact:
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www.MullenUSA.com
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2024 GlobeNewswire, Inc., source