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Mullen Reports Q2 2024 Fiscal Quarter Results


Positive stockholders' equity of $117,414,643 as of March 31, 2024

Company has additional $150 million in capital commitments to support the scaling of commercial EV operations

BREA, Calif., May 14, 2024 (GLOBE NEWSWIRE) -- -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) ("Mullen" or the "Company"), an electric vehicle ("EV") manufacturer, today announces financial results for the three and six months ended March 31, 2024, and a business update.

Commenting on the results for the three and six months ended March 31, 2024, and recent Company developments, CEO and chairman David Michery stated,

"Our Company continues to grow despite difficult market conditions and I am thankful to our team and the effort put forth in getting our EVs into the market and onto U.S. roads. We continue to drive forward and remain laser-focused on scaling our commercial EV business. Today, we announced an additional $150 million in capital commitments to support our commercial EV operations."

Recent Highlights Include

Mullen Class 1 and 3 Commercial Vehicles

Bollinger Motors - Oak Park, Michigan
Class 4 ? 6 Commercial Vehicles

Mullen Consumer Vehicle Program - Irvine, California
Mullen FIVE EV Crossover Program

Mullen High Energy Facility - Fullerton, California

Solid-State Polymer Battery Pack Update

Financial Results ? Three and Six Months Ended March 31, 2024

For the six months ended March 31, 2024, we delivered 362 vehicles valued at $16.3 million. The Company has deferred the revenue and accounts receivable recognition until invoices are paid and the return provision on the vehicles are nullified by the dealer's sale of vehicle to the end user.

Invoiced during the 6 months ended March 31, 2024 (in thousand dollars)

 
Type Units invoiced  Amount invoiced  Cash received  Revenue recognized 
Mullen 3 (UU)  131  $8,543.8  $652.2  $? 
Urban Delivery (UD1)  231   7,769.4   33.3   33.3 
Total  362  $16,313.2  $685.5  $33.3 

The total cash spent (Operating and Investing cash flows) for the six months ended March 31, 2024, and 2023, was $120.9 million and $165.0 million, respectively.

  Six months ended March 31,
  2024  2023
Net loss $(235,355,627) $(495,369,280)
Non-cash adjustments  135,101,417   424,626,754 
Working capital investment  (8,218,766)  3,175,141 
Net cash used in operating activities  (108,472,976)  (67,567,385)
Net cash used in investing activities  (12,470,001)  (97,420,097)
Cash spent $(120,942,977) $(164,987,482)

The detail of non-cash adjustments to the Consolidated Statements of Cash Flows are as follows:

  Six months ended March 31,
  2024  2023
Non-cash expenses and gains during the period:        
Stock-based compensation $15,609,276  $60,303,367 
Revaluation of derivative liabilities  3,106,223   89,221,391 
Depreciation and amortization  14,310,450   8,523,682 
Issuance of warrants to suppliers  ?   6,814,000 
Deferred income taxes  (3,891,300)  (901,999)
Other financing costs - initial recognition of derivative liabilities  ?   255,960,025 
Impairment of goodwill  28,846,832   ? 
Impairment of right-of-use assets  3,167,608   ? 
Impairment of intangible assets  73,447,067   ? 
Non-cash interest and other operating activities  216,021   (1,745,882)
Loss/(gain) on assets disposal  323,865   ? 
Loss/(gain) on extinguishment of debt  (34,625)  6,452,170 
Total $135,101,417  $424,626,754 

 We invested an additional $8.2 million and recovered $3.2 million in working capital during the six months ended March 31, 2024, and 2023, respectively. Details of changes in working capital are as follows:

  Six months ended March 31,
  2024  2023
Changes in operating assets and liabilities:        
Accounts receivable $671,750  $? 
Inventories  (16,154,711)  ? 
Prepaids and other assets  (726,490)  (8,271,388)
Accounts payable  9,523,141   8,429,257 
Accrued expenses and other liabilities  (77,010)  2,672,040 
Right-of-use assets and lease liabilities  (1,455,446)  345,232 
Total $(8,218,766) $3,175,141 

The net loss attributable to common shareholders after preferred dividends was $193.9 million, or $35.83 net loss per share, for the six months ended March 31, 2024, as compared to a net loss attributable to common shareholders after preferred dividends of $483.8 million, or $6,378.47 loss per share, for the six months ended March 31, 2023. Share counts were adjusted retroactively for reverse stock splits. The net loss for the six months ended March 31, 2024, of $193.9 million included impairment charges totaling $105.5 million mainly due to the uncertainty of future fundings required to support the business and decrease of Company's market capitalization. These write-downs include Bollinger goodwill of $28.8 million, intangible assets for Bollinger ($58.3) and ELMS ($15.1) and the write-down of right-of-use assets of $3.2 million.

Turning to our balance sheets and liquidity, we had $5.3 million and $58.5 million of working capital at March 31, 2024, and Sept. 30, 2023, respectively. Adding back derivative liabilities and liability to issue shares (items settled in stock), the numbers increase to $18.3 million and $133.3 million at March 31, 2024, and Sept. 30, 2023, respectively. We had total cash (including cash equivalents and restricted cash) of $29.8 million at March 31, 2024, versus $155.7 million at Sept. 30, 2023.

Current notes payable were $2.7 million and $7.5 million as of March 31, 2024, and Sept. 30, 2023, respectively.  During the quarter ended March 31, 2024, we paid off $4.9 million in current notes payable that was secured by a mortgage on our Tunica, Mississippi, facility.  We now own Tunica and Mishawaka facilities debt free.

Shareholders' equity was $117.4 million as of March 31, 2024, versus $272.8 million for Sept. 30, 2023. The decrease in stockholders' equity for the six months ended March 31, 2024, reflects the impairment charges of $105.5 and other operating losses of $129.9 million offset by warrant exercises, stock-based compensation and other equity adjustments.

Following are our unaudited Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows for the three and six months ended March 31, 2024, and 2023.


MULLEN AUTOMOTIVE, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)

  March 31, 2024  Sept. 30, 2023 
ASSETS        
CURRENT ASSETS        
Cash and cash equivalents $22,378,089  $155,267,098 
Restricted cash  7,429,572   429,372 
Accounts receivable  ?   671,750 
Inventory  32,961,724   16,807,013 
Prepaid expenses and prepaid inventories  26,114,664   24,955,223 
TOTAL CURRENT ASSETS  88,884,049   198,130,456 
         
Property, plant, and equipment, net  82,803,852   82,032,785 
Intangible assets, net  28,812,583   104,235,249 
Related party receivable  ?   2,250,489 
Right-of-use assets  11,616,450   5,249,417 
Goodwill, net  ?   28,846,832 
Other noncurrent assets  2,002,815   960,502 
TOTAL ASSETS $214,119,749  $421,705,730 
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
CURRENT LIABILITIES        
Accounts payable $22,698,645  $13,175,504 
Accrued expenses and other current liabilities  43,192,512   41,208,929 
Dividends payable  445,205   401,859 
Derivative liabilities  5,124,487   64,863,309 
Liability to issue shares  7,789,786   9,935,950 
Lease liabilities, current portion  1,142,350   2,134,494 
Notes payable, current portion  2,717,804   7,461,492 
Refundable deposits  429,572   429,372 
TOTAL CURRENT LIABILITIES  83,540,361   139,610,909 
         
Liability to issue shares, net of current portion  526,684   1,827,889 
Lease liabilities, net of current portion  12,638,061   3,566,922 
Deferred tax liability  ?   3,891,900 
TOTAL LIABILITIES $96,705,106  $148,897,620 
         
STOCKHOLDERS' EQUITY        
Preferred stock; $0.001 par value; 127,474,455 preferred shares authorized;        
Preferred Series D; 84,572,538 shares authorized; 363,097 and 363,097 shares issued and outstanding at March 31, 2024, and Sept. 30, 2023, respectively (preference in liquidation of $159,000 and $159,000 at March 31, 2024, and Sept. 30, 2023, respectively).  363   363 
Preferred Series C; 26,085,378 shares authorized; 1,211,757 and 1,211,757 shares issued and outstanding at March 31, 2024, and Sept. 30, 2023, respectively (preference in liquidation of $10,696,895 and $10,696,895 at March 31, 2024 and Sept. 30, 2023, respectively).  1,212   1,212 
Preferred Series A; 83,859 shares authorized; 648 and 648 shares issued and outstanding at March 31, 2024, and Sept. 30, 2023, respectively (preference in liquidation of $836 and $836 at March 31, 2024, and Sept. 30, 2023, respectively).  1   1 
Common stock; $0.001 par value; 5,000,000,000 and 5,000,000,000 shares authorized at March 31, 2024, and Sept. 30, 2023, respectively; and 2,871,707 shares issued and outstanding at March 31, 2024, and Sept. 30, 2023, respectively.  7,974   2,872 
Additional paid-in capital  2,151,067,184   2,071,110,126 
Accumulated deficit  (2,055,988,895)  (1,862,162,037)
TOTAL STOCKHOLDERS' EQUITY ATTRIBUTABLE TO THE COMPANY'S STOCKHOLDERS  95,087,839   208,952,537 
Noncontrolling interest  22,326,804   63,855,573 
TOTAL STOCKHOLDERS' EQUITY  117,414,643   272,808,110 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $214,119,749  $421,705,730 
 

MULLEN AUTOMOTIVE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

  Three months ended March 31,  Six months ended March 31, 
  2024  2023  2024  2023 
Revenue                
Vehicle sales $33,335  $?  $33,335  $? 
Cost of revenues  (13,440)  ?   (13,440)  ? 
Gross profit / (loss)  19,895   ?   19,895   ? 
                 
Operating expenses:                
General and administrative $47,903,692  $47,412,338  $91,137,744  $112,408,349 
Research and development  24,023,526   20,478,971   40,193,493   29,100,980 
Impairment of goodwill  28,846,832   ?   28,846,832   ? 
Impairment of right-of-use assets  3,167,608   ?   3,167,608   ? 
Impairment of intangible assets  73,447,067   ?   73,447,067   ? 
Loss from operations  (177,368,830)  (67,891,309)  (236,772,849)  (141,509,329)
                 
Other income (expense):                
Other financing costs - initial recognition of derivative liabilities  ?   ?   ?   (255,960,025)
Gain/(loss) on derivative liability revaluation  3,622,758   (48,439,415)  (3,106,223)  (89,221,391)
Gain/(loss) on extinguishment of debt  34,625   (40,000)  34,625   (6,452,170)
Gain/(loss) on disposal of fixed assets  (449,855)  385,031   (373,865)  385,031 
Gain on lease termination  ?   ?   50,000   ? 
Interest expense  (259,700)  (1,888,169)  (517,723)  (4,716,258)
Other income, net  893,692   482,405   1,439,108   1,128,286 
Net loss before income tax benefit $(173,527,310) $(117,391,457) $(239,246,927) $(496,345,856)
                 
Income tax benefit  2,165,062   482,922   3,891,300   976,576 
Net loss $(171,362,248) $(116,908,535) $(235,355,627) $(495,369,280)
                 
Net loss attributable to noncontrolling interest  (38,930,288)  (1,995,217)  (41,528,769)  (4,180,176)
Net loss attributable to stockholders $(132,431,960) $(114,913,318) $(193,826,858) $(491,189,104)
                 
Waived/(accrued) accumulated preferred dividends  (22,043)  8,039,612   (43,346)  7,400,935 
                 
Net loss attributable to common stockholders after preferred dividends $(132,454,003) $(106,873,706) $(193,870,204) $(483,788,169)
                 
Net Loss per Share $(19.39) $(1,167.18) $(35.83) $(6,378.47)
                 
Weighted average shares outstanding, basic and diluted  6,829,415   91,566   5,410,894   75,847 
                 

MULLEN AUTOMOTIVE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

  Six Months Ended March 31, 
  2024  2023 
Cash Flows from Operating Activities        
Net loss $(235,355,627) $(495,369,280)
Adjustments to reconcile net loss to net cash used in operating activities:        
Stock-based compensation  15,609,276   60,303,367 
Revaluation of derivative liabilities  3,106,223   89,221,391 
Depreciation and amortization  14,310,450   8,523,682 
Issuance of warrants to suppliers  ?   6,814,000 
Deferred income taxes  (3,891,300)  (901,999)
Other financing costs - initial recognition of derivative liabilities  ?   255,960,025 
Impairment of intangible assets  73,447,067   ? 
Impairment of goodwill  28,846,832   ? 
Impairment of right-of-use assets  3,167,608   ? 
Non-cash interest and other operating activities  216,021   (1,745,882)
Loss/(gain) on assets disposal  323,865   ? 
Loss/(gain) on extinguishment of debt  (34,625)  6,452,170 
         
Changes in operating assets and liabilities:        
Accounts receivable  671,750   ? 
Inventories  (16,154,711)  ? 
Prepaids and other assets  (726,490)  (8,271,388)
Accounts payable  9,523,141   8,429,257 
Accrued expenses and other liabilities  (77,010)  2,672,040 
Right-of-use assets and lease liabilities  (1,455,446)  345,232 
Net cash used in operating activities  (108,472,976)  (67,567,385)
         
Cash Flows from Investing Activities        
Purchase of equipment  (12,470,001)  (4,298,563)
Purchase of intangible assets  ?   (204,660)
ELMS assets purchase  ?   (92,916,874)
Net cash used in investing activities  (12,470,001)  (97,420,097)
         
Cash Flows from Financing Activities        
Proceeds from issuance of convertible notes payable  ?   150,000,000 
Payment of notes payable  (4,945,832)  (460,000)
Reimbursement for over issuance of shares  ?   17,819,660 
Net cash provided by financing activities  (4,945,832)  167,359,660 
         
Change in cash  (125,888,809)  2,372,178 
Cash and restricted cash (in amount of $429,372), beginning of period  155,696,470   84,375,085 
Cash and restricted cash (in amount of $7,429,572), ending of period $29,807,661  $86,747,263 
         
Supplemental disclosure of Cash Flow information:        
Cash paid for interest $37,458  $5,028 
Cash paid for income taxes  ?   800 
         
Supplemental Disclosure for Non-Cash Activities:        
Exercise of warrants recognized earlier as liabilities $59,163,019  $268,713,397 
Right-of-use assets obtained in exchange of operating lease liabilities  11,185,901   370,668 
Convertible notes and interest - conversion to common stock  ?   153,222,236 
Reclassification of derivatives to equity upon authorization of sufficient number of shares  ?   47,818,882 
Common stock issued to extinguish other liabilities  ?   10,500,712 
Waiver of dividends by stockholders  ?   6,872,075 
Warrants issued to suppliers  ?   6,814,000 
Debt conversion to common stock  ?   1,096,787 
Extinguishment of operational liabilities by sale of property  ?   767,626 
Extinguishment of financial liabilities by sale of property  ?   231,958 

About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles ("EVs") with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck are California Air Resource Board ("CARB") and EPA certified and available for sale in the U.S. Recently CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, providing up to $45,000 cash voucher at time of vehicle purchase. The Company has also recently expanded its commercial dealer network with the addition of Pritchard EV and National Auto Fleet Group, providing sales and service coverage in key Midwest and West Coast markets. The Company also recently announced Foreign Trade Zone ("FTZ") status approval for its Tunica, Mississippi, commercial vehicle manufacturing center. FTZ approval provides a number of benefits, including deferment of duties owed and elimination of duties on exported vehicles.

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 the timing and receipt of the $150 Million capital commitment, whether such funding will be sufficient to meet the needs of the Company and its affiliated entities, the impact to the Company and its shareholders as a result of the anticipated financing , whether the B4, Class 4 vehicle deliveries will occur in the timeline expected, whether development and production of the Mullen FIVE RS will be completed and launched within the anticipated timeframes, whether governmental grant applications submitted by the Company will be successful and the outcome of the integrated solid-state polymer battery packs in vehicle level testing. 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) 613-1900
www.MullenUSA.com

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
[email protected] 



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