Commenting on fiscal year 2023 (“FY2023”) and recent Company developments, CEO and chairman David Michery stated, “Mullen has initiated production in
FY2023 and Recent Highlights Include:
- During the fiscal year ended
Sept. 30, 2023 , the Company recorded first revenues of$366,000 and delivered vehicles worth$652,200 toRandy Marion Automotive for resale. - Production of
Mullen Class 3 (“Mullen THREE”) vehicles began inAugust 2023 , and Class 1 (“Mullen ONE”) vehicle production began inNovember 2023 ; the Company now has two distinct vehicle production lines running in itsTunica, Mississippi -based plant. - As of
Dec. 31, 2023 , Mullen has delivered 100 Class 1 vehicles and invoiced for$3.3 million toRandy Marion Automotive Group . - As of
Dec. 31, 2023 , Mullen has delivered 141 Class 3 vehicles and invoiced for$9.2 million toRandy Marion Automotive Group . - 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. - The Company also achieved important milestones, including receiving 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. - The
New York Power Authority ,British Airways ,University of North Carolina andMGT Lease Company all purchased Mullen’s Campus Urban Delivery EV cargo vans in 2023 fiscal year. - In
May 2023 , Mullen announced a partnership withAmerit Fleet Solutions to support national service, parts and warranty for commercial vehicles. - Successfully completed second leg of “Strikingly Different” Test Drive Tour with 13 stops throughout
the United States demonstrating Mullen’s vehicle portfolio.
- The Company has received
$263 million in purchase orders forMullen Class 1 and Class 3 EV vans and trucks fromRandy Marion Automotive Group . - Mullen received EPA certification for Class 3 EV commercial vehicles in
September 2023 , and for Class 1 EV cargo vans inNovember 2023 . - Mullen received CARB certification from the state of
California for Class 1 vehicles inDecember 2023 , and expects Class 3 certification inJanuary 2024 . - Mullen and RRDS submitted final Ruling Request Application for substantial transformation of its Class 1 EV cargo van for
U.S. Border Patrol to provide 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. By successfully completing the substantial transformative process, the Mullen ONE will be defined as aU.S. -made end product. - Production of the Mullen Class 3 vehicle began in
August 2023 and Class 1 vehicle production began inNovember 2023 . - As of
Dec. 31, 2023 , Mullen has delivered 100 Class 1 vehicles and invoiced for$3.3 million toRandy Marion Automotive Group . - As of
Dec. 31, 2023 , Mullen has delivered 141 Class 3 vehicles and invoiced for$9.2 million toRandy Marion Automotive Group .
Class 4 – 6 Commercial Vehicles | Bollinger B1 SUV and B2 Pick Up Truck
- Showcased Bollinger Class 4 (“B4”) at the ACT Expo in
Anaheim, California , and atHome Delivery World show inPhiladelphia, Pennsylvania . - Received approval from the state of
Michigan for a$3 million grant aimed at promoting job creation from the Michigan Strategic Fund Board. - Finalized the design of the Bollinger B4 and successfully built all design validation vehicles in the third quarter at launch assembly facility of
Roush Industries inLivonia, Michigan . - B4 vehicles that were built are now in design validation and testing, certification and homologation, as well as for customer evaluation purposes.
- Company focus now also includes national build out of retail dealer network to support upcoming 2024 B4 vehicle launch.
Amerit Fleet Solutions has been contracted to provide national service and warranty work, supporting Bollinger’s commercial vehicles.
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. - World debut of the production intent designed
FIVE RS took place onJan. 9, 2024 , at CES 2024 inLas Vegas . - Completed 13-city
U.S. “Strikingly Different” tour providing consumers test drive opportunities with the high- performance MullenFIVE RS , FIVE EV crossover, Mullen GT EV sports car, Mullen THREE Class 3 EV cab chassis truck and Mullen ONE Class 1 EV cargo van.
Mullen-GO(TM)
Mullen’s 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
- On
July 17, 2023 , the Company announced a 30-unit purchase order for the Mullen-GO Commercial Urban Delivery EV fromNewgate 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
Mullen Automotive purchased the battery pack production assets from Romeo Power. InNovember 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 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 – Twelve Months Ended
Following is a summary of key financial results for the twelve-months ended
First Revenue and Deliveries
During fiscal 2023, the Company achieved the major milestone of bringing Mullen vehicles from development to production and sales. Mullen delivered 35 vehicles, generating a positive gross margin from sales to both dealer and end users. Revenue from 25 Campus Urban Delivery vehicle sales was
At the end of fiscal 2023, the Company issued the first invoice for 10 Mullen THREE vehicles (
During the three months ended
Invoiced for the year ended | ||||||||
# | Type | Units Invoiced | Amount invoiced | Cash received | Revenue recognized | |||
1 | Campus Urban Delivery (UD0) | 25 | 366,000 | 366,000 | 366,000 | |||
2 | Mullen THREE (UU) | 10 | 652,200 | 652,200 | - | |||
Total | 35 | $ | 1,018,200 | $ | 1,018,200 | $ | 366,000 | |
Invoiced for the quarter ended | ||||||||
# | Type | Units Invoiced | Amount invoiced | Cash received | Revenue recognized | |||
1 | Mullen THREE (UU) | 131 | 8,543,820 | - | - | |||
2 | Mullen ONE (UD1) | 100 | 3,363,500 | - | - | |||
Total | 231 | $ | 11,907,320 | $ | - | $ | - |
**Invoiced with 30 day payment terms to RMA
Impairment of Assets
“It was a year of significant headwinds in the equity market for electric vehicle manufactures with a majority seeing a significant decrease in market values during 2023. Mullen was no exception, and the decreased market value was the primary cause of NON-CASH write-downs of certain assets. We recorded
Following are the Consolidated Statements of Operations for the twelve months ended
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
Year Ended | |||||||
2023 | 2022 | ||||||
Revenue | |||||||
Vehicle sales | $ | 366,000 | $ | — | |||
Cost of sales | (273,882 | ) | — | ||||
Gross margin | 92,118 | — | |||||
Operating expenses: | |||||||
General and administrative | $ | 215,846,132 | $ | 75,338,256 | |||
Research and development | 77,387,336 | 21,650,840 | |||||
Impairment of goodwill | 63,988,000 | — | |||||
Impairment of property, plant, and equipment, and other non-current assets | 14,770,000 | — | |||||
Impairment of intangible assets | 5,873,000 | — | |||||
Loss from operations | (377,772,350 | ) | (96,989,096 | ) | |||
Other income (expense): | |||||||
Other financing costs - initial recognition of derivative liabilities | (506,238,038 | ) | (484,421,258 | ) | |||
Gain / (loss) on derivative liability revaluation | (116,256,212 | ) | (122,803,715 | ) | |||
Gain / (loss) extinguishment of debt, net | (6,246,089 | ) | 33,413 | ||||
Gain / (loss) on financing | (8,934,892 | ) | — | ||||
Gain / (loss) on sale of fixed assets | 386,377 | (50,574 | ) | ||||
Gain / (loss) on lease termination | (125,000 | ) | — | ||||
Interest expense | (4,993,140 | ) | (26,949,081 | ) | |||
Penalty for insufficient authorized shares | — | (3,495,000 | ) | ||||
Other income (expense), net | 2,532,034 | (5,647,841 | ) | ||||
Net loss before income tax benefit | (1,017,647,310 | ) | (740,323,152 | ) | |||
Income tax benefit/ (provision) | 10,988,482 | (1,600 | ) | ||||
Net loss | (1,006,658,828 | ) | (740,324,752 | ) | |||
Net loss attributable to noncontrolling interest | (34,404,246 | ) | (791,946 | ) | |||
Net loss attributable to stockholders | (972,254,582 | ) | (739,532,806 | ) | |||
Waived/(Accrued) accumulated preferred dividends | 7,360,397 | (40,516,440 | ) | ||||
Net loss attributable to common stockholders after preferred dividends | $ | (964,894,185 | ) | $ | (780,049,246 | ) | |
Net Loss per Share | $ | (1,574.14 | ) | $ | (63,085.26 | ) | |
Weighted average shares outstanding, basic and diluted | 612,964 | 12,365 |
The net loss attributable to common stockholders after preferred dividends was
Cash Flows
There was
Adjustments to reconcile net loss to net cash used in operating activities: | Year Ended | |||||
2023 | 2022 | |||||
Depreciation and amortization | $ | 16,388,299 | $ | 3,282,285 | ||
Stock-based compensation | 85,441,869 | 43,715,242 | ||||
Deferred income taxes | (10,990,882 | ) | 1,600 | |||
Revaluation of derivative liabilities | 116,256,212 | 122,803,715 | ||||
Initial recognition of derivative liabilities | 513,052,038 | 484,421,258 | ||||
Impairment of goodwill | 63,988,000 | — | ||||
Impairment of property, plant, and equipment | 14,770,000 | — | ||||
Impairment of intangible assets | 5,873,000 | — | ||||
Non-cash financing loss on over-exercise of warrants | 8,934,892 | — | ||||
Non-cash interest and other operating activities | 199,998 | 13,883,637 | ||||
Amortization of debt discount | 662,047 | 19,595,915 | ||||
Loss/(gain) on asset disposal | (386,377 | ) | 50,574 | |||
Loss/(gain) on extinguishment of debt | 6,246,089 | 41,096 | ||||
$ | 820,435,185 | $ | 687,795,322 |
Summary category totals from the Condensed Consolidated Statement of Cash Flows for the years ended
Year Ended | |||||||
2023 | 2022 | ||||||
Net cash used in operating activities | $ | (179,172,191 | ) | $ | (65,795,610 | ) | |
Net cash used in investing activities | $ | (107,923,309 | ) | $ | (47,154,109 | ) | |
Net cash provided by financing activities | $ | 358,416,885 | $ | 197,282,630 |
Included in these numbers is
Following are the Consolidated Statements of Cash Flows for the twelve months ended
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
Year Ended | |||||||
2023 | 2022 | ||||||
Cash Flows from Operating Activities | |||||||
Net loss | $ | (1,006,658,828 | ) | $ | (740,324,752 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 16,388,299 | 3,282,285 | |||||
Stock-based compensation | 85,441,869 | 43,715,242 | |||||
Deferred income taxes | (10,990,882 | ) | 1,600 | ||||
Revaluation of derivative liabilities | 116,256,212 | 122,803,715 | |||||
Initial recognition of derivative liabilities | 513,052,038 | 484,421,258 | |||||
Impairment of goodwill | 63,988,000 | — | |||||
Impairment of property, plant, and equipment, and other non-current assets | 14,770,000 | — | |||||
Impairment of intangible assets | 5,873,000 | — | |||||
Non-cash financing loss on over-exercise of warrants | 8,934,892 | — | |||||
Non-cash interest and other operating activities | 199,998 | 13,883,637 | |||||
Amortization of debt discount | 662,047 | 19,595,915 | |||||
Loss/(gain) on asset disposal | (386,377 | ) | 50,574 | ||||
Loss/(gain) on extinguishment of debt | 6,246,089 | 41,096 | |||||
Changes in operating assets and liabilities: | |||||||
Prepaids and other current assets | (22,687,245 | ) | 3,114,540 | ||||
Inventories | (16,807,013 | ) | — | ||||
Accounts payable | 7,784,136 | 1,192,113 | |||||
Accrued expenses and other liabilities | 38,500,352 | (18,013,899 | ) | ||||
Right of use assets and lease liabilities | 261,222 | 441,066 | |||||
Net cash used in operating activities | (179,172,191 | ) | (65,795,610 | ) | |||
Cash Flows from Investing Activities | |||||||
Purchase of equipment | (14,508,004 | ) | (11,606,944 | ) | |||
Purchase of intangible assets | (498,431 | ) | (415,181 | ) | |||
ELMS assets purchase | (92,916,874 | ) | (5,500,000 | ) | |||
Acquisition of | - | (29,631,984 | ) | ||||
Net cash used in investing activities | (107,923,309 | ) | (47,154,109 | ) | |||
Cash Flows from Financing Activities | |||||||
Proceeds from issuance of convertible notes payable | 170,000,000 | 12,240,353 | |||||
Payment of notes payable | (20,694,353 | ) | (15,100,768 | ) | |||
Proceeds from issuance of preferred stock, common stock and prefunded warrants in lieu of preferred stock | 196,999,970 | 142,873,667 | |||||
Reimbursement for over issuance of shares | 17,721,868 | — | |||||
Payments to acquire treasury stock | (5,610,600 | ) | — | ||||
Proceeds from issuance of common stock | - | 42,269,378 | |||||
Proceeds from issue of prefunded warrants | - | 15,000,000 | |||||
Net cash provided by financing activities | 358,416,885 | 197,282,630 | |||||
Increase in cash | 71,321,385 | 84,332,911 | |||||
Cash, cash equivalents and restricted cash (in amount of | 84,375,085 | 42,174 | |||||
Cash, cash equivalents and restricted cash (in amount of | $ | 155,696,470 | $ | 84,375,085 | |||
Supplemental disclosure of Cash Flow information: | |||||||
Cash paid for interest | $ | 122,501 | $ | 1,407,988 | |||
Cash paid for taxes | — | — | |||||
Supplemental Disclosure for Non-Cash Activities: | |||||||
Convertible notes and interest - conversion to common stock | $ | 167,070,343 | $ | 17,339,000 | |||
Exercise of warrants recognized earlier as liabilities | 627,836,463 | 555,161,139 | |||||
Reclassification of derivatives to equity upon authorization of common shares | 47,818,882 | — | |||||
Waiver of dividends by stockholders | 7,387,808 | — | |||||
Common stock issued to extinguish other liabilities | 5,524,838 | — | |||||
Notes issued to extinguish liability to issue stock | 11,597,571 | — | |||||
Right-of-use assets obtained in exchange of operating lease liabilities | 2,112,773 | 4,081,716 | |||||
Extinguishment of financial liabilities by sale of property | 238,259 | — | |||||
Extinguishment of operational liabilities by sale of property | 760,669 | — | |||||
Preferred shares issued in exchange for convertible debt | — | 24,988,926 | |||||
Stock based payment for business acquired | — | 41,577,647 | |||||
Conversion of a note payable to a liability to issue shares | — | 10,413,900 |
Financial Position
As of
The net working capital on
Following are Consolidated Balance Sheets as of
CONSOLIDATED BALANCE SHEETS | |||||||
2023 | 2022 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 155,267,098 | $ | 54,085,685 | |||
Restricted cash | 429,372 | 30,289,400 | |||||
Accounts receivable | 671,750 | — | |||||
Inventory | 16,807,013 | — | |||||
Prepaid expenses and other current assets | 24,955,223 | 1,958,759 | |||||
TOTAL CURRENT ASSETS | 198,130,456 | 86,333,844 | |||||
Property, plant, and equipment, net | 82,032,785 | 14,803,716 | |||||
Intangible assets, net | 104,235,249 | 93,947,018 | |||||
Deposit on ELMS assets purchase | — | 5,500,000 | |||||
Related party receivable | 2,250,489 | 1,232,387 | |||||
Right-of-use assets | 5,249,417 | 4,597,052 | |||||
28,846,832 | 92,834,832 | ||||||
Other non-current assets | 960,502 | 3,345,631 | |||||
TOTAL ASSETS | $ | 421,705,730 | $ | 302,594,479 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 13,175,507 | $ | 6,109,425 | |||
Accrued expenses and other current liabilities | 41,201,929 | 7,185,881 | |||||
Dividends payable | 401,859 | 7,762,255 | |||||
Derivative liabilities | 64,863,309 | 84,799,179 | |||||
Liability to issue shares | 9,935,950 | 10,710,000 | |||||
Lease liabilities, current portion | 2,134,494 | 1,428,474 | |||||
Notes payable, current portion | 7,461,492 | 3,856,497 | |||||
Refundable deposits | 429,372 | 289,000 | |||||
Other current liabilities | 7,000 | 90,372 | |||||
TOTAL CURRENT LIABILITIES | 139,610,909 | 122,231,083 | |||||
Notes payable, net of current portion | — | 5,164,552 | |||||
Liability to issue shares, net of current portion | 1,827,889 | — | |||||
Lease liabilities, net of current portion | 3,566,922 | 3,359,354 | |||||
Deferred tax liability | 3,891,900 | 14,882,782 | |||||
TOTAL LIABILITIES | 148,897,620 | 145,637,771 | |||||
Commitments and Contingencies (Note 19) | |||||||
STOCKHOLDERS' EQUITY | |||||||
Preferred stock; | |||||||
Preferred Series D; 437,500,001 shares authorized; 363,097 and 4,359,652 shares issued and outstanding at | 363 | 4,359 | |||||
Preferred Series C; 40,000,000 shares authorized; 1,211,757 and 1,360,321 shares issued and outstanding at | 1,212 | 1,360 | |||||
Preferred Series A; 200,000 shares authorized; 648 and 1,924 shares issued and outstanding at | 1 | 2 | |||||
Common stock; | 2,872 | 37 | |||||
Additional paid-in capital (*) | 2,071,110,126 | 948,598,587 | |||||
Accumulated deficit | (1,862,162,037 | ) | (889,907,455 | ) | |||
TOTAL STOCKHOLDERS' EQUITY ATTRIBUTABLE TO THE COMPANY'S STOCKHOLDERS | 208,952,537 | 58,696,890 | |||||
Noncontrolling interest | 63,855,573 | 98,259,819 | |||||
TOTAL STOCKHOLDERS' EQUITY | 272,808,110 | 156,956,709 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 421,705,730 | $ | 302,594,479 | |||
(*) Adjusted retroactively for reverse stock splits, see Note 1 |
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 Mullen will achieve its battery module and pack development objectives; whether the Company will receive CARB certification from the state of
Contact:
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www.MullenUSA.com
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Source:
2024 GlobeNewswire, Inc., source