Financial Performance - Mullen reduced cash spend by $85.4M in FY2024 compared to FY2023[2] - Mullen's net loss for FY2024 was $471.0M, compared to $964.9M in FY2023[16] - Total cash and cash equivalents decreased to $10.7 million as of Sept. 30, 2024, from $155.7 million as of Sept. 30, 2023, indicating a significant liquidity challenge[26] - Net loss for the year ended Sept. 30, 2024, was $505.8 million, compared to $1.0 billion in the previous year, showing a reduction in losses[36] - Cost of revenues for 2024 was $16.9 million, including $1.3 million for vehicle sales and $15.6 million in non-cash inventory adjustments[25] - Shareholders' equity/(deficit) was ($16.6) million as of Sept. 30, 2024, compared to $272.8 million as of Sept. 30, 2023, reflecting significant impairment charges and net losses[30] - Impairment charges for goodwill and intangible assets totaled $103.5 million in 2024, compared to $69.9 million in 2023[36] - The company's working capital was negative $120.0 million as of Sept. 30, 2024, compared to positive $58.5 million as of Sept. 30, 2023[26] - Net loss for the year ended September 30, 2024, decreased to $(505.8 million) from $(1.006 billion) in 2023, representing a 49.7% improvement[38] - Net cash used in operating activities for 2024 was $(185.6 million), slightly higher than $(179.2 million) in 2023[38] - Stock-based compensation decreased to $40.4 million in 2024 from $85.4 million in 2023[38] - Impairment of intangible assets increased significantly to $73.4 million in 2024 from $5.9 million in 2023[38] - Net cash provided by financing activities decreased to $56.8 million in 2024 from $358.4 million in 2023[38] - Cash and restricted cash at the end of the period decreased to $10.7 million in 2024 from $155.7 million in 2023[38] Revenue and Sales Growth - Bollinger Motors delivered 31 B4 trucks, generating $4.2M in revenue by FY2025[10] - Mullen invoiced 443 vehicles valued at $21M in FY2024, up from 35 vehicles valued at $1M in FY2023[13][18] - Revenue from vehicle sales increased to $1.1 million in 2024, up from $366,000 in 2023, reflecting growth in this segment[36] Production and Manufacturing - Mullen added three battery production lines in Fullerton, California, including a solid-state polymer R&D line[10] - Mullen Automotive expanded its commercial dealer network to seven dealers, covering key markets in the West Coast, Midwest, Pacific Northwest, New England, and Mid-Atlantic regions[40] - The company began commercial vehicle production in Tunica, Mississippi, in August 2023, with both Mullen ONE and Mullen THREE vehicles now CARB and EPA certified and available for sale in the U.S.[40] - Mullen Automotive has two U.S.-based vehicle plants: Tunica, Mississippi (120,000 sq ft) and Mishawaka, Indiana (650,000 sq ft)[40] - The company applied for $55 million in matching DOE funds to support its U.S. manufacturing capabilities[42] Incentives and Rebates - Bollinger B4 Class 4 electric trucks qualify for up to $60,000 HVIP rebate and $40,000 federal tax credit[14] - Mullen's Class 3 EV truck received a $45,000 HVIP cash voucher per vehicle sold in California[13] - Mullen's Class 1 EV cargo van received a $3,500 MOR-EV rebate in Massachusetts, reducing net cost to $23,500[13] Inventory and Working Capital - Inventory increased to $37.5 million as of Sept. 30, 2024, from $16.8 million as of Sept. 30, 2023, indicating higher stock levels[33] - Total cash spent (operating and investing cash flows) for the year ended Sept. 30, 2024, was $201.7 million, down from $287.1 million in 2023[28] Funding and Financing - Mullen seeks $55M in DOE matching funds for U.S.-based battery and pack production[11] - The company issued new senior secured convertible notes totaling $61.7 million during the year ended Sept. 30, 2024[27]

Core Insights - Mullen Automotive Inc. reported its strongest quarter to date, invoicing $4.4 million and receiving $6 million for vehicles delivered, surpassing revenue from the previous two fiscal years [1][2] - The company has implemented cost-cutting measures, reducing annual cash spend by approximately $13 million through headcount and personnel cost reductions [1][2] Financial Performance - For the three months ended December 31, 2024, Mullen recorded a net loss of $114.9 million, or $661.33 per share, compared to a net loss of $61.4 million, or $91,940.42 per share, for the same period in 2023 [5][22] - Non-cash expenses accounted for $91 million, or 79% of the total loss for the quarter, compared to $23.3 million, or 38% of the loss in the same quarter of the previous year [6][22] - Revenue from vehicle sales was $2.9 million, with 58 vehicles invoiced during the quarter [8][22] Sales and Orders - Recent sales include the Mullen ONE EV cargo van purchased by Mr. Appliance and Mullen THREE Class 3 EV trucks sold to Westland Floral and Associated Coffee [4] - Two California universities placed orders for Class 1 EV cargo vans, indicating growing adoption of Mullen's commercial EVs [4] Operational Developments - Mullen has made progress in U.S. battery production, with three battery lines installed in Fullerton, California, and is seeking $55 million in matching funds from the U.S. Department of Energy [11] - Bollinger Motors, a subsidiary, delivered 20 B4 trucks, generating additional revenues of $2.8 million and expanding its sales and service network to over 50 locations [4][9] Liquidity and Financing - As of December 31, 2024, Mullen had total cash of $2.7 million, down from $10.7 million on September 30, 2024, with negative working capital of $186.2 million [13][22] - The company raised $8.8 million through senior secured convertible notes and warrants during the quarter, and Bollinger Motors received a $10 million long-term loan [14][15]

Company achieves strongest quarter results to date with $4.4M invoiced and $6M received on vehicles delivered Company has produced more revenue in this quarter than previous two fiscal years On Feb. 1, 2025, Mullen implemented further cost cutting measures with headcount and personnel cost reductions of approximately $13M in annual cash spend BREA, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, ...

BREA, Calif., Feb. 13, 2025 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announced today that it will effect a 1-for-60 reverse stock split (“Reverse Stock Split”) of its common stock, par value $0.001 per share (“Common Stock”), that will become effective on Feb. 18, 2025, at 12:01 a.m. Eastern Time. The Common Stock will continue to trade on The Nasdaq Capital Market (“Nasdaq”) under the existing symbol MULN and ...

Core Viewpoint - A class action lawsuit has been filed against Mullen Automotive Inc. for allegedly making materially false and misleading statements, violating federal securities laws, which has led to a significant drop in its share prices [1]. Group 1: Lawsuit Details - The lawsuit was filed in the U.S. District Court for the Central District of California on February 12, 2025, against Mullen and certain officers [1]. - The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 during the Class Period from February 3, 2023, to March 13, 2025 [1]. - The lawsuit seeks to recover damages for all Mullen investors who purchased securities during the Class Period [2]. Group 2: Impact on Share Prices - Following the disclosures revealing the truth about Mullen's operations, the company's share prices experienced a significant decline [1]. Group 3: Legal Representation - Federman & Sherwood, a law firm with extensive experience in securities class actions, is representing the plaintiffs [3]. - The Managing Partner, William B. Federman, has a history of serving as counsel for shareholders and has handled over sixty class action suits [3].

Core Viewpoint - Mullen Automotive is enhancing its U.S. battery production capabilities by acquiring new equipment from Nikola Corporation, aiming to produce American-made battery components and reduce reliance on foreign imports [2][3][5]. Group 1: Battery Production Capabilities - The Fullerton facility will feature high-volume standard battery chemistry production lines and advanced testing capabilities, with production expected to start in the second half of 2025 [1][3]. - Recently purchased assets from Nikola include a high-volume standard battery chemistry production line and an electro-dynamic shaker system for in-house testing [3][8]. Group 2: Strategic Goals - Mullen is focused on increasing U.S. manufacturing capabilities in response to the growing demand for American-made battery components and systems [3][4]. - The company plans to produce its own commercial vehicle battery packs and explore other industry applications and commercial sales opportunities [3]. Group 3: Financial and Operational Developments - In September 2023, Mullen acquired battery production assets from Romeo Power for approximately $3.5 million, which included equipment, inventory, and intellectual property [5]. - Mullen is seeking $55 million in matching funds from the U.S. Department of Energy to support its U.S.-based battery and pack production initiatives [5]. Group 4: Company Overview - Mullen Automotive is based in Southern California and operates two vehicle plants in the U.S., with commercial vehicle production having begun in Tunica, Mississippi [6]. - The Mullen ONE and Mullen THREE models are certified by the California Air Resource Board and EPA, and are available for sale in the U.S. [6].

Core Viewpoint - Mullen Automotive is enhancing its U.S. battery production capabilities by acquiring new equipment from Nikola Corporation, aiming to produce next-generation, American-made battery packs and modules to support its commitment to zero emissions and reduce reliance on foreign battery components [2][3][5]. Group 1: Battery Production Capabilities - The Fullerton facility will feature multiple battery production lines and testing capabilities, including two high-volume standard battery chemistry lines and a full battery testing laboratory [3][8]. - Mullen plans to start production in the second half of 2025, focusing on manufacturing its own commercial vehicle battery packs and exploring other industry applications [1][3]. Group 2: Recent Acquisitions and Investments - Mullen's recent purchase from Nikola includes a high-volume standard battery chemistry production line and an electro-dynamic shaker system for in-house testing [3][5]. - The company previously acquired battery production assets from Romeo Power for approximately $3.5 million, which included equipment, inventory, and intellectual property for high-volume EV battery production [5]. Group 3: Strategic Goals and Funding - Mullen is seeking $55 million in matching funds from the U.S. Department of Energy to support its U.S.-based battery and pack production initiatives [5]. - The company emphasizes its commitment to transitioning to American-made battery components, with operations based in Southern California [4]. Group 4: Company Overview - Mullen Automotive is based in Southern California and operates two vehicle plants in the U.S., with a focus on building the next generation of commercial electric vehicles [6]. - The company has begun commercial vehicle production and has expanded its dealer network to seven dealers across key U.S. markets [6].

This is the second Commercial EV order from two leading California public universities Vehicle orders include the Mullen ONE, Class 1 EV cargo van. Two leading California universities in Los Angeles and the San Francisco Bay Area have placed additional orders for Mullen’s commercial electric vehicles Additional orders include five Mullen ONE, Class 1 EV cargo vans BREA, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric ve ...

Financial Performance and Liquidity - The company has incurred net losses of $505.8 million and $1,006.7 million for the years ended September 30, 2024 and 2023, respectively[126] - As of September 30, 2024, the company had an accumulated deficit of $2.3 billion[126] - The company used approximately $185.6 million of cash for operating activities during the twelve months ended September 30, 2024[131] - The company's principal source of liquidity consists of existing cash and restricted cash of approximately $10.7 million as of September 30, 2024[132] - The company's net working capital was negative and reached $120.0 million as of September 30, 2024[132] - The company had an aggregate amount of approximately $20.3 million of Senior Convertible Notes as of September 30, 2024[135] - The interest rate on the Convertible Notes increased from 15% to 20% due to cross-default[135] - Non-cash impairment charges in fiscal 2024 amounted to $119.2 million, compared to $84.6 million in fiscal 2023[144] - The company does not plan to pay cash dividends on its common stock in the foreseeable future[147] - The company's financial results may fluctuate significantly due to operating costs and product development timelines[146] - The company has a limited operating history, with vehicle deliveries starting only in December 2023, and faces substantial doubt about its ability to continue as a going concern[190] Internal Controls and Financial Reporting - The company has identified material weaknesses in its internal control over financial reporting as of September 30, 2024[139] - The company's management concluded that internal control over financial reporting was not effective due to material weaknesses[139] - The company is working to remediate material weaknesses by hiring additional qualified accounting and financial reporting personnel[139] - Non-compliance with Section 404 of the Sarbanes-Oxley Act could harm the company's ability to produce timely and accurate financial statements[289] - Significant additional professional fees, internal costs, and management efforts are anticipated for building accounting and financial functions and infrastructure[288] - Implementation of a new internal system to streamline financial, accounting, HR, and other functions may result in substantial costs and potential disruptions[288] Stock and Market Risks - The company implemented multiple reverse stock splits, including a 1-for-25 in May 2023, a 1-for-9 in August 2023, and two 1-for-100 splits in December 2023 and September 2024[149][150] - The company regained compliance with Nasdaq's Bid Price Rule after the September 2024 reverse stock split[150] - Nasdaq may delist the company's stock if it fails to meet the Bid Price Rule again, as it has already executed reverse splits with a cumulative ratio of 250 shares or more to one[152] - Delisting to OTC Markets could reduce liquidity and make it harder for investors to sell shares[153][154] - Reverse stock splits may decrease liquidity and increase the number of odd-lot shareholders, potentially raising selling costs[155] - The company's stock could be classified as "penny stock" if delisted from Nasdaq, imposing additional trading restrictions[159] - The company's stock price may decline due to substantial sales or issuances of shares, particularly by significant stockholders or if a large number of shares are available for sale[175] - The company's stock price has been volatile and may drop below the price paid by investors due to market fluctuations and external factors[182] - The company's common stock ranks below all debt claims and preferred stock in the event of liquidation, dissolution, or winding up, meaning common stockholders would not receive payment until all senior obligations are satisfied[184] Debt and Financing - The company issued $52.6 million of 5% Original Issue Discount Senior Secured Notes convertible into shares of common stock and five-year warrants exercisable for shares of common stock on May 14, 2024[165] - Investors have the right to purchase an additional $52.6 million of Notes and related Warrants by July 9, 2025, under the same terms as the Securities Purchase Agreement[165] - The company entered into an Additional Investment Rights Agreement on December 12, 2024, allowing investors to purchase additional Notes worth approximately $4.6 million and related Warrants until December 12, 2025[165] - The company issued 247,934 shares of common stock as commitment shares in August and September 2024, and 502,066 shares with proceeds of approximately $1.1 million on October 24, 2023, under the ELOC Purchase Agreement[172] - The company has the right to sell shares of common stock with a total maximum aggregate purchase price of $150 million under the ELOC Purchase Agreement until the 36-month anniversary of the commencement date or termination of the agreement[172] - As of January 21, 2025, the company had outstanding 61,595,743 shares of common stock[176] - The company's outstanding preferred stock, Notes, and Warrants contain weighted average anti-dilution provisions that could increase the number of shares issuable upon conversion if future common stock is issued at a lower price[177] Supply Chain and Production Risks - The company sources a significant portion of its vehicle components from China, and any disruption in supply could lead to production delays and adverse effects on its financial condition[203][204][205] - The company is heavily reliant on a limited number of OEMs, suppliers, and service providers, with one customer representing 100% of total revenue for the year ended September 30, 2023, and 64% for the year ended September 30, 2024[212] - The company faces significant risks if any of its suppliers or partners fail to meet agreed timelines, experience capacity constraints, or become unable to continue their commitments, which could disrupt production and harm business prospects[210][219] - The company relies on complex machinery and software systems for production, which are subject to unexpected malfunctions, defects, and errors, potentially impacting operational efficiency and competitive position[213][215] - The company may face challenges in accurately estimating supply and demand for its vehicles, leading to inefficiencies, increased costs, or delays in production and revenue[224] - The company is exposed to risks related to the supply and pricing of raw materials, particularly lithium-ion battery cells, which are critical for its vehicle production[225][227] - The company's vehicles may contain design or manufacturing defects, leading to recalls, delays, or compensation claims, which could harm its brand and financial performance[228] - The company has minimal experience in servicing and repairing its vehicles, and the inability to establish a widespread service network could adversely affect customer satisfaction and business reputation[229][230] - The company may be negatively impacted by the early obsolescence of its manufacturing equipment or vehicles, leading to accelerated depreciation and potential harm to its competitive position[217][218] Market and Competitive Risks - The company operates in a highly competitive automotive market, with many competitors having greater financial and technical resources, which could lead to lower sales and downward price pressure[232] - The company's future growth depends on the adoption of electric vehicles by fleet managers and consumers, which is influenced by factors such as raw material prices, fuel costs, and government regulations[235][236] - Factors influencing EV adoption include perceptions of quality, safety, design, performance, cost, limited range, charging access, fuel price volatility, competition, and government regulations[237] - The company's EVs use lithium-ion battery cells, which pose risks of fire, bodily injury, or death, potentially leading to lawsuits, recalls, or redesign efforts[207] - Battery cell degradation in EVs may negatively influence potential customers' purchase decisions due to reduced vehicle range over time[208] Regulatory and Legal Risks - Changes in tax laws, including potential modifications to the Tax Cuts and Jobs Act, could impact the company's financial condition and operating results[238] - Reduction or elimination of government incentives for EVs, such as rebates and tax credits, could negatively affect the EV market and the company's business operations[239][240][241] - The company relies on government grants, loans, and tax incentives for alternative fuel and EV production, but there is no guarantee of future availability[242][243] - Compliance with laws and regulations could be costly and restrict business operations, potentially impacting revenues and profits[263] - Vehicles must comply with stringent motor vehicle safety standards, with non-compliance risking material adverse effects on business[273] - Evolving regulations in the electric vehicle industry could lead to increased compliance costs and operational challenges[274][275] - Product liability claims could harm financial condition, with potential for substantial monetary awards and negative publicity[278] - Legal proceedings, regulatory actions, and government investigations may result in material adverse effects on business and financial condition[280][282] - Environmental laws and regulations could impose substantial costs and delays in operating manufacturing facilities[291] - Liability for contamination under environmental laws could result in significant remediation costs and impact financial condition[292] - High percentage of Mullen parts sourced from China, making the company vulnerable to U.S.-China trade conflicts and tariffs[293] - Uyghur Forced Labor Prevention Act could disrupt supply chain and cause shortages, delays, or price increases[294] - Rising political tensions and tariffs could adversely affect global economic conditions and the company's business[296] - Limitations on the use of net operating loss (NOL) carryforwards due to ownership changes could increase future income tax liability[297] Cybersecurity and Intellectual Property Risks - Cybersecurity risks, including data breaches and compliance with privacy regulations like GDPR and CCPA, could harm the company's operations and reputation[259][260][262] - Significant resources required to address cybersecurity threats and privacy compliance, with potential customer trust loss and legal claims if breached[264] - Potential patent or trademark infringement claims could lead to substantial costs, redesigns, or licensing issues, harming competitive position[265][266] - Intellectual property protection challenges globally, with weaker enforcement outside the U.S., risking competitive advantage loss[268] - Future patent applications may not be granted, limiting protection against competitors with similar technologies[269][270] - Risk of trade secret misuse claims from employees' former employers, potentially leading to litigation costs and loss of key personnel[271] Operational Expansion and Growth - The company plans significant operational expansion, requiring improved financial systems, controls, and automation to manage growth effectively[245][246] - Insufficient warranty reserves to cover future claims could materially impact the company's financial condition and operating results[247] - The company's international expansion faces risks such as currency fluctuations, trade barriers, regulatory changes, and political instability[250] - The company is highly dependent on its CEO, David Michery, for strategic direction and execution[251] - Related party transactions, including those with DRIVEiT, could create conflicts of interest and impair investor confidence[253][254] Acquisitions and Strategic Moves - The company acquired Bollinger Motors, Inc. and assets from Electric Last Mile Solutions, Inc. in Q3 2022, and acquired battery production lines from Romeo Power in September 2023[196]

Company Performance and Financials - The company finished FY2024 with growth in its national dealer network, increased vehicle sales, and reduced cash spend by $85.4M compared to FY2023 [1] - Net loss attributable to common shareholders was $471.0M, or $1,425.6 per share, for FY2024, compared to a net loss of $964.9M, or $157,405 per share, for FY2023 [13] - Revenue for FY2024 was $1.1M, up from $0.4M in FY2023, with 443 commercial vehicles invoiced at $21M compared to 35 vehicles invoiced at $1M in FY2023 [15][16] - The company had total cash of $10.7M as of Sept 30, 2024, down from $155.7M in FY2023, with negative working capital of $120.0M [23] - Total cash spent (operating and investing) was $201.7M in FY2024, down from $287.1M in FY2023 [25] Commercial EV Business - The company now has three EV production lines in the US supporting Mullen Class 1 and 3 and Bollinger Class 4 commercial vehicles [2] - Mullen successfully launched Bollinger Motors B4 production and sales, delivering 31 B4 trucks and recognizing $4.2M in revenue as of FY2025 [9][10] - The company expanded its dealer network from one to seven dealers, with 443 vehicles invoiced in FY2024 compared to 35 in FY2023 [11] - Recent orders include 10 Class 3 EV trucks from Associated Coffee and two Mullen THREE trucks from Westland Floral [10] - The Bollinger B4 Class 4 truck is eligible for up to $100,000 in incentives under New York State's Truck Voucher Incentive Program [10] Operational Efficiency and Cost Reduction - The company achieved an $85.4M reduction in cash spend in FY2024 compared to FY2023 [1] - Further cost-cutting measures are expected to drive a $13M annual reduction in cash spend effective Feb 1, 2025 [2] - The company has focused on eliminating non-critical operating expenses to minimize costs for 2025 [6] Battery Technology and Manufacturing - The company made progress in battery production with three new battery lines installed in Fullerton, California, including a solid-state polymer R&D line [10] - Mullen is seeking $55M in matching DOE funds to support US-based battery and pack production at its facilities in Mishawaka, Indiana, and Fullerton, California [10] - The company has invested $12M to date in battery and pack development and manufacturing, with plans to release its first production units in late 2025 [19] Industry Challenges and Market Position - The EV industry faced challenges in 2024, with slower-than-expected growth rates in the retail market, but Mullen focuses on the commercial market where adoption is still in early stages [3] - The company faces challenges such as high interest rates, supply chain issues, and regulatory hurdles, but has made significant progress in areas like vehicle certification and production [4] - Mullen believes its real estate assets, manufacturing capabilities, and intellectual property portfolio exceed its current market capitalization [5]