Net Element(MULN) - 2025 Q1 - Quarterly Results

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]