Net Element(MULN)2025-02-19 22:34Revenue and Sales Performance - Revenue from vehicle sales for the three months ended December 31, 2024, was $2,920,485, an increase of $3.0 million compared to the same period in 2023, primarily due to the sale of 20 Bollinger B4 vehicles[289]. Financial Losses and Expenses - The net loss attributable to common stockholders for the three months ended December 31, 2024, was approximately $114.9 million, or $661.33 net loss per share, compared to a net loss of approximately $61.4 million, or $91,940.42 loss per share, for the same period in 2023[299]. - Research and development expenses decreased by $4.9 million, or 30%, from $16.2 million in the three months ended December 31, 2023, to $11.3 million in the same period in 2024[293]. - General and administrative expenses decreased by approximately $6.7 million, or 16%, from approximately $43.2 million in the three months ended December 31, 2023, to approximately $36.5 million in the same period in 2024[295]. - The company recognized other financing costs of $16.1 million during the three months ended December 31, 2024, due to additional notes with detached warrants issued during the period[296]. - Loss on revaluation of warrant obligations was $34.6 million during the three months ended December 31, 2024, compared to $6.7 million in the same period in 2023, reflecting a significantly higher volume of warrant liabilities[297]. - Interest expense increased by $18.4 million compared to the three months ended December 31, 2023, due to a significantly higher volume of debt outstanding[298]. - The company incurred a net loss of $118.8 million for the three months ended December 31, 2024, with an accumulated deficit of $2.4 billion[306]. Cash Flow and Liquidity - As of December 31, 2024, the company had approximately $2.7 million in cash and a net working capital deficit of approximately $186.2 million[306]. - During the same period, cash used in operating activities was $25.6 million, a 57% decrease from $59.9 million in the prior year[320]. - Cash used in investing activities was $2.2 million, representing a 68% decrease from $6.9 million in the same quarter of the previous year[321]. - The company received $19.8 million from financing activities for the three months ended December 31, 2024, compared to $0.0 million in the same period of 2023[322]. - The company has substantial doubt about its ability to continue as a going concern and has temporarily shut down key production facilities due to liquidity constraints[307]. - Management is pursuing strategies to address liquidity concerns, including equity or debt financing and operational restructuring[307]. - As of December 31, 2024, total debt outstanding was approximately $22.6 million, with significant portions converted into common stock[315]. Inventory and Asset Valuation - The company recorded a write-down to net realizable value of $0.8 million as of December 31, 2024, related to inventory adjustments[334]. - Future minimum lease payments total approximately $27.2 million, with scheduled payments due over the next several years[323]. - The net realizable value assessment for Mullen One, Mullen Three, and Bollinger B4 vehicles is based on current expected selling prices and market demand, indicating potential future write-downs if sales prices decline[335]. Market and Industry Trends - The EV industry is experiencing competitive pricing trends influenced by consumer demand, regulatory incentives, and competitor strategies, which may affect future revenue[337]. - Production costs are impacted by supply chain fluctuations and raw material prices, such as lithium and nickel, potentially exceeding expected selling prices[337]. - Technological advancements in battery and vehicle technology may necessitate discounting or write-downs of older inventory to maintain competitiveness[337]. - Changes in government incentives, infrastructure development, and interest rates could influence consumer adoption rates and inventory valuation[337]. Corporate Actions - The company acquired controlling interest in Bollinger Motors on September 7, 2022, expanding into medium-duty truck classes and electric vehicle segments[301]. - A reverse stock split at a ratio of 1-for-60 shares was implemented effective February 18, 2025, to comply with Nasdaq listing requirements[302].