Mullen Reports Improved 2024 Financial Results

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]