Positive stockholders’ equity of
Company hasadditional
Commenting on the results for the three and six months ended
“Our Company continues to grow despite difficult market conditions and I am thankful to our team and the effort put forth in getting our EVs into the market and onto
Recent Highlights Include
- In
May 2024 , the Company received approval from theDepartment of Commerce for Foreign Trade Zone status at itsTunica, Mississippi , commercial vehicle manufacturing facility. - In
May 2024 , the Company expanded its retail commercial dealer network with addition ofPritchard EVs and National Auto Fleet Group , adding both national and regional fleet focus in the Midwest andWest Coast . - In
April 2024 , Mullen received California Air Resource Board’s (“CARB”) HVIP approval for the Mullen THREE, Class 3 EV truck, providing up to$45,000 in a cash voucher at time of vehicle purchase. - In
April 2024 , the Company received CARB approval on the 2025 Mullen Class 3 EV truck.
- Mullen opened the
Dominican Republic andCaribbean markets with Grupo Cavel for commercial EVs and began initial shipment of vehicles inApril 2024 . Tunica recently built 500th commercial vehicle and continues to build Class 1 and Class 3 vehicles.- Mullen announced the completion of a new light-weight service truck body, targeted for utility and municipality customers, for the All-Electric Mullen THREE. The vehicles are available now and were developed in collaboration with Phenix Truck Bodies & Van Equipment and Knapheide Manufacturing.
- In
February 2024 , the Company began Class 1 EV cargo van road testing with the integrated solid-state polymer battery pack inTroy, Michigan , with actual road tests resulting in 86% increase in vehicle range, from 110 miles to 205 miles. - After successful road testing, Company is moving to production pack design with multiple packs being produced for vehicle-level testing, including environmental and durability.
Class 4 – 6 Commercial Vehicles
- Bollinger recently announced new retail dealers, including
LaFontaine Automotive Group , Nacarato Truck Centers, andNuss Truck and Equipment, covering initial states ofMichigan ,Florida ,Georgia ,Kentucky ,Maryland andMinnesota . - In February, Bollinger received
IRS Approval for$40,000 Commercial EV Tax Credit. - In January,
Bollinger Motors received first vehicle orders for 40 B4, Class 4 EV trucks for a combined total order valued at approximately$6.0 million . - The Company expects to begin B4, Class 4 vehicle deliveries in the second half of 2024.
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. - The Company debuted the high-performance Mullen
FIVE RS onJan. 9, 2024 , at CES 2024 inLas Vegas .
Mullen High Energy Facility -
- In
January 2024 ,Mullen Advanced Energy, LLC submitted a pre-application to theU.S. Department of Energy (“DOE”) Advanced Technology Vehicles Manufacturing (“ATVM”) Loan Program to support its expansion into domestic battery material processing and manufacturing. - In
January 2024 , The Company submitted a grant funding opportunity toDOE for domestic battery materials processing. - The Company opened the
Fullerton facility in 2023 and is focused on reducing reliance on foreign battery components.
Solid-State Polymer Battery Pack Update
- In
February 2024 , the Company began Class 1 EV cargo van road testing with the integrated solid-state polymer battery pack inTroy, Michigan . Actual road tests resulted in 86% increase in vehicle range, from 110 miles to 205 miles. - After successful road testing, Company is moving to production pack design with multiple packs being produced for vehicle-level testing, including environmental and durability.
Financial Results – Three and Six Months Ended
For the six months ended
Invoiced during the 6 months ended | ||||||||||||||||
Type | Units invoiced | Amount invoiced | Cash received | Revenue recognized | ||||||||||||
Mullen 3 (UU) | 131 | $ | 8,543.8 | $ | 652.2 | $ | — | |||||||||
Urban Delivery (UD1) | 231 | 7,769.4 | 33.3 | 33.3 | ||||||||||||
Total | 362 | $ | 16,313.2 | $ | 685.5 | $ | 33.3 |
The total cash spent (Operating and Investing cash flows) for the six months ended
Six months ended | ||||||||
2024 | 2023 | |||||||
Net loss | $ | (235,355,627 | ) | $ | (495,369,280 | ) | ||
Non-cash adjustments | 135,101,417 | 424,626,754 | ||||||
Working capital investment | (8,218,766 | ) | 3,175,141 | |||||
Net cash used in operating activities | (108,472,976 | ) | (67,567,385 | ) | ||||
Net cash used in investing activities | (12,470,001 | ) | (97,420,097 | ) | ||||
Cash spent | $ | (120,942,977 | ) | $ | (164,987,482 | ) |
The detail of non-cash adjustments to the Consolidated Statements of Cash Flows are as follows:
Six months ended | ||||||||
2024 | 2023 | |||||||
Non-cash expenses and gains during the period: | ||||||||
Stock-based compensation | $ | 15,609,276 | $ | 60,303,367 | ||||
Revaluation of derivative liabilities | 3,106,223 | 89,221,391 | ||||||
Depreciation and amortization | 14,310,450 | 8,523,682 | ||||||
Issuance of warrants to suppliers | — | 6,814,000 | ||||||
Deferred income taxes | (3,891,300 | ) | (901,999 | ) | ||||
Other financing costs - initial recognition of derivative liabilities | — | 255,960,025 | ||||||
Impairment of goodwill | 28,846,832 | — | ||||||
Impairment of right-of-use assets | 3,167,608 | — | ||||||
Impairment of intangible assets | 73,447,067 | — | ||||||
Non-cash interest and other operating activities | 216,021 | (1,745,882 | ) | |||||
Loss/(gain) on assets disposal | 323,865 | — | ||||||
Loss/(gain) on extinguishment of debt | (34,625 | ) | 6,452,170 | |||||
Total | $ | 135,101,417 | $ | 424,626,754 |
We invested an additional $8.2 million and recovered
Six months ended | ||||||||
2024 | 2023 | |||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | $ | 671,750 | $ | — | ||||
Inventories | (16,154,711 | ) | — | |||||
Prepaids and other assets | (726,490 | ) | (8,271,388 | ) | ||||
Accounts payable | 9,523,141 | 8,429,257 | ||||||
Accrued expenses and other liabilities | (77,010 | ) | 2,672,040 | |||||
Right-of-use assets and lease liabilities | (1,455,446 | ) | 345,232 | |||||
Total | $ | (8,218,766 | ) | $ | 3,175,141 |
The net loss attributable to common shareholders after preferred dividends was
Turning to our balance sheets and liquidity, we had
Current notes payable were
Shareholders’ equity was $117.4 million as of
Following are our unaudited Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows for the three and six months ended
CONSOLIDATED BALANCE SHEETS
(unaudited)
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 22,378,089 | $ | 155,267,098 | ||||
Restricted cash | 7,429,572 | 429,372 | ||||||
Accounts receivable | — | 671,750 | ||||||
Inventory | 32,961,724 | 16,807,013 | ||||||
Prepaid expenses and prepaid inventories | 26,114,664 | 24,955,223 | ||||||
TOTAL CURRENT ASSETS | 88,884,049 | 198,130,456 | ||||||
Property, plant, and equipment, net | 82,803,852 | 82,032,785 | ||||||
Intangible assets, net | 28,812,583 | 104,235,249 | ||||||
Related party receivable | — | 2,250,489 | ||||||
Right-of-use assets | 11,616,450 | 5,249,417 | ||||||
— | 28,846,832 | |||||||
Other noncurrent assets | 2,002,815 | 960,502 | ||||||
TOTAL ASSETS | $ | 214,119,749 | $ | 421,705,730 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 22,698,645 | $ | 13,175,504 | ||||
Accrued expenses and other current liabilities | 43,192,512 | 41,208,929 | ||||||
Dividends payable | 445,205 | 401,859 | ||||||
Derivative liabilities | 5,124,487 | 64,863,309 | ||||||
Liability to issue shares | 7,789,786 | 9,935,950 | ||||||
Lease liabilities, current portion | 1,142,350 | 2,134,494 | ||||||
Notes payable, current portion | 2,717,804 | 7,461,492 | ||||||
Refundable deposits | 429,572 | 429,372 | ||||||
TOTAL CURRENT LIABILITIES | 83,540,361 | 139,610,909 | ||||||
Liability to issue shares, net of current portion | 526,684 | 1,827,889 | ||||||
Lease liabilities, net of current portion | 12,638,061 | 3,566,922 | ||||||
Deferred tax liability | — | 3,891,900 | ||||||
TOTAL LIABILITIES | $ | 96,705,106 | $ | 148,897,620 | ||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock; | ||||||||
Preferred Series D; 84,572,538 shares authorized; 363,097 and 363,097 shares issued and outstanding at | 363 | 363 | ||||||
Preferred Series C; 26,085,378 shares authorized; 1,211,757 and 1,211,757 shares issued and outstanding at | 1,212 | 1,212 | ||||||
Preferred Series A; 83,859 shares authorized; 648 and 648 shares issued and outstanding at | 1 | 1 | ||||||
Common stock; | 7,974 | 2,872 | ||||||
Additional paid-in capital | 2,151,067,184 | 2,071,110,126 | ||||||
Accumulated deficit | (2,055,988,895 | ) | (1,862,162,037 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY ATTRIBUTABLE TO THE COMPANY'S STOCKHOLDERS | 95,087,839 | 208,952,537 | ||||||
Noncontrolling interest | 22,326,804 | 63,855,573 | ||||||
TOTAL STOCKHOLDERS' EQUITY | 117,414,643 | 272,808,110 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 214,119,749 | $ | 421,705,730 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months ended | Six months ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue | ||||||||||||||||
Vehicle sales | $ | 33,335 | $ | — | $ | 33,335 | $ | — | ||||||||
Cost of revenues | (13,440 | ) | — | (13,440 | ) | — | ||||||||||
Gross profit / (loss) | 19,895 | — | 19,895 | — | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | $ | 47,903,692 | $ | 47,412,338 | $ | 91,137,744 | $ | 112,408,349 | ||||||||
Research and development | 24,023,526 | 20,478,971 | 40,193,493 | 29,100,980 | ||||||||||||
Impairment of goodwill | 28,846,832 | — | 28,846,832 | — | ||||||||||||
Impairment of right-of-use assets | 3,167,608 | — | 3,167,608 | — | ||||||||||||
Impairment of intangible assets | 73,447,067 | — | 73,447,067 | — | ||||||||||||
Loss from operations | (177,368,830 | ) | (67,891,309 | ) | (236,772,849 | ) | (141,509,329 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Other financing costs - initial recognition of derivative liabilities | — | — | — | (255,960,025 | ) | |||||||||||
Gain/(loss) on derivative liability revaluation | 3,622,758 | (48,439,415 | ) | (3,106,223 | ) | (89,221,391 | ) | |||||||||
Gain/(loss) on extinguishment of debt | 34,625 | (40,000 | ) | 34,625 | (6,452,170 | ) | ||||||||||
Gain/(loss) on disposal of fixed assets | (449,855 | ) | 385,031 | (373,865 | ) | 385,031 | ||||||||||
Gain on lease termination | — | — | 50,000 | — | ||||||||||||
Interest expense | (259,700 | ) | (1,888,169 | ) | (517,723 | ) | (4,716,258 | ) | ||||||||
Other income, net | 893,692 | 482,405 | 1,439,108 | 1,128,286 | ||||||||||||
Net loss before income tax benefit | $ | (173,527,310 | ) | $ | (117,391,457 | ) | $ | (239,246,927 | ) | $ | (496,345,856 | ) | ||||
Income tax benefit | 2,165,062 | 482,922 | 3,891,300 | 976,576 | ||||||||||||
Net loss | $ | (171,362,248 | ) | $ | (116,908,535 | ) | $ | (235,355,627 | ) | $ | (495,369,280 | ) | ||||
Net loss attributable to noncontrolling interest | (38,930,288 | ) | (1,995,217 | ) | (41,528,769 | ) | (4,180,176 | ) | ||||||||
Net loss attributable to stockholders | $ | (132,431,960 | ) | $ | (114,913,318 | ) | $ | (193,826,858 | ) | $ | (491,189,104 | ) | ||||
Waived/(accrued) accumulated preferred dividends | (22,043 | ) | 8,039,612 | (43,346 | ) | 7,400,935 | ||||||||||
Net loss attributable to common stockholders after preferred dividends | $ | (132,454,003 | ) | $ | (106,873,706 | ) | $ | (193,870,204 | ) | $ | (483,788,169 | ) | ||||
Net Loss per Share | $ | (19.39 | ) | $ | (1,167.18 | ) | $ | (35.83 | ) | $ | (6,378.47 | ) | ||||
Weighted average shares outstanding, basic and diluted | 6,829,415 | 91,566 | 5,410,894 | 75,847 | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Six Months Ended | ||||||||
2024 | 2023 | |||||||
Cash Flows from Operating Activities | ||||||||
Net loss | $ | (235,355,627 | ) | $ | (495,369,280 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock-based compensation | 15,609,276 | 60,303,367 | ||||||
Revaluation of derivative liabilities | 3,106,223 | 89,221,391 | ||||||
Depreciation and amortization | 14,310,450 | 8,523,682 | ||||||
Issuance of warrants to suppliers | — | 6,814,000 | ||||||
Deferred income taxes | (3,891,300 | ) | (901,999 | ) | ||||
Other financing costs - initial recognition of derivative liabilities | — | 255,960,025 | ||||||
Impairment of intangible assets | 73,447,067 | — | ||||||
Impairment of goodwill | 28,846,832 | — | ||||||
Impairment of right-of-use assets | 3,167,608 | — | ||||||
Non-cash interest and other operating activities | 216,021 | (1,745,882 | ) | |||||
Loss/(gain) on assets disposal | 323,865 | — | ||||||
Loss/(gain) on extinguishment of debt | (34,625 | ) | 6,452,170 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 671,750 | — | ||||||
Inventories | (16,154,711 | ) | — | |||||
Prepaids and other assets | (726,490 | ) | (8,271,388 | ) | ||||
Accounts payable | 9,523,141 | 8,429,257 | ||||||
Accrued expenses and other liabilities | (77,010 | ) | 2,672,040 | |||||
Right-of-use assets and lease liabilities | (1,455,446 | ) | 345,232 | |||||
Net cash used in operating activities | (108,472,976 | ) | (67,567,385 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Purchase of equipment | (12,470,001 | ) | (4,298,563 | ) | ||||
Purchase of intangible assets | — | (204,660 | ) | |||||
ELMS assets purchase | — | (92,916,874 | ) | |||||
Net cash used in investing activities | (12,470,001 | ) | (97,420,097 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Proceeds from issuance of convertible notes payable | — | 150,000,000 | ||||||
Payment of notes payable | (4,945,832 | ) | (460,000 | ) | ||||
Reimbursement for over issuance of shares | — | 17,819,660 | ||||||
Net cash provided by financing activities | (4,945,832 | ) | 167,359,660 | |||||
Change in cash | (125,888,809 | ) | 2,372,178 | |||||
Cash and restricted cash (in amount of | 155,696,470 | 84,375,085 | ||||||
Cash and restricted cash (in amount of | $ | 29,807,661 | $ | 86,747,263 | ||||
Supplemental disclosure of Cash Flow information: | ||||||||
Cash paid for interest | $ | 37,458 | $ | 5,028 | ||||
Cash paid for income taxes | — | 800 | ||||||
Supplemental Disclosure for Non-Cash Activities: | ||||||||
Exercise of warrants recognized earlier as liabilities | $ | 59,163,019 | $ | 268,713,397 | ||||
Right-of-use assets obtained in exchange of operating lease liabilities | 11,185,901 | 370,668 | ||||||
Convertible notes and interest - conversion to common stock | — | 153,222,236 | ||||||
Reclassification of derivatives to equity upon authorization of sufficient number of shares | — | 47,818,882 | ||||||
Common stock issued to extinguish other liabilities | — | 10,500,712 | ||||||
Waiver of dividends by stockholders | — | 6,872,075 | ||||||
Warrants issued to suppliers | — | 6,814,000 | ||||||
Debt conversion to common stock | — | 1,096,787 | ||||||
Extinguishment of operational liabilities by sale of property | — | 767,626 | ||||||
Extinguishment of financial liabilities by sale of property | — | 231,958 |
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 the timing and receipt of the
Contact:
+1 (714) 613-1900
www.MullenUSA.com
Corporate Communications:
InvestorBrandNetwork (IBN)
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
Source:
2024 GlobeNewswire, Inc., source