BREA, Calif., Jan. 16, 2024 (GLOBE NEWSWIRE) -- via IBN - Mullen Automotive Inc. (NASDAQ: MULN), an emerging electric vehicle (“EV”) manufacturer, today announces financial results for the twelve months ended Sept. 30, 2023, and a current business update.

Commenting on fiscal year 2023 (“FY2023”) and recent Company developments, CEO and chairman David Michery stated, “Mullen has initiated production in Tunica and rolled out a significant number of vehicles in support of customer orders of Class 1 EV vans and Class 3 EV trucks and hurdled critical milestones of securing federal (‘NHTSA’ and ‘EPA’) certification and IRS approval for tax credits. We completed a strategic purchase of EV battery pack manufacturing assets and showcased our innovations across the U.S. on the second leg of the 'Strikingly Different' Test Drive Tour. Mullen is accelerating toward a promising future, both on the road and in the market.”

FY2023 and Recent Highlights Include:

• During the fiscal year ended Sept. 30, 2023, the Company recorded first revenues of $366,000 and delivered vehicles worth $652,200 to Randy Marion Automotive for resale.
• Production of Mullen Class 3 (“Mullen THREE”) vehicles began in August 2023, and Class 1 (“Mullen ONE”) vehicle production began in November 2023; the Company now has two distinct vehicle production lines running in its Tunica, Mississippi-based plant.
• As of Dec. 31, 2023, Mullen has delivered 100 Class 1 vehicles and invoiced for $3.3 million to Randy Marion Automotive Group.
• As of Dec. 31, 2023, Mullen has delivered 141 Class 3 vehicles and invoiced for $9.2 million to Randy Marion Automotive Group.
• In November 2023, Mullen opened a battery module and pack development facility in Fullerton, California, with focus on scaling U.S.-made EV battery module and pack production. The Company is focused on reducing reliance on foreign battery components.
• The Company also achieved important milestones, including receiving federal EPA and NHTSA certification for its Class 1 and Class 3 vehicles, and IRS approval as a “qualified manufacturer,” making its vehicles eligible for up to $7,500 in federal EV tax credits per vehicle.
• The New York Power Authority, British Airways, University of North Carolina and MGT Lease Company all purchased Mullen’s Campus Urban Delivery EV cargo vans in 2023 fiscal year.
• In May 2023, Mullen announced a partnership with Amerit Fleet Solutions to support national service, parts and warranty for commercial vehicles.
• Successfully completed second leg of “Strikingly Different” Test Drive Tour with 13 stops throughout the United States demonstrating Mullen’s vehicle portfolio.

Mullen Class 1 and 3 Commercial Vehicles

• The Company has received $263 million in purchase orders for Mullen Class 1 and Class 3 EV vans and trucks from Randy Marion Automotive Group.
• Mullen received EPA certification for Class 3 EV commercial vehicles in September 2023, and for Class 1 EV cargo vans in November 2023.
• Mullen received CARB certification from the state of California for Class 1 vehicles in December 2023, and expects Class 3 certification in January 2024.
• Mullen and RRDS submitted final Ruling Request Application for substantial transformation of its Class 1 EV cargo van for U.S. Border Patrol to provide final ruling by Feb. 20, 2024. If Mullen receives a favorable final ruling, the Company will be immediately eligible to sell Class 1 EV cargo vans to all branches of the U.S. government. By successfully completing the substantial transformative process, the Mullen ONE will be defined as a U.S.-made end product.
• Production of the Mullen Class 3 vehicle began in August 2023 and Class 1 vehicle production began in November 2023.
• As of Dec. 31, 2023, Mullen has delivered 100 Class 1 vehicles and invoiced for $3.3 million to Randy Marion Automotive Group.
• As of Dec. 31, 2023, Mullen has delivered 141 Class 3 vehicles and invoiced for $9.2 million to Randy Marion Automotive Group.

Bollinger Motors - Oak Park, Michigan
Class 4 – 6 Commercial Vehicles | Bollinger B1 SUV and B2 Pick Up Truck

• Showcased Bollinger Class 4 (“B4”) at the ACT Expo in Anaheim, California, and at Home Delivery World show in Philadelphia, Pennsylvania.
• Received approval from the state of Michigan for a $3 million grant aimed at promoting job creation from the Michigan Strategic Fund Board.
• Finalized the design of the Bollinger B4 and successfully built all design validation vehicles in the third quarter at launch assembly facility of Roush Industries in Livonia, Michigan.
• B4 vehicles that were built are now in design validation and testing, certification and homologation, as well as for customer evaluation purposes.
• Company focus now also includes national build out of retail dealer network to support upcoming 2024 B4 vehicle launch.
• Amerit Fleet Solutions has been contracted to provide national service and warranty work, supporting Bollinger’s commercial vehicles.

Mullen Consumer Vehicle Program - Irvine, California
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.
• World debut of the production intent designed FIVE RS took place on Jan. 9, 2024, at CES 2024 in Las Vegas.
• Completed 13-city U.S. “Strikingly Different” tour providing consumers test drive opportunities with the high- performance Mullen FIVE RS, FIVE EV crossover, Mullen GT EV sports car, Mullen THREE Class 3 EV cab chassis truck and Mullen ONE Class 1 EV cargo van.

Mullen-GO(TM)
Mullen’s urban commercial delivery vehicle, the Mullen-GO(TM) (“Mullen-GO”), is designed to bridge the gap between the growing demand for quick deliveries and space constraints in dense cities throughout Europe.

• On July 17, 2023, the Company announced a 30-unit purchase order for the Mullen-GO Commercial Urban Delivery EV from Newgate Motor Group (“Newgate”). Newgate, one of Ireland’s most recognized dealership groups, has been named to lead marketing, sales, distribution, and servicing for the Mullen-GO in Ireland and the United Kingdom.

Fullerton Battery Tech Assembly Facility

• Mullen Automotive purchased the battery pack production assets from Romeo Power. In November 2023, Mullen opened a battery module and pack development facility in Fullerton, California, with focus on scaling U.S.-made EV battery module and pack production.
• The Company is focused on reducing reliance on foreign battery components.

Solid-State Polymer Battery Pack Update

• In December 2023, Mullen completed the solid-state polymer cell to vehicle pack integration for the Mullen ONE EV cargo van.
• Battery pack testing began and is on track for road testing in the first quarter of 2024. The solid-state battery pack is expected to increase range to more than 190 miles, a 73% increase from the current range, providing a superior, clean and safe alternative to current lithium-ion batteries and representing a significant increase over industry standards.

Financial Results – Twelve Months Ended Sept. 30, 2023

Following is a summary of key financial results for the twelve-months ended Sept. 30, 2023, and 2022. Shares of common stock issued and outstanding and additional paid-in capital have been adjusted retroactively to reflect all reverse stock splits.

First Revenue and Deliveries

During fiscal 2023, the Company achieved the major milestone of bringing Mullen vehicles from development to production and sales. Mullen delivered 35 vehicles, generating a positive gross margin from sales to both dealer and end users. Revenue from 25 Campus Urban Delivery vehicle sales was $366.0 thousand for the twelve months ended Sept. 30, 2023. Cash payments from these sales was collected during the year ended Sept. 30, 2023.

At the end of fiscal 2023, the Company issued the first invoice for 10 Mullen THREE vehicles ($652.2 thousand) to a dealer and this revenue will be recognized upon the expiration of the return provision. The payment for this delivery was received in early October 2023.

During the three months ended Dec. 31, 2023, the Company invoiced a dealer for an additional 231 Mullen THREE and Mullen ONE vehicles totaling $11.9 million. Mullen provides 30-day payment terms on vehicles delivered to its distributor Randy Marion.

^{**Invoiced with 30 day payment terms to RMA}

Impairment of Assets

“It was a year of significant headwinds in the equity market for electric vehicle manufactures with a majority seeing a significant decrease in market values during 2023. Mullen was no exception, and the decreased market value was the primary cause of NON-CASH write-downs of certain assets. We recorded $64.0 million of Bollinger goodwill impairment for twelve months ended Sept. 30, 2023, primarily due to unfavorable market conditions and the decline of market price of the Company’s common stock. We recorded $14.8 million write-downs of property, plant and equipment and other non-current assets. We also recorded $5.9 million in intangible asset write-downs due to unfavorable market conditions and decline of the market price of the Company’s common stock. This write-down was primarily for engineering designs for assets purchased out of the ELMS bankruptcy,” said Jonathan New, chief financial officer of Mullen Automotive.

Following are the Consolidated Statements of Operations for the twelve months ended Sept. 30, 2023, and 2022.

The net loss attributable to common stockholders after preferred dividends was $964.9 million, or $1,574.14 net loss per share, for the twelve months ended Sept. 30, 2023, as compared to a net loss attributable to common stockholders after preferred dividends of $780.0 million, or $63,085.26 loss per share, for the twelve months ended Sept. 30, 2022.

Cash Flows

There was $820.4 million and $687.8 million of NON-CASH EXPENSES included in the $1,006.7 million and $740.3 million net losses for the twelve months ended Sept. 30, 2023, and 2022, respectively per the detail below.

Summary category totals from the Condensed Consolidated Statement of Cash Flows for the years ended Sept. 30, 2023, and 2022 are presented below. Given the large amount of non-cash charges that occurred in 2023 and 2022, it is useful to review the combined operating activities and investing activities amounts from the cash flow report to understand the cash spent for 2023 and 2022. The Company spent a total of $287.1 million and $112.9 million in combined operating and investing activities for the twelve months ended Sept. 30, 2023, and 2022, respectively.

Included in these numbers is $29.6 million, in 2022, to purchase Bollinger and $105.4 million, in 2022 and 2023, to purchase production assets rebranded as Mullen (Mullen ONE, Class 1 Urban Delivery EV van and the Mullen THREE, Class 3 Urban Utility EV truck) out of ELMS bankruptcy. The total cost of Bollinger acquisition was $148.5 million. In addition to the $29.6 million reported on the statement of cash flows, the Company issued common stock valued at $41.6 million and funded Bollinger with an additional $77.3 million in cash.

Following are the Consolidated Statements of Cash Flows for the twelve months ended Sept. 30, 2023, and 2022.

Financial Position

As of Sept. 30, 2023, the Company reported $155.7 million in cash, $16.8 million in inventory, $25.0 million in other current assets and $82.0 million in property, plant and equipment. Notes payable were $7.5 million on Sept. 30, 2023. This compares favorably to the end of fiscal 2022 when the Company had $84.4 million in cash, $2.0 million in other current assets, $14.8 million in property, plant and equipment and $9.0 million in notes payable.

The net working capital on Sept. 30, 2023, was positive and amounted to $58.5 million, or approximately $133.3 million after excluding derivative liabilities and liabilities to issue shares that are supposed to be settled by issuing common stock without using cash. This compares favorably to 2022 when working capital was ($35.9) million or $59.6 million after excluding derivative liabilities and liabilities to issue shares that are supposed to be settled by issuing common stock without using cash.

Following are Consolidated Balance Sheets as of Sept. 30, 2023, and 2022. 

About Mullen

Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of electric vehicles (“EVs”) that will be manufactured in its two United States-based assembly plants. Mullen's EV development portfolio includes the Mullen FIVE EV Crossover, Mullen-GO Commercial Urban Delivery EV, Mullen Commercial Class 1-3 EVs and Bollinger Motors, which features both the B1 and B2 electric SUV trucks and Class 4-6 commercial offerings. On Sept. 7, 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, and on Dec. 1, 2022, Mullen closed on the acquisition of all of Electric Last Mile Solutions' (“ELMS”) assets, including all IP and a 650,000-square-foot plant in Mishawaka, Indiana.

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 (i) whether Mullen will achieve its battery module and pack development objectives; whether the Company will receive CARB certification from the state of California for the Class 3 as expected; the timing and outcome of the Mullen and RRDS final Ruling Request Application regarding its Class 1 EV cargo van; the timing and outcome of the Bollinger B4 design validation, testing, certification and homologation initiatives; whether the projected timelines for the development and production of the high-performance Mullen FIVE RS limited-edition will be realized; and the timing and anticipated range increases for the development of the solid-state battery packs; (ii) the timing of manufacturing, production and availability of Mullen vehicles to customers; (iii) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (iv) Mullen's ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (v) Mullen’s ability to successfully expand in existing markets and enter new markets; (vi) Mullen’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (vii) unanticipated operating costs, transaction costs and actual or contingent liabilities; (viii) the ability to attract and retain qualified employees and key personnel; (ix) adverse effects of increased competition on Mullen’s business; (x) changes in government licensing and regulation that may adversely affect Mullen’s business; (xi) the risk that changes in consumer behavior could adversely affect Mullen’s business; (xii) Mullen’s ability to protect its intellectual property; and (xiii) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Mullen with the Securities and Exchange Commission. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations as of any subsequent date.

Contact:

Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com

Corporate Communications:
IBN (InvestorBrandNetwork)
Los Angeles, California
www.InvestorBrandNetwork.com
(310) 299-1717 Office
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