CORRECTION – Mullen Reports Strongest Fiscal Quarter in Company’s History for Three Months Ended Dec. 31, 2023

Mullen Automotive Inc. (NASDAQ:MULN), is updating its press release with certain corrections as described further below. There are no changes to the financial results for the three months ended Dec. 31, 2023. The prior press release as corrected is set forth in its entirety below.

Company reports financial results and current business update

Stockholders’ equity $271,814,097.00 as of December 31, 2023

BREA, Calif., Feb. 13, 2024 (GLOBE NEWSWIRE) — via IBN — Mullen Automotive Inc. (NASDAQ:MULN), an emerging electric vehicle (“EV”) manufacturer, today announces financial results for the three months ended Dec. 31, 2023, and a business update.

Commenting on the results for the three months ended Dec. 31, 2023, and recent Company developments, CEO and chairman David Michery stated, “We are coming off our strongest quarter to date for vehicle production and deliveries. For the three months ended Dec. 31, 2023, the Company delivered 231 vehicles. For the 12 months ended Sept. 30, 2023, the Company delivered a total of 35 vehicles. Our pivot to focus on commercial EVs last year was a strategic move and has been paying off as we continue to see increased demand across our CAMPUS, Class 1 and Class 3 EVs and PowerUP charging trucks.

Our net loss attributable to common stockholders after preferred dividends was REDUCED from $376.9 million for the three-month period ended Dec. 31, 2022, to $61.4 million for the three-month period ended Dec. 31, 2023.

Michery continued, “At our Tunica plant, we continue to increase our vehicle production capacity with two vehicle lines running concurrently for both Class 1 and Class 3 vehicle assembly. Since starting production, we have invoiced for 396 vehicles, totaling $17.3 million. We now have CARB certification for both our Class 1 EV cargo van and Class 3 EV truck, enabling sales in all 50 states across the U.S.

In Fullerton, California, we continued to make progress at our battery module and pack development facility with focus on reducing our reliance on foreign battery components.

In closing, we continue to make strong progress and advancement across the commercial vehicle segment and entire EV industry overall.”

Correction to Press Release

This press release has been corrected to include Deferred income taxes of $493,654 in the Consolidated Statement of Cash Flows (unaudited) for the three months ended Dec. 31, 2022, which accordingly changed Non-cash adjustments, Net cash used in operating activities and change in cash for the same period. There is also an immaterial correction under Supplemental Disclosure for Non-Cash Activities for Exercise of warrants recognized earlier as liabilities for the three months ended Dec. 31, 2023 and removal of Right-of-use assets obtained in exchange of operating lease liabilities for the three months ended Dec. 31, 2022. There were no other changes to the press release and results reported for the first quarter of 2024 remain the same, including stockholder’s equity and liquidity. A corrected form of the Consolidated Statement of Cash Flows (unaudited) is included in this release.

Recent Highlights Include:

In January 2024, the Company regained compliance with the Nasdaq minimum bid price requirement. The Company expects to regain full Nasdaq compliance following the Feb. 29, 2024, annual stockholder meeting.
The Company also achieved important milestones, including receiving CARB, 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.
Mullen announced the completion of a light-weight service truck body for the All-Electric Mullen THREE, which was developed in collaboration with Phenix Truck Bodies & Van Equipment and Knapheide Manufacturing.
Mullen Advanced Energy, LLC submitted a pre-application to the U.S. Department of Energy Advanced Technology Vehicles Manufacturing (“ATVM”) Loan Program to support its expansion into domestic battery material processing and manufacturing.

In November 2023, Mullen opened a battery module and pack development facility in Fullerton, California, with the goal of scaling U.S.-made EV battery module and pack production. The Company is focused on reducing reliance on foreign battery components.

Mullen Class 1 and 3 Commercial Vehicles

Production of the Mullen Class 3 vehicle began in August 2023 and Class 1 vehicle production began in November 2023.
As of Jan. 31, 2024, Mullen has invoiced Randy Marion Automotive $17.3 million for Class 1 EV cargo vans, Class 3 EV trucks and CAMPUS EVs.
Mullen and RRDS submitted a final Ruling Request Application for substantial transformation of its Class 1 EV cargo van to the U.S. Border Patrol and expects a 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.

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

Bollinger Motors (“Bollinger”) has 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 – 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.
The Company debuted the high-performance Mullen FIVE RS on Jan. 9, 2024, at CES 2024 in Las Vegas.

Mullen-GO(TM)
Mullen’s micro 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.

In 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

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 calendar 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 – Three Months Ended Dec. 31, 2023

The net loss attributable to common stockholders after preferred dividends was approximately $61.4 million, or $15.32 net loss per share, for the three months ended Dec. 31, 2023, as compared to a net loss attributable to common stockholders after preferred dividends of approximately $376.9 million, or $6,233.08 loss per share, for the three months ended Dec. 31, 2022. Share counts were adjusted retroactively for reverse stock splits effectuated during calendar year ended Dec. 31, 2023.

For the quarter ended Dec. 31, 2023, we delivered to a dealer 231 vehicles valued at $11.9 million. The Company has deferred the revenue and accounts receivable recognition on the $11.9 million invoiced until paid and the return provision on the vehicles are nullified by the dealer’s sale of vehicle to the end user.

During January 2024, we delivered an additional 130 (“UD1”) vehicles valued at $4.4 million. Revenue and accounts receivable were similarly deferred until paid and the dealer’s return provisions expire.

Through Jan. 31, 2024, the Company has deferred revenue and accounts receivable recognition, pending remaining payment due and return provision expiration, on 371 vehicles valued at $16.9 million as follows:

(dollars in thousands)

 
 
 
 
 
 

 
    
Units delivered
    
Amount Invoiced

Total Vehicles Invoiced
 
396
 
$
17,298.1

Revenue Recognized
 
25
 
$
366.0

Revenue to be Recognized
 
 
 
$
16,932.1

Invoiced for the year ended September 30, 2023

 
    
 
 
 
    
Revenue

Type
 
Units delivered
 
Amount Invoiced
 
recognized

Urban Delivery (UD0)
 
25
 
$
366.0
 
$
366.0

Mullen 3 (UU)
 
10
 
$
652.2
 
$
–

Total
 
35
 
$
1,018.2
 
$
366.0

Invoiced for the quarter ended December 31, 2023

 
    
 
 
 
    
Revenue

Type
 
Units delivered
 
Amount Invoiced
 
Recognized

Mullen 3 (UU)
 
131
 
$
8,543.8
 
$
–

Urban Delivery (UD1)
 
100
 
$
3,363.5
 
$
–

Total
 
231
 
$
11,907.3
 
$
–

Invoiced in January 2024

 
    
 
    
 
    
Revenue

Type
 
Units delivered
 
Amount Invoiced
 
recognized

Urban Delivery (UD1)
 
130
 
$
4,372.6
 
$
–

Total
 
130
 
$
4,372.6
 
$
–

 

The total cash spend (sum of operating and investing activities) for the three months ended Dec. 31, 2023 and 2022, was $66.8 million and $127.0 million, respectively.

 
 
 
 
 
 
 

 
 
Three Months Ended December 31,

 
 
2023
 
 
2022
 

Net loss
 
$
(63,993,379
)
 
$
(378,460,745
)

Non-Cash Adjustments
 
 
23,284,793
 
 
 
347,251,996
 

Working Capital Investment
 
 
(19,182,967
)
 
 
(2,018,943
)

Net cash used in operating activities
 
$
(59,891,553
)
 
$
(33,227,692
)

Net cash used in investing activities
 
$
(6,865,681
)
 
$
(93,718,182
)

Net cash provided by financing activities
 
$
–
 
 
$
150,000,000
 

Change in cash
 
$
(66,757,234
)
 
$
23,054,126
 

 

The detail of non-cash adjustments to Statements of Operations for quarters ended Dec. 31, 2023 and 2022 are as follows:

Adjustments to reconcile net loss to net cash used in operating activities:

       

 
Three Months Ended December 31, 

 
2023
 
    
2022
 

Stock-based compensation
$
13,903,416
 
 
$
40,753,410
 

Revaluation of derivative liabilities
 
6,728,981
 
 
 
40,781,976
 

Depreciation and amortization
 
4,343,960
 
 
 
4,794,327
 

Amortization of debt discount
 
160,664
 
 
 
74,577
 

Deferred income taxes
 
(1,726,238
)
 
 
(493,654
)

Loss/(gain) on asset disposal
 
(125,990
)
 
 
–
 

Other financing costs – initial recognition of derivative liabilities
 
–
 
 
 
255,960,025
 

Gain on conversion of derivative liabilities to common stock
 
–
 
 
 
(9,965,728
)

Non-cash financing loss on over-exercise of warrants
 
–
 
 
 
8,934,892
 

Loss/(gain) on extinguishment of debt
 
–
 
 
 
6,412,171
 

 
$
23,284,793
 
 
$
347,251,996
 

 

We invested an additional $19.2 million and $2.0 million in working capital during the three months ended Dec. 31, 2023 and 2022, respectively. The Company invested $13.9 million for inventory for the three months ended Dec. 31, 2023. Details of changes in working capital are as follows:

Changes in operating assets and liabilities:

 
 
 
 
 
 
 

 
 
 Three Months Ended December 31, 

 
    
2023
 
    
2022

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