Mullen Automotive Inc.

08/09/2022 | Press release | Distributed by Public on 08/09/2022 08:44

Mullen Automotive Announces Preliminary Third Quarter Results

Company has strongest balance sheet ever with approximately $99 million cash on hand and in cash equivalents as of Aug. 8, 2022

BREA, Calif., Aug 09, 2022- via InvestorWire - Mullen Automotive, Inc. (NASDAQ: MULN) ("Mullen" or the "Company"), an emerging electric vehicle ("EV") manufacturer, an emerging electric vehicle ("EV") manufacturer, announces preliminary third-quarter results. In addition to recent highlights and successes for the Company and its EV programs, Mullen is in a strong financial position, with approximately $99 million in cash and cash equivalents on hand as of Aug. 8, 2022.

Financial Highlights

  • Asset growth of 391%
    • Asset growth was primarily from cash from financing activities along with increased property and equipment.
  • Positive working capital $27,656,446
    • Working capital was a positive variance due to the paydowns in current notes and cash received from financing activities.
  • $318 million in financial commitments
    • The committed capital positions Mullen for growth over the remainder of 2022 and 2023.
  • Change in debt -77%
    • The 77% debt reduction minimizes debt overhang problem and implies that equity holders can invest in a company positioned for growth and sound financial performance.
  • 281% increase in R&D spending
    • Company has increased its spending for R&D, which primarily relates to engineering costs for the Mullen FIVE and Mullen EV cargo van programs.

Program Highlights

The following are program highlights related to the company, Mullen FIVE EV Crossover and Mullen EV Cargo Van programs.

  • Mullen is pleased to announce progress recently made in both engineering and manufacturing areas by advancing our solid-state battery technology to the pack level and continuing to build up our battery assembly operation.
  • Mullen recently opened Irvine, California-based automotive center and is extensively hiring for expansion requirements related to Mullen FIVE EV program.
  • Mullen is expanding its presence into the Midwest with the addition of the Detroit EV Technology team, focusing on the development of EV technologies for Mullen's portfolio of commercial vans. Mullen has already hired close to 20 new employees for the Midwest operations and expects to have upward of 50 employees by the end of this year.
  • FIVE EV program development continues with work progressing in BIW, interior, thermal packaging, and infotainment.
  • Mullen Class 1 EV Cargo Van successfully updated with larger optional 79.2 kWh battery pack, which can extend range up to 200 miles.
  • $7 million of robotics and testing equipment added to Tunica's AMEC facility in support of the Mullen EV Cargo Van program. This includes establishing unique robotic applications to further enhance existing manufacturing processes and state-of-the-art PLC and robotic interfaces for training.
  • Mullen signed a binding agreement with DelPack Logistics, LLC, an Amazon Delivery Services Partner, to purchase up to 600 Mullen Class 1 and 2 EV cargo vans over the next 18 months. The first 300 fully homologated for the United States Mullen Class 2 EV Cargo Vans can be delivered to DPL by Nov. 30, 2022.
  • Mullen continues successful patent work with recently submitted provisional patent application on PERSONA technology for the Mullen FIVE EV Crossover. PERSONA is the heart of the vehicle technology in the Mullen FIVE and includes facial recognition and vehicle personalization for the driver and passengers.

"It's an exciting and pivotal time for Mullen as we continue to experience exceptional growth," said David Michery, CEO and chairman of Mullen Automotive. "We've been focused on expanding our capital positions, resources, and efforts in all key business areas, and we are really seeing it come together with our recent expansions and successes."

About Mullen:

Mullen is a Southern California-based automotive company that owns and partners with several synergistic businesses working toward the unified goal of creating clean and scalable energy solutions. Mullen has evolved over the past decade in sync with consumers and technology trends. Today, the Company is working diligently to provide exciting EV options built entirely in the United States and made to fit perfectly into the American consumer's life. Mullen strives to make EVs more accessible than ever by building an end-to-end ecosystem that takes care of all aspects of EV ownership. For more information, please visit www.MullenUSA.com.


Forward-Looking Statements

This press release contains "forward-looking statements." Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions, as well as statements in the future tense, often signify forward-looking statements. These forward-looking statements include, without limitation, statements relating to the reverse merger, the Nasdaq approval process, and the proposed debut date of the Mullen FIVE (formerly MX-05) midsize crossover. These forward-looking statements are, by their nature, subject to significant risks and uncertainties.

Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking statements are based on information that the Company has when those statements are made or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including factors beyond the Company's control. As a result of these and other risks, uncertainties, and assumptions, forward-looking events and circumstances discussed herein might not occur in the way the Company expects or at all. Accordingly, readers should not place reliance on any forward-looking information or statements. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events, or otherwise. All forward-looking statements herein are qualified by reference to the cautionary statements set forth in this section.

Contact:

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