BREA, Calif., Aug. 09, 2022 (GLOBE NEWSWIRE) — via InvestorWire — Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), 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.
- 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.
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 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 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 interface 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.”
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.
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 whether the specified debt reduction will result in equity holders or others making investments in the Company; whether the Company will achieve its contemplated growth and sound financial performance; whether the Company’s expansion, opening facilities in multiple locations, will be beneficial to the Company; whether the Company will have 50 employees by the end of the year; whether the larger optional 79.2 kWh battery pack will extend vehicle range up to the anticipated limits; whether the fully homologated for the United States Mullen Class 2 EV Cargo Vans will be delivered to DelPack Logistics by Nov. 30, 2022; and whether Mullen will be successful in its Patent and Intellectual Property initiatives. Additional examples of such risks and uncertainties include, but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen’s ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen’s ability to successfully expand in existing markets and enter new markets; (iv) Mullen’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Mullen’s business; (viii) changes in government licensing and regulation that may adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) Mullen’s ability to protect its intellectual property; and (xi) 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.
Mullen Automotive, Inc.
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