Mullen Automotive Announces Communication – GuruFocus.com
BREA, Calif., Aug. 09, 2022 (GLOBE NEWSWIRE) — via InvestorWire — Mullen Automotive, Inc.. ( MULN) (“Mullen” or the “Company”), an emerging manufacturer of electric vehicles (“EV”), announces its preliminary results for the third quarter. In addition to recent highlights and successes of the company and its electric vehicle programs, Mullen is in a strong financial position, with approximately $99 million in cash and cash equivalents on hand as of August 8, 2022.
- Asset growth of 391%
- The growth in assets is mainly attributable to cash flow from financing activities as well as the increase in property, plant and equipment.
- Positive working capital $27,656,446
- Working capital was a positive variance due to current note redemptions and cash received from financing activities.
- $318 million in financial commitments
- Committed capital positions Mullen for growth over the remainder of 2022 and 2023.
- Change in debt –77%
- The 77% reduction in debt minimizes the problem of over-indebtedness and means that shareholders can invest in a company positioned for growth and sound financial performance.
- 281% increase in R&D spending
- The company has increased its R&D spending, which primarily relates to engineering costs for the Mullen FIVE and Mullen EV minivan programs.
Here are program highlights related to the company, Mullen FIVE EV Crossover and Mullen EV Cargo Van programs.
- Mullen is pleased to report recent engineering and manufacturing advancements in advancing our solid-state battery technology to the pack level and continuing to grow our battery assembly operation.
- Mullen recently opened an automotive center based in Irvine, Calif., and is hiring heavily for expansion needs related to the Mullen FIVE EV program.
- Mullen is expanding its presence in the Midwest with the addition of the Detroit EV Technology team, which focuses on developing EV technologies for Mullen’s commercial van portfolio. Mullen has already hired nearly 20 new employees for Midwest operations and expects to have more than 50 employees by the end of this year.
- Development of the FIVE EV program continues with ongoing work in the BIW, interior, thermal packaging and infotainment.
- Mullen Class 1 EV Cargo Van successfully updated with optional larger 79.2 kWh battery, which can extend range up to 200 miles.
- $7 million in robotics and test equipment added to AMEC’s Tunica facility in support of the Mullen EV Cargo Van program. This includes setting up unique robotics applications to further enhance existing manufacturing processes and state-of-the-art API and robotics interface for training.
- Mullen has signed a binding agreement with DelPack Logistics, LLC, an Amazon delivery services partner, to purchase up to 600 Mullen Class 1 and 2 EV vans over the next 18 months. The first 300 fully licensed U.S. Mullen Class 2 EV Cargo Vans can be delivered to DPL by November 30, 2022.
- Mullen is successfully continuing its patent work with a recently filed provisional patent application on PERSONA technology for the Mullen FIVE EV crossover. PERSONA is at the heart of vehicle technology in the Mullen FIVE and includes facial recognition and vehicle personalization for driver and passengers.
“This is an exciting and crucial time for Mullen as we continue to experience exceptional growth,” said David Michery, CEO and President of Mullen Automotive. “We have been focused on expanding our capital positions, resources and efforts in all key business areas, and we really see that combine 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, scalable energy solutions. Mullen has evolved over the past decade in step with consumer and technology trends. Today, the company works diligently to provide exciting electric vehicle options built entirely in the USA and designed to fit perfectly into the life of the American consumer. Mullen is working to make electric vehicles more accessible than ever by creating an end-to-end ecosystem that supports all aspects of electric vehicle ownership.
Certain statements contained 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. All statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as ‘continue’, ‘will’, ‘may’, ‘could’, ‘should’, ‘expects’, ‘expects’, ‘plans’, ‘intends’, “anticipates”, “believes”, “estimates”, “predicts”, “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 will differ materially from those expressed or implied by forward-looking statements, many of which are generally beyond Mullen’s control and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, whether whether the specified debt reduction will result in shareholders or others investing in the Company; whether the Company will achieve its intended growth and strong financial performance; whether the Company’s expansion, opening of facilities in multiple locations s, will be beneficial to the Company; whether the Company will have 50 employees by the end of the year; whether the optional larger 79.2 kWh battery will extend the vehicle’s range to the intended limits; whether fully certified U.S. Mullen Class 2 EV Cargo Vans will be delivered to DelPack Logistics by November 30, 2022; and whether Mullen will succeed in his patent and intellectual property initiatives. Other examples of such risks and uncertainties include, but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in a sufficient amount or on acceptable terms should the need arise ; (ii) Mullen’s ability to maintain and obtain additional contracts with manufacturers, parts suppliers and other service providers related to its business; (iii) Mullen’s ability to successfully expand into existing markets and enter new markets; (iv) Mullen’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unforeseen operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) the adverse effects of increased competition on Mullen’s business; (viii) changes in government licenses and regulations 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, industrial and general business and economic conditions. Other factors that could cause actual results to differ materially from those expressed or implied by 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 alter his plans, intentions and expectations. Mullen undertakes no obligation, and 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.
+1 (714) 613-1900