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Mullen Reports Preliminary Summary of Financial Results for Second Quarter
May 13, 2022

Mullen Reports Preliminary Summary of Financial Results for Second Quarter

  • Q/Q cash and cash equivalents rose to +$65.2M, driven primarily by the issuance of Mullen’s Series C Preferred Stock at $8.84/share
  • Notes payable, current portion fell approximately -10.8% Q/Q to $16.9M
  • Total assets rose approximately 138.4% to slightly over +$100M, driven mainly by financing activities
  • Stockholders’ equity rose favorably Q/Q from a deficit of -$10.5M to a surplus of +$52.6M
  • Subsequent to the period ended March 31, 2022, Mullen Automotive Inc. entered into an agreement with Thurner Design to develop the Mullen FIVE RS, a high-performance EV sport crossover vehicle featuring close to 1,100 HP, 0-60 mph in 1.95 seconds, and a top speed of 200 mph
  • Between late April and early May 2022 Mullen Automotive received an aggregate of $15M from the exercise of the CEOcast equity line of credit in exchange for warrants to acquire common stock.  CEOcast has exercised its warrants for 12.7M common shares extinguishing this credit facility.

BREA, Calif., May 13, 2022 (GLOBE NEWSWIRE) — via InvestorWire — Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, announces today preliminary financial results (subject to change) for its period ending March 31, 2022.  

As of March 31, 2022, Mullen’s cash and cash equivalents amounted to $65.2 million primarily due to $43.9 million from the issuance of 4,974,214 Series C Preferred Stock and 14,922,667 in associated warrants to the selling stockholders that were listed within the S-3 Registration Statement, declared effective on April 15, 2022.  Additionally, the Company received $29.6 million in net proceeds under the $30 million Esousa Equity Line, dated Sept. 1, 2021. 

Total debt of $22.1 million continues its downward trend. Debt has decreased significantly from Sept. 30, 2021, due to principal paydowns, debt payoffs and conversion of convertible debt to equity. Tax liabilities decreased to $2.8 million from $4.2 million, which is comprised of IRS and other tax jurisdictions related to payroll taxes and sales and use taxes. On April 14, 2022, the Company signed an IRS installment agreement to pay the remaining balance for federal payroll-related liabilities via monthly payments of $45,000.

In May 2022, Mullen signed a proposal with Thurner Design for the vehicle development of the Mullen FIVE RS, a high-performance EV sport crossover vehicle featuring close to 1,100 HP, 0-60 mph in just 1.95 seconds, and 200 mph top speed. The proposal includes two phases: 1) design, surfacing and design support, and 2) visualization and high imaging. The Thurner Design team is responsible for shaping and directing designs and brands like Rolls-Royce Motorcars, Bentley Motors, Bugatti, Porsche, Lamborghini, Aston Martin and Mullen Automotive. The Mullen FIVE RS was previously announced to join Mullen’s “Strikingly Different” Test Drive Tour in the Spring of 2023.

Mullen FIVE reservations increased substantially in the March 31 ending quarter and more than doubled the volume attained in the last quarter of 2021, which included the world debut of the Mullen FIVE at the Los Angeles International Auto Show in November 2021.  Reservation progress continues to build and shows strong consumer interest. 

“We have made significant progress during the second quarter and have demonstrated significant finance progress for moving forward,” said David Michery, CEO and chairman of Mullen Automotive. “Our balance sheet continues to improve and our EV programs are all moving forward, including the start of the Mullen FIVE RS program.”

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.

Financial Disclosure Advisory
The financial results presented in this press release are preliminary and estimated. They are subject to the completion and finalization of the Company’s financial and accounting closing procedures.  The Company has not yet completed its reporting process for its quarter ended March 31, 2022. The preliminary results presented herein are based on its reasonable estimates and the information available to it at this time. As such, the Company’s actual results may materially vary from the preliminary results presented herein and will not be finalized until the Company reports its final results for second fiscal quarter 2022 after the completion of its normal quarter end accounting procedures. In addition, any statements regarding the Company’s preliminary and estimated financial performance for the second quarter of fiscal 2022 do not present all information necessary for an understanding of the Company’s financial condition and results of operations as of and for the quarterly period ended March 31, 2022, and should not be viewed as a substitute for full quarter financial statements prepared in accordance with GAAP.  Accordingly, you should not place undue reliance upon this preliminary information.

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 among other things, the statements quoted by our Chief Executive Officer, 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 based on current expectations of Mullen’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. These statements are based on various assumptions, whether or not identified in this press release. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. These forward-looking statements include, but are not limited to, statements regarding financial and operating guidance, amount of vehicle reservations and related potential sales, future capital expenditures and other operating expenses, expectations and timing related to commercial product launches, production and delivery volumes, the range and performance of our vehicles, pricing of our vehicles, our estimate of the length of time our existing cash will be sufficient to fund planned operations, the timing of deliveries, future manufacturing capabilities and facilities, future sales channels and strategies, and the potential success of Mullen’s go-to-market strategy and future vehicle programs; whether the Company will achieve its objectives of launching its EV crossover, the FIVE within anticipated timelines and if so, if the FIVE will be a success; whether production of  its own EV battery packs will be successful, reduce dependency on third-party suppliers or result in lower costs and increased overall quality; whether the Company’s partnerships with various third parties will result in expediting the rollout of the FIVE; ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed;  ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business ability to successfully expand in existing markets and enter new markets; ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; unanticipated operating costs, transaction costs and actual or contingent liabilities;  the ability to attract and retain qualified employees and key personnel;  adverse effects of increased competition on Mullen’s business; changes in government licensing and regulation that may adversely affect Mullen’s business; the risk that changes in consumer behavior could adversely affect Mullen’s  business;  Mullen’s ability to protect its intellectual property; and  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.
+1 (714) 613-1900

Wire Service Contact:
InvestorWire (IW)
Los Angeles, California
212.418.1217 Office
[email protected]

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