Mullen announces preliminary Q3 results saying it’s in a “strong financial position”

Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | Twitter

The EV maker Mullen Automotive announced Tuesday its preliminary third-quarter results saying it 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.

On Monday, the company unveiled the appointment of Andre Hudson as its Vice President of Design. Hudson will lead the growth and development of the Mullen brand through strong product and portfolio development.

During his 25-year-long career, Hudson has worked for General Motors Co. as a Creative Designer, at Hyundai as a Design Manager, at Icona Design as Chief Designer and more recently at IndiEV as Head of Product Design.

Hudson is an experienced vehicle design expert with a proven history of compelling design and brand vision leadership, which resulted in several highly successful concept and production vehicles in the marketplace, Mullen said.

Last Friday, the company filed a S-3ASR form announcing a filing for up to 524,067,048 share offering by selling stockholders. The company said it relates “solely to the resale by the investors listed in the section of this prospectus entitled “Selling Stockholders” of up to 524,067,048 shares of their common stock.

Earlier in the week, the EV maker Mullen Automotive announced the opening of a new EV Technology team located in Pontiac (Michigan) to develop EV technologies for its commercial vans.

Mullen said the team “will be home to a new division of engineers and technology developers focused on Mullen’s Class 1 – 5 commercial vehicle development” expecting to have upwards of 50 employees by the end of 2022 after the first 20 new hires.

On Monday, the company unveiled the opening of a new Automotive Development Center at 100 Technology Drive, Irvine to support Mullen’s expanding automotive team. The 16,000-square-foot facility is located “in the heart of Irvine’s technology corridor” and will receive part of the team that Mullen will divide between Monrovia and Irvine facilities.

The new plant will host Engineering Design and Development, Styling, Program Management, Marketing and Finance teams, whereas Battery, Powertrain, Thermal, and Infotainment teams will be located at the High-Voltage Facility in Monrovia, California, the company stated.

According to a 13F-HR form filed last week, the National Bank Of Canada initiated a position on the EV maker disclosing ownership of 536,500 shares valued at $547,000 at the end of the second quarter. Furthermore, the Bank also purchased 1,500 Call options ($153,000) and 6,865 Puts at ($700,000) during the second quarter of the year.

Earlier in the week, Mullen held its Annual Meeting of shareholders (Full Presentation here). A total of 302,018,291 votes were represented at the Annual Meeting and all the proposals were passed by the shareholders in the preliminary results. The final results of the proposal votes will be announced on or before August 1, Mullen said during the meeting.