Mullen Announces 124% Increase in Growth This Year
Mullen Automotive (NASDAQ:MULN) on Monday announced a 124% increase in growth this year compared to last year’s financial results.
Alongside its quarterly results ending on June 30, 2023, the company also announced a number of business updates to shareholders.
One being a major offense move as the company aims to authorize a $25 million stock buyback program which may, until December 31, 2023, purchase up to $25 million in shares of its outstanding common stock.
The shares may be repurchased, from time to time, in the open market or in privately negotiated transactions depending upon market conditions and other factors, and in accordance with applicable regulations of the Securities and Exchange Commission.
It is important to note that the authorization of the stock buyback program does not obligate the Company to purchase any shares and may be terminated or amended by the Board at any time prior to its expiration date.
“The Company ended fiscal third quarter on June 30, 2023, with stockholders’ equity of $351.8 million, compared to $157.0 million on Sept 30, 2022, which represents an increase of 124%.
During the quarter ended June 30, 2023, the Company successfully secured $100 million in funding from its Series D preferred stock investors which completes all remaining investment obligations to the Series D holders.
With this latest investment, the Company’s cash and cash equivalents exceed $200 million as of July 3, 2023, bolstering our liquidity and supporting our move from prototype to production for commercial vehicles.
During the quarter ended June 30, 2023, the Company recorded its first revenues on the sale of Campus EV Cargo Vans.
The Company will host a commercial EV production launch event on August 24, 2023.
This event will commemorate the production of our first Class 3 commercial vehicles and showcase the Tunica, Mississippi commercial assembly plant.”
Also Read: Mullen CEO Speaks on New Reverse Split and Short Sellers
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Mullen Financial Results
Despite Mullen seeing an improvement from last years equity, the EV company is not out of the woods just yet.
Although Mullen benefited from an increased cash flow during the three and nine months ended June 30, 2023, they also recorded significant amount of non-cash operating expenses contributing to the GAAP (Generally Accepted Accounting Principles) losses.
“The net loss attributable to common stockholders after preferred dividends was $308.9 million, or $11.14 net loss per share, for the three months ended June 30, 2023, as compared to a net loss attributable to common stockholders after preferred dividends of $7.1 million, or $4.26 loss per share, for the three months ended June 30, 2022.
The Consolidated Statement of Cash Flows detail provides the amount of cash spent during the quarter.
Net cash used in operating activities was $46.1 million for the three months ended June 30, 2023:
| Operating Activities | $ | (46,060,560 | ) | |
| Investing Activities | $ | (10,029,665 | ) | |
| Financing Activities | $ | 196,774,970 |
There was $272.0 million of non-cash expenses included in the GAAP net loss for the three months ended June 30, 2023.
In addition, investment in working capital (changes in operating assets and liabilities) was $6.6 million for the three months ended June 30, 2023.
The net loss attributable to common stockholders after preferred dividends was $792.7 million, or $55.44 loss per share, for the nine months ended June 30, 2023, as compared to a net loss attributable to common stockholders after preferred dividends of $523.1 million, or $694.20 loss per share, for the nine months ended June 30, 2022.
Considering the $698.4 million of non-cash expenses, it is useful to review the Consolidated Statement of Cash Flows to better understand the cash expenditures for the nine months ended June 30, 2023.
Net cash used in operating activities was $113.6 million for the nine months ended June 30, 2023:
| Operating Activities | $ | (113,627,945 | ) | |
| Investing Activities | $ | (107,449,762 | ) | |
| Financing Activities | $ | 364,134,630 |
Operating cash flow for the nine months ended June 30, 2023, was $113.6 million which was comprised of $698.4 million of non-cash addbacks to reconcile net loss before accrued preferred dividends and noncontrolling interest to net cash used in operating activities.
Additionally, we invested $5.3 million into working capital (change in operating assets and liabilities).”
Also Read: Mullen Announces New Production Vehicles For This Month
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