Mullen Reports Financial Results for the Three and Nine Months Ended June 30, 2024

Positive stockholders’ equity of $53 Million as of June 30, 2024

Total assets of $192 Million as of June 30, 2024

BREA, Calif., August 12, 2024– via InvestorWire – Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, today announces financial results for the three and nine months ended June 30, 2024, and a business update.

Commenting on the results for the three and nine months that ended June 30, 2024, and recent Company developments, CEO and chairman David Michery stated: “We narrowed our loss in the quarter and year-to-date. We are positioning our fiscal Q4 for strong year-over-year growth. I am thankful to our team and our efforts in scaling our commercial EV business in the U.S. and internationally.”

Recent Highlights Include:

The Company has secured a substantial $250 million new financing commitment; with $50 million already received, $50 million as a one-year additional investment right where the investors have the right to provide additional financing, and $150 million pursuant to an equity line of credit. In addition, the Company signed a commitment letter agreement with an investor for a total investment of $100 million through the issuance of senior secured convertible notes and warrants contingent upon mutual consent and the execution of final documentation by both parties.
In August 2024, Mullen announced a lease program for Class 1 EV cargo vans created with a focus on individuals, small businesses and fleets. bizEV is a turnkey lease program offering customers an opportunity to transition to EV with a 3-year lease option, starting at $475 per month plus applicable taxes and fees and includes scheduled vehicle maintenance.
In July 2024, GAMA, one of Mullen's international distributors, placed an order for 29 Mullen-GOs, the Company’s commercial micro-urban delivery vehicle. The order is valued at $304,000 USD with shipment to GAMA beginning in August 2024.
Bollinger’s B4, Class 4 EV chassis cab received EPA Certification on June 18, 2024, and Bollinger Motors released its full warranty coverage on the B4 in July, one of the strongest warranties in the commercial market today.
In July 2024, Mullen’s Class 1 EV cargo van received approval for the MOR-EV Program, granting a $3,500 rebate in Massachusetts. When combined with the available $7,500 federal tax credit, the net effective cost of the Mullen ONE would be approximately $23,500.
In July 2024, Bollinger Motors announced new orders for the all-electric Class 4 Bollinger B4 commercial trucks.
- 5 vehicles to Spencer Manufacturing, which will upfit the vehicles into fire rescue trucks. The vehicle order is valued at approximately $825,000.
- 70 vehicles Doering Fleet Management, one of the nation’s premier fleet management companies. The vehicle order is valued at approximately $11.5 million.
In July 2024, Bollinger Motors named former GM executive James Taylor as CEO. He will take over for company founder Robert Bollinger, who will remain on Bollinger’s Board of Directors and a major shareholder. In addition, the company promoted Bryan Chambers to President and Chief Operating Officer and Siva Kumar to Chief Strategy Officer and Senior Vice President of Finance of Bollinger.
In August 2024, Mullen announced the promotion of John Taylor to President of the Commercial EV Division. Taylor also retains a role as SVP of Global Manufacturing for Mullen Automotive.
In August 2024, the Company announced commercial EV orders of 130 Class 1 EV cargo vans and 50 Class 3 EV trucks to Eco Auto over the next 18 months for an estimated value of $7.7 million, with new deliveries beginning in September 2024.
Recent ride-and-drive activity and events include the NAFA Atlanta Area Summer Block Party, Sustainable Fleet Technology Conference & Expo, Cal Start Zero Emissions Showcase, Green Transportation Summit & Expo and participation in SEUS-CP Business Forum as an Anchor Organization and panelist for the State of Mississippi.
In addition to its U.S. activities, Mullen is preparing significant pilot programs in Europe and Canada and is actively deploying Class 1 and Class 3 EVs to Europe.

Fiscal Quarter Ending June 30, 2024, Updates Include:

Mullen Commercial – Troy, Michigan
Class 1 and 3 Commercial Vehicles

The State of Massachusetts issued MOR-EV approval, granting Mullen’s Class 3 EV truck a $15,000 cash voucher per vehicle sold.
Mullen added its fifth commercial dealer partner, Eco Auto based in the New England area, and initial purchase order of 13 commercial vehicles.
In May, the Company announced a new commercial EV Fleet order for Europe with Switzerland-based Antidoto SA for 40 Mullen-GO urban delivery vehicles. The initial PO is valued at $440,000 USD.
Mullen announced a new European distributor, GAMA, for the Balkans Region in Europe with the first order for 53 vehicles consisting of commercial EV urban delivery vehicles, cargo vans and trucks.
Mullen continued Commercial EV dealer expansion in the Midwest with Ziegler Truck Group and Pacific Northwest with Range Truck Group.
Mullen is actively engaged in negotiations with major telecoms, large fleet providers, delivery companies, universities, local municipalities, government agencies, and airport service providers to expand our customer base and market share.
Mullen announced a $150 Million financing commitment.
In May, the U.S. Department of Commerce approved Mullen’s Tunica, MS., facility as a foreign trade zone delivering up to $21 million in deferred duty for the remainder of FY2024 and FY2025.
Mullen added a California-based and HVIP-approved dealer, National Auto Fleet Group with locations in Watsonville and Alhambra, CA.
Mullen added one of the largest US commercial dealers, Pritchard EV, to its dealer network.
In April, California issued HVIP approval, granting Mullen’s Class 3 EV trucks a $45,000 Cash voucher per vehicle sold.
In April, Mullen announced new CARB approval for the 2025 model year Class 3 EV cab chassis truck.

Bollinger Motors - Oak Park, Michigan
Class 4 – 6 Commercial Vehicles

Bollinger has announced retail dealers, including LaFontaine Automotive Group, Nacarato Truck Centers, and Nuss Truck and Equipment, covering the initial states of Michigan, Florida, Georgia, Kentucky, Maryland and Minnesota.
In June, Bollinger received EPA certification for Class 4 EV Commercial Trucks which is a critical step to selling vehicles in the U.S.
In June, Bollinger received a $13.2 million sales order from Momentum Groups for 80 B4 Class 4 EV trucks.
In May, Bollinger announced the sale of 50 Bollinger B4 Chassis Cab EV Trucks to EnviroCharge for $8.3 million.
Bollinger Motors announced Amerit Fleet Solutions for mobile service and warranty for the B4 all-electric Class 4 commercial truck.
Bollinger expects to begin B4, Class 4 vehicle production and deliveries in the second half of 2024.

Mullen High Energy Facility – Fullerton, California

In May, the Company announced the development of a zero-emissions, PowerUP Mobile EV Charging Truck.
In April, the Company marked phase one completion of the Battery Pack Assembly line in Fullerton, CA.

Battery Technology Update

The Company is advancing its solid-state polymer pack program and is continuing to conduct battery and vehicle testing since Class 1 EV cargo van road testing began in February 2024.
Recently, the Company has identified lead suppliers for development and components and issued initial purchase orders to support this pivotal program.
The Company expects to have the solid-state polymer packs fully certified for production and sale in the second half of 2025.

Financial Results for the Three and Nine Months Ended June 30, 2024

For the nine months ended June 30, 2024, we invoiced for 377 vehicles valued at $16.8 million. The Company has deferred the revenue and accounts receivable recognition until invoices are paid and the return provision on the vehicles is nullified by the dealer’s sale of the vehicle to the end user.

Net loss and loss per share

The net loss attributable to common shareholders after preferred dividends was $289.9 million, or $37.92 net loss per share, for the nine months ended June 30, 2024, as compared to a net loss attributable to common shareholders after preferred dividends of $792.7 million, or $5,544.35 loss per share, for the nine months ended June 30, 2023. Share counts were adjusted retroactively for reverse stock splits. The net loss for the nine months ended June 30, 2024, of $289.9 million included non-cash impairment charges recorded last quarter (Quarter ended March 31, 2024) totaling $105.5 million primarily due to future funding uncertainties and a decrease in the Company's market capitalization.

The total cash spent (Operating and Investing cash flows) for the nine months ended June 30, 2024 and 2023, was $159.2 million and $221.1 million, respectively.

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We invested an additional $1.0 million and $3.0 million in working capital during the nine months ended June 30, 2024 and 2023, respectively. Details of changes in working capital are as follows:

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The details of non-cash adjustments to the Consolidated Statements of Cash Flows are as follows:

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Shareholders’ equity

Shareholders’ equity was $53.0 million as of June 30, 2024, versus $272.8 million at September 30, 2023. The decrease in stockholders’ equity for the nine months ended June 30, 2024, reflects the impairment charges of $105.5 million and other operating losses of $225.4 million offset by warrant exercises, notes conversions, stock-based compensation and other equity transactions.

Liquidity

We had total cash (including cash equivalents and restricted cash) of $4.0 million on June 30, 2024, versus $155.7 million on Sept. 30, 2023. The working capital as of June 30, 2024, was negative and amounted to $59.0 million, or $10.4 million if adding back derivative liabilities and other liabilities settled in common stock. This compares to a positive $58.5 million of working capital or $133.3 million of working capital on Sept. 30, 2023, if adding back derivative liabilities and other liabilities settled in common stock.

During the nine months ended June 30, 2024, we paid off $4.9 million in current notes payable that was secured by a mortgage on our Tunica, Mississippi, facility. During the quarter ended June 30, 2024, new senior secured convertible notes with warrants were issued for cash totaling $12.5 million. As of June 30, 2024, a portion of notes and accumulated interest were converted into shares of the Company's common stock. Current notes payable as of June 30, 2024, were $2.7 million compared to $7.5 million of current notes payable as of September 30, 2023 (balances include debt discounts) reflecting the pay-off of the Tunica mortgage.

Subsequent to June 30, 2024, investors purchased an additional aggregate principal amount of $39.5 million, for $37.5 million in cash after deducting the 5% original issue discount.

Financial statements

Following are our unaudited Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows for the three and nine months ended June 30, 2024, and 2023.

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About Mullen

Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. Recently, CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, providing up to a $45,000 cash voucher at time of vehicle purchase. The Company has also recently expanded its commercial dealer network with the addition of Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group and Eco Auto, providing sales and service coverage in key Midwest, West Coast and Pacific Northwest and New England markets. The Company also recently announced Foreign Trade Zone (“FTZ”) status approval for its Tunica, Mississippi, commercial vehicle manufacturing center. FTZ approval provides a number of benefits, including deferment of duties owed and elimination of duties on exported vehicles.

To learn more about the Company, visit www.MullenUSA.com.

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 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 the timing and receipt of the $150 Million capital commitment, whether such funding will be sufficient to meet the needs of the Company and its affiliated entities, the impact to the Company and its shareholders as a result of the anticipated financing , whether the B4, Class 4 vehicle deliveries will occur in the timeline expected, whether development and production of the Mullen FIVE RS will be completed and launched within the anticipated timeframes, whether governmental grant applications submitted by the Company will be successful and the outcome of the integrated solid-state polymer battery packs in vehicle level testing. 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.

Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com

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