It looks like California-based electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN) won’t end the year on a positive note. MULN stock investors woke up this morning and found the share price in the red. Possibly, this was due to a Securities and Exchange Commission (SEC) form that Mullen recently filed.
Typically, publicly listed companies file a Form 10-K, or an annual financial report, to the SEC every year. This time around, however, it appears that Mullen Automotive won’t have its annual report ready on time.
What happens when a company is delayed in filing its Form 10-K? In that case, SEC Rule 12b-25 stipulates that the company will need to file Form NT, where “NT” stands for “non-timely.” Then, the company will have a 15-day grace period to file its Form 10-K. It’s just a one-time grace period, however.
Some folks might wonder whether a delayed annual report filing is a sign of a company having fundamental problems. This isn’t necessarily the case for Mullen Automotive. So, let’s see how today’s traders responded to the news.
What’s Happening With MULN Stock?
After jumping 28% higher on Thursday, MULN stock gapped down 3% when the opening bell rang on Wall Street today. The late annual filing might have been a contributing factor. However, it’s also possible that traders were taking profits after Thursday’s massive gain. In any case, shares recovered and moved into the green within the first half-hour of the trading session and have since shot up about 9%.
It’s understandable if investors want to know why Mullen Automotive is late in its Form 10-K filing. According to the company’s NT filing, Mullen is “awaiting a final valuation of certain of the Company’s warrants to complete the preparation of its consolidated financial statements.”
This doesn’t sound like a huge fundamental problem with Mullen Automotive. Besides, Mullen appears to be taking steps to address this issue. In particular, the company “has engaged an independent third party to perform that valuation, the outcome of which could have an impact on the consolidated results of operations.”
Therefore, investors at least have a brief explanation of why Mullen Automotive is delaying its annual report filing. Now, MULN stock traders will have to wait and see whether Mullen gets the information/valuation it needs and subsequently files its Form 10-K within the allotted grace period.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
