When will Mullen Automotive (NASDAQ:MULN) file its late Form 10-K for the fiscal year that ended Sept. 30, 2022? That’s the big question on everyone’s mind, and it appears that the deadline is quickly approaching.
On Dec. 29, the electric vehicle (EV) company disclosed that it would be late in filing its Form 10-K. Mullen attributed the delay to needing more time to properly value its warrants. The company has hired an independent third party to assist with this, as the outcome “could have an impact on the consolidated results of operations.”
Mullen classifies itself as a non-accelerated filer. There are two classifications for a non-accelerated filer that fit the company:
- No public float or a public float of $75 million or less.
- If the public float is greater than $75 million but less than $700 million, then annual revenue must be less than $100 million.
Mullen satisfies classification number two since its public float is between $75 and $700 million, and its annual revenue is less than $100 million.
Dear MULN Stock Fans, Mark Your Calendars for Jan. 13
So, what does that signify? The Securities and Exchange Commission (SEC) has different deadlines for each classification of filer. Non-accelerated filers must submit a Form 10-K 90 days after the end of the fiscal year. 90 days after Sept. 30 falls on Dec. 29, which is when Mullen disclosed a delayed filling.
Companies that fail to meet the deadline are required to file a Form NT. NT stands for “non-timely.” After filing a Form NT, the deadline is extended by 15 days from the initial deadline. 15 days after Dec. 29 falls on Jan. 13.
Delayed filings are not a good look for any company. According to financial firm Toppan Merrill, a late Form 10-K notification causes an average stock decline of about 2%. Toppan also reports that 25% of companies exceed the Form 10-K 15-day grace period.
MULN stock has bucked this trend so far. MULN stock has seen an 88% increase in price over the past month but it is unclear how long this trend will last.
The Form 10-K will provide a much-needed update for MULN stockholders. The company’s last reported earnings were for the three months that ended on June 30. During then, Mullen reported a net loss of $59.47 million, up from a net loss of $15.25 million year-over-year. That’s equivalent to a net loss per share of 16 cents, down from a net loss of $2.90 a share a year ago. Meanwhile, Mullen noted that it had not yet generated any revenue from its business operations as of June 30.
So, how did net loss increase but net loss per share decrease? That’s attributed to the weighted average shares outstanding increasing to 376.78 million from 5.26 million.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Eddie Pan did not hold (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.
