Shares of the Mullen Automotive (NASDAQ:MULN) opened in the red after the electric vehicle (EV) company filed its Form 10-K before the 5:30 p.m. deadline last Friday. On that day, MULN stock plummeted as much as 30% lower before recovering some losses. The Form 10-K offered new information about the fiscal year (FY) ending Sept. 30.
For the fiscal year, Mullen reported a net loss of $740.32 million and zero dollars of revenue. The initial recognition of warrant liabilities contributed $484.42 towards the net loss, while the reevaluation of warrant liabilities contributed $122.8 million. In FY 2021, Mullen reported a net loss of $44.24 million and zero dollars of revenue. Furthermore, the company spent $21.65 million on research and development compared to just $3 million the prior year.
Mullen filed a Form 8-K prior to its Form 10-K. The Form 8-K disclosed two “putative stockholder class action” lawsuits, filed on Dec. 7 and 13. The plaintiffs in the two cases argue that common stock outstanding as of the Annual Meeting Record Date was 477.51 million. As a result, a majority of the common stock, when considered separately, did not vote in favor of an increase in authorized shares at the 2022 Annual Meeting, which fell on July 26.
With that in mind, let’s take a look at 10 things to know about Mullen’s Form 10-K.
MULN Stock Alert: 10 Things to Know as Mullen Issues Late 10-K
- Mullen stated that it ended FY 2022 with $289,000 in refundable deposits. The cost to reserve a Mullen Five is $100, so investors can assume that they have 2,890 preorders.
- The company mentioned preorders for the Five had quadrupled on the second day of its Strikingly Different tour.
- As a result, we can assume Mullen has at least 11,560 preorders for the Five.
- Mullen had $302.59 million of total assets for the year ended Sept. 30.
- $92.83 million of those assets are attributed to goodwill, which is an intangible asset.
- The company warned, “There is substantial doubt about our ability to continue as a going concern.”
- Mullen’s ability to continue as a going concern will rely on additional debt or equity raises. That could mean further shareholder dilution.
- On Jan. 13, the company entered into a agreement with shareholders of its Series C Preferred stock. These shareholders agreed to waive their right to receive “any and all cumulative 15% per annum fixed dividends.”
- CEO David Michery received $6.37 million in compensation.
- He received an additional CEO performance award of 107.9 million shares with a value of $30.07 million.
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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.