MULN Stock Alert: Mullen Reports $0 in Revenue for FY Q2


Editor’s Note: This article was corrected on May 16 to show net cash used in investing and operating activities for the six months ended March 31.

  • Mullen Automotive (MULN) brought home zero dollars of revenue during the fiscal second quarter.
  • The company also reported a net loss before accrued preferred dividends and non-controlling interest of $116.90 million.
  • MULN stock is down more than 80% year-to-date (YTD).
A close-up shot of the gold Mullen (MULN) FIVE.
Source: Sam the Leigh /

All eyes are on Mullen Automotive (NASDAQ:MULN) stock after the electric vehicle (EV) company reported fiscal second-quarter earnings results. While many shareholders expected revenue, Mullen yet again reported zero dollars of the metric.

Per Mullen’s Form 10-Q:

“The Company has not generated revenue to date and has accumulated losses since inception. The Company’s ability to continue operating as a going concern is contingent upon, among other things, its ability to raise sufficient additional capital and/or obtaining the necessary financing to support ongoing and future operations and to successfully manufacture and launch its products for sale.”

This news comes despite $279 million in purchase orders from Randy Marion Automotive Group (RMA) for Mullen’s Class 1 and 3 EVs. Mullen noted that it would begin collecting revenue from the RMA order beginning in August.

MULN Stock: Mullen Reports $0 in Revenue for FY Q2

During the three months ended March 31, Mullen spent $20.47 million in research and development. Meanwhile, general and administrative expenses were $47.41 million. That brings total operating expenses up to $67.89 million for the period compared to $30.45 million a year ago. These operating expenses contributed to a total net loss before accrued preferred dividends and non-controlling interest of $116.90 million, an improvement from a loss of $324.60 million last year.

The biggest factor contributing to the net loss was loss on derivative liability reevaluation, which totaled $48.43 million. This loss actually decreased from a year ago because “more warrants were exercised during the period ended March 31, 2023 and less derivative liabilities are outstanding as of that date.”

As of March 31, Mullen had $60.3 million in cash and cash equivalents while total cash available for operations and development was $86.3 million. For the six months ended March 31, net cash used in operating activities was $67.56 million, while net cash used in investing activities was $97.42 million. Net cash used in investment activities was buoyed by the $92.91 million Electric Last Mile Solutions (OTCMKTS:ELMSQ) purchase. Meanwhile, net cash provided by financing activities was $167.35 million.

This morning, Mullen announced that it had delivered its first Mullen THREE demonstration and customer test drive vehicle to RMA. Randy Marion Automotive had previously placed an 1,000 vehicle order for the trucks valued at $63 million, with deliveries set to begin in August.

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’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 Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC