Mullen Automotive (NASDAQ:MULN) stock is in full focus after the company reported its fiscal third-quarter earnings for the three months ended June 30. Its net loss per share tallied in at $11.14, compared to a loss of $4.26 a year ago. Mullen also reported $308,000 in revenue, its first-ever revenue.
The company’s earnings should open up the way for an up to $25 million buyback program. Mullen previously announced that it “intends to begin repurchasing up to $25 million in shares” following the submission of its 10-Q and the expiration of its blackout period. The buyback program will expire on Dec. 31, 2023. At the time of this writing, Mullen has not yet submitted its 10-Q.
With that in mind, let’s get into the details of Mullen’s earnings.
MULN Stock: Mullen Reports Fiscal Third-Quarter Earnings
Mullen’s revenue of $308,000 received a cost of sales of $248,669, meaning that its gross margin was $59,331 or 19.26%. Still, the revenue was not enough to report a positive income figure, as the company posted a net loss before income tax benefit of $310.97 million, up from a net loss of $4.84 million year-over-year (YOY). The net loss was mainly attributable to initial recognition of derivative liabilities of $248.41 million.
Meanwhile, loss from operations almost tripled to $53.80 million from $18.22 million. That was due to a large spike in both general and administrative and research and development expenses. As Class 3 production progresses, these expenses could grow even larger, although revenue should see a boost as well upon successful sales.
“We are very proud to report Mullen’s move from prototype to production for our Class 3 commercial vehicle,” said CEO David Michery. “This milestone marks the next phase of our journey towards transforming the electric vehicle landscape and driving sustainable mobility solutions.”
On the balance sheet, Mullen reported $255.04 million in current assets as of June 30, 2023. That includes $214.01 million in cash and cash equivalents and $13.41 million in restricted cash. As of Sept. 30, 2022, the company had $54.08 million in cash and cash equivalents and $30.28 million in restricted cash. Furthermore, Mullen’s plant, property and equipment totaled $91.75 million, up from just $17.78 million as of Sept. 30. This figure was buoyed by the acquisitions of Bollinger Motors and Electric Last Mile Solutions (OTCMKTS:ELMSQ).
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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.
