Mullen Automotive (NASDAQ:MULN) stock is in the red after the electric vehicle (EV) company revealed its financial results for the fiscal year ended Sept. 30.
For the year, revenue tallied in at $366,000 while cost of goods sold was $273,882, resulting in a gross margin of $92,118 or about 25%.
Mullen reported revenue of $308,000 for the three months ended June 30, meaning that revenue was $58,000 for the three months ended Sept. 30, down by roughly 81% quarter-over-quarter.
Meanwhile, the company’s net loss surged to $1 billion from $740.32 million a year ago, reflecting an increase of about 36%. Net loss per share was $1,574.14 compared to a net loss per share of $63,085.26 a year ago. Net loss per share “improved” due to Mullen’s weighted average shares outstanding increasing by 4,857% year-over-year (YOY).
Mullen isn’t getting anywhere close to profitability and is actually straying further away from it.
MULN Stock: Mullen Discloses Annual Results
Mullen pointed out in a press release that of the $1 billion in losses, $820.4 million was attributable to non-cash expenses. However, these non-cash expenses aren’t just money lost from thin air.
These expenses included $85.44 million in stock-based compensation, a $63.98 million goodwill impairment of Bollinger and $513.05 million through the initial recognition of derivative liabilities. CEO David Michery received a total of $48.87 million in stock awards for the year ended Sept. 30. He attributed Bollinger’s goodwill impairment to the decline in MULN stock and “unfavorable capital market conditions.” MULN stock is down by over 99% for the past one year.
Meanwhile, the company’s loss from operations increased to $377.77 million from $96.98 million. This was primarily due to general and administrative expenses of $215.84 million, $77.38 million in research and development and Bollinger’s goodwill impairment. On top of that, Mullen’s plant, property, equipment and other non-current assets also received an impairment of $14.77 million.
For the year ended Sept. 30, Mullen delivered 25 Campus Urban Delivery vehicles and 10 THREEs. It invoiced $1.01 million and recognized $366,000 in revenue.
For the quarter ended Dec. 31, Mullen delivered 131 THREEs and 100 ONEs. It invoiced $11.90 million but recognized $0 in revenue due to 30-day payment terms.
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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.
