Positive stockholders' equity of $117,414,643 as of March 31, 2024 Company has additional $150 million in capital commitments to support the scaling of commercial EV operations BREA, Calif., May 14, 2024 (GLOBE NEWSWIRE) -- -- via IBN -- Mullen Automotive, Inc. (NASDAQ:MULN) ("Mullen" or the "Company"), an electric vehicle ("EV") manufacturer, today announces financial results for the three and six months ended March 31, 2024, and a business update. Commenting on the results for the three and six months ended March 31, 2024, and recent Company developments, CEO and chairman David Michery stated, "Our Company continues to grow despite difficult market conditions and I am thankful to our team and the effort put forth in getting our EVs into the market and onto U.S. roads. We continue to drive forward and remain laser-focused on scaling our commercial EV business. Today, we announced an additional $150 million in capital commitments to support our commercial EV operations." Recent Highlights Include In May 2024, the Company received approval from the Department of Commerce for Foreign Trade Zone status at its Tunica, Mississippi, commercial vehicle manufacturing facility. In May 2024, the Company expanded its retail commercial dealer network with addition of Pritchard EVs and National Auto Fleet Group, adding both national and regional fleet focus in the Midwest and West Coast. In April 2024, Mullen received California Air Resource Board's ("CARB") HVIP approval for the Mullen THREE, Class 3 EV truck, providing up to $45,000 in a cash voucher at time of vehicle purchase. In April 2024, the Company received CARB approval on the 2025 Mullen Class 3 EV truck. Mullen Class 1 and 3 Commercial Vehicles Mullen opened the Dominican Republic and Caribbean markets with Grupo Cavel for commercial EVs and began initial shipment of vehicles in April 2024. Tunica recently built 500th commercial vehicle and continues to build Class 1 and Class 3 vehicles. Mullen announced the completion of a new light-weight service truck body, targeted for utility and municipality customers, for the All-Electric Mullen THREE. The vehicles are available now and were developed in collaboration with Phenix Truck Bodies & Van Equipment and Knapheide Manufacturing. In February 2024, the Company began Class 1 EV cargo van road testing with the integrated solid-state polymer battery pack in Troy, Michigan, with actual road tests resulting in 86% increase in vehicle range, from 110 miles to 205 miles. After successful road testing, Company is moving to production pack design with multiple packs being produced for vehicle-level testing, including environmental and durability. Bollinger Motors - Oak Park, MichiganClass 4 – 6 Commercial Vehicles Bollinger recently announced new retail dealers, including LaFontaine Automotive Group, Nacarato Truck Centers, and Nuss Truck and Equipment, covering initial states of Michigan, Florida, Georgia, Kentucky, Maryland and Minnesota. In February, Bollinger received IRS Approval for $40,000 Commercial EV Tax Credit. In January, Bollinger Motors received first vehicle orders for 40 B4, Class 4 EV trucks for a combined total order valued at approximately $6.0 million. The Company expects to begin B4, Class 4 vehicle deliveries in the second half of 2024. Mullen Consumer Vehicle Program - Irvine, California Mullen FIVE EV Crossover Program Development and production of the high-performance Mullen FIVE RS ("FIVE RS" or "RS") limited-edition has been fast-tracked for completion and launch in Q4 2025 in the European market. This vehicle will be a limited production run delivering over 200-plus mph and 1.95 sec 0-60 mph. The Company debuted the high-performance Mullen FIVE RS on Jan. 9, 2024, at CES 2024 in Las Vegas. Mullen High Energy Facility - Fullerton, California In January 2024, Mullen Advanced Energy, LLC submitted a pre-application to the U.S. Department of Energy ("DOE") Advanced Technology Vehicles Manufacturing ("ATVM") Loan Program to support its expansion into domestic battery material processing and manufacturing. In January 2024, The Company submitted a grant funding opportunity to DOE for domestic battery materials processing. The Company opened the Fullerton facility in 2023 and is focused on reducing reliance on foreign battery components. Solid-State Polymer Battery Pack Update In February 2024, the Company began Class 1 EV cargo van road testing with the integrated solid-state polymer battery pack in Troy, Michigan. Actual road tests resulted in 86% increase in vehicle range, from 110 miles to 205 miles. After successful road testing, Company is moving to production pack design with multiple packs being produced for vehicle-level testing, including environmental and durability. Financial Results – Three and Six Months Ended March 31, 2024 For the six months ended March 31, 2024, we delivered 362 vehicles valued at $16.3 million. The Company has deferred the revenue and accounts receivable recognition until invoices are paid and the return provision on the vehicles are nullified by the dealer's sale of vehicle to the end user. Invoiced during the 6 months ended March 31, 2024 (in thousand dollars)   Type   Units invoiced     Amount invoiced     Cash received     Revenue recognized   Mullen 3 (UU)     131     $ 8,543.8     $ 652.2     $ —   Urban Delivery (UD1)     231       7,769.4       33.3       33.3   Total     362     $ 16,313.2     $ 685.5     $ 33.3   The total cash spent (Operating and Investing cash flows) for the six months ended March 31, 2024, and 2023, was $120.9 million and $165.0 million, respectively.     Six months ended March 31,     2024     2023 Net loss   $ (235,355,627 )   $ (495,369,280 ) Non-cash adjustments     135,101,417       424,626,754   Working capital investment     (8,218,766 )     3,175,141   Net cash used in operating activities     (108,472,976 )     (67,567,385 ) Net cash used in investing activities     (12,470,001 )     (97,420,097 ) Cash spent   $ (120,942,977 )   $ (164,987,482 ) The detail of non-cash adjustments to the Consolidated Statements of Cash Flows are as follows:     Six months ended March 31,     2024     2023 Non-cash expenses and gains during the period:                 Stock-based compensation   $ 15,609,276     $ 60,303,367   Revaluation of derivative liabilities     3,106,223       89,221,391   Depreciation and amortization     14,310,450       8,523,682   Issuance of warrants to suppliers     —       6,814,000   Deferred income taxes     (3,891,300 )     (901,999 ) Other financing costs - initial recognition of derivative liabilities     —       255,960,025   Impairment of goodwill     28,846,832       —   Impairment of right-of-use assets     3,167,608       —   Impairment of intangible assets     73,447,067       —   Non-cash interest and other operating activities     216,021       (1,745,882 ) Loss/(gain) on assets disposal     323,865       —   Loss/(gain) on extinguishment of debt     (34,625 )     6,452,170   Total   $ 135,101,417     $ 424,626,754    We invested an additional $8.2 million and recovered $3.2 million in working capital during the six months ended March 31, 2024, and 2023, respectively. Details of changes in working capital are as follows:     Six months ended March 31,     2024     2023 Changes in operating assets and liabilities:                 Accounts receivable   $ 671,750     $ —   Inventories     (16,154,711 )     —   Prepaids and other assets     (726,490 )     (8,271,388 ) Accounts payable     9,523,141       8,429,257   Accrued expenses and other liabilities     (77,010 )     2,672,040   Right-of-use assets and lease liabilities     (1,455,446 )     345,232   Total   $ (8,218,766 )   $ 3,175,141   The net loss attributable to common shareholders after preferred dividends was $193.9 million, or $35.83 net loss per share, for the six months ended March 31, 2024, as compared to a net loss attributable to common shareholders after preferred dividends of $483.8 million, or $6,378.47 loss per share, for the six months ended March 31, 2023. Share counts were adjusted retroactively for reverse stock splits. The net loss for the six months ended March 31, 2024, of $193.9 million included impairment charges totaling $105.5 million mainly due to the uncertainty of future fundings required to support the business and decrease of Company's market capitalization. These write-downs include Bollinger goodwill of $28.8 million, intangible assets for Bollinger ($58.3) and ELMS ($15.1) and the write-down of right-of-use assets of $3.2 million. Turning to our balance sheets and liquidity, we had $5.3 million and $58.5 million of working capital at March 31, 2024, and Sept. 30, 2023, respectively. Adding back derivative liabilities and liability to issue shares (items settled in stock), the numbers increase to $18.3 million and $133.3 million at March 31, 2024, and Sept. 30, 2023, respectively. We had total cash (including cash equivalents and restricted cash) of $29.8 million at March 31, 2024, versus $155.7 million at Sept. 30, 2023. Current notes payable were $2.7 million and $7.5 million as of March 31, 2024, and Sept. 30, 2023, respectively.  During the quarter ended March 31, 2024, we paid off $4.9 million in current notes payable that was secured by a mortgage on our Tunica, Mississippi, facility.  We now own Tunica and Mishawaka facilities debt free. Shareholders' equity was $117.4 million as of March 31, 2024, versus $272.8 million for Sept. 30, 2023. The decrease in stockholders' equity for the six months ended March 31, 2024, reflects the impairment charges of $105.5 and other operating losses of $129.9 million offset by warrant exercises, stock-based compensation and other equity adjustments. Following are our unaudited Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows for the three and six months ended March 31, 2024, and 2023. MULLEN AUTOMOTIVE, INC.CONSOLIDATED BALANCE SHEETS(unaudited)     March 31, 2024     Sept. 30, 2023   ASSETS                 CURRENT ASSETS                 Cash and cash equivalents   $ 22,378,089     $ 155,267,098   Restricted cash     7,429,572       429,372   Accounts receivable     —       671,750   Inventory     32,961,724       16,807,013   Prepaid expenses and prepaid inventories     26,114,664       24,955,223   TOTAL CURRENT ASSETS     88,884,049       198,130,456