Summary by Moomoo AI
Mullen Automotive Inc. (Mullen), a development-stage electric vehicle company, reported its financial performance for the quarter ended December 31, 2023. The company has not generated significant revenue and continues to fund operations through equity sales and convertible debt. Operating expenses decreased by 33% year-on-year, primarily due to lower employee compensation and depreciation expenses. Research and development costs increased by 88% to $16.2 million, reflecting the company's investment in vehicle production and technology. Mullen reported a net loss of approximately $64 million, a significant improvement from the previous year's net loss of approximately $378 million. The company's liquidity consists of $88.9 million in cash and restricted cash, with a net working capital of approximately $47.1 million. Mullen used $59.9 million in cash for operating activities and $6.9 million for investing activities during the quarter. The company has also made progress in addressing NASDAQ compliance issues, including completing reverse stock splits to meet the minimum bid price requirement. Mullen continues to work on remediation efforts to address material weaknesses in internal controls over financial reporting.