Summary by Moomoo AI
Mullen Automotive reported Q3 FY2024 net loss of $91.6 million, significantly improving from $311.4 million loss in Q3 FY2023. Revenue reached $65,235 from vehicle sales, while operating expenses totaled $61.8 million. The company recognized $23.9 million in financing costs related to derivative liabilities, warrants, and ELOC commitment fees.The company's liquidity position remains critical with cash and restricted cash of $4.0 million as of June 30, 2024, after using $145.2 million in operating activities during the nine months. Working capital deficit stood at $59.0 million. Management has raised substantial doubt about the company's ability to continue as a going concern, indicating potential bankruptcy filing within 30 days without adequate funding.To address funding needs, Mullen entered into a $50 million convertible notes agreement in May 2024 and secured a $150 million equity line of credit facility. The company also completed strategic initiatives including acquiring additional stake in Bollinger Motors and settling various liabilities. However, management emphasizes there is no guarantee of securing necessary financing on favorable terms.
