☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from ____ to ___ Commission File Number: 001-34887 MULLEN AUTOMOTIVE INC. | (Exact name of registrant as specified in its charter) | | | | --- | --- | --- | | D ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from ____ to ___ Commission File Number: 001-34887 MULLEN AUTOMOTIVE INC. | (Exact name of registrant as specified in its charter) | | | | --- | --- | --- | | Delaware | | 90-1025599 | | (State or other jurisdiction of | | (I.R.S. Employer | | incorporation or organization) | | Identification Number) | | 1405 Pioneer Street | | | | Brea, California 92821 | | | | (Address of principal ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ___ Commission File Number: 001-34887 MULLEN AUTOMOTIVE INC. (Exact name of registrant as specified in its charter) (State or other jurisdictio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ___ Commission file number: 001-34887 MULLEN AUTOMOTIVE INC. (Exact name of registrant as specified in its charter) | Delaware | | 86-3289406 | | - ...

Business Segments and Operations - The company operates two business segments: North American Transaction Solutions and International Transaction Solutions, providing over 100 payment options in more than 120 currencies[187]. - The North American Transaction Solutions segment is the largest, providing a range of integrated payment acceptance solutions, with Merchant Acquiring being the principal service offered[233]. - The company has entered into a merger agreement with Mullen Automotive, which includes a divestiture of the company's existing business operations[200]. - The Company intends to divest its existing business operations prior to the merger, with a divestiture agreement already in place with RBL[214]. - The company is exploring strategic alternatives, including potential sale or licensing of technology, due to uncertainties arising from the COVID-19 pandemic[276]. Financial Performance - For the three months ended June 30, 2021, the company reported net revenues of $33.29 million, a significant increase from $13.72 million in the same period of 2020, representing a growth of approximately 143%[236]. - For the six months ended June 30, 2021, net revenues reached $57.08 million, up from $29.56 million in the same period of 2020, marking an increase of approximately 93%[238]. - The company reported a net income of $1.25 million for the three months ended June 30, 2021, compared to a net loss of $1.72 million in the same period of 2020, indicating a turnaround of approximately $2.97 million[236]. - The company reported a net income attributable to common stockholders of approximately $1.6 million or $0.26 per share for the six months ended June 30, 2021, compared to a net loss of approximately $1.7 million or $0.41 per share for the same period in 2020[239]. - The company reported a net income of approximately $1.6 million for the six months ended June 30, 2021, compared to a net loss of approximately $5.9 million for the year ended December 31, 2020, with an accumulated deficit of approximately $182.3 million[273]. Revenue and Cost Analysis - The gross margin for the three months ended June 30, 2021, was $3.71 million, with a gross margin percentage of 11%, compared to a gross margin of $2.18 million and a gross margin percentage of 16% in the same period of 2020[236]. - The gross margin for the six months ended June 30, 2021, was $6.71 million, with a gross margin percentage of 12%, compared to a gross margin of $4.72 million and a gross margin percentage of 16% in the same period of 2020[238]. - Cost of revenues for the six months ended June 30, 2021, was approximately $50.4 million, up from $24.8 million in 2020, reflecting a 103.2% increase due to higher net revenues[242]. - The increase in cost of revenues was primarily driven by a significant rise in transaction processing volumes as merchants resumed normal operations[241]. - The company experienced competitive pressure affecting gross margins, particularly due to a large wholesale client switching to its platform, which typically has lower margins[243]. Operational Developments - The company has increased its liquidity position by entering into a Master Exchange Agreement with ESOUSA Holdings, LLC, allowing for up to $15 million in promissory notes[204]. - The company has implemented enhanced risk controls for merchants in sectors with extended delivery times, such as catering and travel[202]. - Most merchants have contactless payment acceptance capabilities through POS devices, with initiatives to deploy additional contactless equipment[203]. - The Company aims to expand its market share by leveraging the transition to digital payments and pursuing strategic acquisitions[225]. - The Company is focused on developing its Netevia platform to support value-added solutions and is exploring disruptive technologies like biometric payments and artificial intelligence[222]. Asset and Liability Management - The total segment assets as of June 30, 2021, amounted to $30.76 million, compared to $21.68 million as of June 30, 2020, reflecting an increase of approximately 42%[238]. - The company holds goodwill of $7.68 million as of June 30, 2021, consistent with the previous year, indicating stability in its asset valuation[238]. - The company has a positive working capital of approximately $2.9 million as of June 30, 2021, largely related to amounts due from Mullen Technologies[273]. - The provision for bad debt for the three months ended June 30, 2021, was $514,381, compared to $476,088 in the same period of 2020, indicating an increase in credit risk management[236]. Expenses and Financial Obligations - The company’s selling, general and administrative expenses for the three months ended June 30, 2021, totaled $2.05 million, compared to $1.96 million in the same period of 2020, showing a slight increase in operational costs[236]. - Operating expenses for the six months ended June 30, 2021, were approximately $6.5 million, an increase from $5.8 million in 2020, primarily due to higher personnel costs and bad debt expenses[244]. - Interest expense increased to $719,592 for the six months ended June 30, 2021, compared to $689,433 for the same period in 2020, an increase of $30,159[252]. - Bad debt expense increased to approximately $1.2 million for the six months ended June 30, 2021, compared to $0.5 million for the same period in 2020, primarily due to billing adjustments related to COVID-19[249]. Market Trends and Future Outlook - The financial technology and transaction processing industry is evolving rapidly, with a growing demand for cashless payment solutions among consumers and businesses[229]. - The company plans to continue focusing on expanding its transaction processing capabilities and enhancing service offerings to drive future growth[241]. - The company is committed to investing in core technology and expanding its distribution channels to accommodate expected revenue growth[226]. - The company plans to increase its cardholder and subscriber customer base while enhancing operational excellence and monetization strategies[231].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-34887 Net Element, Inc. (Exact name of registrant as specified in its charter) Delaware ...

Financial Performance - The company incurred a net loss of approximately $5.9 million for the year ended December 31, 2020, with an accumulated deficit of approximately $184.7 million[163]. - Current assets included approximately $4.5 million in cash and $7.1 million in accounts receivable, while current liabilities totaled approximately $11.8 million in accounts payable and accrued expenses[163]. - Management expects cash flows from operations will not be sufficient to fund current operations through 2021, necessitating additional capital[164]. - Seasonal fluctuations in revenues are expected, with historically weaker performance in the first quarter and stronger results in subsequent quarters[191]. - Increased costs associated with being a public company may adversely affect operating results and financial condition[222]. Impact of COVID-19 - The COVID-19 pandemic has not yet had a material impact on the company's revenues compared to the previous year, but future impacts remain uncertain[164]. - The outbreak of COVID-19 has led to significant sales declines for many restaurant merchants, impacting overall business operations[168]. Competition and Market Risks - The company faces substantial competition in the financial services and payments industries, which could adversely affect growth and profitability[179]. - The market for electronic commerce services is evolving, and failure to grow transaction volumes could negatively impact profitability[181]. - The company is subject to foreign laws and regulations that may change unpredictably, impacting its ability to conduct business internationally[195]. Operational Risks - The company is re-evaluating its operating plans to maintain payment processing functions and customer service amid ongoing losses and negative working capital[165]. - The reliance on third-party processors and service providers poses a risk, as their failure could adversely affect merchant relationships and business continuity[184]. - The company relies on bank sponsors, primarily Esquire Bank, N.A., for processing the majority of its bankcard transactions, and any termination of these sponsorships could severely impact operations[185]. - The company processes substantially all transactions through Visa and MasterCard, and failure to comply with their standards could lead to termination of registrations, preventing transaction processing services[186]. - The company’s financial results could be adversely affected if it fails to maintain key partnerships with banks and financial institutions, particularly in emerging markets like Kazakhstan[187]. - The company depends on independent non-bank sales groups for acquiring and retaining merchant accounts, and failure to maintain these relationships could negatively impact revenues[189]. - The company faces potential liabilities and reputational damage from unauthorized data disclosures, which could result in significant fines and operational disruptions[190]. - The company is vulnerable to natural disasters and man-made disruptions, which could negatively impact business operations[207]. Regulatory and Legal Risks - New governmental regulations regarding consumer privacy could impair the company's ability to provide services and access customer information, affecting operations[192]. - Legal proceedings and regulatory inquiries could have a material adverse effect on the company's financial condition and operating results[223]. Foreign Operations and Currency Risks - Approximately 5% of total net revenues were derived from operations outside the United States, specifically in Russia and CIS[204]. - The foreign exchange rate for the Russian ruble increased by approximately 19.9% compared to the daily rate at December 31, 2019[204]. - The company faces risks from fluctuations in foreign currency exchange rates, particularly between the U.S. dollar and the Russian ruble[204]. Mergers and Acquisitions - The merger agreement's outside date was extended to April 30, 2021, due to potential delays in the merger completion[212]. - The company may incur significant costs related to the merger, including legal and financial advisory fees, even if the merger is not completed[218]. - Acquisition activities may lead to operational difficulties and dilution of stockholder value, with risks associated with integrating acquired businesses[199]. Fraud Risks - The company is subject to risks related to potential fraud by merchants, which could adversely affect financial results[210].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-34887 Net Element, Inc. (Exact name of registrant as specified in its charter) Dela ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-34887 Net Element, Inc. (Exact name of registrant as specified in its charter) Delaware (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 3363 NE 163rd Street, Suite 705 North Miami Beach, Florida (Address of principal executive offices) (305) 507-8808 (Registrant's teleph ...