Net Element(MULN)2025-02-19 22:34Revenue and Sales Performance - Revenue from vehicle sales for the three months ended December 31, 2024, was 3.0 million compared to the same period in 2023, primarily due to the sale of 20 Bollinger B4 vehicles[289]. Financial Losses and Expenses - The net loss attributable to common stockholders for the three months ended December 31, 2024, was approximately 661.33 net loss per share, compared to a net loss of approximately 91,940.42 loss per share, for the same period in 2023[299]. - Research and development expenses decreased by 16.2 million in the three months ended December 31, 2023, to 6.7 million, or 16%, from approximately 36.5 million in the same period in 2024[295]. - The company recognized other financing costs of 34.6 million during the three months ended December 31, 2024, compared to 18.4 million compared to the three months ended December 31, 2023, due to a significantly higher volume of debt outstanding[298]. - The company incurred a net loss of 2.4 billion[306]. Cash Flow and Liquidity - As of December 31, 2024, the company had approximately 186.2 million[306]. - During the same period, cash used in operating activities was 59.9 million in the prior year[320]. - Cash used in investing activities was 6.9 million in the same quarter of the previous year[321]. - The company received 0.0 million in the same period of 2023[322]. - The company has substantial doubt about its ability to continue as a going concern and has temporarily shut down key production facilities due to liquidity constraints[307]. - Management is pursuing strategies to address liquidity concerns, including equity or debt financing and operational restructuring[307]. - As of December 31, 2024, total debt outstanding was approximately 0.8 million as of December 31, 2024, related to inventory adjustments[334]. - Future minimum lease payments total approximately $27.2 million, with scheduled payments due over the next several years[323]. - The net realizable value assessment for Mullen One, Mullen Three, and Bollinger B4 vehicles is based on current expected selling prices and market demand, indicating potential future write-downs if sales prices decline[335]. Market and Industry Trends - The EV industry is experiencing competitive pricing trends influenced by consumer demand, regulatory incentives, and competitor strategies, which may affect future revenue[337]. - Production costs are impacted by supply chain fluctuations and raw material prices, such as lithium and nickel, potentially exceeding expected selling prices[337]. - Technological advancements in battery and vehicle technology may necessitate discounting or write-downs of older inventory to maintain competitiveness[337]. - Changes in government incentives, infrastructure development, and interest rates could influence consumer adoption rates and inventory valuation[337]. Corporate Actions - The company acquired controlling interest in Bollinger Motors on September 7, 2022, expanding into medium-duty truck classes and electric vehicle segments[301]. - A reverse stock split at a ratio of 1-for-60 shares was implemented effective February 18, 2025, to comply with Nasdaq listing requirements[302].