8-K: Mullen Automotive Receives Nasdaq Notice Regarding Delayed 10-K Filing

Mullen Automotive has received a notification from Nasdaq due to the delay in filing its Annual Report on Form 10-K for the fiscal year ended September 30, 2024, but expects to file the report on or before January 31, 2025.

Summary

• Mullen Automotive Inc. received a notice from Nasdaq on January 15, 2025, because it hasn't filed its Annual Report on Form 10-K for the fiscal year ended September 30, 2024.
• This means Mullen is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of financial reports.
• The notice doesn't immediately affect the listing or trading of Mullen's stock.
• However, failure to regain compliance could lead to delisting.
• Mullen has 60 days from the notice date to file the 10-K or submit a plan to regain compliance.
• If a plan is accepted, Mullen could get up to 180 days from the 10-K's due date to comply.
• Mullen expects to file the Form 10-K on or before January 31, 2025, or as soon as possible.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the Nasdaq notice and delayed filing, but the company is taking steps to address the issue.

Positives

• The Nasdaq notice has no immediate effect on the listing or trading of Mullen's stock.
• Mullen expects to file the Form 10-K on or before January 31, 2025.
• Mullen has commercial vehicle production in Tunica, Mississippi.
• Mullen received IRS approval for federal EV tax credits on its commercial vehicles, offering eligible customers up to $7,500 per vehicle.
• The Mullen ONE and THREE are CARB and EPA certified and available for sale in the U.S.
• CARB issued HVIP approval on the Mullen THREE, providing up to $45,000 cash voucher at time of vehicle purchase.
• The Company has also recently expanded its commercial dealer network to seven dealers.

Negatives

• Mullen is not in compliance with Nasdaq Listing Rule 5250(c)(1) due to the delayed Form 10-K filing.
• Failure to regain compliance with Nasdaq listing rules could lead to delisting of the company's stock.

Risks

• The risk that additional information may become known prior to the expected filing with the SEC of the Form 10-K or that other subsequent events may occur that would delay the filing of the Form 10-K.
• The ability to meet stock exchange continued listing standards.
• The possibility that the Nasdaq may delist the Company's securities.
• Risks related to our ability to implement and maintain effective internal control over financial reporting in the future, which may adversely affect the accuracy and timeliness of our financial reporting and the impact of these matters on the Company's performance and outlook.

Future Outlook

Mullen is working to complete and file the Form 10-K and expects to file on or before January 31, 2025, to regain compliance with Nasdaq listing rules.

Management Comments

• The Company is working diligently to complete and file the Form 10-K and is expected to file on or before Jan. 31, 2025 or as soon as practicable (and within the 60-day period described above) to regain compliance with the Listing Rule.

Industry Context

The EV market is competitive, and timely financial reporting is crucial for maintaining investor confidence. Delays can raise concerns about a company's financial health and internal controls.

Comparison to Industry Standards

• Tesla, Rivian, and Lucid are examples of EV companies that are expected to file their financial reports on time.
• Failure to do so can lead to negative market sentiment and potential regulatory scrutiny, similar to what Mullen is experiencing.

Stakeholder Impact

• Shareholders may be concerned about the potential delisting of the company's stock.
• Employees may experience uncertainty due to the company's non-compliance with Nasdaq listing rules.
• Customers and suppliers may have concerns about the company's financial stability.

Next Steps

• Mullen needs to file the Form 10-K or submit a compliance plan to Nasdaq within 60 days.
• The company expects to file the Form 10-K on or before January 31, 2025.

Key Dates