Mullen Receives Expected Nasdaq Notice Regarding Delayed Form 10-K

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) has received a notice from Nasdaq due to not filing its Annual Report (Form 10-K) for the fiscal year ended Sept. 30, 2024. This puts the company in non-compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic financial reports.

While the notice doesn't immediately affect MULN's listing status, the company must either file the Form 10-K or submit a compliance plan within 60 days. If a plan is submitted and accepted, Mullen could receive up to 180 days from the original due date to comply. The company expects to file its 10-K on or before January 31, 2025.

Positive

• Company anticipates filing Form 10-K by January 31, 2025, well within the 60-day compliance window

Negative

• Failed to file required Form 10-K on time
• Risk of potential delisting from Nasdaq if compliance is not achieved
• Non-compliance with Nasdaq listing requirements

Insights

Securities Compliance Expert

The receipt of a Nasdaq non-compliance notice due to Mullen's delayed 10-K filing represents a critical regulatory development that demands investor attention. For a micro-cap company with a market capitalization of just $18.57 million, maintaining Nasdaq listing compliance is important for market accessibility and investor confidence.

The situation presents multiple layers of concern: First, delayed financial filings often signal internal challenges, whether they're accounting complexities, auditing issues, or operational difficulties that require additional scrutiny. Second, the timing is particularly sensitive for Mullen as an emerging EV manufacturer in a capital-intensive industry where access to public markets is vital for funding operations.

The compliance timeline is structured as follows:

• 60-day window to file 10-K or submit a compliance plan
• Potential 180-day extension if Nasdaq accepts the compliance plan
• Appeal rights to a Nasdaq hearings panel if the plan is rejected

While Mullen's stated intention to file by January 31, 2025, falls well within the initial 60-day window, investors should note that delayed financial reports can impact:

• Access to capital markets and funding opportunities
• Investor confidence and trading liquidity
• Ability to make timely strategic decisions
• Relationships with suppliers and partners

The market should closely monitor this situation, as timely resolution is essential for maintaining Mullen's Nasdaq listing and market stability. The company's ability to meet its self-imposed January 31 deadline will be a important indicator of its internal controls and management effectiveness.

Company expects to file 10-K on or before Jan. 31, 2025

BREA, Calif., Jan. 22, 2025 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle manufacturer, today announces that it received an expected notice (the “Notice”) from the Listing Qualifications Staff of The Nasdaq Stock Market LLC (“Nasdaq”) stating that because the Company has not yet filed its Annual Report on Form 10-K for the fiscal year ended Sept. 30, 2024 (the “Form 10-K”), the Company is no longer in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”), which requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission (the “SEC”).

The Notice has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Capital Market. However, if the Company fails to timely regain compliance with the Listing Rule, the Company’s common stock will be subject to delisting from Nasdaq.

Under the Nasdaq rules, the Company has 60 days from the date of the Notice to either file the Form 10-K or to submit a plan to Nasdaq to regain compliance with Nasdaq’s listing rules. If a plan is submitted and accepted, the Company could be granted up to 180 days from the Form 10-K’s due date to regain compliance. If Nasdaq does not accept the Company’s plan, then the Company will have the opportunity to appeal that decision to a Nasdaq hearings panel.

While the Company can provide no assurances as to timing, 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.

About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. Recently, CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, 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, which includes Papé Kenworth, Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, providing sales and service coverage in key West Coast, Midwest, Pacific Northwest, New England and Mid-Atlantic markets.

To learn more about the Company, visit www.MullenUSA.com.

Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended.  Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” and similar expressions are intended to identify such forward-looking statements.  Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements, including statement regarding the Company’s ability to regain and maintain compliance with the listing standards of Nasdaq; the timing of completion and filing of the Form 10-K; and the impact of these matters on the Company’s performance and outlook. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Mullen and are difficult to predict. Examples of such risks and uncertainties include but are not limited to risks related to the timely and correct completion of the Form 10-K; 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.  Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Mullen with the SEC. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations as of any subsequent date.

Contact:
Mullen Automotive Inc.
+1 (714) 613-1900
www.MullenUSA.com

Corporate Communications
IBN
Austin, Texas
www.InvestorBrandNetwork.com
512.354.7000 Office
Editor@InvestorBrandNetwork.com

FAQ

When will Mullen Automotive (MULN) file its delayed Form 10-K?

Mullen expects to file its Form 10-K on or before January 31, 2025.

What happens if MULN fails to file its Form 10-K within the compliance period?

If Mullen fails to regain compliance, its common stock will be subject to delisting from the Nasdaq Capital Market.

How long does MULN have to regain compliance with Nasdaq listing rules?

Mullen has 60 days from the notice date to either file the Form 10-K or submit a compliance plan. If the plan is accepted, they could receive up to 180 days from the original due date.

Does the Nasdaq notice immediately affect MULN's stock listing?

No, the notice has no immediate effect on the listing or trading of Mullen's common stock on the Nasdaq Capital Market.