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Another tidbit….on Dec 28 they announced a lawsuit against GEM Group (an early financier) for the usual “acting as a broker without actually being a broker” stuff that Basile is known for.
GEM had actually forced them into mediation for a claim GEM made awhile back and the mediator has forced MULN to put up $7 million at the request of GEM. Needless to say that suit is not going well for MULN as GEM has requested that reserve amount go up to $29 million because of the shaky finances of MULN.
Mullen’s suit looks like a reaction to all that in order to force a more favorable settlement.
Here’s the thing. MULN is requesting a jury trial…and the financing agreement with GEM specifically and clearly said that no matter what, both parties were not allowed to demand a jury trial.
If the mediator accepts GEM’s request to up the protected reserve to $29 million…Michery can’t touch it.
You realize don’t you that is from almost 9 years ago well before the bankruptcy….?!
LOL.
I would think that termination is a material event and would require an 8K.
If it was terminated they have not disclosed it.
And I still wonder why Michery would go for such a loan with an APR of 225%. While they will need cash in 2024 they don’t need it so bad right now as to need such a loan.
I wonder who all would get a cut of the $18 million vig.
We now know from the 10K that if the RMA lead sales guy said all the deliveries were “pre-sold”. He was flat out lying.
So I guess they are in on the scam.
Yeah I saw the subsequent event notes. I think the loan matures 90 days from when it closes…whenever that is. The end of March was based on it closing January 1.
Right now I am taking a closer look at the revenue, change in AR and the reserves they have set up for the fact the vehicles can be returned at one year from RMA for a full refund.
Something doesn’t make sense with the AR for 2023. But one thing is confirmed and that is they are not claiming revenue for ANY vehicle that they have shipped to RMA that wasn’t sold to an end customer. That is why Michery only refers to “invoiced” amounts in his pumps.
Michery is going to have to raise another $150 million at the very least in 2024.
With the market cap hovering around $70 million at times there is only one way the stock price can go this year with that dilution and it is down.
Another 90% drop is likely from the dilution alone.
If he runs out of sources of cash, this thing will implode quickly.
“Do the two statements below indicate that the loan is due 90 days after origination? Forgetting about the stated interest rate, the lender is getting paid back $ 50 million only 90 days after loaning the company $ 32 million ??? “
All correct. I don’t think loan sharks are even that bad. It is an effective APR of 225%.
Thanks, I missed that in the subsequent events. I believe the closing date was the later of Jan 1 OR when the documents were signed.
It’s a terrible loan. Shareholders should hope he finds a way to avoid it.
The earliest the loan would have been received is January 1, 2024 so it would not be reflected in the 10K, nor will it be in the 10Q for Sept -Dec which will be filed in about a month.
“They're incinerating approx $83 MILLION PER MONTH ($1 billion annually approx !) and got absolutely nothing of actual "value" to show for it !!! “
Actually the “billion dollar loss” is only on paper as half that is due to the derivative liability they had to book for the convertible debt/securities. When those get converted to commons the associated derivative liability gets reversed. So I don’t pay a lot of attention to that.
In the 4th Q they are burning through about $22 million a month.
That is 7 months worth, and they are already another 3 months into that.
More dilution on the way!!!!!
A $377 million operational loss….
Oh my….
And it’s odd they would put out a PR about 2023 financials with some very selective data without having actually filed the 10K…and say nothing about when it is coming.
They changed from Daszkal to RBSM back in March 2023 and Mullen’s Chief Accounting Officer resigned shortly thereafter.
https://www.otcmarkets.com/filing/html?id=16463431&guid=n6J-kK1wYuq7B3h
https://www.otcmarkets.com/filing/html?id=16482659&guid=n6J-kK1wYuq7B3h
This would be the first audit since then.
The key things to look at are the revenues and changes in Accounts Receivable, and also whether there is any contra asset, impairment or reserve against those “invoices”.
It will be interesting to see if they have actually been paid for ANY of the $308,000 in revenue they booked between Apr-Jun.
They are now officially delinquent…
I see the market is very excited about the Frankie Avalon announcement!!!
Oh…wait…
LMAO
“MULNCON: SEC FILES TODAY OR GOES OTC !! “
Actually that is not the case. They would remain on Nasdaq but be a delinquent filer. Eventually, if not corrected, it could result in a delisting but there is a process much like falling below the minimum bid price of $1.
They would be given time to fix it.
“I asked if, instead of 11 billion, we had 500mil, what would the stock be worth.“
To get there would take a 1 for 22 reverse split, so the price would be 22 times what it is now.
Correct…assuming they meet the deadline
Foote needs cash to keep the lights on. He has to dilute.
“Can I be respectfully left alone with my stupid thoughts?“
You understand don’t you that this is an internet stock chat board?
Looks like they just made bank…lol.
When are people going to clue in…this stock is toast.
I guess my saying do for over a decade hasn’t had much impact. LOL.
ummm…sure…
You have to ask?
You have 70 million shares of this POS?
Vegas must not be going well….
What are you taking about?
I haven’t told you how to do anything let alone trade. LMAO.
I don’t trade. I invest, and that does not include the OTC.
I don’t even get into trading discussions. That is a whole different ballgame. I discuss these stocks as investments and what the long term holds.
Traders don’t give a rats ass about that. And that’s fine.
MIKP is not an investment at all because of the dilution that will be coming….and of course Mark’s ability to screw stuff up…inevitably.
My opinions seem to have an uncanny ability to become fact.
Just sayin’
Just telling you what is going to happen.
Mark is going to have to dilute after the RS. That is why he is doing it. He needs the cash.
That dilution will cause the stock price to go down.
This isn’t complicated.
Maybe he will spend $2 million and get a couple more prototypes he can hype! LMAO.
“I seriously think people are misjudging how well this reorganization is going to be received by the market.“
The company has been in the “market” for well over 10 years.
I think the market has spoken!
A new name isn’t going to change very much.
But that is when the dilution will start in earnest….
They will keep rolling out those two prototypes for years. They will NEVER produce it.
There’s a recipe for business success…charge double what your competition is charging!
Why didn’t we all think of that?
“Brad is claiming that the Mullenz invoices to Randy Marion will remain unpaid until RMA actually sells the vehicles and collects the payments.“
Of course! But wait….didn’t they say all the RMA deliveries were pre-sold???? LOL
Mullen will go down as one of the most notorious stock scams ever. Perhaps even CMKX level stuff. LMAO.
“There is an extraordinarily ruthless possibility here, which would be diluting common equity in order to pay the newly created preferred equity“
It’s going to be a necessity. He has no source of cash other than selling equity. This is a short term approach that gets the balance sheet fixed to stay on Nasdaq. It’s loan shark terms disguised as a “capital raise”.