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Mullen is classified as a non-accelerated filer. That means that it must submit a Form 10-K 90 days after the end of the fiscal year at the latest, which fell on Dec. 29 for the company. Mullen failed to do so, resulting in the company filing a Form NT to the U.S. Securities and Exchange Commission (SEC). NT stands for “non-timely.” That form gave Mullen a 15-day grace period, extending its deadline to Jan. 13.
Mullen attributed its delayed Form 10-K to needing more time to value warrants, which “could have an impact on the consolidated results of operations.” In the meantime, the company has hired an independent third party to assist with the valuation process. But what will happen if Mullen fails to file the form by this Friday?
MULN Stock: What Happens If Mullen Misses Its Key Jan. 13 Deadline?
There’s no way to spin a late filing in a positive light. Mullen’s most recent earnings report detailed its financials for the three months ended June 30. For the period, the company had a net loss of $59.47 million and no revenue from business operations. As a result, MULN stock shareholders are anxious to see the numbers for the three months ended Sept. 30, hoping for revenue.
A failure to file the Form 10-K by Jan. 13 will only make matters worse. According to a report by 100 F Street, a failure to file a Form 10-K by the extended deadline will result in Mullen not being able to “file a short form registration statement on Form S-3” for at least one year. A Form S-3 is used for certain types of offerings. Mullen last utilized this form on Nov. 21 when it announced the resale of up to 220.82 million shares of common stock.
If Mullen misses the deadline, it will also lose its Rule 144 eligibility and the ability to file a Form S-8. A Form S-8 is used for “offering securities under an employee benefit plan.” Meanwhile, Rule 144 “covers unregistered public resales of restricted and control securities.”
Ultimately, MULN stock could be at risk of being suspended or delisted under Nasdaq guidelines if the Form 10-K is never received.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.