Bollinger Innovations slashes quarterly cash burn by 58% to $8.9 million

BREA, Calif. - Electric vehicle manufacturer Bollinger Innovations, Inc. (NASDAQ:BINI), currently trading at $0.07 per share with a market capitalization of just $320,000, has reduced its quarterly cash burn rate from $21.2 million to $8.9 million, representing a 58% decrease, according to a company press release issued Monday. According to InvestingPro data, the company’s financial health score remains weak at 0.6 out of 10, with significant challenges ahead.

The EV maker stated it implemented cost-cutting measures while maintaining its marketing, sales, and manufacturing capabilities as it continues to develop its commercial vehicle lineup across Classes 1, 3, and 4. Despite impressive revenue growth of over 5,800% in the last twelve months, the company faces substantial financial hurdles with an EBITDA of -$226 million and a concerning current ratio of 0.23.

"We remain committed to our commercial vehicle sales opportunities and expanding our market reach while continuing to focus on positioning the Company for long term success," said David Michery, CEO and Chairman of Bollinger Innovations and Bollinger Motors. InvestingPro analysis reveals 16 additional key insights about Bollinger’s financial position and market performance, essential for understanding the company’s trajectory in the competitive EV space.

Bollinger’s commercial EV portfolio includes a Class 1 urban delivery cargo van and a Class 3 urban utility cab chassis truck designed for last-mile delivery and service operations. The company also offers the B4 Chassis Cab, an all-electric Class 4 commercial truck.

The company noted that all vehicles are available for sale in the U.S. and comply with Federal Motor Vehicle Safety Standards, Environmental Protection Agency requirements, and California Air Resources Board certifications.

Bollinger Motors, a subsidiary based in Oak Park, Michigan, launched production of its B4 Class 4 electric truck on September 16, 2024. The company has established a dealer network with six dealers for its Bollinger Innovations vehicles and over 50 locations across the United States for Bollinger Motors products.

The company manufactures its vehicles at a U.S.-based facility in Tunica, Mississippi. With a gross profit margin of -339% and total debt of $36 million, the company’s path to profitability remains challenging. Unlock comprehensive financial analysis and Fair Value estimates with InvestingPro, featuring advanced metrics and real-time insights.

In other recent news, Bollinger Innovations, formerly known as Mullen Automotive, announced it has eliminated all warrants and $25.3 million in convertible notes by exchanging them for newly created preferred stock. This move is expected to increase shareholder equity by approximately $133 million, potentially aiding the company in meeting Nasdaq listing requirements. Additionally, Bollinger Innovations received a delisting notice from Nasdaq for not meeting the minimum market value requirement, but the company plans to appeal this decision. In a related development, the company has rebranded, with Nasdaq approving a new stock symbol "BINI," although the effective date for this change is yet to be determined. The rebranding includes renaming the Oceanside, California, Commercial Vehicle Center under the Bollinger Innovations name. Furthermore, the company is expanding payment options by accepting cryptocurrency, including Bitcoin and $TRUMP meme coin, for the purchase of its commercial electric vehicles. Bollinger Innovations is also considering the acceptance of additional cryptocurrencies in the future. These developments reflect a series of strategic moves by the company to enhance its market position and financial standing.

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