Net Element (NASDAQ: NETE), a financial technology company in the process of becoming a pure-play electric vehicle (“EV”) manufacturer through a pending definitive agreement with privately held Mullen Technologies Inc., has released its financial report for the calendar year ended Dec. 31, 2020. In the report, the company noted a net loss of an estimated $5.9 million for fiscal year 2020 as compared to a net loss of some $6.5 million for fiscal year 2019. Gross margin for FY 2020 was approximately $9.8 million, or 15.0% of net revenue, as compared to approximately $10.3 million, or 15.8% of net revenue, for 2019. NETE reported total operating expenses of an estimated $14.3 million for the year, compared to total operating expenses of approximately $15.8 million for the same period in 2019. In addition to its financial results, the company provided an update on the previously announced stock-for-stock reverse merger with privately held Mullen Technologies Inc., a Southern California-based electric vehicle (“EV”) company. The company announced that Mullen has completed the required financial audits and both companies are finalizing the Form S-4, which is expected to be filed with the Securities and Exchange Commission. “We would like to reassure our shareholders that we continue working diligently on the pending merger with Mullen as we move to finalize Form S-4 and the proxy statement for our shareholders,” said Net Element’s executive chairman Oleg Firer in the press release. “The company has been focused on minimizing operational expenses in the payments business pending its divestiture, subject to requisite stockholders’ approval, as part of the merger with Mullen.”
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About Net Element Inc.
Net Element operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise (“SME”) in the United States and selected emerging markets. On Aug. 5, 2020, Net Element announced the execution of a definitive agreement to merge with privately held Mullen Technologies Inc., a Southern California-based electric vehicle company in a stock-for-stock reverse merger in which Mullen’s stockholders will receive a majority of the outstanding stock in the post-merger company (the “contemplated merger”). The contemplated merger is subject to customary closing conditions, regulatory approvals and shareholder approval for both companies. For additional information, visit www.NetElement.com.
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