XML 45 R20.htm IDEA: XBRL DOCUMENT

OPERATING EXPENSES

12 Months Ended

Sep. 30, 2021

NOTE 14 – OPERATING EXPENSES

General and Administrative Expenses consists of the following:


	Year ended September 30,
	2021		2020
Professional fees	$	6,991,246	$	5,260,142
Salaries		6,091,520		2,437,934
Depreciation and amortization		720,805		725,796
Lease		1,776,198		905,231
Settlements and penalties		1,532,378		219,655
Employee benefits		368,563		216,349
Utilities and office expense		345,766		213,361
Advertising and promotions		413,771		156,241
Taxes and licenses		73,527		67,607
Repairs and maintenance		244,868		55,050
Other		835,299		169,775
Total	$	19,393,941	$	10,427,141

Within professional fees is MTI shares for services, which is the issuance of MTI shares for services rendered to consultants and professional service firms. The expense is recorded at fair value of MTI shares issued (see Note 13, Other Assets). For the fiscal year ended September 30, 2021 and 2020, the Company recorded $2,460,529 and $2,929,179, respectively, for shares for services.

Research and development consist of the following:


	For the fiscal year ended
	September 30,
	2021		2020
Research & Development
Professional fees	$	3,009,027	$	1,667,077
Total	$	3,009,027	$	1,667,077

Research and development costs are expensed as incurred. Research and development expenses primarily consist of Mullen Five EV show car development and are primarily comprised of personnel-related costs for employees and consultants.

In December 2020, the Company entered into an agreement with Thurner, Inc. to design and develop two show electric vehicles. The planned finalization is expected to occur in 2021. The total cost for Phase 1 is $483,254.

In December 2020, MTI entered into a Statement of Work with Phiaro, Inc. for its show car development for approximately $1.6 million. The show car project program started in December 2020 and is anticipated to be finished November 2021. The program is for the initial show car development of the Mullen Five, which is a mid-size electric SUV. The program start began in January 2021. The initial show cars in development consist of two mid-size electric SUVs.