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OPERATING EXPENSES

9 Months Ended

Jun. 30, 2023

NOTE 16 – OPERATING EXPENSES

General and Administrative Expenses consist of the following:


	Three months ended June 30,				Nine months ended June 30,
	2023		2022		2023		2022
Professional fees	$	5,250,063	$	4,908,855	$	51,884,123	$	31,773,409
Compensation to employees and management		15,133,141		3,177,790		52,147,116		10,556,783
Depreciation		1,680,595		86,598		7,050,864		251,780
Amortization		913,061		221,699		4,433,035		667,075
Lease		273,234		474,032		1,948,288		1,493,150
Settlements and penalties		2,327,286		169,607		8,592,635		1,054,439
Employee benefits		1,140,917		639,779		2,759,607		1,552,939
Utilities and office expense		996,997		202,652		2,064,100		428,565
Advertising and promotions		985,763		644,423		4,746,032		3,570,016
Taxes and licenses		120,500		8,805		372,381		25,926
Repairs and maintenance		302,623		167,173		684,920		246,875
Executive expenses and directors' fees		73,759		—		363,825		—
Listing and regulatory fees		1,415,003		—		4,150,348		—
Other		1,164,870		195,387		2,988,887		1,446,359
Total	$	31,777,812	$	10,896,800	$	144,186,161	$	53,067,316

Research and development

Research and development for the three months ended June 30, 2023, and 2022 was $22,088,011 and $7,324,365, respectively. Research and development for the nine months ended June 30, 2023, and 2022 was $51,188,991 and $9,665,126, respectively. Costs are expensed as incurred. Research and development expenses are primarily comprised of external fees and internal costs for engineering, homologation, prototyping costs and other expenses related to preparation to mass-production of electric vehicles such as Mullen Five EV, Mullen One EV cargo van, etc.