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OPERATING EXPENSES

3 Months Ended

Dec. 31, 2023

NOTE 16 – OPERATING EXPENSES

General and administrative expenses consist of the following:


	Three months ended December 31,
	2023		2022
Professional fees	$	16,220,998	$	8,652,777
Compensation to employees		7,227,842		44,142,360
Advertising and promotions		6,341,015		2,968,234
Depreciation		3,024,083		4,388,355
Amortization		1,319,877		405,972
Employee benefits		1,879,490		1,033,638
Utilities and office expense		1,584,456		255,039
Listing and regulatory fees		1,491,707		1,301,844
Repairs and maintenance		823,234		181,239
Settlements and penalties		1,911,664		20,844
Lease		198,485		831,090
Executive expenses and directors' fees		284,362		209,044
Other		926,839		605,575
Total	$	43,234,052	$	64,996,011

The main portions of the Professional fees and Compensation to employees relate to stock-based compensation issued to non-employees and employees, respectively, see Note 11 - Share Based Compensation for additional information.

Research and Development

Research and development expenses as of December 31, 2023 and 2022, were $16,169,967 and $8,622,009, 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.