Core Points - Beam Global has announced the renewal of its Multiple Award Schedule (MAS) contract with the U.S. General Services Administration (GSA) through October 31, 2030, with options to extend availability until October 31, 2040 [1][4] - The renewal includes the addition of Beam Global's products to Special Item Number (SIN) 334512, allowing state and local governments to purchase its offerings through the GSA MAS program [2] - Cooperative Purchasing will streamline procurement for eligible agencies, enabling direct purchases from pre-negotiated GSA contracts without lengthy RFP processes [3] Company Overview - Beam Global is a clean technology innovator focused on sustainable infrastructure products and technologies, operating in the clean energy and transportation sectors [6] - The company develops and manufactures solutions for sustainable energy infrastructure, EV charging, energy storage, and smart city services, with operations in the U.S., Europe, and the Middle East [6] - Beam Global is headquartered in San Diego, CA, and is listed on Nasdaq under the symbol BEEM [6]

Financial Data and Key Metrics Changes - For the second quarter of 2025, the company reported revenues of $7.1 million, a 12% increase compared to the same period in 2024 [3][5] - Gross profit for 2025 was $1.4 million, reflecting a gross margin of 20%, which is an improvement of four percentage points from the previous year [4][19] - The net loss for Q2 2025 was $4.3 million, a reduction from a net loss of $4.9 million in Q2 2024 [5] - The company ended the quarter with a cash balance of $3.4 million, up from $2.5 million at the end of Q1 2025 [5][24] Business Line Data and Key Metrics Changes - Revenues from commercial customers increased to 60% of total revenues in 2025, up from 24% in the same period of 2024 [3] - International customers accounted for 37% of total revenues in 2025, compared to only 15% in 2024 [3] Market Data and Key Metrics Changes - The company successfully expanded its market presence with the creation of Beam Middle East, enhancing its global footprint [6][10] - The electric vehicle (EV) market is experiencing significant growth, with a 35% increase in sales in 2025, following a 20% increase in 2024 [12] Company Strategy and Development Direction - The company is focusing on diversifying its customer base away from federal government sales, which previously accounted for a significant portion of revenues [9][11] - Beam Global aims to leverage its international expansion, particularly in Europe and the Middle East, to drive future growth [10][31] - The company is committed to maintaining a debt-free status while reducing operating costs and improving gross margins [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the EV market and the corresponding demand for EV charging infrastructure, highlighting the U.S. lagging behind in charging station deployment [14][15] - The company anticipates continued growth in its energy storage business and is optimistic about future opportunities in both the European and Middle Eastern markets [40][48] Other Important Information - The company reported a non-cash impairment of goodwill amounting to $11 million, attributed to a decrease in market capitalization rather than a decline in the actual value of acquisitions [22][23] - Beam Global has implemented lean manufacturing processes in Europe, contributing to improved efficiency and cost reductions [37][88] Q&A Session Summary Question: Is the energy storage opportunity still mostly a U.S. customer business? - The majority of energy storage sales are still U.S.-based, but there are plans to expand into Europe and the Middle East [52][53] Question: Can you discuss the desalination and bike charging equipment sales? - Sales from desalination equipment are currently small but promising, while interest in bike charging products is increasing [56][57] Question: How does Beam Global compete in the DC fast charging market? - The company has a DC fast charging product but believes that Level 2 charging will ultimately dominate the market [62][64] Question: What impact have tariffs had on the company? - Tariffs have had minimal impact so far, but there is concern about future effects as the company navigates cost structures [73][75] Question: Have federal sales conversations picked up post-legislation? - Federal sales have declined significantly, but the company has successfully transitioned to commercial and international sales to offset this loss [78][80]

Core Viewpoint - Beam Global reported a successful second quarter in 2025, achieving revenue growth and the highest GAAP Gross Margin in its history, while expanding its global market presence through the establishment of Beam Middle East [4]. Financial Highlights - Revenues for Q2 2025 were $7.1 million, a 12% increase from Q1 2025 [5]. - 60% of revenues for the first half of 2025 came from commercial customers, with 37% from international operations [5][6]. - GAAP Gross Margin was 20% for Q2 2025, up 4 percentage points from Q2 2024, while adjusted non-GAAP Gross Margin was 30%, a 12 percentage point increase from the previous year [5][7]. - Operating costs decreased by $1.2 million, or 17%, compared to Q2 2024 [8]. - The net loss for Q2 2025 was $4.3 million, an improvement from $4.9 million in Q2 2024 [9]. Recent Operational Highlights - Beam Global established Beam Middle East LLC, a joint venture to sell and manufacture products in the Middle East and Africa [5]. - The company shipped products to 13 U.S. states and multiple European countries, including Serbia, Romania, and Croatia [5]. - Beam Global received a Sustainability Award for Innovation in Infrastructure at the 2025 Romanian Mayors Congress [5]. - The company expanded its energy storage systems business, securing contracts totaling $2.5 million with defense customers [5]. Cash Position - As of June 30, 2025, Beam Global had cash of $3.4 million, an increase from $2.5 million at the end of Q1 2025 [10]. - The company remains debt-free with a $100 million line of credit available and unused [5]. Company Overview - Beam Global is a clean technology innovator focused on sustainable energy infrastructure and electric vehicle charging solutions, with operations in the U.S., Europe, and the Middle East [15]. - The company develops and manufactures advanced clean technology solutions aimed at enhancing energy security and supporting smart city initiatives [15].

[Company Overview & Q2 2025 Highlights](index=1&type=section&id=Company%20Overview%20%26%20Q2%202025%20Highlights) Beam Global reported strong Q2 2025 results, marked by global market expansion, a return to revenue growth, record GAAP Gross Margin, and significant operational efficiency improvements, all while maintaining a debt-free status [Introduction](index=1&type=section&id=Introduction) Beam Global, a leading provider of innovative and sustainable infrastructure solutions for transportation electrification, energy security, and smart city infrastructure, announced its second quarter results for the period ended June 30, 2025 - Company: Beam Global (Nasdaq: BEEM), a leading provider of innovative and sustainable infrastructure solutions for the electrification of transportation, energy security, and smart city infrastructure[2](index=2&type=chunk) - Announcement Date: August 14, 2025[2](index=2&type=chunk) - Reporting Period: Second quarter ended June 30, 2025[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Desmond Wheatley highlighted Q2 2025 as a quarter of significant global market expansion through the creation of Beam Middle East, a return to revenue growth, and the achievement of the best GAAP Gross Margin in company history, all while maintaining financial discipline - Strategic Expansion: Successfully executed a significant expansion of global market presence through the creation of Beam Middle East[5](index=5&type=chunk) - Financial Performance: Returned to revenue growth and generated the **best GAAP Gross Margin in company history**[5](index=5&type=chunk) - Operational Focus: Creating a global platform for product sales and manufacturing, while remaining focused on financial discipline, debt-free operations, reduced operating costs, and sufficient cash and operating capital[5](index=5&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) Q2 2025 saw a 12% revenue increase from Q1, a 20% GAAP Gross Margin (30% non-GAAP), and a $1.2 million reduction in operating costs year-over-year. Operationally, Beam Global formed a joint venture in the Middle East, expanded into new European markets, and grew its energy storage systems business, all while remaining debt-free Key Financial Metrics | Metric | Q2 2025 | Change vs Q1 2025 | Change vs Q2 2024 | YTD June 30, 2025 | | :-------------------------------- | :------ | :---------------- | :---------------- | :---------------- | | Revenue Increase | 12% | from Q1 2025 | - | - | | GAAP Gross Margin | 20% | - | +4 percentage points | - | | Adjusted non-GAAP Gross Margin | 30% | - | +12 percentage points | - | | Operating Costs Reduction | - | - | $1.2 million | - | | Backlog | $7M | - | - | - | | Debt Status | Debt free | - | - | - | | Line of Credit | $100 million available (unused) | - | - | - | | Revenues from Non-Government Commercial Entities | - | - | - | 60% | | Revenues from International Operations | - | - | - | 37% | - Formed Beam Middle East LLC, a 50/50 joint venture with Platinum Group UAE, to sell and manufacture Beam's patented products across the Middle East and Africa[7](index=7&type=chunk) - Expanded into Romania with first EV ARC™ sales and received a Sustainability Award for Innovation in Infrastructure[7](index=7&type=chunk) - Secured distribution agreements in Croatia (Luminoux Flux) and the DACH region (AMPS Energy AG)[7](index=7&type=chunk) - Installed **530 kW solar** at Beam Europe to power production, boosting energy efficiency and lowering costs[7](index=7&type=chunk) - ESS business gained three major new customers, including a Fortune 500 automotive company, and secured **$2.5 million in contracts** with defense customers[7](index=7&type=chunk) [Detailed Financial Results (Q2 2025)](index=1&type=section&id=Detailed%20Financial%20Results%20%28Q2%202025%29) Q2 2025 financial results show $7.1 million in revenue, a 20% GAAP gross margin, a $1.2 million reduction in operating expenses, and a net loss of $4.3 million, with the company maintaining a debt-free cash position [Revenues](index=1&type=section&id=Revenues) Beam Global reported Q2 2025 revenues of $7.1 million, a 12% increase over Q1 2025. Year-to-date, commercial customers accounted for 60% of revenues (up from 24% in 2024), and international customers comprised 37% of revenues (up from 15% in 2024) Revenue Performance | Metric | Q2 2025 | Q2 2024 | YTD June 30, 2025 | YTD June 30, 2024 | | :-------------------------------- | :------ | :------ | :---------------- | :---------------- | | Revenues | $7.075 million | $14.812 million | $13.399 million | $29.373 million | | Revenue Increase (QoQ) | 12% (from Q1 2025) | - | - | - | | Commercial Customer Revenue Share | - | - | 60% | 24% | | International Customer Revenue Share | - | - | 37% | 15% | [Gross Profit](index=2&type=section&id=Gross%20Profit) Gross profit for Q2 2025 was $1.4 million, representing a 20% GAAP gross margin, a 4-percentage point improvement over Q2 2024. Excluding a $0.7 million non-cash impact for depreciation and amortization, the adjusted gross profit was $2.1 million, or a 30% gross margin Gross Profit Analysis | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | GAAP Gross Profit | $1.4 million | $2.4 million | -$1.0 million | | GAAP Gross Margin | 20% | 16% | +4 percentage points | | Non-cash Impact (Depreciation/Amortization) | $0.7 million | - | - | | Adjusted Gross Profit (excl. non-cash) | $2.1 million | - | - | | Adjusted Gross Margin (excl. non-cash) | 30% | 18% | +12 percentage points | [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses for Q2 2025 decreased by $1.2 million, or 17%, to $5.9 million compared to $7.1 million for the same period in 2024 Operating Expenses Summary | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------- | :------ | :------ | :----------- | | Total Operating Expenses | $5.9 million | $7.1 million | -$1.2 million (17% reduction) | [Net Loss](index=2&type=section&id=Net%20Loss) Net loss for Q2 2025 was $4.3 million, an improvement from $4.9 million in Q2 2024. Excluding non-cash items, the net loss was $1.4 million, a 20% reduction from $1.8 million in Q2 2024 Net Loss Overview | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :------ | :------ | :----------- | | GAAP Net Loss | $4.3 million | $4.9 million | -$0.6 million | | Non-GAAP Net Loss (excl. non-cash) | $1.4 million | $1.8 million | -$0.4 million (20% reduction) | [Cash Position](index=2&type=section&id=Cash) As of June 30, 2025, Beam Global had $3.4 million in cash, an increase from $2.5 million at March 31, 2025. The company remains debt-free with a $100 million unused line of credit Cash and Liquidity | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :----- | :------------ | :------------- | :---------------- | | Cash | $3.4 million | $2.5 million | $4.6 million | - Company remains **debt-free** and has a **$100 million line of credit** available and unused[7](index=7&type=chunk) - Cash requirements are generally for operating activities and acquisitions, historically met through a combination of debt and equity financing, and more recently through increasing gross profit contributions[11](index=11&type=chunk) [Non-GAAP Financial Measures Explanation](index=2&type=section&id=Non-GAAP%20Financial%20Measures) Beam Global presents Non-GAAP financial measures to supplement GAAP statements, believing they offer a more consistent and comparable overview of operations for evaluating business strategies and communicating performance, while acknowledging their limitations as analytical tools - Non-GAAP measures are used to supplement GAAP statements for overall performance assessment, evaluating business strategies, and communicating with the board of directors[12](index=12&type=chunk) - Believed to be helpful to investors, analysts, and other interested parties by providing a more consistent and comparable overview of operations across historical financial periods[12](index=12&type=chunk) - Acknowledged limitations: Non-GAAP measures should not be considered in isolation or as a substitute for GAAP results, and future results may be unaffected by the types of items excluded from Non-GAAP calculations[12](index=12&type=chunk) [Operational Developments (Q2 2025)](index=1&type=section&id=Operational%20Developments%20%28Q2%202025%29) Q2 2025 operational developments include significant global market expansion through new joint ventures and distribution agreements, broader product and customer reach, enhanced operational efficiency with solar power, and substantial growth in the Energy Storage Systems business [Global Market Expansion](index=1&type=section&id=Global%20Market%20Expansion) Beam Global significantly expanded its global footprint in Q2 2025 by forming Beam Middle East LLC, a 50/50 joint venture, and establishing new distribution agreements in Romania, Croatia, and the DACH region (Germany, Austria, Switzerland), alongside opening a new office in Serbia - Formed Beam Middle East LLC, a 50/50 joint venture with Platinum Group UAE, to sell and manufacture Beam's patented products across the Middle East and Africa, headquartered in Masdar City, Abu Dhabi[7](index=7&type=chunk) - Expanded into Romania with first EV ARC™ sales through Romanian reselling agent, Seltis Glass Design SRL, and received a Sustainability Award for Innovation in Infrastructure[7](index=7&type=chunk) - Signed a distribution agreement with Luminoux Flux in Zagreb, marking strategic entry into the Croatian market[7](index=7&type=chunk) - Signed a distribution agreement with AMPS Energy AG, marking strategic entry into the DACH region (Germany, Austria, and Switzerland)[7](index=7&type=chunk) - Opened a new office in Belgrade, Serbia, featuring EV ARC™ and BeamBike™ installations on campus[7](index=7&type=chunk) [Product & Customer Reach](index=1&type=section&id=Product%20%26%20Customer%20Reach) Beam Global successfully shipped EV ARCs and other products to 13 US states and multiple European countries, expanding its customer base to include both commercial and military clients for its energy storage systems - Shipped EV ARCs and other Beam products to **13 states in the US** (Arizona, California, Colorado, District of Columbia, Massachusetts, Michigan, New Mexico, Texas, Washington, Ohio, Illinois, Alabama) and internationally to Serbia, Romania, Croatia, Montenegro, Bosnia, Alberta, and Quebec[5](index=5&type=chunk)[7](index=7&type=chunk) - Grew energy storage systems (ESS) business with both commercial and military customers[5](index=5&type=chunk) [Operational Efficiency & Sustainability Initiatives](index=1&type=section&id=Operational%20Efficiency%20%26%20Sustainability%20Initiatives) Beam Global enhanced its European operations by implementing lean manufacturing processes and installing a 530 kW solar generation system on its factory buildings, significantly improving energy efficiency, lowering costs, and supporting sustainable operations - Made European operations far more efficient through continuing to add lean manufacturing processes[5](index=5&type=chunk) - Installed **530 kW solar generation** at Beam Europe to power its production operations, boosting energy efficiency, lowering costs, and reducing reliance on external sources[5](index=5&type=chunk)[7](index=7&type=chunk) [Energy Storage Systems (ESS) Business Growth](index=1&type=section&id=Energy%20Storage%20Systems%20Business%20Growth) The Energy Storage Systems (ESS) business secured three major new customers, including a Fortune 500 automotive company, and expanded its defense contracts with $2.5 million in new sales scheduled for revenue recognition by the end of 2025 - ESS business gained three major new customers, including a Fortune 500 automotive company[7](index=7&type=chunk) - Further ESS expansion with defense customers, securing contracts totaling **$2.5 million in sales**, scheduled to be recognized as revenue by the end of 2025[7](index=7&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements for Q2 2025 reflect a decrease in total assets to $46.74 million, a net loss of $4.3 million, and a significant difference between GAAP and Non-GAAP net losses due to various adjustments [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets decreased from $61.46 million at December 31, 2024, to $46.74 million at June 30, 2025, primarily due to a reduction in current assets and the impairment of goodwill. Total liabilities also slightly decreased, while stockholders' equity declined Balance Sheet Summary | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Cash | $3,414 | $4,572 | -$1,158 | | Accounts receivable, net | $6,082 | $8,027 | -$1,945 | | Inventory, net | $11,280 | $12,284 | -$1,004 | | Total current assets | $22,445 | $27,126 | -$4,681 | | Goodwill | $0 | $10,580 | -$10,580 | | Total assets | $46,744 | $61,459 | -$14,715 | | Total current liabilities | $12,676 | $13,315 | -$639 | | Total liabilities | $19,852 | $20,171 | -$319 | | Total stockholders' equity | $26,892 | $41,288 | -$14,396 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q2 2025, revenues were $7.1 million, resulting in a GAAP gross profit of $1.4 million. The company reported a net loss of $4.3 million for the quarter and a total comprehensive loss of $3.6 million. Year-to-date, the net loss was $19.8 million, significantly impacted by a $10.78 million impairment of goodwill Statements of Operations and Comprehensive Loss | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ending June 30, 2025 | Six Months Ending June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Revenues | $7,075 | $14,812 | $13,399 | $29,373 | | Cost of revenues | $5,641 | $12,456 | $11,464 | $25,538 | | Gross profit | $1,434 | $2,356 | $1,935 | $3,835 | | Operating expenses | $5,901 | $7,147 | $11,166 | $11,674 | | Impairment of goodwill | $0 | $0 | $10,780 | $0 | | Loss from operations | $(4,467) | $(4,791) | $(20,011) | $(7,839) | | Net Loss | $(4,278) | $(4,916) | $(19,801) | $(7,953) | | Total Comprehensive Loss | $(3,645) | $(5,011) | $(18,706) | $(8,377) | | Net Loss per share - basic/diluted | $(0.28) | $(0.34) | $(1.30) | $(0.55) | [Reconciliation of Net Loss to Non-GAAP Net Loss](index=6&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Non-GAAP%20Net%20Loss) For Q2 2025, Non-GAAP Gross Profit was $2.09 million (30% margin) compared to GAAP Gross Profit of $1.43 million (20% margin). Non-GAAP Net Loss for the quarter was $1.43 million, significantly lower than the GAAP Net Loss of $4.28 million, primarily due to adjustments for depreciation, non-cash compensation, allowance for credit losses, warrant amortization, and goodwill impairment Non-GAAP Reconciliation | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ending June 30, 2025 | Six Months Ending June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | GAAP Total Revenue | $7,075 | $14,812 | $13,399 | $29,373 | | Non-GAAP Total COGS | $4,985 | $12,148 | $10,007 | $24,989 | | Non-GAAP Gross Profit | $2,090 | $2,664 | $3,392 | $4,384 | | Non-GAAP Gross Margin % | 30% | 18% | 25% | 15% | | GAAP Total Operating Expenses | $5,901 | $7,147 | $21,946 | $11,674 | | Non-GAAP Total Operating Expenses | $3,705 | $4,311 | $7,790 | $8,148 | | GAAP Net Loss | $(4,278) | $(4,915) | $(19,801) | $(7,953) | | Non-GAAP Total Adjustments | $2,852 | $3,143 | $15,613 | $4,075 | | Non-GAAP Net Loss | $(1,426) | $(1,772) | $(4,188) | $(3,878) | - Key adjustments for Non-GAAP calculations include depreciation and amortization, non-cash compensation, allowance for credit losses, warrant amortization, and impairment of goodwill[23](index=23&type=chunk) [Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides an overview of Beam Global as a clean technology innovator, details for an upcoming conference call, a standard forward-looking statements disclaimer, and essential investor and media contact information [About Beam Global](index=3&type=section&id=About%20Beam%20Global) Beam Global is a clean technology innovator focused on developing and manufacturing sustainable infrastructure products and technologies, operating at the nexus of clean energy and transportation with a focus on EV charging, energy storage, and smart city solutions across the U.S., Europe, and the Middle East - Company Description: Clean technology innovator developing and manufacturing sustainable infrastructure products and technologies[15](index=15&type=chunk) - Focus Areas: Sustainable energy infrastructure, rapidly deployed and scalable EV charging solutions, safe energy storage, energy security, and Smart Cities Infrastructure[15](index=15&type=chunk) - Global Operations: U.S., Europe, and the Middle East, with headquarters in San Diego, CA, and facilities in Broadview, IL, Belgrade and Kraljevo, Serbia, and Abu Dhabi, UAE[15](index=15&type=chunk) - Nasdaq Listing: BEEM[15](index=15&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call) Management will host a conference call on August 14, 2025, at 4:30 p.m. ET to review financial results and provide an update on corporate developments, followed by a question-and-answer session - Date & Time: Thursday, August 14, 2025, at **4:30 p.m. ET**[13](index=13&type=chunk) - Purpose: To review financial results and provide an update on corporate developments, followed by a question-and-answer session[13](index=13&type=chunk) - Access: Participants can register online or call in directly using provided numbers[13](index=13&type=chunk)[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements, which are predictions about future events or results and involve known and unknown risks and uncertainties that may cause actual results to differ materially. Beam Global disclaims any obligation to update these statements, except as required by law - Nature: Statements about future events or results, generally accompanied by terms such as 'estimate,' 'project,' 'predict,' 'believe,' 'expect,' etc[16](index=16&type=chunk) - Disclaimer: These statements are predictions involving known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different[16](index=16&type=chunk) - Obligation: Beam Global expressly disclaims any obligation to update any forward-looking statements, except to the extent required by law[16](index=16&type=chunk) [Investor & Media Contacts](index=3&type=section&id=Investor%20%26%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for further communication - Investor Relations: Luke Higgins, **+1 858-261-7646**, IR@BeamForAll.com[17](index=17&type=chunk) - Media Contact: Lisa Potok, **+1 858-327-9123**, Press@BeamForAll.com[17](index=17&type=chunk)

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section details Beam Global's unaudited financial statements, management's analysis, market risk, and internal controls for the period ending June 30, 2025 [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Beam Global's unaudited condensed consolidated financial statements, including balance sheets, operations, equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents Beam Global's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------- | :------------ | :---------------- | | Total Assets | $46,744 | $61,459 | | Total Liabilities | $19,852 | $20,171 | | Total Stockholders' Equity | $26,892 | $41,288 | - Total assets decreased by **$14.7 million** (23.9%) from December 31, 2024, to June 30, 2025, primarily due to a significant reduction in goodwill and current assets[9](index=9&type=chunk) - Goodwill decreased from **$10,580 thousand** at December 31, 2024, to **$0** at June 30, 2025, indicating a full impairment during the period[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section presents Beam Global's revenues, gross profit, and net loss for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $7,075 | $14,812 | $13,399 | $29,373 | | Gross profit | $1,434 | $2,356 | $1,935 | $3,835 | | Loss from operations | $(4,467) | $(4,791) | $(20,011) | $(7,839) | | Net Loss | $(4,278) | $(4,916) | $(19,801) | $(7,953) | | Net Loss per share - basic/diluted | $(0.28) | $(0.34) | $(1.30) | $(0.55) | - Revenues for the six months ended June 30, 2025, decreased by **54.3%** year-over-year, from **$29.373 million** to **$13.399 million**[12](index=12&type=chunk) - Net loss significantly widened for the six months ended June 30, 2025, to **$19.801 million**, compared to **$7.953 million** in the prior year, primarily due to a **$10.780 million** goodwill impairment[12](index=12&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section outlines changes in Beam Global's stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit, for the period Condensed Consolidated Statements of Changes in Stockholders' Equity (in thousands) | Metric (in thousands) | December 31, 2024 (in thousands) | June 30, 2025 (in thousands) | | :-------------------- | :---------------- | :------------ | | Common Stock | $15 | $16 | | Additional Paid-in-Capital | $147,072 | $151,382 | | Accumulated Deficit | $(104,643) | $(124,444) | | Total Stockholders' Equity | $41,288 | $26,892 | - Total stockholders' equity decreased by **$14.396 million** from December 31, 2024, to June 30, 2025, primarily due to the accumulated deficit increasing from **$(104,643) thousand** to **$(124,444) thousand**[14](index=14&type=chunk) - Additional paid-in-capital increased by **$4.31 million**, partly due to the sale of stock under a Committed Equity Facility (**$2.192 million**) and employee stock-based compensation (**$2.181 million**)[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents Beam Global's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(2,078) | $(97) | | Net cash used in investing activities | $(838) | $(2,953) | | Net cash provided by financing activities | $2,162 | $1,396 | | Net decrease in cash | $(1,158) | $(1,644) | | Cash at end of period | $3,414 | $8,749 | - Net cash used in operating activities increased significantly to **$2.078 million** for the six months ended June 30, 2025, compared to **$0.097 million** in the prior year, despite a **$10.780 million** goodwill impairment being a non-cash adjustment[16](index=16&type=chunk)[137](index=137&type=chunk) - Cash provided by financing activities increased to **$2.162 million** in 2025, primarily from the sale of common stock under a committed equity facility, offsetting cash used in operating and investing activities[16](index=16&type=chunk)[140](index=140&type=chunk) [Notes To Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20To%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering accounting policies, liquidity, and specific financial components [1. NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=1.%20NATURE%20OF%20OPERATIONS,%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section describes Beam Global's business, its clean-technology focus, product markets, and significant accounting policies, including a goodwill impairment event - Beam Global is a clean-technology innovation company based in San Diego, California, with operations in the U.S., Serbia, and UAE. It designs, manufactures, and sells renewably energized infrastructure products for EV charging, Smart Cities, energy security, and high energy-dense battery solutions[19](index=19&type=chunk) - The company's products target markets including EV charging infrastructure, Smart Cities infrastructure, energy storage solutions, energy security and disaster preparedness, transportation infrastructure products, and power electronics and telecommunications equipment[22](index=22&type=chunk) - A **$10.8 million** goodwill impairment was recorded for the three months ended March 31, 2025, due to a sustained decline in the Company's stock price, which resulted in market capitalization being less than the reporting unit's carrying value[31](index=31&type=chunk) [2. LIQUIDITY](index=14&type=section&id=2.%20LIQUIDITY) This section assesses Beam Global's financial liquidity, reporting net losses, cash balance, working capital, and available credit lines to support future operations - The Company reported net losses of **$19.8 million** for the six months ended June 30, 2025, including **$15.1 million** in non-cash expenses (goodwill impairment, stock-based compensation, depreciation/amortization)[44](index=44&type=chunk) - As of June 30, 2025, cash balance was **$3.4 million** and working capital was **$9.8 million**. Management believes it has sufficient liquidity for at least twelve months[45](index=45&type=chunk) - Beam Global has an undrawn **$100 million** supply chain line of credit with OCI Group, available to support working capital requirements[46](index=46&type=chunk) [3. BUSINESS COMBINATIONS](index=14&type=section&id=3.%20BUSINESS%20COMBINATIONS) This section details Beam Global's acquisition of Telcom d.o.o Beograd and the formation of a joint venture, Beam Middle East, LLC, for international expansion - On August 30, 2024, Beam Global acquired Telcom d.o.o Beograd, a Serbian manufacturer of power electronics and telecommunications equipment, for cash and Beam common stock, including an earnout consideration of up to **EUR 250,000**[48](index=48&type=chunk)[49](index=49&type=chunk) - On June 20, 2025, the Company entered into a Joint Venture Agreement with The Platinum Group to establish Beam Middle East, LLC in Abu Dhabi, UAE, for marketing, selling, manufacturing, and distributing Beam Global's products in the Middle East and Africa[56](index=56&type=chunk)[125](index=125&type=chunk) Telcom Acquisition Consideration (in thousands) | Component | Amount (in thousands) | | :------------------ | :----- | | Cash | $481 | | Common Stock | $387 | | Earnout Consideration | $276 | | **Total Consideration** | **$1,144** | [4. PREPAIDS AND OTHER CURRENT ASSETS](index=17&type=section&id=4.%20PREPAIDS%20AND%20OTHER%20CURRENT%20ASSETS) This section details the composition and changes in Beam Global's prepaid expenses and other current assets, including vendor prepayments and prepaid insurance Prepaid Expenses and Other Current Assets (in thousands) | Metric (in thousands) | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------- | :------------ | :---------------- | | Vendor prepayments | $1,527 | $1,884 | | Prepaid insurance | $75 | $135 | | Other | $67 | $224 | | **Total prepaid expenses and other current assets** | **$1,669** | **$2,243** | - Total prepaid expenses and other current assets decreased by **$574 thousand** (**25.6%**) from December 31, 2024, to June 30, 2025, primarily driven by a reduction in vendor prepayments[59](index=59&type=chunk) [5. INVENTORY](index=18&type=section&id=5.%20INVENTORY) This section provides a breakdown of Beam Global's inventory, including finished goods, work in process, and raw materials, and notes changes over the period Inventory (in thousands) | Metric (in thousands) | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------- | :------------ | :---------------- | | Finished goods | $4,996 | $4,929 | | Work in process | $907 | $1,147 | | Raw materials | $5,377 | $6,208 | | **Total inventory** | **$11,280** | **$12,284** | - Total inventory decreased by **$1.004 million** (**8.2%**) from December 31, 2024, to June 30, 2025, mainly due to a reduction in raw materials and work in process[60](index=60&type=chunk) [6. PROPERTY AND EQUIPMENT](index=18&type=section&id=6.%20PROPERTY%20AND%20EQUIPMENT) This section details Beam Global's property and equipment, net of accumulated depreciation, and highlights additions and depreciation expense for the period Property and Equipment (in thousands) | Metric (in thousands) | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------- | :------------ | :---------------- | | Total property and equipment | $20,211 | $18,014 | | Less accumulated depreciation | $(5,382) | $(4,310) | | **Property and Equipment, net** | **$14,829** | **$13,704** | - Net property and equipment increased by **$1.125 million** (**8.2%**) from December 31, 2024, to June 30, 2025, primarily due to additions in land, buildings, leasehold improvements, and machinery/equipment[61](index=61&type=chunk) - Depreciation expense for the six months ended June 30, 2025, was **$1.3 million**, with **$1.1 million** recognized in Cost of Goods Sold[61](index=61&type=chunk) [7. GOODWILL AND INTANGIBLE ASSETS](index=19&type=section&id=7.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) This section details the goodwill balance, including a significant impairment, and the net values of various intangible assets such as developed technology and trade names Goodwill (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :---------------- | :------------ | :---------------- | | Beginning balance | $10,580 | $10,270 | | Impairments | $(10,780) | – | | **Ending balance** | **$0** | **$10,580** | - A goodwill impairment of **$10.780 million** was recorded during the six months ended June 30, 2025, reducing the goodwill balance to zero[62](index=62&type=chunk) Intangible Assets, Net (in thousands) | Asset Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------- | :------------ | :---------------- | | Developed technology | $5,627 | $5,994 | | Trade name | $1,171 | $1,258 | | Customer relationships | $265 | $286 | | Patents | $514 | $499 | | **Total Intangible assets, net** | **$7,577** | **$8,037** | [8. ACCRUED EXPENSES AND LONG-TERM LIABILITIES](index=20&type=section&id=8.%20ACCRUED%20EXPENSES%20AND%20LONG-TERM%20LIABILITIES) This section outlines Beam Global's accrued expenses, including salaries and vendor accruals, and long-term liabilities, such as deferred tax and acquired liabilities Accrued Expenses and Long-Term Liabilities (in thousands) | Metric (in thousands) | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------- | :------------ | :---------------- | | Accrued vacation | $328 | $271 | | Accrued salaries and bonus | $1,786 | $1,498 | | Vendor accruals | $268 | $75 | | Other accrued expense | $522 | $612 | | **Total accrued expenses** | **$2,910** | **$2,462** | | Long-term deferred tax liability | $1,815 | $1,290 | | Acquired long-term liability | $3,480 | $3,380 | | **Total long-term liabilities** | **$5,295** | **$4,670** | - Total accrued expenses increased by **$448 thousand** (**18.2%**) from December 31, 2024, to June 30, 2025, mainly due to higher accrued salaries and bonuses and vendor accruals[64](index=64&type=chunk) - Total long-term liabilities increased by **$625 thousand** (**13.4%**), driven by an increase in long-term deferred tax liability[64](index=64&type=chunk) [9. NOTE PAYABLE](index=20&type=section&id=9.%20NOTE%20PAYABLE) This section details Beam Global's short-term notes payable, primarily for financed equipment purchases, with specified interest rates as of June 30, 2025 - The Company has short-term notes payable totaling **$65 thousand** as of June 30, 2025, for financed purchases of trucks and forklifts, with interest rates ranging from **6.54%** to **7.89%**[9](index=9&type=chunk)[65](index=65&type=chunk) [10. COMMITMENTS AND CONTINGENCIES](index=21&type=section&id=10.%20COMMITMENTS%20AND%20CONTINGENCIES) This section addresses Beam Global's legal proceedings, potential impacts of trade policies, and details its current and noncurrent operating lease liabilities - The Company is not currently involved in any legal proceedings deemed material to its business, results of operations, or financial condition[66](index=66&type=chunk) - The Company faces uncertainty related to tariffs and other trade policies, which may increase costs of securing products from vendors and adversely affect business[68](index=68&type=chunk) Lease Liabilities (in thousands) | Metric (in thousands) | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------- | :------------ | :---------------- | | Current operating lease liabilities | $744 | $696 | | Noncurrent operating lease liabilities | $836 | $971 | | **Total Lease liabilities** | **$1,580** | **$1,667** | [11. INCOME TAXES](index=23&type=section&id=11.%20INCOME%20TAXES) This section explains Beam Global's income tax position, noting no federal expense due to net losses and the establishment of a full valuation allowance against deferred tax assets - No Federal income tax expense was recorded for the six months ended June 30, 2025, or 2024, due to net losses, with only minimum state taxes due[73](index=73&type=chunk) - A full valuation allowance has been established against deferred tax assets due to the Company's history of operating losses[73](index=73&type=chunk) [12. STOCKHOLDERS' EQUITY](index=23&type=section&id=12.%20STOCKHOLDERS%27%20EQUITY) This section details changes in Beam Global's stockholders' equity, including common stock sales, stock option activity, and a significant stock award to the CEO - On April 11, 2025, the Company entered into an At Market Issuance Sales Agreement to sell up to **$8 million** in common stock[74](index=74&type=chunk) Stock Options Activity (Six Months Ended June 30, 2025) | Metric | Number of Options | | :---------------------- | :---------------- | | Outstanding at Dec 31, 2024 | 663,004 | | Granted | 1,000 | | Forfeited | (24,100) | | Outstanding at June 30, 2025 | 639,904 | | Vested and Exercisable at June 30, 2025 | 406,769 | - A one-time stock award of **870,000 shares** of common stock was granted to the CEO, Desmond Wheatley, on June 4, 2025, as bonus compensation for performance and acquisitions[78](index=78&type=chunk) [13. REVENUES](index=27&type=section&id=13.%20REVENUES) This section provides a detailed breakdown of Beam Global's revenues by category and geographic area for the three and six months ended June 30, 2025, and 2024 Revenues by Category (in thousands) | Category | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Product sales | $6,784 | $13,981 | $12,754 | $27,551 | | Maintenance fees | $71 | $26 | $138 | $53 | | Professional services | $78 | $357 | $147 | $422 | | Shipping and handling | $150 | $549 | $406 | $1,526 | | Discounts and allowances | $(8) | $(101) | $(46) | $(179) | | **Total revenues** | **$7,075** | **$14,812** | **$13,399** | **$29,373** | Revenues by Geographic Area (in thousands) | Geographic Area | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $3,822 | $12,041 | $8,621 | $25,173 | | Serbia | $1,370 | $1,891 | $2,132 | $2,972 | | Romania | $712 | $448 | $1,103 | $543 | | Croatia | $425 | $174 | $723 | $268 | | Montenegro | $286 | $155 | $360 | $257 | | Bosnia | $329 | $30 | $329 | $87 | | Other | $131 | $73 | $131 | $73 | | **Total revenue** | **$7,075** | **$14,812** | **$13,399** | **$29,373** | - International customers comprised **37%** of revenues for the first six months of 2025, a significant increase from **15%** in the same period of 2024, primarily from Beam Europe[88](index=88&type=chunk)[131](index=131&type=chunk) [14. SEGMENT REPORTING](index=29&type=section&id=14.%20SEGMENT%20REPORTING) This section clarifies that Beam Global operates as a single reportable segment, with the CEO assessing performance and allocating resources based on net income or loss - The Company operates as a single reportable segment, focusing on clean-technology innovation for renewably energized products. The CEO, as CODM, assesses performance and allocates resources based on net income (loss)[92](index=92&type=chunk) [15. RISKS AND UNCERTAINTIES](index=29&type=section&id=15.%20RISKS%20AND%20UNCERTAINTIES) This section highlights Beam Global's exposure to market risks such as interest rates, inflation, foreign currency, geopolitical developments, and U.S. government policy uncertainty - The Company faces risks from rising interest rates, inflation, foreign currency exchange rate changes, and geopolitical developments (e.g., tariffs), which may lead to a global economic slowdown and decreased demand[93](index=93&type=chunk) - Uncertainty in U.S. government zero-emission vehicle strategy has particularly impacted larger federal customers, contributing to a decrease in revenue[113](index=113&type=chunk) [16. SUBSEQUENT EVENTS](index=29&type=section&id=16.%20SUBSEQUENT%20EVENTS) This section reports on the passage of the One Big Beautiful Bill Act by the U.S. Congress and the Company's ongoing evaluation of its potential financial effects - On July 4, 2025, the United States Congress passed the One Big Beautiful Bill Act (OBBBA), and the Company is currently evaluating its potential effects on consolidated financial statements[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of Beam Global's financial condition and operations, addressing revenue decline, international growth, product expansion, and liquidity [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=30&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section cautions that the report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements based on current expectations, estimates, forecasts, and projections, subject to numerous assumptions, risks, and uncertainties that could cause actual results to differ materially[97](index=97&type=chunk)[98](index=98&type=chunk) - Key risks include stock price volatility, quarterly result fluctuations, failure to earn revenues or profits, inadequate capital, reduced demand, litigation, and rapid changes in raw material costs or foreign regulations[99](index=99&type=chunk) [Overview](index=31&type=section&id=Overview) This section provides an overview of Beam Global's clean-technology innovation business, its renewably energized infrastructure products, and proprietary energy storage solutions - Beam Global is a clean-technology innovation company specializing in renewably energized infrastructure for EV charging, Smart Cities, energy security, and high energy-dense battery solutions, with a global presence[102](index=102&type=chunk) - The company's EV charging infrastructure products are rapidly deployable, do not require construction or electrical work, and operate during grid outages, offering a cost-effective alternative to traditional grid-tied installations[103](index=103&type=chunk)[104](index=104&type=chunk) - Beam's proprietary energy storage technologies enhance battery safety, longevity, and efficiency, serving specialized needs in mobility, energy security, and stationary applications[105](index=105&type=chunk)[111](index=111&type=chunk) [Overall Business Outlook](index=33&type=section&id=Overall%20Business%20Outlook) This section discusses Beam Global's business outlook, including revenue decline due to U.S. policy uncertainty, growth in international markets, and strategic product and geographic expansion - Revenues for the first six months of 2025 decreased by **54%** to **$13.4 million**, primarily due to uncertainty in the U.S. government's zero-emission vehicle strategy impacting federal customers[113](index=113&type=chunk) - International customers comprised **37%** of total revenue as of June 30, 2025, up from **15%** in the prior year, driven by expansion into Europe, the Middle East, and Africa[113](index=113&type=chunk)[116](index=116&type=chunk) - The company is expanding its product portfolio (e.g., BeamWell™ water treatment system, BeamSpot™, UAV ARC™) and geographic footprint through resellers and joint ventures (e.g., Beam Middle East LLC) to diversify revenue streams and reduce reliance on large federal orders[114](index=114&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) [Critical Accounting Estimates](index=36&type=section&id=Critical%20Accounting%20Estimates) This section identifies Beam Global's significant accounting estimates, including those for acquisitions, goodwill impairment, leases, and income taxes, which are based on management's judgment - Significant estimates in financial statements include accounting for acquisitions, goodwill impairment testing, leases, fair value of financial instruments, income taxes, inventory, and commitments/contingencies[127](index=127&type=chunk) - Management bases estimates on historical experience and reasonable assumptions, continually evaluating and modifying them as needed, with no changes since December 31, 2024[127](index=127&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) This section analyzes Beam Global's financial performance, comparing revenues, gross profit, and operating expenses for the three and six months ended June 30, 2025, and 2024 Revenue Comparison (in thousands) | Period | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :-------------------- | :---------- | :---------- | :--------- | | Three Months Ended June 30 | $7,075 | $14,812 | -52% | | Six Months Ended June 30 | $13,399 | $29,373 | -54% | Gross Profit Comparison (in thousands) | Period | 2025 (in thousands) | 2024 (in thousands) | Gross Margin 2025 | Gross Margin 2024 | Change (pp) | | :-------------------- | :---------- | :---------- | :---------------- | :---------------- | :---------- | | Three Months Ended June 30 | $1,434 | $2,356 | 20.3% | 15.9% | +4.4 | | Six Months Ended June 30 | $1,935 | $3,835 | 14.4% | 13.0% | +1.4 | - Operating expenses for the six months ended June 30, 2025, increased to **$21.9 million** from **$11.7 million** in the prior year, primarily due to a **$10.8 million** goodwill impairment and a **$1.5 million** increase from European acquisitions[133](index=133&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses Beam Global's liquidity and capital resources, detailing cash flows from operating, investing, and financing activities, and changes in working capital Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :---------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(2,078) | $(97) | | Net cash used in investing activities | $(838) | $(2,953) | | Net cash provided by financing activities | $2,162 | $1,396 | - Working capital decreased to **$9.8 million** at June 30, 2025, from **$13.8 million** at December 31, 2024, due to decreases in current assets (accounts receivable, cash, inventory) and a smaller decrease in current liabilities[141](index=141&type=chunk) - The Company generated **$2.2 million** in net proceeds from its At Market Issuance Sales Agreement during the six months ended June 30, 2025, to fund operations[145](index=145&type=chunk) [Off-Balance Sheet Arrangements](index=39&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms that Beam Global does not have any material off-balance sheet arrangements that significantly impact its financial condition or liquidity - The Company does not have any material off-balance sheet arrangements that significantly affect its financial condition, revenues, expenses, liquidity, or capital resources[147](index=147&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there are no applicable quantitative and qualitative disclosures about market risk for the reporting period - The Company has no applicable quantitative and qualitative disclosures about market risk for the period[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the company's disclosure controls and procedures, concluding they were not effective as of June 30, 2025, due to identified material weaknesses. It also outlines the ongoing remediation efforts to strengthen internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=40&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports that Beam Global's disclosure controls and procedures were ineffective as of June 30, 2025, due to identified material weaknesses in internal controls - As of June 30, 2025, the Company's disclosure controls and procedures were deemed not effective due to material weaknesses in internal controls[150](index=150&type=chunk) - Identified material weaknesses include ineffective design and implementation of IT General Controls (ITGCs), insufficient inventory tracking, inadequate documentation of reconciliation reviews, lack of proper segregation of duties, and incomplete Sarbanes-Oxley (SOX) Section 404A assessment[151](index=151&type=chunk) [Changes in Internal Control Over Financial Reporting](index=41&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section outlines Beam Global's ongoing remediation efforts to address material weaknesses in internal controls, including ERP access review, inventory management, and staffing - The Company is actively remediating material weaknesses by reviewing NetSuite ERP access for segregation of duties, enhancing inventory management processes, increasing staffing for control documentation, and retaining outside consulting support for ITGCs[152](index=152&type=chunk)[155](index=155&type=chunk) - Remediation efforts include additional training, managing inventory processes in NetSuite ERP, and formalizing reconciliation reviews with proper segregation of duties[155](index=155&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers Beam Global's legal proceedings, risk factors, equity sales, defaults, mine safety, other information, exhibits, and required signatures [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) This section states that the Company is not currently involved in any legal proceedings that are considered material to its business, results of operations, or financial condition, although litigation can still have an adverse impact due to costs and management time diversion - The Company is not currently involved in any legal proceedings that are individually or in aggregate material to its business, results of operations, or financial condition[156](index=156&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the comprehensive discussion of risk factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, noting that additional unknown or immaterial risks could also adversely affect the business - Readers should refer to the risk factors discussed in Part I, Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2024, as these could materially affect the business[157](index=157&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates that there were no unregistered sales of equity securities or use of proceeds during the reporting period - There were no unregistered sales of equity securities or use of proceeds during the quarter ended June 30, 2025[158](index=158&type=chunk) [Item 3. Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the quarter ended June 30, 2025[159](index=159&type=chunk) [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company[160](index=160&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) This section reports that no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025 - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[161](index=161&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including articles of incorporation, bylaws, sales agreements, consulting agreements, joint venture agreements, lease extension agreements, and certifications - The report includes various exhibits such as Articles of Incorporation, Bylaws, Common Stock Purchase Warrant, At Market Issuance Sales Agreement, Joint Venture Agreement, Lease Extension Agreement, and CEO/CFO certifications[162](index=162&type=chunk) [SIGNATURES](index=45&type=section&id=SIGNATURES) This section contains the required signatures of Beam Global's Chairman and Chief Executive Officer, Desmond Wheatley, and Chief Financial Officer, Lisa A. Potok, certifying the report on August 14, 2025 - The report is signed by Desmond Wheatley, Chairman and Chief Executive Officer, and Lisa A. Potok, Chief Financial Officer, on August 14, 2025[165](index=165&type=chunk)

Core Insights - Beam Global reported a 21% increase in energy storage solutions (ESS) revenue in the first half of 2025 compared to 2024, indicating strong growth in the sector [1] - The company received a purchase order worth approximately $2 million from a major ESS customer, expected to be recognized as revenue by the end of 2025, reflecting the reliability of its products [1] - The ESS business is experiencing growth due to repeat orders from existing customers and the addition of three major new clients, including a Fortune 500 automotive company [2] Company Performance - The CEO of Beam Global highlighted the diversification of revenue opportunities and the company's expertise in energy storage, which is contributing to improved product quality and cost efficiency [3] - The company is expanding its presence in Europe and the Middle East, along with an expanded product portfolio, positioning itself for diverse revenue and profit generation [3] - Beam Global's patented PCC™ technology in its AllCell™ energy storage solutions enhances power efficiency and safety, addressing thermal management challenges [3] Market Outlook - The energy storage solutions market is projected to grow from $7.8 billion in 2024 to $25.6 billion in 2029, representing a compound annual growth rate (CAGR) of 26.9% [3] - The electrification of transportation is expected to be a significant growth driver for the company, alongside its energy security and smart cities infrastructure initiatives [3]

Core Viewpoint - Beam Global has officially established a joint venture, Beam Middle East, in Abu Dhabi, UAE, to expand its sustainable infrastructure solutions for transportation electrification and energy security in the Middle East and Africa [1][2][3]. Group 1: Joint Venture Formation - Beam Global and the Platinum Group LLC have created Beam Middle East LLC, which will focus on selling and manufacturing Beam Global's patented sustainable infrastructure solutions [2]. - The new entity will be headquartered in Omniah Tower, Masdar City, a sustainable urban community in Abu Dhabi, which aligns with the UAE's goal of achieving net-zero emissions by 2050 [2]. Group 2: Leadership and Ceremony - The official signing ceremony took place on July 17, 2025, with key figures including Desmond Wheatley, CEO of Beam Global, and Dr. Hanai Atatreh from the Platinum Group [3]. - The event was attended by members of both companies' management teams, board directors, press, and regional dignitaries, highlighting the significance of the partnership [3]. Group 3: Strategic Importance - The partnership is positioned to leverage the Gulf region's transition to clean and sustainable technologies, with a focus on energy security and smart city solutions [4]. - The region's abundant sunshine and increasing adoption of electric vehicles and renewable energy make it an ideal market for Beam Global's solutions [4]. Group 4: Company Background - Beam Global is a clean technology innovator specializing in sustainable infrastructure products and technologies, with operations in the U.S., Europe, and the Middle East [6]. - The company develops and manufactures solutions that enhance transportation, provide secure electricity sources, and promote environmental protection [6]. Group 5: Platinum Group Overview - Platinum Group LLC is a diversified conglomerate operating in various sectors, including energy and real estate, and is recognized for its strong relationships across government and industry in Abu Dhabi [5]. - The group is chaired by His Royal Highness Sheikh Mohammed Sultan Bin Khalifa Al-Nahyan and has a significant presence in the UAE [5].

Core Insights - Beam Global has entered a joint venture with Platinum Group LLC to form Beam Middle East LLC, focusing on sustainable infrastructure solutions for transportation electrification and energy security in the Middle East and Africa [1][2][3] Company Overview - Beam Global is a clean technology innovator specializing in sustainable infrastructure products and technologies, with operations in the U.S. and Europe [10] - Platinum Group UAE is a diversified conglomerate with strong relationships across government and industry, chaired by His Royal Highness Sheikh Mohammed Sultan Bin Khalifa Al-Nahyan [9] Joint Venture Details - Beam Middle East LLC will be a 50/50 joint venture, headquartered in Masdar City, Abu Dhabi, and will manufacture and sell Beam Global's patented technologies [8] - Beam Global will provide proprietary technologies, training, and marketing support, while Platinum Group will leverage its local relationships and coordinate sales [8] Market Potential - Planned spending on sustainable infrastructure in the region is projected to reach $75.6 billion by 2030, indicating significant growth opportunities for Beam Global's solutions [3] - The number of electric vehicles (EVs) in the region is expected to grow from approximately 69,000 in 2024 to about 1.5 million by 2030, representing a CAGR of 66.6% [6] - Addressable revenue from regional chargers using Beam's EV ARC™ units could reach $516.5 million by 2030 [6] Product Opportunities - BeamBike™ units could represent a revenue opportunity of $245 million in the region by 2030, assuming eBikes account for 5% of total EV volume [6] - The potential revenue opportunity for BeamSpot™ units in Abu Dhabi is estimated at approximately $322.1 million, assuming a market penetration of 5% [6] Strategic Importance - The partnership is positioned to leverage Platinum's influence and relationships to secure direct access to decision-makers in the region, which is crucial for success in the Middle East and Africa [3][8]

Financial Performance - Beam Global reported an adjusted loss of 32 cents per share in Q1 2025, wider than the Zacks Consensus Estimate of a loss of 16 cents, compared to a loss of 21 cents per share in the same quarter last year [1] - The company reported net sales of $6.3 million, missing the Zacks Consensus Estimate of $15 million and down from $14.6 million in the year-ago quarter [1] - Gross profit in Q1 was $0.5 million (8% of sales), down from $1.5 million (10% of sales) in the prior year, primarily due to a non-cash expense of $1 million related to depreciation and amortization from the AllCell acquisition [2] Operating Expenses and Cash Flow - Operating expenses rose to $16 million from $4.5 million in the corresponding quarter of 2024, driven by $10.8 million of goodwill impairment [3] - As of March 31, 2025, the company had cash of $2.5 million, down from $4.6 million as of December 31, 2024, and had a total backlog of $6.3 million [3] - The company reported net cash used for operating activities of $1.8 million for the three months ended December 31, 2024, compared to $3 million for the same period in 2024, and remains optimistic about achieving positive cash flow in 2025 [4] Product and Market Expansion - In Q1 2025, the company delivered various products including EV ARC units and energy storage systems to locations across the U.S. and internationally [5] - Beam Global expanded its European sales network by adding three new distribution partners and entered the Middle Eastern market through a partnership, also launching the BeamPatrol collaboration with Zero Motorcycles [6]

Financial Data and Key Metrics Changes - For Q1 2025, the company's revenues were $6.3 million, a significant decrease compared to the same period in 2024, where revenues were more than double [4][20] - Gross profit for Q1 2025 was $500,000, resulting in an 8% gross margin, down from $1.5 million and a 10% gross margin in Q1 2024 [5] - The net loss for Q1 2025 was $15.5 million, which included $12.5 million in non-cash expenses, compared to a net loss of $3 million in Q1 2024 [7][8] - The cash balance at the end of March 2025 was $2.5 million, down from $4.6 million at the end of 2024 [8] Business Line Data and Key Metrics Changes - Revenue from commercial customers increased to 53% in Q1 2025 from 16% in Q1 2024, indicating a shift towards enterprise customers [4] - International customers contributed 25% of total revenue in Q1 2025, up from 11% in Q1 2024, reflecting successful international expansion efforts [4] Market Data and Key Metrics Changes - The company faced challenges due to the U.S. government's zero-emission vehicle strategy and uncertainties related to the presidential election, impacting revenue generation [4][20] - Despite the federal government halting acquisitions of electric vehicle infrastructure, state and local governments continued to contribute significantly to revenues [25][26] Company Strategy and Development Direction - The company is focusing on diversifying its product offerings and geographical reach, with a strong emphasis on international expansion [10][19] - The management believes that the recent acquisitions have positioned the company for future growth, despite current financial challenges [14][39] - The company aims to enhance its product portfolio with new offerings like Beam Patrol and Beam Bike, which are expected to contribute to revenue growth [45][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in future quarters, citing a solid foundation for growth despite current revenue challenges [10][30] - The company is confident in its ability to navigate the current market conditions and is focused on executing its strategic plans [41][79] - Management highlighted the importance of resiliency in their product offerings, particularly in response to climate-related challenges [66][70] Other Important Information - The company took a goodwill impairment charge of $10.8 million due to a decline in market capitalization, which is a non-cash item and does not reflect operational performance [6][17] - The company continues to generate positive gross margins, with net margins exceeding 20% when excluding non-cash items [30][52] Q&A Session Summary Question: How is the product mix between EV ARC and new products expected to evolve? - Management is enthusiastic about the adoption of new products like Beam Patrol and Beam Bike, expecting orders to increase in 2025 and beyond, while still seeing growth in EV ARC [45][49] Question: What is the outlook for margin progression as new products and international sales grow? - Management indicated that gross margins for EV ARC are currently in the 40-50% range, and they expect to achieve 50% gross profit as volume increases [51][54] Question: What is the current manufacturing capacity in Europe? - The company has significant manufacturing capacity in Europe, with the potential to produce five times more units than in the U.S., although supply chain challenges remain [59][64] Question: How will the company address climate-related challenges with its broadened product line? - Management emphasized the importance of resiliency in their products, which can operate during blackouts and are designed for disaster preparedness [66][70]