Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to ________________ Commission File Number 000-53204 Beam Global (Exact name of Registrant as specified in its charter) Nevada 26-1342810 (State ...

Financial Data and Key Metrics Changes - For Q1 2021, Beam Global reported revenues of $1.37 million, a 4% increase from $1.32 million in Q1 2020 [6] - Gross loss for Q1 2021 was $149,120, compared to a gross loss of $39,641 in the same period of 2020, primarily due to increased costs for the new EV ARC 2020 system [8] - Operating expenses rose to $1.10 million in Q1 2021 from $902,000 in Q1 2020, attributed to increased non-cash compensation, sales headcount, and R&D headcount [10] - The net loss for Q1 2021 was $1.25 million, up from $942,521 in Q1 2020 [11] - Cash at March 31, 2021, was $28.21 million, an increase from $26.70 million at the end of 2020 [11] Business Line Data and Key Metrics Changes - The company shipped systems to various sectors including municipalities, federal, academic, utility, and enterprise business segments [7] - As of March 31, 2021, the contracted backlog was approximately $1.2 million, which has since increased to over $5 million, all expected to convert to revenue in 2021 [17][18] Market Data and Key Metrics Changes - The EV market is experiencing a significant shift towards electrification, with government mandates and consumer demand driving the need for EV charging infrastructure [34][41] - California has committed over a billion dollars to electrification and has mandated rideshare operators to transition to electric vehicles by the end of the decade [46] Company Strategy and Development Direction - Beam Global is focused on rapidly deploying EV charging infrastructure that is off-grid and resilient, positioning itself to meet the increasing demand for EV charging solutions [42][43] - The company is enhancing its production capabilities to handle anticipated growth, with plans to scale up manufacturing and improve gross margins [66][100] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the post-vaccine acceleration of EV charging infrastructure across government and enterprise sectors [77] - The company is well-positioned to capitalize on the growing demand for EV charging solutions, with a robust pipeline and backlog [76] Other Important Information - The company has engaged a new lobbying consultant to enhance government relations and secure funding opportunities for its products [49][51] - Beam Global has received several purchase orders through a federal GSA contract, streamlining the procurement process for federal agencies [57][58] Q&A Session Summary Question: Is the 52 ARCs order from California part of the $5 million backlog? - Yes, it is included in the backlog [79] Question: Are there similar enterprise opportunities in the pipeline? - Yes, there are many similar opportunities, particularly with the Electrify America/Jeep partnership [80] Question: Can you elaborate on the sponsorship opportunities mentioned? - The company is working with a group specializing in corporate sponsorships, focusing on transportation [85] Question: What is the potential size of the Jeep Stellantis opportunity? - The exact size is uncertain, but there are many locations needing EV charging where the grid does not exist [110] Question: Has the company faced supply chain issues with solar modules or batteries? - No significant delays have been encountered so far, and the situation is being monitored closely [94] Question: Is the company prepared for a potential increase in orders? - Yes, the company has facilities capable of scaling production significantly and has sufficient operating capital [97][102]

PART I FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20Financial%20Statements%20%28Unaudited%29) Beam Global reported Q1 2021 revenues of $1.37 million, a slight increase, alongside a wider gross loss of $149,120 and a net loss of $1.25 million, with total assets rising to $34.46 million, supported by a strong cash position from financing activities [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) Condensed Balance Sheet Highlights (in USD) | Metric | March 31, 2021 (Unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $31,492,321 | $29,903,431 | | Cash | $28,214,029 | $26,702,804 | | Inventory, net | $1,553,443 | $1,092,763 | | **Total Assets** | **$34,464,347** | **$32,902,759** | | **Total Current Liabilities** | $1,984,843 | $1,840,111 | | **Total Liabilities** | **$3,948,893** | **$3,750,468** | | **Total Stockholders' Equity** | **$30,515,454** | **$29,152,291** | [Condensed Statements of Operations](index=4&type=section&id=Condensed%20Statements%20of%20Operations) Condensed Statements of Operations (Unaudited, for the three months ended March 31) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Revenues | $1,372,392 | $1,317,052 | | Cost of revenues | $1,521,512 | $1,356,693 | | **Gross loss** | **($149,120)** | **($39,641)** | | Operating expenses | $1,102,675 | $902,000 | | **Loss from operations** | **($1,251,795)** | **($941,641)** | | **Net loss** | **($1,250,809)** | **($942,521)** | | Net loss per share - basic and diluted | ($0.14) | ($0.17) | | Weighted average shares outstanding | 8,764,959 | 5,523,174 | [Condensed Statements of Changes in Stockholders' Equity](index=5&type=section&id=Condensed%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) - Total stockholders' equity increased from **$29.15 million** at December 31, 2020, to **$30.52 million** at March 31, 2021. The increase was primarily driven by **$2.47 million** in proceeds from warrants exercised, offset by a net loss of **$1.25 million** for the quarter[8](index=8&type=chunk) [Condensed Statements of Cash Flows](index=6&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Condensed Statements of Cash Flows (Unaudited, for the three months ended March 31) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | ($855,783) | ($1,553,276) | | Net cash used in investing activities | ($55,574) | ($143,512) | | Net cash provided by financing activities | $2,422,582 | $279,632 | | **Net increase (decrease) in cash** | **$1,511,225** | **($1,417,156)** | | Cash at beginning of period | $26,702,804 | $3,849,456 | | **Cash at end of period** | **$28,214,029** | **$2,432,300** | [Condensed Notes To Condensed Financial Statements](index=7&type=section&id=Condensed%20Notes%20To%20Condensed%20Financial%20Statements) - The company develops, manufactures, and sells renewably energized infrastructure products for electric vehicle (EV) charging, outdoor media, and energy security[10](index=10&type=chunk) - For Q1 2021, sales to federal, state, and local governments represented **70% of revenues**. Three customers accounted for **32%**, **12%**, and **10% of total revenues**[19](index=19&type=chunk)[21](index=21&type=chunk) - The company had a cash balance of **$28.2 million** and working capital of **$29.5 million** as of March 31, 2021. Management believes it has sufficient cash to fund operations for at least the next twelve months[47](index=47&type=chunk) - Subsequent to the quarter end, warrants to purchase **18,233 shares** of common stock were exercised, generating proceeds of **$114,868**[77](index=77&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 4% revenue increase to $1.37 million for Q1 2021, driven by diverse customer sales, but gross loss widened to $149,120 due to higher costs, while operating expenses rose 22% to $1.1 million, yet the company maintains a strong liquidity position with $28.2 million in cash and anticipates future growth and margin improvements - The company's main products are rapidly deployable, renewably energized infrastructure for EV charging, including the EV ARC™, Solar Tree® DCFC, and EV ARC™ DCFC[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) - Management views federal investment in EV infrastructure, such as President Biden's proposed **$174 billion investment**, as a significant potential source of future revenue. The company's GSA contract is expected to streamline procurement by federal agencies[89](index=89&type=chunk) Q1 2021 vs Q1 2020 Performance | Metric | Q1 2021 | Q1 2020 | Change | | :--- | :--- | :--- | :--- | | Revenues | $1,372,392 | $1,317,052 | +4% | | Gross Loss | ($149,120) | ($39,641) | Increased Loss | | Operating Expenses | $1,102,675 | $902,000 | +22% | | Net Loss | ($1,250,809) | ($942,521) | Increased Loss | - The company's cash position increased to **$28.2 million** at March 31, 2021, from **$26.7 million** at year-end 2020. Working capital also increased to **$29.5 million** from **$28.1 million**[101](index=101&type=chunk)[108](index=108&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable to the company for this reporting period - The company has indicated that Quantitative and Qualitative Disclosures About Market Risk are not applicable[113](index=113&type=chunk) [Controls and Procedures](index=21&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded that as of March 31, 2021, the company's disclosure controls and procedures were not fully effective, with a material weakness persisting due to the lack of automated manufacturing or purchasing systems, which the company plans to address by implementing a new ERP system in Q3 2021 - Management concluded that as of March 31, 2021, the company's disclosure controls and procedures were not yet sufficient to ensure timely and accurate reporting[115](index=115&type=chunk) - A material weakness was identified related to the lack of automated manufacturing or purchasing systems for inventory tracking, product costing, and labor. The company currently uses time-consuming manual processes[116](index=116&type=chunk) - The company plans to implement a new manufacturing and purchasing system (ERP) during fiscal 2021 to address the material weakness. The selection process was underway, with a decision expected in **Q3 2021**[116](index=116&type=chunk)[118](index=118&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) As of the report date, the company is not involved in any ongoing or pending legal claims or proceedings that would have a material effect - There are no ongoing or pending legal claims or proceedings of which management is aware[120](index=120&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - The company refers to the risk factors discussed in its Annual Report on Form 10-K for the year ended December 31, 2020, and notes no material changes[121](index=121&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None reported[122](index=122&type=chunk) [Defaults Upon Senior Securities](index=23&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None reported[122](index=122&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[122](index=122&type=chunk) [Other Information](index=23&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None reported[122](index=122&type=chunk) [Exhibits](index=23&type=section&id=Item%206.%20Exhibits) The report lists exhibits filed, including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act and XBRL data files - Exhibits filed with the report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL instance and schema documents[123](index=123&type=chunk)

Market Opportunities - Beam's renewably energized products target three significant markets with annual global spending in the billions: electric vehicle charging infrastructure, outdoor media advertising, and energy security[17] - The electric vehicle (EV) infrastructure market is projected to receive $6 trillion in investments by 2040, with an expected 559 million EVs on the road by that year[43] - California has mandated that all new cars and passenger trucks sold will be zero-emission vehicles by 2035, with Washington State implementing a similar ban starting in 2030[41] - The company anticipates significant growth in the electric vehicle market over the next decade, positioning its products to benefit from this trend[137] Product Offerings - The EV ARC™ product is the world's first transportable, solar-powered EV charger, capable of charging between one and six EVs simultaneously and providing charging to as many as 12 parking spaces[21] - The EV-Standard™ product, currently in development, will utilize existing streetlamp foundations and grid connections to provide Level II EV charging, enhancing urban EV charging solutions[28] - Beam's products are designed to operate during grid outages, providing a reliable source of EV charging and emergency power, which is increasingly important as reliance on electricity grows[22] - Beam's products can significantly reduce greenhouse gas emissions, which may incentivize corporate sponsorships for the EV ARC™ systems[30] - Beam's products are designed for rapid deployment, offering a lower total cost of ownership as they do not incur utility bills for energy[64] - Beam's EV ARC™ can be deployed in remote locations without grid connections, providing flexibility and reducing installation costs compared to traditional grid-tied chargers[66] - The patented BeamTrak™ solar tracking solution increases energy generation by up to 25% compared to fixed arrays, enhancing product differentiation[66] Collaborations and Contracts - The company has entered a collaboration agreement with the City of San Diego to deploy solar-powered EV charging infrastructure across the city, known as the Driving on Sunshine network[32] - Beam has secured major contracts with the City of New York totaling approximately $5.7 million for EV ARC units, and a $2 million contract with Electrify America for 30 units[52][55] - The California Department of General Services contract has an estimated value exceeding $20 million, allowing various state agencies to purchase Beam's products[54] - The company aims to create a long-term recurring revenue stream through five-year sponsorship agreements for the Driving on Sunshine network, similar to the Citibike program in New York City[31] Financial Performance - Revenues increased from $5.1 million in 2019 to $6.2 million in 2020, with a more diversified customer base including municipalities, colleges, and federal customers[137] - For the year ended December 31, 2020, the company's revenues were $6,210,350, an increase of $1,098,805 or 21% compared to $5,111,545 in 2019[159] - The company reported a gross loss of $710,974 for the year ended December 31, 2020, which was an increase from a gross loss of $153,774 in 2019, representing 11% of net revenues in 2020 compared to 3% in 2019[160] - Total operating expenses increased by 44% to $4,496,660 for the year ended December 31, 2020, compared to $3,117,793 in 2019[162] - The company reported a net loss of $5,213,025 for the year ended December 31, 2020, compared to a net loss of $3,933,922 for the same period in 2019, reflecting an increase in losses of approximately 32.6%[166] - Cash provided by financing activities increased significantly to $27,350,387 in 2020 from $8,541,358 in 2019, representing an increase of approximately 219.5%[164] - The company's cash balance rose to $26,702,804 at December 31, 2020, compared to $3,849,456 at the end of 2019, marking an increase of approximately 694.5%[167] Operational Challenges - The company faces intense competition in the solar renewable energy and EV charging industries, with competitors having greater resources and market recognition[81] - The company may need to raise additional capital to sustain operations and fund investments, as it expects to incur further losses in the foreseeable future[76] - The company is subject to extensive government regulations, which could impact operations and financial results if changes occur[71] - The company has identified a material weakness in internal control over financial reporting, which could adversely affect its ability to report financial results accurately[115] - The company relies on key personnel, including CEO Desmond Wheatley, and the loss of such individuals could adversely affect operations and competitive advantage[93] - The company sources materials from various vendors, but reliance on single suppliers for certain components poses risks to operational profitability[99] Future Outlook - The company anticipates improvements in gross profit as revenues grow, driven by increased production volumes and cost efficiencies[174] - The company plans to outsource certain components and sub-assemblies to reduce costs and increase gross margins and factory output[161] - Management plans to enhance operations through the addition of sales personnel, cost management, and improved vendor negotiations to achieve profitable growth[175] - The company is focused on expanding its geographic footprint and customer base, currently operating in 23 U.S. states and three international countries[43] - Beam anticipates that the demand for EV charging infrastructure will grow more rapidly than current forecasts suggest, necessitating faster deployment of their products[42] Internal Controls and Governance - The Company identified material weaknesses in internal controls over financial reporting as of December 31, 2020, due to the lack of automated manufacturing and purchasing systems[188] - The effectiveness of internal control over financial reporting has not been audited due to the Company being exempt as a smaller reporting company[190] - The Company aims to strengthen internal controls and governance requirements following the identified weaknesses[189] - The Company has hired a Director of Operations and a Director of Engineering to assist with inventory management and strengthen controls[192] - The Company plans to decide on an Enterprise Resource Planning (ERP) system in the first half of 2021 to enhance inventory management[192] Risks and Uncertainties - Significant developments in alternative technologies could adversely affect demand for the company's offerings, potentially leading to product obsolescence and loss of market share[87] - Defects or performance issues in products may result in customer loss, reputational damage, and increased warranty claims, impacting revenue and operational results[88] - Compliance with environmental laws may increase costs for customers, potentially deterring purchases of certain products[107] - The company's media branding strategy may not yield profitable operations, as success depends on securing sponsorships and advertising deals[103] - The company's ability to sell branding opportunities is contingent on the availability of real estate and municipal approvals, which could impact financial results[109]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report under Section 13 or 15 (d) of Securities Exchange Act of 1934 For the Period ended September 30, 2020 Commission File Number 000-53204 Beam Global (Exact name of Registrant as specified in its charter) Nevada 26-1342810 (State of Incorporation) (IRS Employer ID Number) 5660 Eastgate Dr. San Diego, California 92121 (858) 799-4583 (Address and telephone number of principal executive offices) En ...

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report under Section 13 or 15 (d) of Securities Exchange Act of 1934 For the Period ended June 30, 2020 Commission File Number 000-53204 Envision Solar International, Inc. (Exact name of Registrant as specified in its charter) Nevada 26-1342810 (State of Incorporation) (IRS Employer ID Number) 5660 Eastgate Dr. San Diego, California 92121 (858) 799-4583 (Address and telephone number of principal exe ...

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report under Section 13 or 15 (d) of Securities Exchange Act of 1934 For the Period ended March 31, 2020 Commission File Number 000-53204 Envision Solar International, Inc. (Exact name of Registrant as specified in its charter) Nevada 26-1342810 (State of Incorporation) (IRS Employer ID Number) 5660 Eastgate Dr. San Diego, California 92121 (858) 799-4583 (Address and telephone number of principal ex ...

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