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]

Financial Data and Key Metrics Changes - For Q1 2025, revenues were $6.3 million, a significant decrease compared to the same period in 2024, where revenues were approximately double [4][19] - 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 [6][7] - Cash balance at the end of March 2025 was $2.5 million, down from $4.6 million at the end of 2024 [7] 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 [4] - Non-government sales grew by 41% year-over-year, demonstrating the effectiveness of the diversification strategy [23] Market Data and Key Metrics Changes - The U.S. Federal Government's halt on electric vehicle infrastructure acquisitions has negatively impacted revenue, as over half of the previous year's revenue came from federal orders [19][20] - State and local government sales remain strong, with indications of increased activity from California and other municipalities [24] Company Strategy and Development Direction - The company is focusing on diversifying its product offerings and geographic reach, particularly in Europe and other international markets [10][22] - The management believes that the acquisitions made in recent years have significantly enhanced the company's growth potential and market presence [13][38] - The strategy includes expanding the sales team and leveraging external sales resources to increase market penetration [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in future quarters despite current challenges, emphasizing the importance of their diversification strategy [10][28] - The company is optimistic about the potential for significant growth in Europe, the Middle East, and Africa [27][35] - Management acknowledged the impact of tariffs but remains hopeful for a reversal of the worst effects, which could improve margins [29][30] Other Important Information - The company has no debt and sufficient cash to continue operations, positioning itself well for future growth [10][39] - The goodwill impairment of $10.8 million was recognized due to a decline in market capitalization, but management believes this does not reflect the true value of the company's assets [6][16] 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 [44][47] Question: What is the current state of 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 issues remain a concern [58][63] Question: How will resiliency be emphasized in the product line? - Resiliency is a key aspect of the company's offerings, with products designed to operate during blackouts and natural disasters, which is increasingly relevant in various markets [66][70]

Financial Performance - Revenues for the first three months of 2025 were $6.3 million, a 57% decrease from $14.6 million in the same period of 2024[103]. - Revenues for the three months ended March 31, 2025, decreased by 57% to $6.3 million compared to $14.6 million in 2024, with 14% of product sales to Federal customers and 33% to State and Local governments[117]. - Gross profit for the same period was $0.5 million, representing a gross margin of 7.9%, down from $1.5 million and 10.2% in 2024; 88.4% of ARC sales reflected a price increase implemented in 2023[115][118]. - Total operating expenses increased to $16.0 million in Q1 2025, including a $10.8 million goodwill impairment, compared to $4.5 million in 2024[119]. - Cash used in operating activities was $1.8 million for Q1 2025, a decrease from $3.0 million in Q1 2024, with a net loss of $15.5 million adjusted by $12.5 million of non-cash expenses[121]. - Current assets decreased to $23.6 million at March 31, 2025, from $27.1 million at December 31, 2024, primarily due to a $2.1 million decrease in cash[125]. Revenue Sources - International customers accounted for 25% of total revenue as of March 31, 2025, compared to 11% for the same period in 2024[103]. - Revenues from non-government commercial entities increased by 41% from 2024 to 2025, representing 53% of total revenues in 2025[103]. - Sales to federal, state, and local governments represented 47% of revenues in the first three months of 2025, down from 84% in the same period of 2024[103]. Strategic Initiatives - The acquisition of Amiga expanded the company's presence into European, Middle Eastern, and African markets, enhancing production and sales capabilities[108]. - The company introduced new products, including rapidly deployed charging infrastructure for electric bicycles, scooters, and motorcycles, as well as a self-sufficient water treatment system[100]. - The company expects significant growth in the electric vehicle market, which will increase demand for EV charging infrastructure[106]. - The company has invested in a federal lobbyist and business development resources to identify opportunities and increase awareness of its products[105]. - The company achieved compliance with the Build America, Buy America Act, enhancing its credibility and demand among government agencies[106]. - The company has initiated a program of resellers and agents to expand its geographic footprint without significantly increasing operating costs[104]. - Beam acquired Telcom d.o.o. Beograd, enhancing its capabilities in power electronics and telecommunications equipment, which is expected to improve product margins and reduce costs[109]. - Beam is developing new patented products, including BeamSpot™ and UAV ARC™, which are anticipated to expand product offerings and market reach[113]. Financial Strategy and Capital - The Company entered into a Supply Chain Line of Credit with OCI Limited for up to $100 million based on approved accounts receivable[128]. - The Company has the right to sell up to $8 million in shares of its common stock under an At Market Issuance Sales Agreement with B. Riley Securities, Inc.[129]. - The company may need to raise capital to fund operations until achieving positive cash flow, with potential equity or debt financing options being considered[127]. - The Company has not drawn on the $100 million line of credit to date[128]. - The Company is required to pay interest on any drawdown at the Secured Overnight Financing Rate +300 basis points[128]. Management and Internal Controls - Management anticipates profitable growth through the addition of sales personnel, cost reductions, and increased public awareness of the Company and its products[130]. - The Company has identified material weaknesses in internal controls, including ineffective design over IT General Controls and inadequate inventory tracking[134]. - Remediation efforts are ongoing to address identified material weaknesses, including improving segregation of duties and enhancing training for employees[138]. - The Company has not maintained adequate controls for documentation of reconciliations and schedules prepared for financial statements[134]. - The Company is actively working to strengthen internal controls over financial reporting and has taken various actions to remediate material weaknesses[136]. - Management believes that successful execution of its strategic plan may generate sufficient revenue to continue operations, although there is no assurance of achieving these objectives[130].

Core Viewpoint - Beam Global reported its Q1 2025 financial results, highlighting a revenue of $6.3 million and a focus on international expansion despite challenges in the U.S. market [1][4]. Financial Highlights - Revenues for Q1 2025 were $6.3 million, with a revenue CAGR of 60% over the past 60 months [5][7]. - Gross profit for the quarter was $0.5 million, representing an 8% gross margin, down from $1.5 million and 10% in Q1 2024 [8]. - The company reported a net loss of $15.5 million for Q1 2025, which included $12.5 million in non-cash expenses [10]. Operational Highlights - Sales of the flagship product EV ARC™ increased in Q1 2025, with a significant shift towards enterprise customers, which accounted for 53% of revenues compared to 16% in Q1 2024 [5][4]. - International customers contributed 25% of total revenue, up from 11% in the same period last year [5]. - The company achieved CE certification for EV ARC™ and expanded its European sales network with three new distribution partners [7]. Cash and Liquidity - As of March 31, 2025, the company had cash of $2.5 million, down from $4.6 million at the end of 2024 [11]. - The net cash used in operations for Q1 2025 was $1.8 million, an improvement from $3.0 million in Q1 2024 [11]. Goodwill and Operating Expenses - Total operating expenses for Q1 2025 were $16.0 million, including a $10.8 million goodwill impairment due to a decrease in market capitalization [9]. - Operating expenses, net of non-cash items, were $4.1 million, a slight increase from $3.8 million in Q1 2024 [9]. Future Outlook - The CEO expressed confidence in the company's ability to return to growth, citing a strong foundation for future opportunities despite current market uncertainties [4].

Revenue Performance - Revenues for 2024 were $49.3 million, more than double any previous year's revenue in the company's history excluding 2023, with a five-year revenue CAGR of 68%[5] - Revenues from non-government commercial entities increased by 229% from 2023 to 2024, accounting for 38% of total revenues in 2024[7] - GAAP total revenue for 2024 was $49,336 million, a decrease of 26.7% from $67,353 million in 2023[23] Profitability and Margins - Gross profit was $7.3 million, representing a gross margin of 15%, an improvement of 13 percentage points over 2023[8] - GAAP gross profit increased to $7,296 million in 2024 from $1,204 million in 2023, reflecting a significant improvement[23] - Non-GAAP gross profit for 2024 was $10,451 million, compared to $2,174 million in 2023, resulting in a gross margin of 21%[25] - The company reported a gross margin improvement from 3% in 2023 to 21% in 2024, indicating better cost management[25] Operational Efficiency - Net cash used in operations for 2024 was $2.2 million, a significant decrease from $13.3 million in 2023[11] - Loss from operations decreased to $11.7 million in 2024, compared to $16.3 million in 2023, reflecting improved gross profit and management of operating expenses[10] - Non-GAAP loss from operations decreased to $8,905 million in 2024 from $11,775 million in 2023[25] - Operating expenses increased to $19.0 million in 2024, primarily due to a full year of expenses from the Serbian acquisition[9] - Operating expenses for 2024 were $18,953 million, up from $17,465 million in 2023[23] Financial Position - The company maintained a backlog of $5.6 million as of December 31, 2024, and remains debt-free with a $100 million line of credit available and unused[5] - The net loss for 2024 was $11,282 million, an improvement from a net loss of $16,060 million in 2023[23] - Total comprehensive loss for 2024 was $13,063 million, compared to $15,436 million in 2023, indicating a reduction in overall losses[23] - Interest income decreased to $205 million in 2024 from $261 million in 2023[23] Product Development and Market Expansion - The company launched four new products: BeamSpot™, BeamBike™, BeamPatrol™, and BeamWell™[5] - Beam Global expanded its geographic reach into Middle Eastern and African markets through reselling partnerships[5] - The company achieved CE certification and compliance with the Build America, Buy America Act for its EV ARC™ systems[5] Shareholder Information - The weighted average shares outstanding increased to 14,621 million in 2024 from 12,345 million in 2023[23]

Core Viewpoint - Beam Global, a provider of sustainable infrastructure solutions for electrification and energy security, will report its Q1 2025 operating results on May 15, 2025, after market close, followed by a conference call to discuss the results and corporate developments [1]. Group 1: Conference Call Details - The conference call is scheduled for May 15, 2025, at 4:30 p.m. Eastern / 1:30 p.m. Pacific [2]. - Callers are required to pre-register for the call through a provided link and should dial in approximately 10 minutes before the scheduled start time [2]. Group 2: Company Overview - Beam Global is a clean technology innovator focused on sustainable energy infrastructure, EV charging solutions, energy storage, and energy security [4]. - The company operates in the U.S. and Europe, developing and manufacturing advanced clean technology solutions [4]. - Beam Global is headquartered in San Diego, CA, with additional facilities in Broadview, IL, and Serbia [4].

Core Insights - Beam Global has reported a 23% quarter-over-quarter increase in orders for its EV ARC™ off-grid solar-powered charging units, indicating a growing demand for clean infrastructure solutions despite a reduction in federal demand [2][4] - The company is shifting its focus towards commercial customers while still receiving orders from federal entities, reflecting a strategic adaptation to market conditions [4] Company Overview - Beam Global is a clean technology innovator that develops sustainable infrastructure products and technologies, focusing on the intersection of clean energy and transportation [6][7] - The company operates in the U.S. and Europe, with headquarters in San Diego, CA, and additional facilities in Broadview, IL, and Serbia [7] Market Demand - The increase in orders aligns with the growth of electric vehicle sales in the U.S., which have risen by 29% globally and 16% in North America in 2025 [4] - Recent orders have come from a diverse range of clients, including municipal and county governments, state and federal agencies, environmental organizations, and private sector companies in construction, clean energy, and technology [3]

Core Insights - Beam Global has successfully sold its first EV ARC™ systems in Romania, marking a significant step in the country's transition to renewable energy in line with EU climate goals [1][2] - Romania aims for 34% renewable energy production by 2030, prioritizing clean transportation solutions, which aligns with Beam Global's offerings [2] - The sales were facilitated by Seltis Glass Design SRL, a local reseller with a successful history in selling infrastructure products, demonstrating Beam Global's effective strategy of leveraging local partnerships [3] Company Overview - Beam Global is a clean technology innovator focused on sustainable infrastructure products and technologies, operating in the nexus of clean energy and transportation [6] - The company develops and manufactures scalable EV charging solutions, energy storage, and energy security products, with operations in the U.S. and Europe [6] - Beam Global has been recognized for its innovative contributions to clean mobility and energy efficiency, receiving an award at the 2025 Congress of Mayors in Romania [4][5] Market Context - Romania is experiencing rapid economic growth and significant investment in electrification and sustainable energy infrastructure, creating a favorable environment for Beam Global's products [5] - The company's strategy of geographic expansion through local resellers allows for increased sales without significant investment, which is crucial for growth in emerging markets [5]

Financial Performance - Beam Global reported an adjusted loss of 31 cents per share in Q4 2024, wider than the Zacks Consensus Estimate of a loss of 23 cents, compared to a loss of 51 cents per share in the same quarter last year [1] - The company reported net sales of $8 million in Q4 2024, missing the Zacks Consensus Estimate of $15 million and down from $20 million in the year-ago quarter [1] - Revenues in Q4 2024 decreased from $11.5 million in Q3 2024, primarily due to lower federal sales and order timing issues [2] - Cost of revenues fell to $6.25 million in Q4 2024 from $19.6 million in Q4 2023, while operating expenses rose to $7.3 million from $5.5 million in the same period [2] Cash Flow and Backlog - As of December 31, 2024, the company had a total backlog of $5.6 million [3] - Cash reserves decreased to $4.6 million from $10.4 million as of December 31, 2023, with the company remaining debt-free [3] - Net cash used for operating activities was $2.2 million for the 12 months ended December 31, 2024, compared to $13.3 million for the same period in 2023 [3] - Capital expenditure totaled $825,000, down from $937,000 in 2023 [3] Product Development and Market Strategy - The company introduced new products such as BeamSpot, BeamBike, BeamWell, and BeamPatrol to diversify revenue sources by targeting specific market segments, including disaster response, urban transportation, and law enforcement [4] - In 2025, the company expects to achieve positive cash flow despite flat revenues compared to 2024, with growth anticipated to resume in subsequent quarters supported by a broader product range and focus on international markets [5] Market Outlook - The Trump administration's unfavorable stance on emerging technologies is expected to hinder the company's growth in Q1 2025 [5]

EV Charging Infrastructure - Beam's EV charging infrastructure products are powered by renewable energy and provide services in locations where grid connection is expensive or impossible[18]. - Beam's EV ARC™ product is the world's first transportable, solar-powered EV charging infrastructure that can charge between one and six EVs simultaneously and can be set up in less than an hour[30]. - Beam's products are designed to operate during grid outages, providing emergency power and EV charging without relying on the utility grid[32]. - The company aims to address the increasing demand for rapidly deployable EV charging infrastructure that does not require construction or electrical work[30]. - Beam's products provide a hedge against grid failures, with 25% of all EV charging infrastructure suggested to be independent of the centralized grid[37]. - The introduction of BeamBike™, capable of charging 12 electric bicycles simultaneously, supports the electrification of transportation without requiring utility connections[54]. - BeamPatrol™ can charge 4 electric motorcycles simultaneously and targets law enforcement agencies, creating significant sales opportunities[55]. - BeamSpot™ provides street lighting and curbside EV charging without extensive construction, ideal for municipalities and large parking areas[56]. - BeamWell™ is designed for rapid deployment in disaster areas, providing essential services like electricity and clean water within an hour[57]. - The company has expanded sales of EV ARC™ systems to 41 states and three international countries, with significant contracts from the U.S. Federal Government and the State of California[44]. Market Growth and Trends - The global lithium-ion battery market is projected to grow from $130 billion in 2024 to $350 billion by 2033, with a CAGR of 12%[34]. - The electric vehicle infrastructure market is projected to reach $224.8 billion by 2032, with a CAGR of 27.5% from 2024 to 2032[64]. - The EU's mandate for zero-emission vehicles by 2035 is expected to drive demand for Beam's EV charging infrastructure products[182]. Acquisitions and Expansion - Beam acquired Amiga DOO Kraljevo in October 2023, enhancing manufacturing capabilities for steel structures in Europe, targeting municipalities and government entities[38][45]. - Beam acquired Telcom d.o.o. Beograd in August 2024, focusing on power electronics and telecommunications equipment, expanding product opportunities in Europe[39][46]. - The acquisition of Amiga in 2023 positions the company as one of the largest streetlight manufacturers in Europe, enhancing its product portfolio[59]. - Beam's growth strategy includes geographic expansion into Europe, the Middle East, and Africa, with successful sales to the British Army and deployments at Belgrade International Airport[50]. Financial Performance - Beam's revenue for the year ending December 31, 2024, was $49.3 million, a decrease from $67.4 million in 2023, but a 124% increase from $22.0 million in 2022[179]. - The gross profit for 2024 was $7.3 million, compared to $1.2 million in 2023, with a gross margin of 14.8%, up thirteen percentage points from the previous year[186]. - Major contracts with the State of California and GSA accounted for 58% and 77% of revenues in 2024 and 2023, respectively[72]. - The company's backlog decreased from $21.7 million in 2023 to $5.6 million in 2024, indicating a significant reduction in future revenue commitments[96]. - In 2024, 62% of the company's revenue came from federal, state, and local governments, down from 80% in 2023[95]. - The company reported net losses of $11.3 million in 2024, compared to $16.1 million in 2023, contributing to an accumulated deficit of $104.6 million as of December 31, 2024[100]. Operational Challenges - The company may need additional financing to fund operations and working capital, with no guarantee of favorable terms[101]. - The company faces intense competition in the solar renewable energy and EV charging industries, with competitors having greater resources[114]. - The company is dependent on revenues from its EV ARC™ products and energy storage products following acquisitions, with no assurance of continued market acceptance[115]. - The company may encounter difficulties in integrating acquired businesses, which could adversely affect its operations and financial results[106]. - The company faces potential demand reduction for solar power products due to existing and changing regulations, which may create economic barriers[122]. - The company is exposed to product liability claims, which could result in significant costs and damage to reputation if successful[126]. Internal Controls and Compliance - A material weakness in internal controls over financial reporting has been identified, which could impact the accuracy and timeliness of financial reporting[152]. - The company has identified material weaknesses in internal controls as of December 31, 2023, which continued to exist as of December 31, 2024[214]. - The company is undertaking an action plan to strengthen internal controls and procedures to address the identified material weaknesses[216]. - Internal control systems have inherent limitations and may not prevent or detect misstatements[212]. Customer Segments and Sales Strategy - The company aims to diversify its customer segments, targeting state, municipal, and federal governments, corporations, and universities[43]. - In 2024, over 30% of sales were from non-government customers, indicating a strategic shift towards corporate clients[62]. - The company has engaged outside sales resources to enhance its sales strategy, aiming to increase revenues while maintaining low operational costs[65]. Product Development and Innovation - Beam's energy storage solutions utilize proprietary technology to enhance safety and performance, preventing thermal events and extending battery life[34]. - Beam's products are designed to be environmentally sound, providing 100% emissions-free electricity, unlike grid-tied chargers that rely on fossil fuel-generated electricity[91]. - BeamTrak™, the company's patented solar tracking solution, can generate up to 25% more electricity than fixed arrays, enhancing the efficiency of their products[91]. - The BeamSpot™ product combines streetlight infrastructure with solar, wind, and energy storage for curbside charging and emergency power[173]. Risks and Uncertainties - The company expects to generate an increasing portion of its revenue internationally, which may expose it to additional risks[111]. - The company is subject to foreign currency exchange rate risks due to acquisitions in Serbia, impacting its financial condition[113]. - The company may face increased costs and supply restrictions due to tariffs imposed on imported solar cells and modules[117]. - The availability of financial incentives, such as tax credits, is crucial for demand; any reduction or uncertainty could significantly impact sales[143].