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 March 31, 2025 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 001-38868 Beam Global (Exact name of Registrant as specified in its charter) Nevada 26-1342810 (Stat ...

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 - 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[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 from $16.3 million in 2023, reflecting improved gross profit and expense management[10] - Non-GAAP loss from operations decreased to $8,905 million in 2024 from $11,775 million in 2023[25] Expenses - Operating expenses increased to $19.0 million in 2024, primarily due to a full year of expenses from the Serbian acquisition[9] - Operating expenses increased to $18,953 million in 2024 from $17,465 million in 2023[23] Financial Position - The company maintained a debt-free status with a $100 million line of credit available and unused[5] - The backlog as of December 31, 2024, was $5.6 million[5] Market Expansion - Beam Global expanded into new markets, including the Middle East and Africa, through reselling partnerships[5] - The company launched four new products: BeamSpot™, BeamBike™, BeamPatrol™, and BeamWell™[5] Shareholder Information - The weighted average shares outstanding increased to 14,621 million in 2024 from 12,345 million in 2023[23] Losses - The net loss for 2024 was $11,282 million, an improvement from a net loss of $16,060 million in 2023[23] - The total comprehensive loss for 2024 was $13,063 million, compared to $15,436 million in 2023[23] Interest Income - Interest income decreased to $205 million in 2024 from $261 million in 2023[23]

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]. - Beam's SolarTree® products are designed for larger scale solar-powered EV charging applications and can be deployed in remote locations without grid connectivity[33]. - Beam Global's products provide a hedge against grid failures, with a focus on ensuring 25% of EV charging infrastructure is independent of the centralized grid[37]. - The company introduced BeamBike™, a charging infrastructure product for electric bicycles, capable of charging 12 bikes simultaneously without utility grid connection[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 electric vehicle infrastructure market is projected to reach $224.8 billion by 2032, with a CAGR of 27.5% from 2024 to 2032[64]. Product Development and Acquisitions - The company expanded its product portfolio in the second half of 2024 to include charging infrastructure for electric bicycles, scooters, and motorcycles, as well as a desalination capability for disaster preparedness[25]. - The company acquired Amiga DOO Kraljevo in October 2023, enhancing its manufacturing capabilities in Europe and expanding its market reach[38]. - Beam Global's acquisition of Telcom d.o.o. Beograd in August 2024 strengthens its power electronics and telecommunications equipment manufacturing capabilities[39]. - The acquisition of Amiga in 2023 positions the company as one of the largest streetlight manufacturers in Europe, enhancing its product portfolio[59]. - Beam acquired Amiga DOO Kraljevo and Telcom d.o.o. Beograd to enhance manufacturing capabilities in Europe, which is the largest market for electric vehicles[175][176]. Financial Performance - The company reported net losses of $11.3 million for the fiscal year ended December 31, 2024, compared to $16.1 million for the previous year[100]. - 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]. - In 2024, 62% of the company's revenue was attributable to federal, state, and local governments, down from 80% in 2023[95]. - Total operating expenses increased to $19.0 million in 2024 from $17.5 million in 2023, with a $3.8 million increase attributed to the full year of operations of Serbian acquisitions[194]. - Cash used in operating activities was $2.2 million for the year ended December 31, 2024, a significant decrease from $13.3 million in 2023[197]. - Current assets decreased to $27.1 million at December 31, 2024, from $40.7 million at December 31, 2023, primarily due to a $7.9 million decrease in accounts receivable[201]. Market Strategy and Growth - The company is focused on creating high-quality, rapidly deployable products that meet the growing demand for EV charging and Smart Cities infrastructure[23]. - Beam Global's growth strategy includes geographic expansion into Europe, the Middle East, and Africa, with sales already initiated in multiple countries[50]. - The company aims to diversify its customer segments and expand its product portfolio, moving beyond the EV ARC to include new energy security products[52]. - The company expects to generate an increasing portion of its revenue internationally, which introduces various risks related to foreign operations[111]. - The company is actively seeking acquisitions to enhance its technology and reduce costs, focusing on strategic fits that benefit shareholders[63]. Risks and Challenges - Intense competition exists in the EV charging industry, with competitors having greater resources, which may affect market share and business results[114]. - The company is exposed to risks from tariffs and international trade policies, which could increase costs and disrupt supply chains[117][121]. - The company faces potential demand reduction for solar power products due to existing and changing regulations, which may create economic barriers[122]. - The company’s solar products may experience power supply exhaustion on high demand days, affecting EV charging capabilities[123]. - Developments in alternative technologies could adversely impact demand for the company's offerings, risking product obsolescence and loss of market share[124]. - The company is exposed to product liability claims, which could result in significant costs and damage to reputation if successful[126]. - The company must keep pace with rapid EV technology changes to maintain competitive positioning, as it does not manufacture EV service equipment[127]. Internal Controls and Compliance - A material weakness in internal controls over financial reporting has been identified, potentially impacting the accuracy and timeliness of financial reporting[152]. - The company implemented a new accounting and perpetual inventory system in Q4 2023 to automate processes and address the identified material weakness[153]. - As of December 31, 2024, the company's disclosure controls and procedures were not effective due to material weaknesses in internal controls[211]. - The company is currently implementing an action plan to strengthen internal controls and procedures to address identified material weaknesses[216]. Customer Base and Revenue Concentration - Revenue is concentrated among a few large customers, with the U.S. Army and the Department of Homeland Security contributing 15% and 7% of revenues, respectively, in 2024[102]. - Major contracts with the State of California and GSA accounted for 58% and 77% of revenues in 2024 and 2023, respectively[72]. - The company has secured a sponsorship agreement with Globos Osiguranje for five EV ARC™ solar-powered charging stations at Belgrade Nikola Tesla Airport, promoting free EV charging[40]. - In 2024, over 30% of sales were from non-government customers, indicating a strategic shift towards corporate clients[62]. Regulatory Environment - The company’s growth is highly dependent on the adoption of electric vehicles (EVs), which may be influenced by factors such as consumer perceptions and charging infrastructure availability[103][104]. - The EU has mandated a transition to zero-emission vehicles by 2035, increasing the demand for EV charging infrastructure[182]. - The availability of financial incentives, such as tax credits, is crucial for demand; any reduction or uncertainty could significantly impact sales[143]. - Compliance with environmental laws may increase costs for customers, potentially deterring purchases of certain products[144].

Financial Performance - Q3 2024 revenues were $11.5 million, a decrease of 22% from Q2 2024, but the second highest Q3 revenues in history[6] - Revenues for the three months ended September 30, 2024, were $11,482 million, a decrease of 30.4% compared to $16,486 million in the same period of 2023[22] - Net income for Q3 2024 was $1.3 million, a significant improvement from a net loss of $3.6 million in Q3 2023[11] - Net income for the three months ended September 30, 2024, was $1,297 million, compared to a net loss of $3,629 million in the same period of 2023[22] - Total comprehensive income for the three months ended September 30, 2024, was $1,970 million, contrasting with a total comprehensive loss of $3,629 million in the same period of 2023[22] - Net income per share (basic) for the three months ended September 30, 2024, was $0.09, compared to a loss of $0.26 per share in the same period of 2023[22] - Cash decreased to $4.9 million as of September 30, 2024, down from $10.4 million at the end of 2023, primarily due to acquisition payments[13] Gross Margin and Profitability - Gross margin reached 10.7% of sales, a 9 percentage point increase compared to Q3 2023, with a year-to-date gross margin of 12.4%[5][7] - Gross profit for the three months ended September 30, 2024, was $1,231 million, significantly up from $283 million in the same period of 2023, representing a gross margin improvement[22] - Operating expenses for the three months ended September 30, 2024, were $51 million, a significant reduction from $4,037 million in the same period of 2023[22] - Income (loss) from operations for the three months ended September 30, 2024, was $1,282 million, a turnaround from a loss of $3,754 million in the same period of 2023[22] Customer and Market Insights - 47.9% of Q3 revenue was derived from commercial customers, representing an over 80% increase compared to Q3 2023[6] - The company has a record pipeline of over $200 million and a backlog of $7 million[5] Strategic Initiatives - The acquisition of Telcom enhances in-house production capabilities for power electronics, expected to drive future margins[4] - Four new products were launched: BeamSpot™, BeamBike™, BeamPatrol™, and BeamWell™[5] - The company anticipates returning to revenue growth in 2025 with significantly improved profit margins[4] Other Financial Metrics - Interest income for the three months ended September 30, 2024, was $58 million, down from $136 million in the same period of 2023[22] - The company reported net foreign currency translation adjustments of $673 million for the three months ended September 30, 2024, with no adjustments reported in the same period of 2023[22] - Beam Global remains debt-free with a $100 million line of credit available and unused[5]

Revenue Performance - Revenues for the first nine months of 2024 were $40.9 million, a 14% decrease from $47.3 million in the same period of 2023[96]. - Federal customer revenues decreased from $39.9 million in the first nine months of 2023 to $28.4 million in the same period of 2024[96]. - Revenues for Q3 2024 decreased by 30% to $11.5 million compared to $16.5 million in Q3 2023, marking the second highest third quarter revenues in company history[105]. - Revenues for the nine months ended September 30, 2024 decreased by 14% to $41.0 million compared to $47.3 million in the same period in 2023[108]. - Revenues derived from non-government commercial entities increased by 136% for the nine months from 2023 to 2024, representing 30.5% of total revenues in 2024[108]. Gross Margin and Profitability - Gross margin improved to 10.7% in Q3 2024, up from 1.7% in Q3 2023, primarily due to cost improvements and positive margins from the acquisition of Amiga[106]. - Gross profit for the nine months ended September 30, 2024 was $5.1 million, or 12% of sales, compared to $0.8 million, or 2% of sales in the same period in 2023[109]. - Operating expenses for Q3 2024 were a credit of $50 thousand, significantly down from $4.0 million, or 24% of revenues, in Q3 2023[107]. Cash Flow and Financial Position - Cash used in operating activities for the nine months ended September 30, 2024 was $3.1 million, a decrease from $13.8 million in the same period in 2023[112]. - Current assets decreased to $31.1 million on September 30, 2024, down by $9.6 million from December 31, 2023, primarily due to decreases in accounts receivable and cash[117]. - The Company may need to raise capital until achieving positive cash flow, which depends on increasing sales volumes and production cost reductions[120]. - Management cannot currently predict when or if the Company will achieve positive cash flow, and there is no guarantee of profitable operations[120]. Strategic Acquisitions and Market Position - Beam acquired Amiga DOO Kraljevo in October 2023, expanding its presence in the European market and enhancing manufacturing capabilities[93]. - Beam acquired Telcom d.o.o. Beograd in August 2024, improving its power electronics and telecommunications equipment manufacturing capabilities[94]. - The company believes the electric vehicle market will experience significant growth, increasing demand for EV charging infrastructure[97]. - The company received its first order for the BeamSpot™ product within two months of its launch, indicating strong market interest[102]. Cost Management and Operational Efficiency - The company has invested in a federal lobbyist and business development resources to identify opportunities and increase awareness of its products[96]. - The company’s proprietary energy storage solutions and patented renewable energy products reduce installation costs and complexity compared to traditional grid-tied alternatives[95]. - The company’s energy security business enhances the value proposition of its charging products by providing emergency power during grid failures[101]. - The company anticipates further reductions in costs due to operational support from Serbian facilities, which are expected to improve gross margins in future quarters[106]. - The Serbian operations are contributing to cost reductions for product manufacturing in both Europe and the U.S.[118]. Internal Controls and Compliance - Material weaknesses in internal controls over financial reporting were identified, particularly during the implementation of the NetSuite ERP system[124]. - The Company is actively working to remediate identified material weaknesses and strengthen internal controls over financial reporting[126]. - The Company has taken steps to ensure proper segregation of duties and adequate training for employees in relation to internal controls[128]. Supply Chain and Financing - The Company has entered into a Supply Chain Line of Credit with OCI Limited for up to $100 million, based on approved accounts receivable[119]. - The Company has not drawn on the Supply Chain Line of Credit to date[119]. - The Company implemented price increases in Q3 2023 to offset inflationary costs, which are beginning to positively impact new orders[118].

Financial Performance - Revenues for the first six months of 2024 were $29.4 million, a 5% decrease from $30.8 million in the same period of 2023[84] - Revenues for Q2 2024 decreased by 17% to $14.8 million from $17.8 million in Q2 2023, with federal customer revenues down by $5.1 million[94] - For the six months ended June 30, 2024, revenues decreased by 5% to $29.4 million compared to $30.8 million in the same period in 2023[97] - Gross profit for the first half of 2024 was $3.8 million, or 13% of sales, compared to a gross loss of $0.5 million, or 2% of sales in the same period in 2023[98] - Gross profit improved to 15.9% in Q2 2024, up from 13.1% in Q2 2023, with a non-cash expense adjustment resulting in a gross profit of 17.1%[91] - Gross profit for Q2 2024 was $2.4 million, representing 15.9% of sales, an improvement of 13.1 percentage points from 2.8% in Q2 2023[95] Operating Expenses - Total operating expenses for Q2 2024 were $7.1 million, or 48% of revenues, up from $4.0 million, or 23% of revenues, in Q2 2023[96] - Total operating expenses for the first half of 2024 were $11.7 million, or 40% of revenues, compared to $7.9 million, or 26% of revenues, in the same period in 2023[99] Cash Flow and Capital Needs - Cash used in operating activities for the first half of 2024 was $0.1 million, significantly reduced from $5.1 million in the same period in 2023[100] - The company may need to raise capital until it achieves positive cash flow, with a Common Stock Purchase Agreement allowing for the sale of up to $30 million in common stock[107] - The company has a supply chain line of credit with OCI Limited of up to $100 million, but has not drawn on this line of credit to date[106] Market and Product Development - The acquisition of Amiga in October 2023 expands Beam's presence in the European market and enhances production and engineering capabilities[83] - The commercial, non-government revenues increased from 14% to 24% of total revenues from the first half of 2023 to the first half of 2024[84] - Beam's patented renewable energy products significantly reduce installation costs and complexity compared to traditional grid-tied alternatives[85] - The company expects continued growth in the electric vehicle market, which will drive demand for EV charging infrastructure[86] - Beam All-Cell battery technology is being integrated into EV ARC™ products, enhancing energy density and safety[82] - The company is developing new products, including BeamSpot™ and UAV ARC™, which leverage proprietary technology to expand market offerings[90] - The company anticipates further reductions in production costs due to operations in Serbia, which are expected to be less expensive than U.S. manufacturing[91] Internal Controls and Compliance - The company identified material weaknesses in internal controls over financial reporting as of June 30, 2024, due to inadequate program change management and user access controls[110] - During Q4 2023, the company implemented the NetSuite ERP system to automate operations and accounting for San Diego and Chicago locations, but did not ensure proper segregation of duties[111] - The company noted that many reports and reconciliations were performed in Excel without adequate validation of segregation of duties between preparers and approvers[111] - Management is actively working to remediate the identified material weaknesses and has taken various actions to strengthen internal controls over financial reporting[113] - The company plans to continue reviewing access in NetSuite ERP to ensure proper segregation of duties and provide additional training for employees[115] - Staffing levels and expertise are being increased to support enhancements in controls and procedures surrounding documentation and reconciliations[115] - The company aims to manage segregation of duties between preparers and approvers of reconciliations, including hiring additional staff[115] - The material weaknesses will be considered remediated once management concludes that the applicable remedial controls are effectively designed and operating[114] - The company has acknowledged that the identified weaknesses have a pervasive effect across the inventory transaction cycle[112] - Management may decide to take additional measures to address control deficiencies or modify remediation measures as necessary[114]

Revenue Growth - Revenues for Q1 2024 were $14.6 million, a 12% increase from $13.0 million in Q1 2023, primarily driven by EV ARC™ system deliveries to government entities [81]. - Federal customers generated $12.2 million in revenues for Q1 2024, up from $11.2 million in the same period in 2023 [81]. - Revenues for Q1 2024 increased by 12% to $14.6 million compared to $13.0 million in Q1 2023, with federal customer revenues rising by $1.0 million and an additional $1.4 million from the Amiga acquisition [92]. - The company experienced significant revenue growth from 2020 to 2023, with annual increases of 45%, 144%, and 206% respectively, indicating successful marketing and sales efforts [101]. Acquisitions and Market Expansion - The acquisition of Amiga in October 2023 contributed $1.4 million in revenues for the period, enhancing Beam's presence in the European market [81]. - Beam's acquisition of All Cell Technologies is anticipated to improve gross margins and expand customer opportunities through advanced energy storage solutions [84]. - Amiga's capabilities are expected to reduce production costs in Europe, allowing for more competitive pricing in the market [88]. Profitability and Margins - Gross profit margin improved to 10.2% in Q1 2024, up from 10.1% in Q1 2023, with a non-cash expense adjustment resulting in a gross profit of 11.4% [88]. - Gross profit for Q1 2024 was $1.5 million, representing 10.2% of sales, a significant improvement from 0.04% in Q1 2023, driven by cost reductions and increased production levels [93]. Operating Expenses and Cash Flow - Total operating expenses rose to $4.5 million, or 31% of revenues, in Q1 2024, up from $3.8 million, or 30% of revenues, in Q1 2023, primarily due to increased consultant costs and expenses related to Amiga operations [94]. - Cash used in operating activities for Q1 2024 was $3.0 million, compared to $0.6 million in Q1 2023, with a net loss of $3.0 million adjusted by $1.1 million of non-cash expenses [96]. - The company has historically met cash needs through debt and equity financing, and may need to raise additional capital until achieving positive cash flow [103]. Current Assets and Liabilities - Current assets decreased to $38.8 million as of March 31, 2024, from $40.7 million at December 31, 2023, while current liabilities increased to $21.0 million, resulting in a working capital decrease to $17.8 million [100]. - The company has a Supply Chain Line of Credit with OCI Limited for up to $100 million based on approved accounts receivable, but has not yet drawn on this line of credit [102]. Product Development and Market Outlook - Beam Global's patented EV ARC™ and Solar Tree® products are rapidly deployable and require no construction or electrical work, providing a competitive edge over traditional grid-tied installations [77]. - The company expects significant growth in the electric vehicle market over the next decade, driving demand for additional EV charging infrastructure [83]. - The EV Standard™ product is under development and is expected to become Beam's largest selling product upon release [87]. Foreign Currency Risks - The company is exposed to foreign currency risks, particularly with the Serbian Dinar and Euro, but the impact on net earnings for Q1 2024 was not significant [105].

Product Innovation and Development - Beam's EV ARC™ is the world's first transportable, solar-powered EV charging infrastructure product, generating and storing its own energy, eliminating utility bills, and capable of charging up to 12 EVs simultaneously[25]. - Beam's SolarTree® product is positioned to provide charging solutions in underserved locations, contributing to the National Electric Vehicle Infrastructure program's requirement for 600kW of DC fast charging every 50 miles on US highways[28]. - Beam's EV Standard™ product, currently in development, will utilize existing streetlamp infrastructure to provide sustainable Level II EV charging without extensive construction[28]. - Beam's proprietary energy storage solutions enhance safety and performance, preventing thermal events and extending battery life, making them unique in the EV charging industry[29]. - The company is developing new products, including EV Standard™ and UAV ARC™, to expand its market offerings[143]. Market Growth and Trends - The global lithium-ion battery market is projected to grow from $41.1 billion in 2021 to $116.6 billion by 2030, with a CAGR of 12.3%[29]. - The EV infrastructure market is projected to reach $224.8 billion by 2032, with a compound annual growth rate (CAGR) of 27.5% from 2024 to 2032[42]. - The electric vehicle market is expected to grow rapidly, with increasing urgency for EV charging infrastructure deployment as consumer adoption accelerates[41]. Financial Performance - Revenues increased from $22.0 million in 2022 to $67.4 million in 2023, driven by a 569% increase in federal customer sales[140]. - Revenues for the year ended December 31, 2023, increased 206% to $67.4 million compared to $22.0 million for 2022, with 64% of product sales to Federal customers[150]. - The company reported a positive gross profit of $1.2 million for 2023, compared to a gross loss of $1.7 million in 2022[144]. - Net loss for the year ended December 31, 2023, was $16,060,000, a reduction from a net loss of $19,682,000 in 2022, reflecting an 18% improvement[212]. - Total assets as of December 31, 2023, were $77,643,000, up from $37,730,000 in 2022, representing a 106% increase[210]. Customer and Revenue Concentration - 80% of the company's revenue in 2023 came from federal, state, and local governments, compared to 63% in 2022, highlighting increased reliance on government contracts[65]. - Beam's EV ARC™ systems have been sold to 41 states, three international countries, Puerto Rico, and the U.S. Virgin Islands, with the U.S. Army being the largest customer in 2023[37]. - In 2023, Beam's major customer contracts with the State of California and the General Services Administration accounted for 77% and 60% of revenues, respectively[50]. - The company faces risks related to customer concentration, with significant revenue derived from a few large customers, including the U.S. Army and the Department of Veterans Affairs, which accounted for 38% and 16% of revenues in 2023, respectively[72]. Acquisitions and Strategic Growth - The company acquired Amiga on October 20, 2023, enhancing its manufacturing capabilities in Europe for current and new products[32]. - Beam completed the acquisition of Amiga DOO Kraljevo, which represents 5.0% of the Company's 2023 revenues and 2.3% of its net loss[162][171]. - The acquisition of Amiga may take longer to realize anticipated benefits, potentially affecting the company's business and financial condition[78]. - Beam expects to generate an increasing portion of its revenue internationally following the acquisition of Amiga, which introduces additional risks[82]. Operational Efficiency and Cost Management - The company anticipates that as unit sales increase, fixed overhead costs will be spread over more units, potentially reducing the cost per unit[64]. - Total operating expenses decreased to $17.5 million in 2023 from $18.0 million in 2022, benefiting from a significant reduction in contingent consideration expenses[152]. - Cash used in operating activities was $13.3 million in 2023, a decrease from $18.1 million in 2022, reflecting better operational efficiency[154]. Risks and Challenges - The company faces intense competition in the solar renewable energy and EV charging industries, with competitors having greater resources[85]. - Tariffs imposed on solar products could significantly increase costs and restrict supply, adversely affecting revenues and margins[89]. - Existing regulations and potential changes may present barriers to the purchase and use of solar power products, reducing demand[90]. - The company may incur significant costs and liabilities from product liability claims, which could damage its reputation and sales[94]. - The rapid technological change in the EV industry necessitates that the company keeps up with advancements to maintain its competitive position[95]. 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[115]. - The company has implemented a new accounting system in Q4 2023 to automate inventory tracking, aiming to alleviate previously identified material weaknesses[116]. - The company plans to improve internal controls by assigning access to ensure proper segregation of duties and adequate employee training[173]. Cash Flow and Liquidity - Cash at December 31, 2023, was $10.4 million, up from $1.7 million at December 31, 2022, indicating improved liquidity[153]. - The company may need to raise capital to fund operations until achieving positive cash flow, with the right to sell up to $30.0 million in common stock over 24 months[160]. - The Company entered into a Supply Chain Line of Credit with OCI Limited for up to $100 million based on approved accounts receivable[161].

Revenue Growth - Revenues for the first nine months of 2023 were $47.3 million, a 236% increase from $14.1 million in the same period of 2022, driven by EV ARC™ systems and energy storage solutions [76]. - Year-to-date revenues from the battery storage business reached $6.0 million, attributed to the acquisition of All Cell in March 2022 [76]. - Federal customer revenues increased to $33.2 million in the nine months ended September 30, 2023, compared to $3.2 million in the same period of 2022 [76]. - Revenues for Q3 2023 increased by 149% to $16.5 million compared to $6.6 million in Q3 2022, with federal customer revenues rising by $7.5 million [87]. - For the nine months ended September 30, 2023, revenues increased by 236% to $47.3 million compared to $14.1 million in the same period in 2022 [90]. Gross Profit and Margins - Gross profit as a percentage of sales improved to 1.7% in Q3 2023, compared to a gross loss of -5.1% in Q3 2022 [83]. - Gross profit for Q3 2023 was $0.3 million, or 2% of sales, an improvement from a gross loss of $0.3 million, or 5% of sales in Q3 2022, reflecting a 7% margin increase [88]. - Gross profit for the nine months ended September 30, 2023 was $0.8 million, or 2% of sales, compared to a gross loss of $1.0 million, or 7% of sales in the same period of 2022, reflecting a 9% margin improvement [91]. Operating Expenses - Total operating expenses for Q3 2023 were $4.0 million, or 24% of revenues, down from $6.5 million, or 98% of revenues in Q3 2022, marking a 73% decrease as a percentage of revenues [89]. - Total operating expenses for the nine months ended September 30, 2023 were $11.9 million, or 25% of revenues, compared to $10.9 million, or 78% of revenues in the same period in 2022, showing a 53% improvement as a percentage of revenues [92]. Cash and Liquidity - Cash at September 30, 2023 was $14.8 million, up from $1.7 million at December 31, 2022, indicating improved liquidity [93]. - Cash used in operating activities for the nine months ended September 30, 2023 was $13.8 million, a decrease from $15.7 million in the same period in 2022 [94]. - Current assets increased to $45.8 million at September 30, 2023, from $19.9 million at December 31, 2022, primarily due to a $13.1 million increase in cash [98]. Capital Needs and Funding - The Company may need to raise capital until it achieves positive cash flow, which depends on increasing sales volumes and production cost reductions [101]. - In September 2022, the Company entered a Common Stock Purchase Agreement allowing the sale of up to $2 million of common stock over 24 months [101]. - The Company has outstanding warrants to purchase 618,395 shares, potentially generating an additional $6.0 million over the next 4.5 years [101]. - Proceeds from capital raises are expected to fund business operations and new product development [101]. - Management cannot predict when or if positive cash flow will be achieved, and there is no guarantee of profitable operations or timely capital availability [101]. - Obtaining additional funding could result in significant dilution to stockholders [101]. Business Development and Acquisitions - Beam Global completed the acquisition of Amiga on October 20, 2023, expanding its manufacturing capabilities in Europe [80]. - Beam Global's acquisition of All Cell is anticipated to improve gross margins by reducing costs associated with battery vendors [79]. - The company is developing new products, including EV Standard™ and UAV ARC™, which leverage proprietary technology to expand market offerings [82]. - Beam Global's energy security business enhances the value proposition of its charging products by providing emergency power during grid failures [81]. Product Deliveries - The number of EV ARC deliveries increased from 136 in the first nine months of 2022 to 537 in the same period of 2023 [83]. Market Outlook - The company expects continued growth in the electric vehicle market, driving demand for additional EV charging infrastructure [78]. Financial Condition - The Company does not have any off-balance sheet arrangements that materially affect its financial condition [102]. - There are no applicable quantitative and qualitative disclosures about market risk [104].

Revenue Growth - The company's revenues for the first six months of 2023 reached $30.8 million, a 312% increase from $7.5 million in the same period of 2022, primarily driven by federal customer orders for EV ARC™ systems [76]. - Federal customer revenues amounted to $23.4 million in the first half of 2023, compared to $0.9 million in the same period of 2022 [76]. - Revenues for Q2 2023 increased 379% to $17.8 million compared to $3.7 million in Q2 2022, with federal customer revenues rising by $12.7 million [88]. - For the first six months of 2023, revenues increased 312% to $30.8 million compared to $7.5 million in the same period in 2022, with federal customer revenues up by $22.5 million [91]. Profitability and Margins - The gross profit margin improved to 2.8% in Q2 2023, up from 0.03% in Q1 2023 and a loss of 8.8% in Q2 2022 [84]. - Gross profit for Q2 2023 was $0.5 million, or 3% of sales, compared to a gross loss of $0.3 million, or 9% of sales in Q2 2022, reflecting a 12% margin improvement [89]. - Gross profit for the first half of 2023 was $0.5 million, or 2% of sales, compared to a gross loss of $0.6 million, or 8% of sales in the same period of 2022, indicating a 10% margin improvement [92]. Operating Expenses - Total operating expenses for Q2 2023 were $4.0 million, or 23% of revenues, down from $2.5 million, or 67% of revenues in Q2 2022, marking a 44% decrease as a percentage of revenues [90]. - Total operating expenses for the first half of 2023 were $7.9 million, or 26% of revenues, down from $4.5 million, or 60% of revenues in the same period of 2022, showing a 34% improvement [93]. Cash Flow and Liquidity - Cash increased to $23.7 million as of June 30, 2023, up from $1.7 million at December 31, 2022 [94]. - Cash used in operating activities for the first half of 2023 was $5.1 million, an improvement from $7.4 million in the same period of 2022 [95]. - The company has a supply chain line of credit agreement with OCI Group for up to $100 million, aimed at improving liquidity [101]. - The company may need to raise additional capital until it achieves positive cash flow, with potential proceeds of $6.0 million from outstanding warrants [102]. Market Expansion and Acquisitions - Beam Global executed a binding Letter of Intent to acquire Amiga DOO Kraljevo, expected to close in Q4 2023, which will enhance its presence in the European market [81]. - The acquisition of All Cell Technologies is anticipated to improve gross margins by reducing costs associated with battery vendors [79]. - The company has been awarded a $5.3 million contract from the Department of Citywide Administrative Services to deploy units in New York City [77]. - Beam Global's products are eligible for federal grants and tax credits, providing a competitive advantage over traditional EV charging infrastructure [76]. Operational Efficiency - The number of EV ARC deliveries increased from 74 in the first half of 2022 to 354 in the first half of 2023, contributing to improved labor efficiencies [84]. - The company is implementing lean manufacturing processes and engineering changes to further reduce costs and improve gross margins [84]. - The company expects continued growth in the electric vehicle market, which will drive demand for additional EV charging infrastructure [78].