Financial Performance - For Q3 2025, the company's revenues were $5.8 million, a decrease of 50% compared to $11.5 million in Q3 2024, primarily due to unfavorable order timing[6] - The net loss for Q3 2025 was $4.9 million, compared to a net profit of $1.3 million in Q3 2024, with an adjusted net loss of $2.8 million excluding non-cash items[14] - For the nine months ended September 30, 2025, revenues decreased 53% to $19.2 million compared to $40.9 million in the same period in 2024[8] - Total revenue for Q3 2025 was $5,788,000, a decrease of 49.5% compared to $11,482,000 in Q3 2024[29] - Net loss for Q3 2025 was $4,870,000, compared to a net income of $1,297,000 in Q3 2024[29] Gross Margin and Operating Expenses - The company achieved a gross margin of -1% for Q3 2025, compared to 11% in Q3 2024, resulting in a gross loss of $28 thousand[9] - Operating expenses for Q3 2025 were $4.8 million, compared to a credit of $50 thousand in Q3 2024, with adjusted operating expenses excluding non-cash items at $3.6 million, a 30% improvement year-over-year[12] - Gross loss for Q3 2025 was $28,000, compared to a gross income of $1,231,000 in Q3 2024[29] - Operating expenses for Q3 2025 were $4,844,000, significantly higher than the negative operating expenses of $51,000 in Q3 2024[29] - Non-GAAP gross margin for Q3 2025 was 13%, down from 18% in Q3 2024[32] Assets and Liabilities - Total assets as of September 30, 2025, were $44,601,000, down from $61,459,000 as of December 31, 2024[27] - Total liabilities as of September 30, 2025, were $18,080,000, a decrease from $20,171,000 as of December 31, 2024[27] - Stockholders' equity decreased to $26,521,000 as of September 30, 2025, from $41,288,000 as of December 31, 2024[27] Future Outlook and Strategic Initiatives - The company expects future revenue growth and improved fixed overhead absorption as it continues to recognize synergies from acquisitions[11] - The company opened offices in the Middle East and entered the MEA market through a joint venture, deploying products in Abu Dhabi and Jordan[7] - The company has a contracted backlog of $8 million and remains debt-free with a $100 million unused line of credit[7] - The gross margin for the nine months ended September 30, 2025, was 10%, compared to 12% for the same period in 2024, with an adjusted gross margin of 22% excluding non-cash items[10] - The company reported an impairment of goodwill of $10,780,000 for the nine months ended September 30, 2025[29]

Revenue Performance - Revenues for the first nine months of 2025 were $19.2 million, a 53% decrease from $40.9 million in the same period of 2024[116] - For the three months ended September 30, 2025, revenues decreased 50% to $5.8 million compared to $11.5 million in 2024, with non-government commercial entities representing 82% of total revenues[134] - For the nine months ended September 30, 2025, revenues decreased 53% to $19.2 million compared to $40.9 million in the same period in 2024, with international customers comprising 39% of revenues[137] - Revenues increased by 144% from 2021 to 2022 and 206% from 2022 to 2023, despite a 27% decrease from 2023 to 2024[149] Customer Segmentation - International customers accounted for 39% of total revenue as of September 30, 2025, up from 20% in the same period of 2024[116] - Sales to federal, state, and local governments represented 34% of revenues in 2025, down from 70% in 2024[116] - The company recorded $1.1 million in revenues from federal customers for the nine months ended September 30, 2025, compared to $14.9 million in the same period of 2024[120] Product Development and Expansion - The company expanded its product portfolio in the second half of 2024 with new charging infrastructure for electric bicycles, scooters, and motorcycles[114] - The acquisition of All-Cell enables the company to create bespoke engineered battery solutions, enhancing product offerings[122] - The company introduced the BeamWell™ self-sufficient water treatment system, powered by 100% renewable energy, for disaster preparedness[114] - Beam Global acquired Amiga (now Beam Europe), expanding its presence into the European, Middle Eastern, and African markets, focusing on EV charging infrastructure due to the EU's mandate for zero-emission vehicles by 2035[123] - Beam acquired Telcom d.o.o. Beograd, enhancing its capabilities in power electronics and telecommunications, which is expected to improve product offerings and reduce costs[124] Financial Performance - The gross profit for the three months ended September 30, 2025, was a loss of $28 thousand, resulting in a -0.5% gross margin, compared to a gross profit of $1.2 million and a 10.7% gross margin in 2024[135] - The gross profit for the nine months ended September 30, 2025, was $1.9 million, or 9.9% of sales, down from $5.1 million, or 12.4% of sales in the same period in 2024[138] - Total operating expenses for the nine months ended September 30, 2025, were $26.8 million, compared to $11.6 million for the same period in the prior year, including a $10.8 million goodwill impairment[139] - Net loss for the nine months ended September 30, 2025, was $24.7 million, which included $17.0 million of non-cash expenses[144] Cash Flow and Assets - Cash decreased to $3.3 million as of September 30, 2025, down from $4.6 million at December 31, 2024[143] - Net cash used in operating activities was $6.7 million for the nine months ended September 30, 2025, compared to $3.1 million for the same period in 2024[144] - Cash used in investing activities was $0.4 million for the nine months ended September 30, 2025, compared to $3.7 million in the prior year[146] - Cash provided by financing activities was $6.6 million for the nine months ended September 30, 2025, up from $1.2 million in 2024[147] - Current assets decreased to $21.9 million at September 30, 2025, from $27.1 million at December 31, 2024[148] - Working capital decreased to $10.9 million at September 30, 2025, compared to $13.8 million at December 31, 2024[148] Market Outlook - The company expects significant growth in the electric vehicle market over the next decade, increasing demand for EV charging infrastructure[121] - The company expects to see costs of goods sold decrease over time due to lean manufacturing improvements and cost-effective production in Serbian facilities[131] - Beam Europe is expected to enhance production capabilities and reduce costs, allowing for more competitive pricing in the EV charging infrastructure market[131] - Beam Global's joint venture with the Platinum Group in Abu Dhabi aims to capture growth in a region projected to invest over $1 trillion in renewable energy by 2030[130] Financing Activities - The Company entered into a Supply Chain Line of Credit with OCI Limited for up to $100 million, but has not drawn on this line of credit to date[152] - The At Market Issuance Sales Agreement generated net proceeds of $6.7 million during the nine months ended September 30, 2025[153]

Financial Performance - Revenues for Q2 2025 were $7.1 million, a 12% increase from Q1 2025, with 60% of revenues derived from commercial customers[6] - Positive GAAP Gross Margin of 20% for Q2 2025, a 4-percentage point increase compared to Q2 2024, and an adjusted non-GAAP Gross Margin of 30%, a 12-percentage point increase from Q2 2024[7] - Net loss for Q2 2025 was $4.3 million, a reduction of $0.6 million or 12% compared to a net loss of $4.9 million in Q2 2024[10] - GAAP Total Revenue for Q2 2025 was $7,075 million, a decrease from $14,812 million in Q2 2024[23] - Non-GAAP Gross Profit for Q2 2025 was $2,090 million, compared to $2,664 million in Q2 2024, resulting in a Non-GAAP Gross Margin of 30%[23] - GAAP Net Loss for the first half of 2025 was $19,801 million, an increase from a loss of $7,953 million in the same period of 2024[23] - Non-GAAP Net Loss for the first half of 2025 was $4,188 million, compared to $3,878 million in the first half of 2024[23] Operating Expenses - Operating expenses reduced by $1.2 million, or 17%, in Q2 2025 compared to Q2 2024, totaling $5.9 million[9] - Non-GAAP Total Operating Expenses for Q2 2025 were $3,705 million, down from $4,311 million in Q2 2024[23] - GAAP Total Operating Expenses for the first half of 2025 were $21,946 million, significantly higher than $11,674 million in the first half of 2024[23] Cash and Financial Position - Cash increased to $3.4 million as of June 30, 2025, up from $2.5 million at March 31, 2025[11] - Backlog of $7 million as of June 30, 2025[7] International Operations and Contracts - Expanded international operations, with 37% of revenues coming from international customers for the six months ending June 30, 2025, compared to 15% in the same period in 2024[6] - Secured contracts totaling $2.5 million in sales for energy storage systems, expected to be recognized as revenue by the end of 2025[7] Joint Ventures and Initiatives - Formed Beam Middle East LLC, a joint venture to sell and manufacture products across the Middle East and Africa[7] - Implemented a 530 kW solar installation at Beam Europe to enhance energy efficiency and reduce costs[7] Adjustments and Impairments - The company reported Non-GAAP Total Adjustments of $2,196 million for Q2 2025, compared to $2,836 million in Q2 2024[23] - The company recorded an impairment of goodwill of $10,780 million in the first half of 2025, compared to $1,532 million in the same period of 2024[23] - The company experienced a Non-GAAP Gross Margin increase from 15% in the first half of 2024 to 25% in the first half of 2025[23]

Revenue Performance - Revenues for the first six months of 2025 were $13.4 million, a 54% decrease from $29.4 million in the same period of 2024, attributed to uncertainty in the U.S. government's zero emission vehicle strategy [113]. - Revenues for the three months ended June 30, 2025, decreased 52% to $7.1 million compared to $14.8 million for the same period in 2024 [128]. - Revenues from non-government commercial entities increased by 15% from 2024 to 2025, representing 60% of total revenues in 2025 [113]. - Federal, state, and local government sales represented 40% of revenues for the first six months of 2025, down from 76% in the same period of 2024 [113]. - Revenues increased by 144% from 2021 to 2022 and 206% from 2022 to 2023, although there was a 27% decrease from 2023 to 2024 [142]. International Expansion - International customers accounted for 37% of total revenue as of June 30, 2025, up from 15% in the same period of 2024 [113]. - Beam entered into a joint venture with the Platinum Group to expand its operations in the Middle East, targeting a region projected to invest over $1 trillion in renewable energy by 2030 [125]. - The acquisition of Amiga expanded Beam's presence into the European, Middle Eastern, and African markets, enhancing production and sales capabilities [119]. Cost and Profitability - Gross margin improved to 20.3% for the three months ended June 30, 2025, up 4.4 percentage points from the same period in 2024 [126]. - The company reported a gross profit of $1.4 million for the three months ended June 30, 2025, compared to $2.4 million in 2024 [129]. - Total operating expenses for the six months ended June 30, 2025, were $21.9 million, compared to $11.7 million for the same period in 2024 [133]. - The company expects gross profit margins to improve due to price increases implemented in late 2023 and ongoing cost reductions, particularly in materials like steel and battery cells [142]. - The company expects to see costs of goods sold continue to decrease over time due to lean manufacturing process improvements [126]. Cash Flow and Financing - Cash used in operating activities for the six months ended June 30, 2025, was $2.1 million compared to $0.1 million for the same period in 2024 [137]. - Cash used in investing activities decreased from $3.0 million in the six months ended June 30, 2024, to $0.8 million in the same period of 2025, primarily related to equipment purchases [139]. - Cash provided by financing activities increased to $2.2 million in the six months ended June 30, 2025, compared to $1.4 million in the prior year, due to proceeds from the At Market Issuance Sales Agreement [140]. - The Company has entered into a Supply Chain Line of Credit with OCI Limited for up to $100 million, which is contingent on approved accounts receivable [144]. - The Company has not drawn on the supply chain line of credit to date, indicating a cautious approach to financing [144]. Strategic Initiatives - The company has initiated a program of resellers and agents to expand its geographic footprint without significantly increasing operating costs [114]. - Management anticipates that strategic steps, including adding sales personnel and reducing direct costs, will enable profitable growth in the future [146]. - The acquisition of Telcom is expected to improve current and future products while reducing costs and improving margins [120]. Compliance and Infrastructure - Beam's EV charging infrastructure products are powered by renewable energy and are designed for rapid deployment without the need for construction [103]. - Beam's products are compliant with the Build America, Buy America Act, ensuring domestic production requirements are met [117]. - The company deployed its first sponsorship-funded network of EV ARC™ systems at Belgrade International Airport, retaining ownership and receiving recurring payments from Globos Osiguranje [121]. Financial Condition - Current assets decreased to $22.4 million at June 30, 2025, from $27.1 million at December 31, 2024, with a working capital reduction from $13.8 million to $9.8 million [141]. - The company recorded a $10.8 million goodwill impairment during the six months ended June 30, 2025 [133]. - There are no off-balance sheet arrangements that materially affect the Company's financial condition [147].

Revenue 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 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] - The company recorded $3.0 million in revenues from federal customers in the first three months of 2025, compared to $12.2 million in the same period of 2024[105] - 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] Market Expansion and Product Development - 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 initiated a program of resellers and agents across multiple regions to expand its market reach without significantly increasing operating costs[104] - Beam is developing new patented products, including BeamSpot™ and UAV ARC™, to expand its market offerings and leverage proprietary technology[113] Financial Performance and Expenses - 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 surged 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 for Q1 2025[120][121] - Current assets decreased to $23.6 million at March 31, 2025, from $27.1 million at December 31, 2024, leading to a working capital decrease to $10.8 million[125] Strategic Initiatives and Future Outlook - The company believes that compliance with the Build America, Buy America Act and obtaining CE mark certification will enhance credibility and increase demand for its products[106] - The company expects to see improvements in gross profit margins due to price increases and cost reductions from design changes, with a focus on increasing sales volumes[126] - Management anticipates profitable growth through the addition of sales personnel, cost reductions, and increased public awareness of the Company and its products[130] - Management believes that successful execution of its strategic plan may generate sufficient revenue to continue operations, though no assurance can be provided[130] Capital 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[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 has not drawn on the $100 million line of credit to date[128] - The Company has agreed to indemnify OCI for any losses incurred in connection with the Credit Facility[128] Internal Controls and Compliance - The Company has identified material weaknesses in internal controls, including ineffective IT General Controls and inadequate inventory tracking[134] - Remediation efforts are ongoing to address identified weaknesses, including improving segregation of duties and enhancing training for employees[138] - The Company is working to strengthen internal controls over financial reporting and has taken various actions to improve processes[136] - The Company did not complete a Sarbanes-Oxley (SOX) Section 404A assessment, indicating a gap in compliance[134]

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]