Product and Technology - 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 products are designed to operate during grid outages, providing emergency power and EV charging capabilities, addressing the increasing demand for energy security [30]. - Beam's SolarTree® product is positioned to meet the National Electric Vehicle Infrastructure program's requirement of at least 600kW of DC fast charging every 50 miles on US highways [28]. - The EV Standard™ product is in development, utilizing 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 [29]. - The patented BeamTrak™ solar tracking technology allows the company’s products to generate up to 25% more electricity compared to fixed arrays, providing a competitive edge [58]. - The company’s products are environmentally sound, providing 100% emissions-free electricity, while grid-tied chargers rely on fossil fuel-generated electricity for over 60% of their supply [58]. - The company’s products are designed to be rapidly deployable, with deployment times of less than one hour, contrasting with grid-tied solutions that can take six months to two years [58]. Market and Growth - The global lithium-ion battery market is projected to grow from 116.6 billion by 2030, with a CAGR of 12.3% [29]. - The electric vehicle infrastructure market is projected to reach 22.0 million in 2022 to 67.4 million for the year ended December 31, 2023, compared to 1.2 million, a significant improvement from a gross loss of 16,060,000, an improvement from a net loss of 10.4 million from 13.3 million in 2023 from 28,101,000 in 2023, up from 3.4 million in revenue for the period from October 20, 2023, to December 31, 2023 [138]. - The Company completed the acquisition of Amiga DOO Kraljevo on October 20, 2023, which is expected to enhance its manufacturing capabilities in the European market [161]. - The integration of Amiga with the company's operations may be complex, costly, and time-consuming, potentially disrupting business and affecting financial results [75]. Government Contracts and Support - Beam's major customer contracts accounted for 77% and 60% of revenues in 2023 and 2022, respectively, with significant sales to the State of California and the General Services Administration [48]. - The California Contract has facilitated the sale of 284 EV ARCs™ totaling 3.9 million sold in 2023 [49]. - In 2023, Beam sold 621 EV ARCs™ for 7.9 million in 2022 [50]. - The California Energy Commission approved a 7.5 billion for the deployment of 500,000 EV charging stations, with Beam positioned to benefit from these initiatives [47]. Risks and Challenges - The company faces intense competition in the solar renewable energy and EV charging industries, with competitors having greater resources and market recognition [83]. - Existing regulations and potential changes may present barriers to the purchase and use of solar power products, significantly reducing demand [87]. - The company may incur significant costs and liabilities from product liability claims if its products cause injury or property damage [91]. - The company is subject to foreign currency exchange rate risks, particularly with the Euro and Serbian Dinar, which could impact financial results and cash flows [82]. - The company must keep up with rapid technological changes in the EV industry to maintain its competitive position, as failure to do so could adversely affect business and financial performance [92]. Internal Controls and Governance - The company has identified a material weakness in internal controls over financial reporting, which could adversely affect stock price and capital raising efforts [112]. - Management identified a material weakness in internal controls over financial reporting, particularly in inventory tracking and manual processes [171]. - The company implemented a new accounting system in Q4 2023 to automate inventory and purchasing functions, aiming to alleviate material weaknesses [113]. - The company implemented a NetSuite ERP system in Q4 2023 to automate operations and improve inventory management and accounting processes [173]. Future Outlook - The company anticipates that as unit sales increase, fixed overhead costs will be spread over more units, potentially reducing the cost per unit [62]. - The company expects to benefit from a price increase on EV ARC products initiated in 2023, with anticipated positive impacts on 2024 gross profit margins [150]. - The company plans to make acquisitions to add complementary companies, products, or technologies, including recent acquisitions of All Cell and Amiga, which may require significant management attention and resources [74].
Beam (BEEM) - 2023 Q4 - Annual Report