EV Charging Infrastructure - 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 support up to 12 parking spaces[26] - The National Electric Vehicle Infrastructure program (NEVI) requires 600kW of DC fast charging every 50 miles on U.S. highways, highlighting the need for Beam's Solar Tree® product in underserved locations[29] - Beam's EV ARC™ systems are designed to operate during grid outages, providing emergency power and reducing reliance on traditional utility connections[25] - Beam's products are positioned to meet the increasing demand for rapidly deployable EV charging infrastructure that does not rely on the utility grid[26] - The electric vehicle (EV) infrastructure market is projected to reach $222 billion by 2030, representing a 31% compound annual growth rate (CAGR) from 2023 to 2030[43] - California has approved nearly $2.9 billion in funding for 90,000 new EV chargers through its California Energy Commission as of December 2022[43] - The company has sold 234 EV ARCs™ through the California contract, totaling $16.4 million, with 73 units sold in 2022 for $5.2 million[52] - The GSA MAS contract resulted in the sale of 96 EV ARCs™ for a total of $7.9 million in 2022[53] - The U.S. Department of Transportation's new Charging and Fueling Infrastructure Grant Program will provide $2.5 billion over five years for EV charging projects[49] - The company has expanded its market presence to 29 U.S. states, Puerto Rico, and Canada, with products used in over 170 municipalities[43] Financial Performance - In 2022, the company reported a net loss of $19.7 million, compared to a net loss of $6.6 million in 2021, with an accumulated deficit of $77.3 million as of December 31, 2022[71] - The company's backlog as of December 31, 2022, was $59.3 million, significantly up from $4.1 million in 2021, with $58.8 million deliverable within twelve months[67] - 62% of the company's revenue in 2022 was attributable to federal, state, and local governments, down from 87% in 2021[66] - Revenues increased from $9.0 million in 2021 to $22.0 million in 2022, representing a growth of 144% due to the maturation of the electric vehicle ecosystem and increased urgency for charging infrastructure[128] - The company reported total liabilities of $14.523 million as of December 31, 2022, compared to $4.680 million in 2021, an increase of 210%[211] - The company's cash position decreased to $1.681 million in 2022 from $21.949 million in 2021, a decline of 92%[211] - The net loss for the year ended December 31, 2022, was $19,682 thousand, compared to a net loss of $6,596 thousand for 2021, indicating a significant increase in losses[217] Product Development and Innovation - The EV-Standard™ product, currently in development, will utilize existing streetlamp infrastructure to provide Level II EV charging without extensive construction[30] - The patented BeamTrak™ solar tracking technology can generate up to 25% more electricity than fixed arrays, providing a significant competitive advantage[62] - The company has developed five product lines, including the EV ARC™ and Solar Tree®, which are rapidly deployable and powered by renewable energy[125] - The company plans to implement design changes to the EV ARC™ in 2023 to reduce component costs and streamline manufacturing processes[132] - The company expects significant growth in the electric vehicle market, with 61 new electric vehicles launched in 2022, necessitating additional EV charging infrastructure[128] Market and Regulatory Environment - The global lithium-ion battery market is projected to grow from USD 41.1 billion in 2021 to USD 116.6 billion by 2030, with a CAGR of 12.3%[31] - The company is positioned to benefit from government initiatives supporting clean energy and EV charging infrastructure[50] - The federal government currently offers a 30% tax credit for solar power system installations, effective until 2032, which is crucial for maintaining demand[102] - Changes in regulations and policies may present barriers to the purchase and use of solar power products, significantly reducing demand[83] Operational Challenges - The company has a customer concentration risk, with significant revenue derived from a few large customers, including the State of California and the City of New York, which accounted for 16% and 6% of revenues in 2022, respectively[73] - The company is dependent on a limited number of suppliers for battery cells, and increased demand for lithium may lead to supply shortages or price increases, adversely affecting business operations[77] - The company faces intense competition in the solar renewable energy and EV charging industries, with competitors having greater resources and market recognition[78] - The company may face product liability claims, which could result in significant costs and adversely affect sales and reputation[88] - The company is exposed to various claims and hazards, and existing insurance may not fully protect against potential liabilities[94] Strategic Initiatives - The company aims to monetize its EV ARC™ systems through corporate sponsorships, similar to the Citibike program, with potential long-term recurring revenue streams[34] - The company has engaged government relations experts to educate decision-makers on the value of its "Made in America" products[45] - The company intends to make acquisitions to add complementary companies, products, or technologies, which may require significant management attention and could disrupt business operations[76] - The company is working with The Superlative Group to secure corporate sponsorships for its outdoor media advertising business, which can be replicated in other cities[130] Internal Controls and Governance - A material weakness in internal controls over financial reporting has been identified, which could affect the accuracy and timeliness of financial reporting[110] - The Company has not maintained effective internal control over financial reporting as of December 31, 2022, due to pervasive weaknesses identified[178] - The Company has initiated improvements in manual inventory processes and selected an ERP system for implementation scheduled from January to June 2023[181]
BEAM GLEQ.WARRT(BEEMW) - 2022 Q4 - Annual Report