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].
BEAM GLEQ.WARRT(BEEMW) - 2023 Q2 - Quarterly Report