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].
BEAM GLEQ.WARRT(BEEMW) - 2023 Q3 - Quarterly Report