Product Innovation and Development - 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 SolarTree® product is positioned to provide charging solutions in underserved locations, contributing to the National Electric Vehicle Infrastructure program's requirement for 600kW of DC fast charging every 50 miles on US highways[28]. - Beam's EV Standard™ product, currently in development, will utilize 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, making them unique in the EV charging industry[29]. - The company is developing new products, including EV Standard™ and UAV ARC™, to expand its market offerings[143]. Market Growth and Trends - The global lithium-ion battery market is projected to grow from $41.1 billion in 2021 to $116.6 billion by 2030, with a CAGR of 12.3%[29]. - The EV infrastructure market is projected to reach $224.8 billion by 2032, with a compound annual growth rate (CAGR) of 27.5% from 2024 to 2032[42]. - The electric vehicle market is expected to grow rapidly, with increasing urgency for EV charging infrastructure deployment as consumer adoption accelerates[41]. Financial Performance - Revenues increased from $22.0 million in 2022 to $67.4 million in 2023, driven by a 569% increase in federal customer sales[140]. - Revenues for the year ended December 31, 2023, increased 206% to $67.4 million compared to $22.0 million for 2022, with 64% of product sales to Federal customers[150]. - The company reported a positive gross profit of $1.2 million for 2023, compared to a gross loss of $1.7 million in 2022[144]. - Net loss for the year ended December 31, 2023, was $16,060,000, a reduction from a net loss of $19,682,000 in 2022, reflecting an 18% improvement[212]. - Total assets as of December 31, 2023, were $77,643,000, up from $37,730,000 in 2022, representing a 106% increase[210]. Customer and Revenue Concentration - 80% of the company's revenue in 2023 came from federal, state, and local governments, compared to 63% in 2022, highlighting increased reliance on government contracts[65]. - Beam's EV ARC™ systems have been sold to 41 states, three international countries, Puerto Rico, and the U.S. Virgin Islands, with the U.S. Army being the largest customer in 2023[37]. - In 2023, Beam's major customer contracts with the State of California and the General Services Administration accounted for 77% and 60% of revenues, respectively[50]. - The company faces risks related to customer concentration, with significant revenue derived from a few large customers, including the U.S. Army and the Department of Veterans Affairs, which accounted for 38% and 16% of revenues in 2023, respectively[72]. Acquisitions and Strategic Growth - The company acquired Amiga on October 20, 2023, enhancing its manufacturing capabilities in Europe for current and new products[32]. - Beam completed the acquisition of Amiga DOO Kraljevo, which represents 5.0% of the Company's 2023 revenues and 2.3% of its net loss[162][171]. - The acquisition of Amiga may take longer to realize anticipated benefits, potentially affecting the company's business and financial condition[78]. - Beam expects to generate an increasing portion of its revenue internationally following the acquisition of Amiga, which introduces additional risks[82]. Operational Efficiency and Cost Management - The company anticipates that as unit sales increase, fixed overhead costs will be spread over more units, potentially reducing the cost per unit[64]. - Total operating expenses decreased to $17.5 million in 2023 from $18.0 million in 2022, benefiting from a significant reduction in contingent consideration expenses[152]. - Cash used in operating activities was $13.3 million in 2023, a decrease from $18.1 million in 2022, reflecting better operational efficiency[154]. Risks and Challenges - The company faces intense competition in the solar renewable energy and EV charging industries, with competitors having greater resources[85]. - Tariffs imposed on solar products could significantly increase costs and restrict supply, adversely affecting revenues and margins[89]. - Existing regulations and potential changes may present barriers to the purchase and use of solar power products, reducing demand[90]. - The company may incur significant costs and liabilities from product liability claims, which could damage its reputation and sales[94]. - The rapid technological change in the EV industry necessitates that the company keeps up with advancements to maintain its competitive position[95]. Internal Controls and Compliance - A material weakness in internal controls over financial reporting has been identified, which could impact the accuracy and timeliness of financial reporting[115]. - The company has implemented a new accounting system in Q4 2023 to automate inventory tracking, aiming to alleviate previously identified material weaknesses[116]. - The company plans to improve internal controls by assigning access to ensure proper segregation of duties and adequate employee training[173]. Cash Flow and Liquidity - Cash at December 31, 2023, was $10.4 million, up from $1.7 million at December 31, 2022, indicating improved liquidity[153]. - The company may need to raise capital to fund operations until achieving positive cash flow, with the right to sell up to $30.0 million in common stock over 24 months[160]. - The Company entered into a Supply Chain Line of Credit with OCI Limited for up to $100 million based on approved accounts receivable[161].
BEAM GLEQ.WARRT(BEEMW) - 2023 Q4 - Annual Report