EV Charging Infrastructure - Beam's EV charging infrastructure products are powered by renewable energy and provide services in locations where grid connection is expensive or impossible[18]. - 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 be set up in less than an hour[30]. - Beam's products are designed to operate during grid outages, providing emergency power and EV charging without relying on the utility grid[32]. - Beam's SolarTree® products are designed for larger scale solar-powered EV charging applications and can be deployed in remote locations without grid connectivity[33]. - Beam Global's products provide a hedge against grid failures, with a focus on ensuring 25% of EV charging infrastructure is independent of the centralized grid[37]. - The company introduced BeamBike™, a charging infrastructure product for electric bicycles, capable of charging 12 bikes simultaneously without utility grid connection[54]. - BeamPatrol™ can charge 4 electric motorcycles simultaneously and targets law enforcement agencies, creating significant sales opportunities[55]. - BeamSpot™ provides street lighting and curbside EV charging without extensive construction, ideal for municipalities and large parking areas[56]. - BeamWell™ is designed for rapid deployment in disaster areas, providing essential services like electricity and clean water within an hour[57]. - The electric vehicle infrastructure market is projected to reach $224.8 billion by 2032, with a CAGR of 27.5% from 2024 to 2032[64]. Product Development and Acquisitions - The company expanded its product portfolio in the second half of 2024 to include charging infrastructure for electric bicycles, scooters, and motorcycles, as well as a desalination capability for disaster preparedness[25]. - The company acquired Amiga DOO Kraljevo in October 2023, enhancing its manufacturing capabilities in Europe and expanding its market reach[38]. - Beam Global's acquisition of Telcom d.o.o. Beograd in August 2024 strengthens its power electronics and telecommunications equipment manufacturing capabilities[39]. - The acquisition of Amiga in 2023 positions the company as one of the largest streetlight manufacturers in Europe, enhancing its product portfolio[59]. - Beam acquired Amiga DOO Kraljevo and Telcom d.o.o. Beograd to enhance manufacturing capabilities in Europe, which is the largest market for electric vehicles[175][176]. Financial Performance - The company reported net losses of $11.3 million for the fiscal year ended December 31, 2024, compared to $16.1 million for the previous year[100]. - Beam's revenue for the year ending December 31, 2024, was $49.3 million, a decrease from $67.4 million in 2023, but a 124% increase from $22.0 million in 2022[179]. - The gross profit for 2024 was $7.3 million, compared to $1.2 million in 2023, with a gross margin of 14.8%, up thirteen percentage points from the previous year[186]. - In 2024, 62% of the company's revenue was attributable to federal, state, and local governments, down from 80% in 2023[95]. - Total operating expenses increased to $19.0 million in 2024 from $17.5 million in 2023, with a $3.8 million increase attributed to the full year of operations of Serbian acquisitions[194]. - Cash used in operating activities was $2.2 million for the year ended December 31, 2024, a significant decrease from $13.3 million in 2023[197]. - Current assets decreased to $27.1 million at December 31, 2024, from $40.7 million at December 31, 2023, primarily due to a $7.9 million decrease in accounts receivable[201]. Market Strategy and Growth - The company is focused on creating high-quality, rapidly deployable products that meet the growing demand for EV charging and Smart Cities infrastructure[23]. - Beam Global's growth strategy includes geographic expansion into Europe, the Middle East, and Africa, with sales already initiated in multiple countries[50]. - The company aims to diversify its customer segments and expand its product portfolio, moving beyond the EV ARC to include new energy security products[52]. - The company expects to generate an increasing portion of its revenue internationally, which introduces various risks related to foreign operations[111]. - The company is actively seeking acquisitions to enhance its technology and reduce costs, focusing on strategic fits that benefit shareholders[63]. Risks and Challenges - Intense competition exists in the EV charging industry, with competitors having greater resources, which may affect market share and business results[114]. - The company is exposed to risks from tariffs and international trade policies, which could increase costs and disrupt supply chains[117][121]. - The company faces potential demand reduction for solar power products due to existing and changing regulations, which may create economic barriers[122]. - The company’s solar products may experience power supply exhaustion on high demand days, affecting EV charging capabilities[123]. - Developments in alternative technologies could adversely impact demand for the company's offerings, risking product obsolescence and loss of market share[124]. - The company is exposed to product liability claims, which could result in significant costs and damage to reputation if successful[126]. - The company must keep pace with rapid EV technology changes to maintain competitive positioning, as it does not manufacture EV service equipment[127]. Internal Controls and Compliance - A material weakness in internal controls over financial reporting has been identified, potentially impacting the accuracy and timeliness of financial reporting[152]. - The company implemented a new accounting and perpetual inventory system in Q4 2023 to automate processes and address the identified material weakness[153]. - As of December 31, 2024, the company's disclosure controls and procedures were not effective due to material weaknesses in internal controls[211]. - The company is currently implementing an action plan to strengthen internal controls and procedures to address identified material weaknesses[216]. Customer Base and Revenue Concentration - Revenue is concentrated among a few large customers, with the U.S. Army and the Department of Homeland Security contributing 15% and 7% of revenues, respectively, in 2024[102]. - Major contracts with the State of California and GSA accounted for 58% and 77% of revenues in 2024 and 2023, respectively[72]. - The company has secured a sponsorship agreement with Globos Osiguranje for five EV ARC™ solar-powered charging stations at Belgrade Nikola Tesla Airport, promoting free EV charging[40]. - In 2024, over 30% of sales were from non-government customers, indicating a strategic shift towards corporate clients[62]. Regulatory Environment - The company’s growth is highly dependent on the adoption of electric vehicles (EVs), which may be influenced by factors such as consumer perceptions and charging infrastructure availability[103][104]. - The EU has mandated a transition to zero-emission vehicles by 2035, increasing the demand for EV charging infrastructure[182]. - The availability of financial incentives, such as tax credits, is crucial for demand; any reduction or uncertainty could significantly impact sales[143]. - Compliance with environmental laws may increase costs for customers, potentially deterring purchases of certain products[144].
BEAM GLEQ.WARRT(BEEMW) - 2024 Q4 - Annual Report