Revenue Performance - Revenues for the first three months of 2025 were $6.3 million, a 57% decrease from $14.6 million in the same period of 2024[103] - Revenues from non-government commercial entities increased by 41% from 2024 to 2025, representing 53% of total revenues in 2025[103] - Sales to federal, state, and local governments represented 47% of revenues in the first three months of 2025, down from 84% in the same period of 2024[103] - The company recorded $3.0 million in revenues from federal customers in the first three months of 2025, compared to $12.2 million in the same period of 2024[105] - Revenues for the three months ended March 31, 2025, decreased by 57% to $6.3 million compared to $14.6 million in 2024, with 14% of product sales to Federal customers and 33% to State and Local governments[117] Market Expansion and Product Development - The acquisition of Amiga expanded the company's presence into European, Middle Eastern, and African markets, enhancing production and sales capabilities[108] - The company introduced new products, including rapidly deployed charging infrastructure for electric bicycles, scooters, and motorcycles, as well as a self-sufficient water treatment system[100] - The company expects significant growth in the electric vehicle market, which will increase demand for EV charging infrastructure[106] - The company has initiated a program of resellers and agents across multiple regions to expand its market reach without significantly increasing operating costs[104] - Beam is developing new patented products, including BeamSpot™ and UAV ARC™, to expand its market offerings and leverage proprietary technology[113] Financial Performance and Expenses - Gross profit for the same period was $0.5 million, representing a gross margin of 7.9%, down from $1.5 million and 10.2% in 2024; 88.4% of ARC sales reflected a price increase implemented in 2023[115][118] - Total operating expenses surged to $16.0 million in Q1 2025, including a $10.8 million goodwill impairment, compared to $4.5 million in 2024[119] - Cash used in operating activities was $1.8 million for Q1 2025, a decrease from $3.0 million in Q1 2024, with a net loss of $15.5 million for Q1 2025[120][121] - Current assets decreased to $23.6 million at March 31, 2025, from $27.1 million at December 31, 2024, leading to a working capital decrease to $10.8 million[125] Strategic Initiatives and Future Outlook - The company believes that compliance with the Build America, Buy America Act and obtaining CE mark certification will enhance credibility and increase demand for its products[106] - The company expects to see improvements in gross profit margins due to price increases and cost reductions from design changes, with a focus on increasing sales volumes[126] - Management anticipates profitable growth through the addition of sales personnel, cost reductions, and increased public awareness of the Company and its products[130] - Management believes that successful execution of its strategic plan may generate sufficient revenue to continue operations, though no assurance can be provided[130] Capital and Financing - The Company has entered into a Supply Chain Line of Credit with OCI Limited for up to $100 million based on approved accounts receivable[128] - The Company has the right to sell up to $8 million in shares of its common stock under an At Market Issuance Sales Agreement with B. Riley Securities, Inc.[129] - The Company has not drawn on the $100 million line of credit to date[128] - The Company has agreed to indemnify OCI for any losses incurred in connection with the Credit Facility[128] Internal Controls and Compliance - The Company has identified material weaknesses in internal controls, including ineffective IT General Controls and inadequate inventory tracking[134] - Remediation efforts are ongoing to address identified weaknesses, including improving segregation of duties and enhancing training for employees[138] - The Company is working to strengthen internal controls over financial reporting and has taken various actions to improve processes[136] - The Company did not complete a Sarbanes-Oxley (SOX) Section 404A assessment, indicating a gap in compliance[134]
BEAM GLEQ.WARRT(BEEMW) - 2025 Q1 - Quarterly Report