Revenue Performance - Revenues for the first six months of 2025 were $13.4 million, a 54% decrease from $29.4 million in the same period of 2024, attributed to uncertainty in the U.S. government's zero emission vehicle strategy [113]. - Revenues for the three months ended June 30, 2025, decreased 52% to $7.1 million compared to $14.8 million for the same period in 2024 [128]. - Revenues from non-government commercial entities increased by 15% from 2024 to 2025, representing 60% of total revenues in 2025 [113]. - Federal, state, and local government sales represented 40% of revenues for the first six months of 2025, down from 76% in the same period of 2024 [113]. - Revenues increased by 144% from 2021 to 2022 and 206% from 2022 to 2023, although there was a 27% decrease from 2023 to 2024 [142]. International Expansion - International customers accounted for 37% of total revenue as of June 30, 2025, up from 15% in the same period of 2024 [113]. - Beam entered into a joint venture with the Platinum Group to expand its operations in the Middle East, targeting a region projected to invest over $1 trillion in renewable energy by 2030 [125]. - The acquisition of Amiga expanded Beam's presence into the European, Middle Eastern, and African markets, enhancing production and sales capabilities [119]. Cost and Profitability - Gross margin improved to 20.3% for the three months ended June 30, 2025, up 4.4 percentage points from the same period in 2024 [126]. - The company reported a gross profit of $1.4 million for the three months ended June 30, 2025, compared to $2.4 million in 2024 [129]. - Total operating expenses for the six months ended June 30, 2025, were $21.9 million, compared to $11.7 million for the same period in 2024 [133]. - The company expects gross profit margins to improve due to price increases implemented in late 2023 and ongoing cost reductions, particularly in materials like steel and battery cells [142]. - The company expects to see costs of goods sold continue to decrease over time due to lean manufacturing process improvements [126]. Cash Flow and Financing - Cash used in operating activities for the six months ended June 30, 2025, was $2.1 million compared to $0.1 million for the same period in 2024 [137]. - Cash used in investing activities decreased from $3.0 million in the six months ended June 30, 2024, to $0.8 million in the same period of 2025, primarily related to equipment purchases [139]. - Cash provided by financing activities increased to $2.2 million in the six months ended June 30, 2025, compared to $1.4 million in the prior year, due to proceeds from the At Market Issuance Sales Agreement [140]. - The Company has entered into a Supply Chain Line of Credit with OCI Limited for up to $100 million, which is contingent on approved accounts receivable [144]. - The Company has not drawn on the supply chain line of credit to date, indicating a cautious approach to financing [144]. Strategic Initiatives - The company has initiated a program of resellers and agents to expand its geographic footprint without significantly increasing operating costs [114]. - Management anticipates that strategic steps, including adding sales personnel and reducing direct costs, will enable profitable growth in the future [146]. - The acquisition of Telcom is expected to improve current and future products while reducing costs and improving margins [120]. Compliance and Infrastructure - Beam's EV charging infrastructure products are powered by renewable energy and are designed for rapid deployment without the need for construction [103]. - Beam's products are compliant with the Build America, Buy America Act, ensuring domestic production requirements are met [117]. - The company deployed its first sponsorship-funded network of EV ARC™ systems at Belgrade International Airport, retaining ownership and receiving recurring payments from Globos Osiguranje [121]. Financial Condition - Current assets decreased to $22.4 million at June 30, 2025, from $27.1 million at December 31, 2024, with a working capital reduction from $13.8 million to $9.8 million [141]. - The company recorded a $10.8 million goodwill impairment during the six months ended June 30, 2025 [133]. - There are no off-balance sheet arrangements that materially affect the Company's financial condition [147].
BEAM GLEQ.WARRT(BEEMW) - 2025 Q2 - Quarterly Report