Beam (US:BEEM)2025-11-14 21:33Revenue Performance - Revenues for the first nine months of 2025 were $19.2 million, a 53% decrease from $40.9 million in the same period of 2024[116] - For the three months ended September 30, 2025, revenues decreased 50% to $5.8 million compared to $11.5 million in 2024, with non-government commercial entities representing 82% of total revenues[134] - For the nine months ended September 30, 2025, revenues decreased 53% to $19.2 million compared to $40.9 million in 2024, with international customers comprising 39% of revenues[137] Customer Segmentation - International customers accounted for 39% of total revenue as of September 30, 2025, up from 20% in the same period of 2024[116] - Sales to federal, state, and local governments represented 34% of revenues in 2025, down from 70% in 2024[116] - The company recorded $1.1 million in revenues from federal customers for the nine months ended September 30, 2025, compared to $14.9 million in 2024[120] - Revenues derived from non-government commercial entities increased by 2% from 2024 to 2025, accounting for 67% of total revenues in 2025[116] 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[114] - The acquisition of All-Cell enables the company to create bespoke engineered battery solutions, enhancing its product offerings[122] - The Company acquired Amiga (now Beam Europe), expanding its presence into the European, Middle Eastern, and African markets, focusing on EV charging infrastructure due to the EU's mandate for zero-emission vehicles by 2035[123] - Beam acquired Telcom d.o.o. Beograd, enhancing its capabilities in power electronics and telecommunications, which is expected to improve product offerings and reduce costs[124] Financial Performance - The Company reported a gross loss of $28 thousand, a -0.5% gross margin for the three months ended September 30, 2025, compared to a gross profit of $1.2 million, a 10.7% gross margin in 2024[135] - Gross profit for the nine months ended September 30, 2025, was $1.9 million, or 9.9% of sales, compared to $5.1 million, or 12.4% of sales in the same period in 2024[138] - Total operating expenses for the three months ended September 30, 2025, were $4.8 million, compared to a credit of $50 thousand in 2024, primarily due to a non-cash change in fair value of contingent consideration[136] - Total operating expenses for the nine months ended September 30, 2025, were $26.8 million, including a $10.8 million goodwill impairment and $7.7 million increase due to European acquisitions[139] Cash Flow and Liquidity - Cash decreased to $3.3 million as of September 30, 2025, down from $4.6 million at December 31, 2024[143] - Net cash used in operating activities was $6.7 million for the nine months ended September 30, 2025, compared to $3.1 million for the same period in 2024[144] - Cash used in investing activities was $0.4 million for the nine months ended September 30, 2025, significantly lower than $3.7 million in the same period in 2024[146] - Cash provided by financing activities was $6.6 million for the nine months ended September 30, 2025, compared to $1.2 million for the same period in 2024[147] - Current assets decreased to $21.9 million at September 30, 2025, from $27.1 million at December 31, 2024[148] - Working capital decreased to $10.9 million at September 30, 2025, compared to $13.8 million at December 31, 2024[148] Future Outlook - The company expects significant growth in the electric vehicle market globally over the next decade, increasing demand for EV charging infrastructure[121] - The Company expects to see costs of goods sold continue to decrease over time due to lean manufacturing improvements and engineering changes[131] - Beam entered into a joint venture with the Platinum Group in Abu Dhabi to sell and manufacture sustainable infrastructure solutions, targeting a region projected to invest over $1 trillion in renewable energy by 2030[130] Financing Activities - The Company entered into a Supply Chain Line of Credit with OCI Limited for up to $100 million based on approved accounts receivable[152] - The At Market Issuance Sales Agreement with B. Riley Securities, Inc. generated net proceeds of $6.7 million during the nine months ended September 30, 2025[153] Historical Performance - The Company experienced a revenue increase of 144% from 2021 to 2022 and 206% from 2022 to 2023, despite a 27% decrease from 2023 to 2024[149]