Beam (BEEM) - 2023 Q3 - Quarterly Report

PART I FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) The company presents its unaudited condensed balance sheets, statements of operations, and cash flows Condensed Balance Sheets Condensed Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $45,835 | $19,935 | | Total Assets | $62,833 | $37,730 | | Total Current Liabilities | $11,466 | $13,172 | | Total Liabilities | $12,603 | $14,523 | | Total Stockholders' Equity | $50,230 | $23,207 | - Working capital increased significantly to $34.4 million at September 30, 2023, from $6.8 million at December 31, 2022, driven by a $13.1 million increase in cash and a $10.5 million increase in accounts receivable[11] Condensed Statements of Operations Performance Summary (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $16,486 | $6,611 | $47,325 | $14,099 | | Gross Profit (Loss) | $283 | $(339) | $789 | $(970) | | Loss from Operations | $(3,754) | $(6,807) | $(11,136) | $(11,903) | | Net Loss | $(3,629) | $(6,789) | $(10,990) | $(11,870) | | Net Loss Per Share | $(0.26) | $(0.67) | $(0.79) | $(1.21) | Condensed Statements of Cash Flows Cash Flow Summary for the Nine Months Ended Sep 30 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,768) | $(15,724) | | Net cash used in investing activities | $(881) | $(1,645) | | Net cash provided by financing activities | $27,726 | $100 | | Net increase (decrease) in cash | $13,077 | $(17,269) | | Cash at end of period | $14,758 | $4,680 | - Financing activities in the first nine months of 2023 were primarily driven by $25.4 million in net proceeds from a public stock offering and $2.1 million from the committed equity facility[36][140] Notes To Condensed Financial Statements The notes detail the Amiga acquisition, liquidity position, and significant equity transactions - On October 20, 2023, the company acquired Amiga DOO Kraljevo, a Serbian manufacturer, to facilitate manufacturing and sales of Beam's products in the European market[41][66] - The company believes it has sufficient funds for at least the next twelve months, following a public offering in June 2023 that raised approximately $25 million in net proceeds[56] - For the nine months ended September 30, 2023, sales to federal, state, and local governments represented 84% of total revenues[50] - The company issued 446,815 shares valued at $7.05 million as payment for the 2022 Earnout Consideration related to the All Cell acquisition[59] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses significant revenue growth, improved margins, and strategic acquisitions Overview and Business Outlook The company provides off-grid EV charging solutions and is expanding through new products and acquisitions - The company's core products, including EV ARC™ and Solar Tree®, provide off-grid, rapidly deployable EV charging infrastructure, replacing the need for complex construction and electrical work[6][107][108] - The acquisition of Amiga in October 2023 is a key part of the strategy to expand into the European market and accelerate the development of the EV Standard™ product[113][118] - The company is developing new products, EV Standard™ and UAV ARC™, to leverage its proprietary technology and expand into new markets[8][109] Results of Operations Revenues surged due to strong government sales, leading to positive gross profit and improved margins Q3 2023 vs Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Revenues | $16.5M | $6.6M | +149% | | Gross Profit | $0.3M (2% margin) | -$0.3M (-5% margin) | Improved by 7% pts | | Operating Expenses | $4.0M (24% of revenue) | $6.5M (98% of revenue) | Decreased by 73% pts | Nine Months 2023 vs Nine Months 2022 Performance | Metric | Nine Months 2023 | Nine Months 2022 | Change | | :--- | :--- | :--- | :--- | | Revenues | $47.3M | $14.1M | +236% | | Gross Profit | $0.8M (2% margin) | -$1.0M (-7% margin) | Improved by 9% pts | | Operating Expenses | $11.9M (25% of revenue) | $10.9M (78% of revenue) | Improved by 53% pts | Liquidity and Capital Resources The company's liquidity improved significantly due to equity financing and has access to credit facilities - Cash position increased to $14.8 million at September 30, 2023, from $1.7 million at December 31, 2022, mainly due to financing activities[135] - Net cash used in operating activities for the first nine months of 2023 was $13.8 million, an improvement from $15.7 million in the same period of 2022[137][138] - The company has a $100 million supply chain line of credit with OCI Limited and a committed equity facility with B. Riley, of which $27.5 million remains available[143][62] - The company reports no off-balance sheet arrangements[12][145] Item 3. Quantitative and Qualitative Disclosures About Market Risk The company has indicated that this item is not applicable - Not Applicable[146] Item 4. Controls and Procedures Management identified a material weakness in inventory controls and is implementing a new ERP system - Management concluded that disclosure controls and procedures were not effective as of September 30, 2023[148] - A material weakness was identified in inventory controls due to the lack of an automated tracking system and reliance on manual processes at both the San Diego and Chicago facilities[149][150][151] - The company is implementing a new ERP system, effective in Q3 2023, to remediate the material weakness in inventory control[152] PART II OTHER INFORMATION Item 1. Legal Proceedings The company reports no material legal proceedings that would impact its financial condition - As of September 30, 2023, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations[76][155] Item 1A. Risk Factors Key risks include potential Nasdaq delisting and challenges related to the recent Amiga acquisition - The company is not in compliance with Nasdaq's audit committee composition requirements and faces a risk of delisting if it cannot regain compliance within the cure period[157][158][159] - There are significant risks associated with the acquisition of Amiga, including difficulties in integration, realizing anticipated benefits, and managing a private Serbian company not previously subject to U.S. GAAP or SEC regulations[162][163][165] - With the Amiga acquisition, the company faces increased risks from international operations, including compliance with foreign laws, staffing challenges, and political or economic instability[169][171] - The company is now subject to foreign currency exchange rate risk, particularly with the Euro and Serbian Dinar, which could impact financial results[173] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities during the period - None[175] Item 3. Defaults Upon Senior Securities There were no defaults upon senior securities during the period - None[176] Item 4. Mine Safety Disclosures This item is not applicable to the company - Not applicable[177] Item 5. Other Information There is no other information to report for the period - None[178] Item 6. Exhibits This section lists filed exhibits, including CEO/CFO certifications and XBRL documents - The report includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, as well as various Inline XBRL documents[179][1]