Beam (BEEM) - 2021 Q1 - Quarterly Report

PART I FINANCIAL INFORMATION Financial Statements (Unaudited) Beam Global reported Q1 2021 revenues of $1.37 million, a slight increase, alongside a wider gross loss of $149,120 and a net loss of $1.25 million, with total assets rising to $34.46 million, supported by a strong cash position from financing activities Condensed Balance Sheets Condensed Balance Sheet Highlights (in USD) | Metric | March 31, 2021 (Unaudited) | December 31, 2020 | | :--- | :--- | :--- | | Total Current Assets | $31,492,321 | $29,903,431 | | Cash | $28,214,029 | $26,702,804 | | Inventory, net | $1,553,443 | $1,092,763 | | Total Assets | $34,464,347 | $32,902,759 | | Total Current Liabilities | $1,984,843 | $1,840,111 | | Total Liabilities | $3,948,893 | $3,750,468 | | Total Stockholders' Equity | $30,515,454 | $29,152,291 | Condensed Statements of Operations Condensed Statements of Operations (Unaudited, for the three months ended March 31) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Revenues | $1,372,392 | $1,317,052 | | Cost of revenues | $1,521,512 | $1,356,693 | | Gross loss | ($149,120) | ($39,641) | | Operating expenses | $1,102,675 | $902,000 | | Loss from operations | ($1,251,795) | ($941,641) | | Net loss | ($1,250,809) | ($942,521) | | Net loss per share - basic and diluted | ($0.14) | ($0.17) | | Weighted average shares outstanding | 8,764,959 | 5,523,174 | Condensed Statements of Changes in Stockholders' Equity - Total stockholders' equity increased from $29.15 million at December 31, 2020, to $30.52 million at March 31, 2021. The increase was primarily driven by $2.47 million in proceeds from warrants exercised, offset by a net loss of $1.25 million for the quarter[8] Condensed Statements of Cash Flows Condensed Statements of Cash Flows (Unaudited, for the three months ended March 31) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | ($855,783) | ($1,553,276) | | Net cash used in investing activities | ($55,574) | ($143,512) | | Net cash provided by financing activities | $2,422,582 | $279,632 | | Net increase (decrease) in cash | $1,511,225 | ($1,417,156) | | Cash at beginning of period | $26,702,804 | $3,849,456 | | Cash at end of period | $28,214,029 | $2,432,300 | Condensed Notes To Condensed Financial Statements - The company develops, manufactures, and sells renewably energized infrastructure products for electric vehicle (EV) charging, outdoor media, and energy security[10] - For Q1 2021, sales to federal, state, and local governments represented 70% of revenues. Three customers accounted for 32%, 12%, and 10% of total revenues[19][21] - The company had a cash balance of $28.2 million and working capital of $29.5 million as of March 31, 2021. Management believes it has sufficient cash to fund operations for at least the next twelve months[47] - Subsequent to the quarter end, warrants to purchase 18,233 shares of common stock were exercised, generating proceeds of $114,868[77] Management's Discussion and Analysis of Financial Condition and Results of Operations Management reported a 4% revenue increase to $1.37 million for Q1 2021, driven by diverse customer sales, but gross loss widened to $149,120 due to higher costs, while operating expenses rose 22% to $1.1 million, yet the company maintains a strong liquidity position with $28.2 million in cash and anticipates future growth and margin improvements - The company's main products are rapidly deployable, renewably energized infrastructure for EV charging, including the EV ARC™, Solar Tree® DCFC, and EV ARC™ DCFC[83][84][85] - Management views federal investment in EV infrastructure, such as President Biden's proposed $174 billion investment, as a significant potential source of future revenue. The company's GSA contract is expected to streamline procurement by federal agencies[89] Q1 2021 vs Q1 2020 Performance | Metric | Q1 2021 | Q1 2020 | Change | | :--- | :--- | :--- | :--- | | Revenues | $1,372,392 | $1,317,052 | +4% | | Gross Loss | ($149,120) | ($39,641) | Increased Loss | | Operating Expenses | $1,102,675 | $902,000 | +22% | | Net Loss | ($1,250,809) | ($942,521) | Increased Loss | - The company's cash position increased to $28.2 million at March 31, 2021, from $26.7 million at year-end 2020. Working capital also increased to $29.5 million from $28.1 million[101][108] Quantitative and Qualitative Disclosures About Market Risk This section is not applicable to the company for this reporting period - The company has indicated that Quantitative and Qualitative Disclosures About Market Risk are not applicable[113] Controls and Procedures Management concluded that as of March 31, 2021, the company's disclosure controls and procedures were not fully effective, with a material weakness persisting due to the lack of automated manufacturing or purchasing systems, which the company plans to address by implementing a new ERP system in Q3 2021 - Management concluded that as of March 31, 2021, the company's disclosure controls and procedures were not yet sufficient to ensure timely and accurate reporting[115] - A material weakness was identified related to the lack of automated manufacturing or purchasing systems for inventory tracking, product costing, and labor. The company currently uses time-consuming manual processes[116] - The company plans to implement a new manufacturing and purchasing system (ERP) during fiscal 2021 to address the material weakness. The selection process was underway, with a decision expected in Q3 2021[116][118] PART II OTHER INFORMATION Legal Proceedings As of the report date, the company is not involved in any ongoing or pending legal claims or proceedings that would have a material effect - There are no ongoing or pending legal claims or proceedings of which management is aware[120] Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - The company refers to the risk factors discussed in its Annual Report on Form 10-K for the year ended December 31, 2020, and notes no material changes[121] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - None reported[122] Defaults Upon Senior Securities The company reported no defaults upon senior securities - None reported[122] Mine Safety Disclosures This section is not applicable to the company - Not applicable[122] Other Information The company reported no other information - None reported[122] Exhibits The report lists exhibits filed, including certifications by the CEO and CFO pursuant to the Sarbanes-Oxley Act and XBRL data files - Exhibits filed with the report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL instance and schema documents[123]