Beam Global Q1 FY2025 earnings call

• Sales of flagship product EV ARC increased in Q1. - International expansion strategy is gaining momentum; international revenues contributed over 25% of Q1 2025 revenue. - Took goodwill impairment charge due to GAAP accounting requirements related to share price decline, but management believes acquisitions have increased value. - Diversification strategies are starting to deliver fruit, with sales orders up 23% from Q4 2024. - Shipped various products to locations across the US and internationally. - Participated in trade shows like Feria Internacional de Defensa y Seguridad, showcasing products. - Plans to demonstrate BeamWell in Jordan to Royal Jordanian armed forces and expand in Middle East. - Battery business advancing with focus on high-performance safety-critical applications across multiple sectors.

For the first quarter of 2025, Beam Global's revenues were $6.3 million. Revenues were diverse, with 53% from commercial customers (up from 16% in Q1 2024), 25% from international customers (up from 11% in Q1 2024). Gross profits for Q1 2025 were $0.5 million, resulting in an 8% gross margin. The non-GAAP gross margin, net of non-cash items, was 21%. Backlog as of the end of Q1 2025 was $6.3 million.

• Believes they have the pieces in place to return to growth in the current quarter and future quarters. - Confident about the trajectory towards positive cash flow.

• Uncertainty in the U.S. government's zero emission vehicle strategy related to the Presidential Election. - Supply chain issues, including reliance on certain components from Asia. - Challenges in the public markets for companies in the electrification of transportation and sustainability industries in the US.

Q: Curious how you're thinking about product mix between EV ARC and new products in 2025 or maybe over the next couple years.

A: Enthusiastic about new products like BeamPatrol, BeamBike, BeamSpot. Expect remainder of 2025 to see orders for new products, with mix evening out by 2026 and onwards. EV ARC still has huge market opportunity, and new products are based on EV ARC platform, driving volume and margin benefits.

Q: How should we think about your margin progression as your ex-EV ARC products and international sales grow in terms of mix?

A: EV ARC gross margins are still in 40%-50% range. Non-GAAP gross margin net of non-cash items is north of 20%. With new products based on EV ARC platform, more volume leads to better gross margins. GAAP gross profit affected by fixed overhead allocations in low volume quarters, but unit and non-cash gross profits retained. Goal is to get to 50% gross profit, volume-driven.

Q: Could you talk about where manufacturing capacity stands in Europe at this point?

A: Europe has 250,000 square feet under roof and six acres of land. Can quickly ramp up production. Supply chain is biggest hurdle, but acquisition of power electronics firm in Europe helps with supply chain and production. Can match US capabilities and expand significantly.

Q: Are there going to be sort of new examples or new parts of the resiliency thesis that you think might come to the fore this year?

A: Resiliency is a key part of the business. Products enable EV charging without construction/electrical work and operate during blackouts/brownouts. BeamWell is ultimate expression of resiliency products, designed for humanitarian efforts and natural disasters, providing fresh water, electricity, and mobility without relying on supply chains.