# Beam Global: Form 10-Q for the period ended Jun 30, 2026

- Company: [Beam Global](/companies/beem.md) (CIK 1398805)
- Form: 10-Q
- Filed: 2026-08-19
- Accepted by EDGAR: Aug 19, 2026, 16:03 ET
- Period: 2026-06-30
- Accession: 0001437749-26-028530
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1398805/000143774926028530/beem20260630_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1398805/000143774926028530/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2026-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2026-04-01 to 2026-06-30 | $8.6m | us-gaap:Revenues |
| Revenue | 6 months, 2026-01-01 to 2026-06-30 | $11.7m | us-gaap:Revenues |
| Cost of revenue | 3 months, 2026-04-01 to 2026-06-30 | $7.0m | us-gaap:CostOfRevenue |
| Cost of revenue | 6 months, 2026-01-01 to 2026-06-30 | $10.6m | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2026-04-01 to 2026-06-30 | $1.5m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2026-01-01 to 2026-06-30 | $1.1m | us-gaap:GrossProfit |
| Operating income | 3 months, 2026-04-01 to 2026-06-30 | −$3.0m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2026-01-01 to 2026-06-30 | −$9.7m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2026-04-01 to 2026-06-30 | $3.0k | us-gaap:InterestExpenseNonoperating |
| Interest expense | 6 months, 2026-01-01 to 2026-06-30 | $7.0k | us-gaap:InterestExpenseNonoperating |
| Net income | 3 months, 2026-04-01 to 2026-06-30 | −$3.1m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2026-01-01 to 2026-06-30 | −$9.9m | us-gaap:NetIncomeLoss |
| Basic EPS | 3 months, 2026-04-01 to 2026-06-30 | −$0.14 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2026-01-01 to 2026-06-30 | −$0.47 | us-gaap:EarningsPerShareBasic |
| Operating cash flow | 6 months, 2026-01-01 to 2026-06-30 | −$4.8m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2026-01-01 to 2026-06-30 | $177.0k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2026-06-30 | $1.0m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2026-06-30 | $17.7m | us-gaap:AssetsCurrent |
| Total assets | at 2026-06-30 | $38.2m | us-gaap:Assets |
| Current liabilities | at 2026-06-30 | $12.1m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2026-06-30 | $17.9m | us-gaap:Liabilities |
| Shareholders' equity | at 2026-06-30 | $20.3m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 40,153 characters.

References in this Report to “we,” “us,” “our,” the “Company” or “Beam” means Beam Global, a Nevada corporation, and its subsidiaries. All amounts are presented in thousands if not otherwise noted.

### SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that are based on current expectations, estimates, forecasts, and projections about us, the industry in which we operate and other matters, as well as Management's beliefs and assumptions and other statements regarding matters that are not historical facts. These statements include, in particular, statements about our plans, strategies and prospects. For example, when we use words such as “projects,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “should,” “would,” “could,” “will,” “opportunity,” “potential” or “may,” and variations of such words or other words that convey uncertainty of future events or outcomes, we are making forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We caution you that the foregoing list may not contain all of the forward-looking statements made in this Form 10-Q.

These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause the Company’s actual results to be materially different from any future results expressed or implied by the Company in those statements. Important factors that could prevent the Company from achieving its stated goals include, but are not limited to, the following:

(a) volatility or decline of the Company’s stock price, or absence of stock price appreciation;

(b) fluctuation in quarterly results, including as a result of order timing, customer procurement processes, project approval timelines and budget cycles;

(c) failure of the Company to generate sufficient revenues, improve gross margins or achieve profitability;

(d) inadequate capital to continue or expand its business, and the inability to raise additional capital or financing to implement its business plans;

(e) the Company’s ability to collect accounts receivable, convert backlog into revenue and manage working capital requirements;

(f) risks associated with international operations, foreign currency fluctuations, foreign regulations, geopolitical instability, war, terrorism or other conflict, including conflicts or tensions in the Middle East involving Iran, Israel, the United States, regional governments or regional proxy groups;

(g) material weaknesses in the Company’s internal control over financial reporting and the Company’s ability to remediate those weaknesses;

(h) reductions in demand for the Company’s products and services, whether because of competition, general industry conditions, loss of tax incentives for solar power, technological obsolescence, or other reasons;

(i) litigation with, or legal claims and allegations, by outside parties;

(j) insufficient revenues to cover operating costs, resulting in persistent losses;

(k) rapid and significant changes to costs of raw materials from government tariffs or other market factors;

(l) the Company’s ability to realize the anticipated benefits of its strategic initiatives, new products, acquisitions, joint ventures, reseller and distributor relationships, and international growth initiatives;

(m) the preceding and other factors discussed in Part II, Item 1A, “Risk Factors,” and other reports we may file with the Securities and Exchange Commission from time to time; and

(n) the factors set forth in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled "Risk Factors" and elsewhere in this Form 10-Q and the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. Moreover, we operate in a competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances or to reflect new information or the occurrence of unanticipated events, except as required by law.

#### Overview

Beam is a sustainable technology innovation company headquartered in San Diego, California with offices in the U.S. in San Diego, California, Yuma, Arizona, and Broadview, Illinois; in Europe in Belgrade and Kraljevo, Serbia; and in Abu Dhabi, United Arab Emirates (“UAE”). We develop, design, engineer, manufacture, and sell high-quality, rapidly-deployed and autonomous infrastructure products for electric vehicle (“EV”) and autonomous vehicle (“AV”) charging, energy security and disaster preparedness and highly energy-dense battery solutions in safe, compact, unique and bespoke form-factors which we believe are ideal for the rapidly growing mobile and stationary equipment product market which often requires electrical energy without being connected to the electrical grid. Additionally, we manufacture structures with integrated intelligence and electronics such as streetlighting, cell towers and energy infrastructure products for Smart Cities (the interconnected physical and digital elements within a city that utilize technology to enhance efficiency, sustainability, and quality of life for residents). We further design, engineer and manufacture specialized power electronics including inverters, charge controllers, power supplies and LED lighting.

Our EV charging infrastructure products are powered by locally generated renewable energy and enable vital and highly valuable services in locations where it is either too expensive, disruptive, or impossible to connect to a utility grid, or where the requirements for electrical power are so important that grid failures, like blackouts, are intolerable. We do not compete with EV charging companies; rather, we assist these companies by offering infrastructure solutions that replace the time-consuming and expensive process of construction and electrical work which are usually required to install traditional grid-tied EV and AV chargers. We also do not compete with utility companies. Our products enable utilities and others to deliver reliable and low-cost electricity to EV and AV chargers and, in the case of a grid failure, to first responders and others, through our integrated emergency power panels.

Our charging products are rapidly deployed without the need for construction or electrical work. We compete with the highly fragmented and disintegrated ecosystem of general contractors, electrical contractors, consultants, engineers, permitting specialists and others, who are required to perform a traditional grid-tied EV charger installation construction and electrical project. Our sustainable technology products are designed to replace a complicated, expensive, time-consuming and risk-prone construction and electrical installation process with an easy, robust and reliable product at a low cost of total ownership.

We provide energy storage technologies that make commodity battery cells safer, longer lasting and more energy efficient. Our battery management systems, and associated thermal packaging, make batteries safer and usable in a variety of mobility, energy-security, and stationary applications.

Our street lighting and other street furniture products are mass-produced and sold in 18 nations globally. We are increasingly adding power electronics, energy storage, computing, sensing, and reporting to our street furniture products as we evolve them to provide greater levels of Smart Cities services.

Beam’s renewably energized infrastructure products and proprietary technology solutions target markets:

- EV and AV charging infrastructure;
- Smart Cities infrastructure;
- Energy storage solutions;
- Energy security and disaster preparedness;
- Transportation infrastructure products; and
- Power electronics and telecommunications equipment

The Company creates high-quality products that are powered primarily by secure and innovative energy sources, rapidly deployable, have diverse use cases and are attractively designed. We believe that there is a growing demand for rapidly deployable and highly scalable EV and AV charging and infrastructure for Smart Cities, and that our EV ARC™, BeamSpot™ and other street furniture products are designed to address this demand. We are agnostic to the EV charging service equipment as we do not sell EV charging, rather we sell products which enable it. Our EV ARC™ and BeamSpot™ products replace the traditional infrastructure required to support EV chargers, not the chargers themselves.

We have over thirty years of experience deploying street-lighting, transportation, energy and telecommunications infrastructure products as a result of our 2023 acquisition of Amiga in Serbia. We also acquired relationships with existing customers to whom we are now able to sell our portfolio of innovative energy, mobility and transportation infrastructure products as well as our Smart Cities products.

During the second half of 2024 we significantly expanded our product portfolio with the addition of rapidly deployed and highly scalable charging infrastructure products for electric bicycles, electric scooters, and electric motorcycles. We also introduced de-salination as a capability to enhance the lifesaving aspects of our disaster preparedness products. Powered by 100% renewable energy, our BeamWell™ self-sufficient water treatment system converts seawater into vital freshwater. It is equipped with four eMopeds for efficient and rapid transport in environments such as war zones, disaster or crisis zones, where people need safe drinking water, electricity and mobility most.

Our ability to make commodity battery cells safer, longer lasting and more energy efficient in bespoke enclosures is, we believe, a significant differentiator as we move to an increasingly electrified and untethered world. All our renewably energized products generate their own electricity which is stored in our integrated batteries. Our ability to develop energy-dense, highly safe batteries in unique shapes and sizes allows us to serve customers with specialized needs, including manufacturers of drones, robots, medical devices, top secret military applications, submersibles, refrigerated transport units, and a wide range of other applications.

We believe our chief differentiators are:

- Our patented, renewably energized products dramatically reduce the cost, time and complexity of the installation and operation of EV and AV charging infrastructure when compared to traditional, utility grid tied alternatives;
- Our proprietary and patented energy storage solutions;
- Our first-to-market advantage with EV and AV charging infrastructure products which are renewably energized, rapidly deployed and require no construction or electrical work on site;
- Our products’ capability to operate during grid outages and to provide a source of EV charging and emergency power rather than becoming inoperable during times of emergency or other grid interruptions;
- Our scale, manufacturing efficiency and 35 years of experience in creating street lighting and other transportation infrastructure products.
- Our ability to add electrical capacity to provide for the significant increased demand brought by electrified transportation, data centers, AI and the electrification of industry, without having to go through expensive, time-consuming and risky utility grid expansion (adding power stations, transmission lines and distribution infrastructure like substations);
- Our ability to create new and patentable products which are marketable and consist of a complex integration of our proprietary technology and parts with other commonly available engineered components, which create a further barrier to entry for our competition;
- Our ability to create products which provide valuable solutions to nascent industries with very large market opportunities globally; and
- Our geographic footprint in North America, Europe, the Middle East, and existing customer base and contracts.

#### Overall Business Outlook

Revenues for the three months ended June 30, 2026 were $8.6 million, an increase of $1.5 million, compared to $7.1 million for the three months ended June 30, 2025. Revenues for the six months ended June 30, 2026 were $11.7 million, a decrease of $1.7 million compared to $13.4 million for the six months ended June 30, 2025. The Company believes the decline in revenue during the six months ended June 30, 2026, compared to the prior year, is primarily a function of order timing rather than a fundamental change in demand for its products.

As of June 30, 2026, the Company's backlog was approximately $5.4 million, a decrease of $3.6 million from $9.0 million as of March 31, 2026. Despite the decrease in the Company's backlog from prior quarter, Management believes the current backlog continues to be indicative of demand, which we believe will lead to an improvement in revenue in subsequent quarters.

The composition of revenue shifted meaningfully during the period compared to the prior year period. International customers comprised 48% of revenue for the six months ended June 30, 2026 compared to 37% for the same period in 2025 as a result of our continued success of our European expansion strategy.

Revenues from non-government commercial entities as a percentage of total revenue increased 7 percentage points year-over-year and represented 67% of total revenues for the six months ended June 30, 2026. Sales to the U.S. federal government represented less than 1% of revenues while state and local governments represented 33% of revenues for the six months ended June 30, 2026 compared to 40% for the same period in 2025.

The Company believes that as its geographic and product diversification strategy matures and its products reach a larger and broader international audience, the impact of period-to-period order timing variability on reported revenues will diminish over time.

We continue to invest in sales personnel, marketing resources, and new product development, while also expanding our geographic footprint, with the goal of replacing reliance on large individual orders of our EV ARC™ product from federal agencies, while continuing to pursue those opportunities.

Order timing may continue to be uneven due to customer procurement processes, approval timelines and budget cycles; however, we believe that increased global EV adoption, continued expansion into international markets and the marketing of our new products will reduce the impact of variability in individual order timing on our overall business.

We have a Multiple Award Schedule Contract with the General Services Administration (GSA) that helps streamline purchases from Federal agencies and state and local governments. In addition, the GSA awarded Beam Global a federal blanket purchase agreement in April 2022 which provides federal agencies a streamlined procurement process for procuring EV ARC™ systems. In Q2 2025, the contract was extended until October 31, 2030. Although this purchasing contract is not currently being regularly used by U.S. Federal government agencies, we have made sales to other non-Federal government entities in the U.S. using this contract vehicle and we believe that having this contract extended through 2030 and also having it made available to non-Federal government agencies has assisted us in closing sales in 2025 and will continue to assist in streamlining our selling processes in 2026. To the extent the federal government resumes procurement of electric vehicles and EV charging infrastructure, we believe this contract provides a streamlined and efficient channel to sell to the federal government, which operates the largest fleet in the world.

On November 12, 2025, the Company was awarded a cooperative purchasing contract by Sourcewell, expanding its offerings to U.S. military, state and local government agencies, and higher education institutions across North America. Sourcewell combines the purchasing power of over 50,000 participating public agencies, offering hundreds of awarded supplier contracts across public sector and educational organizations to procure the Company's sustainable infrastructure and energy storage solutions through a ready-to-use, negotiated, Sourcewell-vetted contract, streamlining the public purchasing process.

Our commercial, non-government, revenues increased as a percentage of our revenues from 60% to 67% from the first six months of 2025 compared to the first six months of 2026. Our geographic expansion into Europe and our additional business development activities in the Middle East and Africa are, we believe, also providing opportunities for growth which are not dependent on, or impacted by, shifts in U.S. government zero emission vehicle policies. The new products we have brought to market offer values, which are also not dependent upon U.S. federal government investment.

We expect the electric vehicle market to continue to experience significant growth globally over the next decade, which will in turn increase demand for additional EV charging infrastructure. We believe we are positioned to benefit significantly from this growth. Additionally, we are in compliance with the Build America, Buy America Act (BABA), which ensures that our U.S. products are manufactured for our U.S. customers in the United States using a sufficient amount of domestically sourced materials. In Europe, we have obtained the CE mark (Conformité Européenne) for our EV ARC™, BeamBike™, BeamWell™ and BeamPatrol™ products, indicating that those products comply with applicable European Union health, safety and environmental protection requirements and may be freely traded within the European Economic Area. We believe these certifications strengthen our credibility, consumer trust, and increase demand for our products, particularly among federal, state, and local government agencies. We also manufacture many products which are not related to EV charging such as our batteries, energy security and smart cities products. Although current federal policy priorities have reduced support for transportation electrification, the Company believes that domestic manufacturing, energy storage and energy security remain areas of potential federal and commercial demand. The Company believes its compliance with BABA may continue to support its competitive position as customers place greater emphasis on U.S.-manufactured critical infrastructure products.

With our acquisitions of Amiga and Telcom, we have facilities in Europe that can manufacture and sell Beam Global products for the European market. Europe is the largest market in the world for EVs and is a strong proponent of clean energy. We believe there is a lot of potential for growth in this region. The EU has mandated a transition to zero emission vehicles by 2035 and they are heavily focused on green and sustainable energy. An increase in electric vehicles adoptions will increase the demand for charging infrastructure. We believe that our sustainably energized EV ARCTM and BeamSpot™ products can play a major role in the provision of EV charging infrastructure in Europe.

Our energy security business is also connected with the deployment of our EV charging infrastructure products and serves as an additional benefit to the value proposition of our charging products which, along with their integrated emergency power panels, can continue to operate, charge EVs, and deliver emergency power during utility grid failures. Our state-of-the-art storage batteries installed on our EV charging systems are immune to grid failures and provide another benefit for customers such as municipalities, counties, states, the federal government, hospitals, fire departments, large private enterprises with substantial facilities, and vehicle fleet operators. Drones, submersibles, recreational products and a host of micro mobility and electric vehicle products are already benefiting from our Beam All-Cell™ highly differentiated products. With the continued growth of untethered electrification, we believe there is an opportunity for increased demand in these markets and others.

We are in development on our newest patented products which include- BeamSpot™, BeamFlight™ and others, which we expect will continue to expand our product offerings leveraging the same proprietary technology as our current products and allow us to expand into new markets. Beam Europe, is one of Europe’s largest manufacturers of streetlights and has a team of qualified structural, electrical and civil engineers who are experts in the field of development and deployment of streetlighting. They are working with our engineers in San Diego and Broadview to continually improve the engineering and development of our new BeamSpot™ product. We believe that BeamSpot™ may become our largest selling product.

On June 20, 2025, Beam entered into a joint venture agreement with the Platinum Group L.L.C, a diversified, multi-billion-dollar conglomerate operating in energy, real estate, finance and investing, healthcare, information technology, sports and entertainment, food services and legal services in the Emirate of Abu Dhabi, United Arab Emirates. Chaired by His Royal Highness, Sheikh Mohammed Sultan Bin Khalifa Al-Nahyan, the Platinum Group UAE is recognized for its well-established and trusted relationships across government and industry. Beam Global and the Platinum Group has formed a new entity, Beam Middle East LLC, a limited liability company in Abu Dhabi which will sell and manufacture Beam Global’s patented sustainable infrastructure solutions for transportation electrification, energy storage, energy security, and smart city development across the Middle East and African regions. We believe this joint venture marks a significant milestone in our global expansion strategy and positions us to capture growth in a region projected to invest over $1 trillion in renewable energy by 2030. Beam Middle East is headquartered in Masdar City, a pioneering sustainable urban community and world-class business and technology hub. Masdar City is located in Abu Dhabi, the capital of the United Arab Emirates, strategically positioned at the center of the country’s drive toward a net-zero greenhouse-gas emissions by 2050.

Over the long term, the Company expects revenue to grow as it expands its product offerings and geographic reach, supported by anticipated increases in global demand for electric vehicle charging infrastructure. The Company does not anticipate significant pricing pressure on its products. The combination of expected revenue growth and the cost reduction measures described above leads management to believe that gross margins will improve over time.

#### Critical Accounting Estimates

The financial statements and related disclosures were prepared in accordance with U.S. generally accepted accounting principles which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in our condensed consolidated financial statements include, but are not limited to, accounting for acquisitions and business combinations; initial valuation and subsequent impairment testing of goodwill, other intangible assets and long-lived assets; leases; fair value of financial instruments, income taxes; inventory; and commitments and contingencies. We base our estimates and assumptions on historical experience and on various other factors that we believe to be reasonable under the circumstances, and we continually evaluate our assumptions and modify as needed. To the extent there are material differences between our estimates and the actual results, our future results of operations will be affected.

#### Results of Operations

### Comparison of Results of Operations for the Three Months Ended June 30, 2026 and June 30, 2025

*Revenues.* For the three months ended June 30, 2026, our revenues increased 21% to $8.6 million compared to $7.1 million for the same period in 2025. Revenues derived from non-government, commercial entities represented 62% of total revenues for the three months ended June 30, 2026 compared to 66% for the three months ended June 30, 2025. During the three months ended June 30, 2026, 38% of product sales, were to state and local government customers compared to 32% for the three months ended June 30, 2025.

The Company expects reduced U.S. federal government purchasing activity to continue in the near term, reflecting changes in U.S. federal policy priorities relating to fleet electrification and EV charging infrastructure. However, the Company believes U.S. federal agencies may continue to represent a potential long-term opportunity for its products, particularly if federal policy priorities change or if broader market adoption of electric vehicles and related charging infrastructure increases demand. The timing and extent of any future federal demand remain uncertain and will depend in part on federal policy priorities, agency procurement activity, available funding and broader market conditions.

The Company continues to invest in sales, marketing personnel, resources and programs to raise awareness of the benefits and value of its products. The receipt of orders may continue to be uneven due to customer procurement processes, project approval timelines and government and commercial budget cycles. However, the Company believes that continued growth in EV adoption, energy storage and security requirements, Smart Cities infrastructure needs and infrastructure funding may reduce the impact of period-to period variations in individual order timing over time.

The Company continues to seek to broaden its revenue base by expanding its customer mix, geographic reach and product applications beyond U.S. federal government sales. The Company believes its solutions may be well-positioned to address customer needs in global markets; however, there can be no assurance that these opportunities will offset reduced U.S. federal customer demand or that U.S. federal customer demand will return to prior levels.

*Gross Profit.* The Company reported a gross profit of $1.5 million, representing a gross margin of 17.8% for the three months ended June 30, 2026, compared to a gross profit of $1.4 million, or a gross margin of 20.3% for the same period in 2025. Gross results for the three months ended June 30, 2026 and 2025 included non-cash charges of $0.5 million for depreciation and $0.2 million for amortization of intangible assets arising from the All-Cell acquisition for both periods. The Company expects gross margins to improve as revenues grow and fixed overhead absorption increases.

*Operating Expenses.* Total operating expenses decreased $1.4 million from the three months ended June 30, 2026, compared to the same period in 2025. The three months ended June 30, 2025, included a stock grant in June 2025 for $1.4 million. The adjusted total operating expenses, less the $1.4 million stock grant, are flat year over year.

### Comparison of Results of Operations for the Six Months Ended June 30, 2026 and 2025

*Revenues.* For the six months ended June 30, 2026, our revenues decreased 13% to $11.7 million compared to $13.4 million for the same period in 2025. Revenues derived from non-government, commercial entities represented 67% of total revenues for the six months ended June 30, 2026 compared to 60% for the six months ended June 30, 2025. During the six months ended June 30, 2026, 33% of revenues were to state and local government customers compared to 32% for the six months ended June 30, 2025.

*Gross Profit.* The Company reported a gross profit of $1.1 million, representing a gross margin of 9.5% for the six months ended June 30, 2026, compared to a gross profit of $1.9 million, or a gross margin of 14.4% for the same period in 2025. Gross results for the six months ended June 30, 2026 and 2025 included non-cash charges of $1.1 million for depreciation and $0.4 million for amortization of intangible assets arising from the All-Cell acquisition. The Company expects gross margins to improve as revenues grow and fixed overhead absorption increases.

*Operating Expenses.* Total operating expenses were $10.8 million for the six months ended June 30, 2026, compared to $22.0 million for the same period in 2025. The prior period included a non-cash goodwill impairment charge of $10.8 million and a stock grant of $1.4 million, while no such charges were recorded for the three months ended June 30, 2026. The decrease was primarily attributable to a $1.6 million increase in the provision for credit losses, partially offset by reductions in salaries and benefits, facilities, and other general and administrative expenses. The $1.6 million increase in the provision for credit losses relates to a single customer balance that became subject to reserve in accordance with the Company's policy. The Company maintains a positive working relationship with the single customer and will continue to work with the customer to collect the outstanding balance and create new revenue opportunities.

### Liquidity and Capital Resources

At June 30, 2026 and December 31, 2025 we had cash balance of $1.0 million. We have historically met our cash needs through equity financings and through cash flow from operations. Our cash requirements are generally for operating activities and acquisitions.

Based on our current operating plan, we estimate that we will require approximately $3.0 million of cash to fund our operations and meet our obligations during the twelve months following the date these financial statements are issued. We expect to fund these requirements primarily from cash on hand and from cash generated by operations, including collection of our accounts receivable and sale of our existing inventory. At June 30, 2026, our working capital was $5.5 million. Management believes the Company’s present cash flows will enable it to meet its obligations for twelve months from the date of these financial statements. Management will continue to assess its operational needs and seek additional financing as needed to fund its operations.

Our cash flows from operating, investing and financing activities, as reflected in the statements of cash flows, are summarized in the table below:

| Cash provided by (used in): | June 30, 2026 | 2025 |
| --- | ---: | ---: |
| Net cash used in operating activities | $(4,755) | $(2,078) |
| Net cash used in investing activities | $(181) | $(838) |
| Net cash provided by (used in) financing activities | $5,226 | $2,162 |

For the six months ended June 30, 2026, our cash used in operating activities was $4.8 million compared to $2.1 million for the six months ended June 30, 2025. Cash used in operations in the six months ended June 30, 2026 included a $0.4 million increase in accounts receivable, excluding the provision for credit losses, $0.6 million decrease in deferred revenue, $0.7 million decrease in operating lease liability and $0.3 million decrease in other long-term liabilities. Cash provided by operations included $0.2 million decrease in prepaid and other current assets, $1.2 million decrease in inventory, $0.1 million increase in accounts payable, $0.6 million increase in accrued expenses and $0.1 million in sales tax payable.

Cash used in investing activities in the six months ended June 30, 2026 was $181 thousand and June 30, 2025 was $838 thousand mainly related to purchase of property and equipment in both years, with the remainder related to funding of patent costs.

For the six months ended June 30, 2026, and 2025, cash provided by our financing activities was $5.2 million and $2.2 million, respectively, mainly related to sale of common stock under the Sales Agreement with B. Riley.

Current assets decreased to $17.7 million at June 30, 2026 from $21.0 million at December 31, 2025, primarily due to a $1.5 million decrease in accounts receivable, which reflects $1.8 million increase in reserve for credit losses, a $1.5 million decrease in inventory and a $0.4 million decrease in prepaid expenses and other current assets, partially offset by a $0.1 million increase in cash.

Current liabilities were $12.1 million at June 30, 2026 and December 31, 2025.

As a result, our working capital decreased $3.4 million to $5.5 million at June 30, 2026 from $8.9 million at December 31, 2025. The Company notes that $1.8 million of this decrease is attributable to the non-cash increase in the reserve for credit losses related to a single customer balance reserved in accordance with the Company's policy.

The Company may be required to raise capital through equity or debt financings to fund its operations until it achieves positive cash flow The proceeds from these offerings are expected to be used to provide working capital to fund business operations and the development of new products. Management cannot currently predict when or if it will achieve positive cash flow. There is no guarantee that profitable operations will be achieved, or that additional capital or debt financing will be available on a timely basis, on favorable terms, or at all, and such funding, if raised, may not be sufficient to meet our obligations or enable us to continue to implement our long-term business strategy. In addition, obtaining additional funding or entering into other strategic transactions could result in significant dilution to our stockholders.

On March 22, 2023, the Company entered into that certain Supply Chain Line of Credit with OCI Limited (“OCI”), whereby OCI may provide a supply chain line of credit in the amount of up to $100 million based on the amounts of approved accounts receivable of the Company (the “Credit Facility”). In order to request a drawdown on the Credit Facility, the Company is required to submit a transaction request to OCI which sets forth the terms of the applicable account receivables, including but not limited to the name of the party responsible for the applicable account receivables (the “Obligor”), the terms of repayment and the amount of such receivables. The Company has no obligation to submit a drawdown request and OCI is not obligated to accept any drawdown request from the Company. In the event OCI accepts a drawdown request of the Company and upon satisfaction of certain conditions required by OCI to issue the drawdown, OCI will disburse funds to the Company for such drawdown in an amount equal to the full value of the applicable account receivables assigned to OCI minus any transaction expenses incurred by OCI and the full amount of interest to be incurred for such receivables over the term of the drawdown. The Company will pay interest on any drawdown at the Secured Overnight Financing Rate +300 basis points. Upon the disbursement of funds to the Company for a drawdown, the Company will assign all rights to such account receivables of the Obligor to OCI. The Company will act as collection agent on any account receivable assigned to OCI and agrees to establish a designated bank account for the purpose of collecting payment on any applicable account receivable that are assigned to OCI. In the event (i) the Company is in material breach of the Credit Facility, (ii) the Company or the Obligor is insolvent or is subject to reorganization or liquidation, or (iii) any dispute related to an agreement with an Obligor or non-payment by an Obligor, OCI has the right to exercise any contractual rights it may have against Obligor, increase the interest rate to the agreed upon default interest rate, and demand immediate repayment by the Company for the outstanding amounts owed under such account receivables. The Company has also agreed to indemnify OCI for any losses incurred by OCI in connection with the Credit Facility. Either party may terminate the Credit Facility at any time by providing fifteen (15) days prior written notice to the other party. To date, Beam Global has not drawn on this line of credit.

On April 11, 2025, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley Securities, Inc. (“B. Riley”), pursuant to which it may issue and sell shares of its common stock from time to time, at its option, through B. Riley as its sales agent, subject to certain terms and conditions. Upon its delivery and B. Riley’s acceptance of a placement notice, B. Riley will use commercially reasonable efforts to sell shares, consistent with its normal trading and sales practices, in transactions deemed to be “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended, including by means of ordinary brokers’ transactions at market prices, in block transactions or as otherwise agreed by B. Riley and the Company. B. Riley may also sell the shares of common stock in negotiated transactions, subject to the Company's prior approval. Any shares sold will be sold pursuant to the Company's effective shelf registration statement on Form S-3 (File No. 333-272396), as supplemented by a prospectus supplement dated April 11, 2025, and November 14, 2025, which allows the Company to sell up to $15.6 million in shares of its common stock (the “ATM Prospectus Supplement”). The Company will pay B. Riley a commission of up to 3% of the gross proceeds of the sale of any shares sold through B. Riley. As of June 30, 2026, the Company has $10.0 million remaining available for issuance and sale under the ATM Prospectus Supplement.

Management believes that continued operational improvements may support the Company’s ability to execute its strategic plan and pursue profitable growth over time. These efforts are anticipated to include the addition of sales personnel and independent sales channels, reductions in direct costs due to engineering and manufacturing improvements, continued management of overhead costs, increased overhead absorption resulting from volume growth, process improvements and negotiating with vendors to reduce to cost, increased public awareness of the Company and its products, and improving the timing of the average sales cycle. Management believes that these steps, if successful, may enable the Company to generate sufficient revenue to continue operations. There is no assurance, however, as to whether or when the Company will be able to achieve those operating objectives.

### Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources, that are material to investors.

## Controls and procedures

As filed, 3,591 characters.

### Evaluation of Disclosure Controls and Procedures

Our management is responsible for establishing and maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “SEC”), and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of “disclosure controls and procedures” in Rule 15d-15(e) under the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2026, the disclosure controls and procedures of our Company were not effective to ensure that the information required to be disclosed in our Exchange Act reports was recorded, processed, summarized and reported on a timely basis due to material weakness in internal controls as identified below.

As reported in our Annual Report on Form 10-K for the year ended December 31, 2025, Management identified the following material weaknesses:

- Ineffective design and implementation over Information Technology General Controls (“ITGCs”)
- Insufficient controls over inventory accounting, including controls to ensure inventory is accurately tracked, recorded and valued on a timely basis
- Insufficient controls over the preparation, review and approval of account reconciliations and financial reporting schedules, including lack of appropriate documentation and evidence of review
- Inadequate segregation of duties and user access controls, including limitations due to personnel resources and overlapping responsibilities
- Insufficient controls over financial reporting processes and oversight related to our international operations, including Beam Europe

### Changes in Internal Control Over Financial Reporting

The Company continues to evaluate and implement remediation measures intended to address the identified material weaknesses in internal control over financial reporting. However, during the quarter ended June 30, 2026 there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financials reporting. The material weaknesses will be considered remediated when management concludes that, through testing, the applicable remedial controls are designed, implemented and operating effectively. As management continues to evaluate and improve disclosure controls and procedures and internal control over financial reporting, the Company may decide to take additional measures to address control deficiencies or determine to modify, or in appropriate circumstances not to complete, certain of the remediation measures identified.

## Risk factors

As filed, 610 characters.

In addition to the risk factors set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition, liquidity or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may materially adversely affect our business, financial condition, liquidity or future results.

Filed Aug 19, 2026.
Source: SEC EDGAR, the filing index for accession 0001437749-26-028530. Last ingested by Listed: Nov 6, 2026, 17:25 ET. No prices; not investment advice.