What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-19 compared with 2026-05-15 · 266 added, 187 removed, 647 unchanged (41% of the section changed)

35 unchanged sentences

Stockholders' equity

Preferred stock, $ 0.001 par value, 10,000,000 authorized, none outstanding as of March 31, 2026 and December 31, 2025

Common stock, $ 0.001 par value, 350,000,000 shares authorized, 21,136,983 and 19,124,163 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

Preferred stock, $ 0.001 par value, 10,000,000 authorized, none outstanding as of June 30, 2026 and December 31, 2025

Common stock, $ 0.001 par value, 350,000,000 shares authorized, 22,267,380 and 19,124,163 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in-capital

11 unchanged sentences

Three Months Ended

Six Months Ended

$ 8,562 $ 7,075 $ 11,690 $ 13,399

Cost of revenues

Gross (loss) profit

7,035 5,641 10,577 11,464

1,527 1,434 1,113 1,935

Operating expenses

4,523 5,901 10,819 11,166

Impairment of goodwill

4 unchanged sentences

Other (expense) income

( 82 ) 182 ( 228 ) 186

Interest expense

( 3 ) ( 7 ) ( 7 ) ( 13 )

Total Other (expense) income

( 84 ) 189 ( 229 ) 210

$ ( 3,080 ) $ ( 4,278 ) $ ( 9,935 ) $ ( 19,801 )

Net foreign currency translation (expense) benefit

( 250 ) 633 ( 559 ) 1,094

Total Comprehensive Loss

25 unchanged sentences

21,137 22 160,292 ( 138,501 ) ( 283 ) 21,530

Stock issued for director services - vested

54 - 94 - - 94

Stock issued to (released from) escrow account - unvested

( 54 ) - - - - -

Settlement of earnout related to acquisition

59 - 104 - - 104

Employee stock-based compensation expense

- - 45 - - 45

Impact of foreign currency translation

- - - - ( 250 ) ( 250 )

Sale of stock under ATM agreement

1,071 - 1,813 - - 1,813

- - - ( 3,080 ) - ( 3,080 )

Balance at June 30, 2026

$ 22,267 $ 22 $ 162,348 $ ( 141,581 ) $ ( 533 ) $ 20,256

Balance at December 31, 2024

10 unchanged sentences

$ 15,043 $ 15 $ 147,518 $ ( 120,166 ) $ ( 695 ) $ 26,672

Stock issued for director services - vested

30 - 93 - - 93

Stock issued to (released from) escrow account - unvested

( 30 ) - - - - -

Settlement of earnout related to acquisition

28 - 93 - - 93

Employee stock-based compensation expense

- - 138 - - 138

Stock based compensation

336 - 1,349 - - 1,349

Impact of foreign currency translation

- - - - 633 633

Sale of stock under ATM agreement

1,452 1 2,191 - - 2,192

- - - ( 4,278 ) - ( 4,278 )

Balance at June 30, 2025

$ 16,859 $ 16 $ 151,382 $ ( 124,444 ) $ ( 62 ) $ 26,892

The accompanying unaudited notes are an integral part of these unaudited condensed consolidated Financial Statements

1 unchanged sentence

(Unaudited, in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating Activities:

3 unchanged sentences

Provision on credit losses

Change in fair value of contingent consideration liabilities

Impairment of goodwill

5 unchanged sentences

Accounts receivable

( 431 ) 2,004

Prepaid expenses and other current assets

1 unchanged sentence

Accounts payable

136 ( 1,859 )

Accrued expenses

2 unchanged sentences

Deferred revenue

( 619 ) ( 24 )

Other long term liabilities

( 334 ) ( 112 )

Net cash used in operating activities

13 unchanged sentences

Net increase (decrease) in cash

1,004 ( 2,068 )

Cash at beginning of period

5 unchanged sentences

Right-of-use assets obtained in exchange for lease liabilities

Settlement of earnout related to acquisition

The accompanying unaudited notes are an integral part of these unaudited condensed consolidated Financial Statements

3 unchanged sentences

References in this Report to “we,” “us,” “our,” the “Company” or “Beam” means Beam Global, a Nevada corporation, and its subsidiaries.

Beam is a clean-technology innovation company headquartered in San Diego, California with offices in the U.S.

in San Diego, California and Broadview, Illinois;

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.

We develop, design, engineer, manufacture, and sell high-quality, renewably energized infrastructure products for electric vehicle (“EV”) charging, infrastructure 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), energy security and disaster preparedness and highly energy-dense battery solutions in safe, compact and unique form-factors.

Additionally, we manufacture structures with electronic integration such as street lighting, cell towers and energy infrastructure products as well as power electronics including invertors, charge controllers, power supplies and LED lighting.

Beam’s energy storage products provide high energy density in safe, compact 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.

Beam Global's products and proprietary technology solutions target the following markets:

EV charging infrastructure;

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 and autonomous vehicle (“EV and AV”) charging, energy security and disaster preparedness and highly energy-dense battery solutions in safe, compact and 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 street lighting, 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 charging products are rapidly deployed without the need for construction or electrical work.

Our sustainable technology products are designed to replace an 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 (BMS), and associated thermal packaging, make batteries safer and usable in a variety of mobility, energy-security, and stationary applications.

Our streetlighting and other street furniture products are mass produced in our factories in Serbia and have been sold in 18 nations globally.

Beam's renewable energy infrastructure products and proprietary technology solutions target the following markets:

EV and AV charging infrastructure;

Smart Cities infrastructure;

Energy storage solutions;

Energy security and disaster preparedness;

Mobile and stationary equipment;

Transportation infrastructure products;

2 unchanged sentences

The interim unaudited condensed consolidated financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission in instructions to Form 10 -Q and Rule 10 - 01 of Regulation S- X.

In management’s opinion, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly our results of operations and cash flows for the three months ended March 31, 2026 and 2025 , and our financial position as of March 31, 2026 , have been made.

In management’s opinion, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly our results of operations and cash flows for the three and six months ended June 30, 2026 and 2025 , and our financial position as of June 30, 2026 , have been made.

All amounts are presented in thousands if otherwise noted.

35 unchanged sentences

The Company maintains its cash in banks and financial institutions deposits that at times may exceed federally insured limits.

The Company has not experienced any losses in such accounts from inception through March 31, 2026 .

As of March 31, 2026 , approximately $ 1.2 million of the Company’s cash deposits were greater than the federally insured limits.

The Company has not experienced any losses in such accounts from inception through June 30, 2026 .

As of June 30, 2026 , approximately $ 0.8 million of the Company’s cash deposits were greater than the federally insured limits.

Major Customers

For the three months ended March 31, 2026 , two customers accounted for 12 % and 14 % of total revenues, respectively, and for the three months ended March 31, 2025, one customer accounted for 12 % of total revenue.

At March 31, 2026 , one customer accounted for 20 % of total accounts receivable and at December 31, 2025, one customer accounted for 27 % of total accounts receivable.

For the three months ended March 31, 2026 and 2025 , the Company’s concentration of sales to federal, state and local governments represented 22 % a nd 47 % o f revenues, respectively.

For the three months ended June 30, 2026 , two customers accounted for 13 % and 11 % of total revenues, respectively, and for the three months ended June 30, 2025, one customer accounted for 10 % of total revenue.

At June 30, 2026 , three customers accounted for 13 %, 13 %, and 12 %, respectively, of total accounts receivable and at December 31, 2025, one customer accounted for 27 % of total accounts receivable.

For the six months ended June 30, 2026 and 2025 , the Company’s concentration of sales to federal, state and local governments represented 33 % a nd 40 % o f revenues, respectively.

Foreign Operations

The following summarizes key financial metrics associated with the Company’s continuing operations:

March 31, December 31,

June 30, December 31,

Assets - Serbia

6 unchanged sentences

Liabilities - U.S.

10,491 10,376

Liabilities - UAE

2 unchanged sentences

Three Months Ended

Six Months Ended

Sales - Serbia

$ 3,984 $ 3,300 $ 5,556 $ 4,826

4,498 3,775 6,054 8,573

Total Revenues

$ 8,562 $ 7,075 $ 11,690 $ 13,399

Net Loss - Serbia

Net Income/(Loss) - Serbia

$ ( 266 ) $ 691 $ ( 1,014 ) $ ( 6,000 )

Net Loss - U.S.

Net Income/(Loss) - U.S.

( 2,827 ) ( 4,969 ) ( 8,927 ) ( 13,801 )

Net Loss - UAE

Net Income/(Loss) - UAE

Total Net Loss

7 unchanged sentences

The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances.

A summary of the allowance for credit losses for the three months ended March 31, 2026 and the year ended December 31, 2025 :

A summary of the allowance for credit losses at June 30, 2026 and the year ended December 31, 2025 :

Allowance for credit losses:

19 unchanged sentences

The methods used may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.

Furthermore, while Management believes its valuation methods are appropriate, the fair value of certain financial instruments could result in a difference fair value measurement at the reporting date.

Furthermore, while Management believes its valuation methods are appropriate, the fair value of certain financial instruments could result in a difference in fair value measurement at the reporting date.

There were no changes in the Company’s valuation methodologies from the prior year.

For purpose of this disclosure, the carrying amounts for financial assets and liabilities such as cash and cash equivalents, accounts receivable – trade, other prepaid expenses and current assets, accounts payable and other current liabilities, all approximate fair value due to their short-term nature as of March 31, 2026 .

The Company had Level 3 liabilities as of March 31, 2026 .

The Company had no Level 3 liabilities as of June 30, 2026 .

There were no transfers between levels during the reporting period.

Contingent Consideration as of December 31, 2025

Change in fair value

Contingent Consideration as of March 31, 2026

Contingent Consideration as of June 30, 2026

Significant Accounting Policies

During the three months ended March 31, 2026 , there were no changes to our significant accounting policies as described in our Annual Report on Form 10 -K for the year ended December 31, 2025 .

During the six months ended June 30, 2026 , there were no changes to our significant accounting policies as described in our Annual Report on Form 10 -K for the year ended December 31, 2025 .

Net Loss Per Share

3 unchanged sentences

Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive.

The following outstanding shares of dilutive instruments as of March 31, 2026 and 2025 were not included in the computation of diluted loss per share:

The following outstanding shares of dilutive instruments as of June 30, 2026 and 2025 were not included in the computation of diluted loss per share:

Stock Options

875,600 639,904

Warrants ($17.00 exercise price)

200,000 200,000

3 unchanged sentences

Therefore, financial results are reported in a single operating segment.

The Company had net losses of $ 6.9 million for the three months ended March 31, 2026 which includes $ 3.5 million of non-cash expenses that mainly included provision on credit losses of $ 1.8 million, e mployee stock-based compensation of $ 0.5 million, depreciation and amortization of $ 0.9 million, and $ 0.3 million of amortization of operating lease right of use asset.

The Company had net losses of $ 15.5 million for the three months ended March 31, 2025 which includes $ 12.5 million of non-cash expenses, of which $ 10.8 million related to goodwill impairment.

The Company had net cash used in operating activities of $ 2.3 million and $ 1.8 million for the three months ended March 31, 2026 and 2025 , respectively.

At March 31, 2026 , the Company had a cash balance of $ 2.0 million and working capital of $ 6.2 million.

The Company had net loss of $ 9.9 million for the six months ended June 30, 2026 which included $ 5.0 million of non-cash expenses that mainly included provision for credit losses of $ 1.8 million, depreciation and amortization of $ 1.7 million, stock-based compensation of $ 0.7 million and amortization of operating lease right of use asset of $ 0.7 million.

The Company had net cash used in operating activities of $ 4.8 million and $ 2.1 million for the six months ended June 30, 2026 and 2025 , respectively.

At June 30, 2026 , the Company had a cash balance of $ 1.0 million and working capital of $ 5.5 million.

Based on the Company’s current operating plan and the available working capital that it believes can be converted to cash (specifically the accounts receivable balance of approximately $ 6.7 million), the Company believes that it has the ability to fund its operations and meet contractual obligations for at least twelve months from the date of this report.

In March 2023, the Company entered into a supply chain line of credit agreement with OCI Group for up to $ 100 million with a 5 -year term to further support our working capital requirements.

In March 2023, the Company entered into a supply chain line of credit agreement with OCI Group for up to $ 100 million with a five -year term to further support the Company's working capital requirements.

Subject to the terms of the agreement, OCI Group will make available to the Company funding based on amounts owed to the Company by its customers.

To date, the Company has not borrowed against this line of credit.

On April 11, 2025, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B.

On April 11, 2025, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B.

Riley Securities, Inc.

Riley”), pursuant to which we may issue and sell shares of our common stock from time to time, at our option, through B.

Riley as our sales agent, subject to certain terms and conditions.

Upon our delivery and 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 the Company's 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 us.

Riley may also sell the shares of common stock in negotiated transactions, subject to our prior approval.

Any shares sold will be sold pursuant to our effective shelf registration statement on Form S- 3 (File No.

333 - 272396 ), as supplemented by a prospectus supplement dated April 11, 2025 and November 13, 2025, which allows us to sell up to $ 15.6 million in shares of our common stock (the “ATM Prospectus Supplement”).

We will pay B.

Riley a commission of up to 2.5 % of the gross proceeds of the sale of any shares sold through B.

As of March 31, 2026, the Company has $ 11.9 million remaining available for issuance and sale under the ATM Prospectus Supplement to the Company’s effective shelf registration statement on Form S- 3.

Although the Company is focused on achieving profitability through revenue growth, improved gross margins and operating leverage, we expect to continue to incur losses for a period of time.

We may seek additional capital to finance our operations, support working capital needs and execute our business strategy, including through equity or debt financings or other strategic transactions.

There can be no assurance that we will achieve profitable operations or that additional capital or debt financing will be available when needed, on favorable terms, or at all.

Any additional financing, if obtained, may not be sufficient to meet our obligations or support our long-term business strategy.

In addition, any equity financing, debt financing with an equity component, or other strategic transaction could result in significant dilution to our stockholders.

Riley and the Company.

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 for up to 3 % of the gross proceeds of the sale of any shares sold through B.

As of June 30, 2026, the Company has $ 10.0 million remaining available for issuance and sale under the ATM Prospectus Supplement.

Although the Company is focused on achieving profitability through revenue growth, improved gross margins and operating leverage, the Company expects to continue to incur losses for a period of time.

The Company may seek additional capital to finance its operations, support working capital needs and execute its business strategy, including through equity or debt financings or other strategic transactions.

There can be no assurance that the Company will achieve profitable operations or that additional capital or debt financing will be available when needed, on favorable terms, or at all.

Any additional financing, if obtained, may not be sufficient to meet its obligations or support its long-term business strategy.

In addition, any equity financing, debt financing with an equity component, or other strategic transactions could result in significant dilution to the Company's stockholders.

PREPAIDS AND OTHER CURRENT ASSETS

5 unchanged sentences

$ 1,654 $ 2,070

INVENTORY, NET

Inventories are stated at the lower of cost and net realizable value.

Costs are determined using the first in- first out (FIFO) method.

As of March 31, 2026 and December 31, 2025 , inventory consists of the following:

Inventory is presented net of a reserve for excess and obsolete inventory of $ 267 thousand and $ 281 thousand as of June 30, 2026 and December 31, 2025, respectively, which is recorded against raw materials.

As of June 30, 2026 and December 31, 2025 , inventory consists of the following:

Finished goods

2 unchanged sentences

Raw materials

Total inventory

Total inventory, net

$ 8,259 $ 9,766

12 unchanged sentences

$ 11,956 $ 13,093

Depreciation expense during the three months ended March 31, 2026 and 2025 was $ 0.6 million and $ 0.7 million respectively.

For the three months ended March 31, 2026 and 2025 , depreciation expense recognized in Operating expenses was $ 0.1 million and $ 0.1 million, respectively.

Depreciation recognized in Cost of Revenues for the three months ended March 31, 2026 and 2025 was $ 0.5 million and $ 0.6 million respectively.

Depreciation expense during the three months ended June 30, 2026 and 2025 was $ 0.6 million in each period.

For the six months ended June 30, 2026 and 2025, depreciation expense was $ 1.2 million and $ 1.3 million, respectively.

For the three months ended June 30, 2026 and 2025 , depreciation expense recognized in Operating expenses was $ 0.1 million in each period.

For the six months ended June 30, 2026 and 2025 depreciation expense recognized in Operating expenses was $ 0.1 million in each period.

Depreciation expense recognized in Cost of Revenues for the three months ended June 30, 2026 and 2025 was $ 0.5 million in each period.

Depreciation recognized in Cost of Revenues for the six months ended June 30, 2026 and 2025, was $ 1.1 million in each period.

GOODWILL AND INTANGIBLE ASSETS

The Company recorded a goodwill impairment charge of $ 10.8 million during the three months ended March 31, 2025.

As a result, the Company has no goodwill balance as of December 31, 2025 or March 31, 2026.

Intangible assets, net, as of March 31, 2026 and December 31, 2025 consists of the following:

March 31, 2026

As a result, the Company has no goodwill balance as of December 31, 2025, or June 30, 2026.

Intangible assets, net, as of June 30, 2026 and December 31, 2025 consists of the following:

June 30, 2026

Gross Carrying Amount

23 unchanged sentences

$ 11,099 $ ( 3,972 ) $ 7,127

Amortization expense for each of the three months ended March 31, 2026 , and 2025 was $ 0.2 million in each period.

Amortization expense recognized in Operating expenses for the three months ended March 31, 2026 and 2025 was $ 0.1 million in each period.

Amortization expense recognized in Cost of Revenues for the three months ended March 31, 2026 and 2025 was $ 0.1 million in each period.

Amortization expense for the three months ended June 30, 2026 , and 2025 was $ 0.2 million in each period.

For the six months ended June 30, 2026 and 2025, amortization expense was $ 0.5 million in each period.

For the six months ended June 30, 2026 and 2025, amortization expense recognized in Operating expenses was $ 0.1 million in each period.

Amortization expense recognized in Cost of Revenues for the three and six months ended June 30, 2026 and 2025 was $ 0.1 million in each period.

Total estimated amortization on the Company’s intangible assets for each of the years ending December 31, 2026 through 2030 and thereafter is as follows:

21 unchanged sentences

Approximately $ 0.5 million is current and included in other accrued expenses and the remainder is categorized in long-term liability.

The debt restructuring was entered into in 2021 for a nine -year term with four years and nine months remaining at March 31, 2026 .

Payments are due quarterly as a percentage of the remaining balance due.

The debt restructuring was entered into in 2021 for a nine -year term with four years and six months remaining at June 30, 2026 .

Payments are interest-free, unsecured and due quarterly as a percentage of the remaining balance due.

COMMITMENTS AND CONTINGENCIES

5 unchanged sentences

However, regardless of the outcome, litigation can have an adverse impact on us because of associated cost and diversion of management time.

As of March 31, 2026 , after consulting with legal counsel, management believes there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.

On September 1, 2020, the Company entered into a five -year operating lease for their headquarters building in San Diego, California.

The term of the existing lease was extended until February 28, 2026 and subsequently until September 30, 2026.

The agreement provides that the Landlord may terminate the lease upon ninety ( 90 ) days’ prior written notice to the Company.

As of June 30, 2026 , after consulting with legal counsel, management believes there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.

On September 1, 2020, the Company entered into a five -year operating lease for its headquarters building in San Diego, California.

The term of that lease was extended until February 28, 2026 and subsequently until September 30, 2026.

The agreement provided that the landlord may terminate the lease upon ninety ( 90 ) days’ prior written notice to the Company.

On April 27, 2026, the landlord exercised its right to terminate the lease for San Diego.

The lease will now terminate on July 26, 2026.

The termination will not result in any material early termination penalties to the Company, and the Company does not expect to have any material ongoing obligations under the lease following the termination date.

The Company is evaluating its options with respect to its headquarters’ location and does not expect the termination to have a material adverse effect on its operations.

The Company has additional factory locations in Chicago, Illinois;

The lease terminated on July 26, 2026.

The termination did not result in any termination penalties to the Company, and the Company does not have any ongoing obligations under the lease following the termination date.

See Subsequent Events.

On June 17, 2026, the Company entered into a five -year operating lease for approximately 31,241 square feet at 653 E.

20 th Street in Yuma, Arizona for its warehouse and manufacturing operations.

Although rent under the lease begins on July 15, 2026, the Company obtained control of the premises on June 25, 2026 upon satisfying the lease’s conditions to possession, and that date is the lease commencement date under ASC 842.

Accordingly, the Company recognized an operating lease right-of-use asset and a corresponding lease liability of approximately $ 0.7 million as of June 30, 2026.

The Company separately entered into a lease for the adjacent building at 655 E.

20 th Street, which had not been made available to the Company as of June 30, 2026;

no right-of-use asset or lease liability has been recognized for that lease as of that date.

The Company has additional factory locations in Broadview, Illinois;

Belgrade and Kraljevo in Serbia;

and a sales and administration office in Abu Dhabi, United Arab Emirates.

The table below summarizes the Company’s lease related assets and liabilities as of March 31, 2026 and December 31, 2025 :

The table below summarizes the Company’s lease related assets and liabilities as of June 30, 2026 and December 31, 2025 :

$ 1,745 $ 1,358

10 unchanged sentences

Total lease liability

The weighted average remaining lease term and weighted average discount rate for our operating leases as of March 31, 2026 are as follows:

The weighted average remaining lease term and weighted average discount rate for our operating leases as of June 30, 2026 are as follows:

Weighted average remaining lease term (years) 3.5

Weighted average discount rate 10 %

There was no Federal income tax expense for the three months ended March 31, 2026 or 2025 due to the Company’s net losses.

There was no Federal income tax expense for the six months ended June 30, 2026 or 2025 due to the Company’s net losses.

Income tax expense represents the minimum state taxes due.

As a result of the Company’s history of incurring operating losses, a full valuation allowance has been established.

As of March 31, 2026 , no benefit has been provided for the quarter-to-date and year-to-date loss.

As of June 30, 2026 , no benefit has been provided for the quarter-to-date and year-to-date loss.

On a quarterly basis, the Company evaluates the positive and negative evidence to assess whether the more likely than not criteria have been satisfied in determining whether there will be further adjustments to the valuation allowance.

3 unchanged sentences

Riley Securities, Inc., pursuant to which the Company has the right, but not the obligation, to sell shares of its common stock having an aggregate offering price of up to $ 15.6 million, subject to certain terms and conditions.

The At Market Issuance program generated aggregate net p roceeds of $ 3.4 mi llion during the three months ended March 31, 2026 .

The Company has received aggregate net p roceeds of $ 5.2 mi llion from sales of its common stock pursuant to the At Market Issuance Sales Agreement during the six months ended June 30, 2026 .

Stock Options

1 unchanged sentence

New employee option grants generally have a term of ten years and vest ratably over four years.

Option activity for the three months ended March 31, 2026 is as follows:

Option activity for the six months ended June 30, 2026 is as follows:

Outstanding at December 31, 2025

737,450 $ 5.33

Outstanding at March 31, 2026

( 105,350 ) 4.82

Vested and Exercisable at March 31, 2026

Outstanding at June 30, 2026

875,600 $ 4.36

Vested and Exercisable at June 30, 2026

87,100 $ 0.15

Vested and Exercisable at June 30, 2026 represents vested options that are below the closing price on June 30, 2026 of $ 1.30 .

Total options vested at June 30, 2026 are 738,708 .

The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model.

4 unchanged sentences

In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility because the Company’s stock options and warrants have characteristics different from those of its traded stock, and because changes in the subjective input assumptions can materially affect the fair value estimate.

The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model using the assumptions in the table below and we assumed there would not be dividends paid during the life of the options granted during the three months ended March 31, 2026 .

No options were granted during the three months ended March 31, 2025.

Three Months Ended March 31,

Six Months Ended June 30,

Expected volatility

1 unchanged sentence

Expected term (Years)

5.0 - 6.5 Years

5.0 - 6.5 6.5 - 7

Risk-free interest rate

1 unchanged sentence

Weighted-average FV

The Company’s stock option compensation expense was $ 0.3 million and $ 0.1 million for the three months ended March 31, 2026 and 2025 , respectively.

There was $ 0.6 million of total unrecognized compensation costs related to outstanding stock options at March 31, 2026 which will be recognized over 3.5 years.

There w ere no options exercised in the three months ended March 31, 2026 .

The number of stock options vested and unvested as of March 31, 2026 were 775,555 and 205,395 , respectively.

$ 1.16 $ 1.23

The Company’s stock option compensation expense was $ 53 thousand and $ 1.5 million for the three months ended June 30, 2026 and 2025 , respectively, and $ 0.4 million and $ 1.6 million for the 6 months ended June 30, 2026 and 2025, respectively.

There was $ 0.5 million of total unrecognized compensation costs related to outstanding stock options at June 30, 2026 which will be recognized over 3.3 years.

There w ere no options exercised in the six months ended June 30, 2026 .

The number of stock options vested and unvested as of June 30, 2026 were 738,708 and 136,892 , respectively.

Stock-based compensation expense is generally included in selling, general and administrative expenses in the consolidated statement of operations.

On June 4, 2025, the Compensation Committee recommended and approved a one -time stock award of 870,000 shares of common stock to the Company’s chief executive officer, Desmond Wheatley, under the Company’s 2021 Equity Incentive Plan.

The common stock award was granted as bonus compensation based on his performance in fiscal years ending December 31, 2023 and 2024, and in connection with the completed acquisitions of All Cell Technologies, LLC, Amigo DOO Kraljevo and Telcome d.o.o.

Restricted Stock Units

There were no stock compensation expenses related to restricted stock units or performance stock units for the three months ended March 31, 2026 .

Stock compensation expense related to restricted stock units was $ 35 thousand during the three months ended March 31, 2025.

Stock compensation expense related to performance stock units was $ 0.2 million during the three months ended March 31, 2025.

There were no stock compensation expenses related to restricted stock units or performance stock units for the six months ended June 30, 2026 .

Stock compensation expense related to restricted stock units was $ 35 thousand during the six months ended June 30, 2025.

Stock compensation expense related to performance stock units was $ 0.2 million during the six months ended June 30, 2025.

There are no further unrecognized stock compensation expenses related to restricted stock units remaining to be recognized at this time.

4 unchanged sentences

The fair value is determined based on the closing stock price of the Company’s common stock on the date granted and the related expense is recognized ratably over the vesting period.

A summary of activity of the restricted stock awards for the three months ended March 31, 2026 :

A summary of activity of the restricted stock awards for the six months ended June 30, 2026 :

Weighted Average Grant Date Fair Value

1 unchanged sentence

( 107,366 ) 1.75

Nonvested at March 31, 2026

Nonvested at June 30, 2026

107,366 $ 1.75

Stock compensation expense related to restricted stock awards was $ 0.1 million for the three months ended March 31, 2026 and $ 0.1 million for the three months ended March 31, 2025 .

Fair values of restricted stock vested during each of the three months ended March 31, 2026 and 2025 were $ 0.1 million for each period.

As of March 31, 2026 , there were unvested shares of common stock representing $ 0.3 million of unrecognized restricted stock grant expense which will be recognized over 9 months.

During the three months ended March 31, 2026 , the Company had an outstanding warrant to purchase up to 200,000 shares of the Company’s common stock at a price per share equal to $ 17.00 issued to a consultant for investor relations services to be provided over a five -year period.

Stock compensation expense related to restricted stock awards was $ 0.1 million for each of the three months ended June 30, 2026 and 2025, and $ 0.2 million for each of the six months ended June 30, 2026 and 2025 .

Fair values of restricted stock vested during each of the six months ended June 30, 2026 and 2025 were $ 0.2 million for each period.

As of June 30, 2026 , there were unvested shares of common stock representing $ 0.3 million of unrecognized restricted stock grant expense which will be recognized over 6 months.

During the six months ended June 30, 2026 , the Company had an outstanding warrant to purchase up to 200,000 shares of the Company’s common stock at a price per share equal to $ 17.00 issued to a consultant for investor relations services to be provided over a five -year period.

The warrants are immediately exercisable but are subject to repurchase by the Company until the required service is provided.

2 unchanged sentences

The fair value of the warrant was recorded to prepaid expenses and other current assets to be recognized over the service period.

During the three months ended March 31, 2026 , $ 0.1 million was recorded as expense and at March 31, 2026 , $ 0.6 million of cost has not been recognized and will be recognized over the next 2.0 years.

A summary of activity of warrants outstanding for the three months ended March 31, 2026 is as follows:

During the six months ended June 30, 2026 , $ 0.1 million was recorded as expense and at June 30, 2026 , $ 0.6 million of cost has not been recognized and will be recognized over the next 1.7 years.

A summary of activity of warrants outstanding for the six months ended June 30, 2026 is as follows:

Number of Warrants

2 unchanged sentences

200,000 $ 17.00

Outstanding at March 31, 2026

Outstanding at June 30, 2026

200,000 $ 17.00

Exercisable at March 31, 2026

Outstanding warrants at March 31, 2026 have a weighted average remaining contractual life of 2.0 years and will expire in March 2028.

The Outstanding shares of the warrants at March 31, 2026 have no intrinsic value.

Exercisable at June 30, 2026

200,000 $ 17.00

Outstanding warrants at June 30, 2026 have a weighted average remaining contractual life of 1.7 years and will expire in March 2028.

The shares underlying the warrants at June 30, 2026 have no intrinsic value.

For each of the identified periods, revenues are categorized as follows:

Three Months Ended

Six Months Ended

Product sales

6 unchanged sentences

$ 8,562 $ 7,075 $ 11,690

The following table disaggregates revenue from our clients by significant geographic area for the three months ended March 31, 2026 and 2025 :

The following table disaggregates revenue from our clients by significant geographic area for the three and six months ended June 30, 2026 and 2025 :

Three Months Ended

Six Months Ended

United States

$ 4,578 $ 3,822 $ 6,133 $ 8,621

1,772 1,370 2,483 2,132

1,216 712 1,670 1,103

453 425 665 723

397 286 592 360

146 131 147 131

Total revenue

$ 8,562 $ 7,075 $ 11,690 $ 13,399

During the three months ended March 31, 2026 and 2025 , less than 1 % and 14 % of revenues were derived from federal customers, respectively, while 21 % and 33 % of revenues were derived from state and local governments, respectively.

In addition, 51 % of revenues in the three months ended March 31, 2026 were sales made outside of the U.S.

compared to 25 % in the prior year.

At March 31, 2026 and 2025 , deferred revenue was $ 2.7 million and $ 1.9 mil lion, respectively.

These amounts consisted mainly of customer deposits in the amount of $ 1.8 million and $ 0.7 million for March 31, 2026 and 2025 , respectively, and prepaid multi-year maintenance plans for previously sold products which account for $ 0.9 million and $ 1.2 million for March 31, 2026 and 2025 , respectively, and pertain to services to be provided through 2035.

Revenue recognized during the three months ended March 31, 2026 and 2025 which pertained to revenue deferred in prior years was $ 80 thousand and $ 48 thousand, respectively.

During the three and six months ended June 30, 2026 less than 1 % of revenues were derived from federal customers.

For the three and six months ended June 30, 2025, 2 % and 8 % of revenues were derived from federal customers.

For the three months ended June 30, 2026 and 2025 37 % and 32 % of revenues were derived from state and local governments, respectively.

In addition, 47 % of revenues in the three and 48 % in the six months ended June 30, 2026, were sales made outside of the U.S.

compared to 47 % and 37 % in the prior year.

At June 30, 2026 and 2025 , deferred revenues were $ 1.9 million and $ 1.7 mil lion, respectively.

These amounts consisted mainly of customer deposits in the amount of $ 1.0 million and $ 0.5 million for June 30, 2026 and 2025 , respectively, and prepaid multi-year maintenance plans for previously sold products which account for $ 0.9 million and $ 1.2 million for June 30, 2026 and 2025 , respectively, and pertain to services to be provided through 2035.

Revenue recognized during the six months ended June 30, 2026 and 2025 which pertained to revenue deferred in prior years was $ 161 thousand and $ 114 thousand, respectively.

The balance of contract assets is driven by the difference in timing of when revenue is recognized from performance obligations satisfied in the current reporting period and when amounts are invoiced to the customer.

1 unchanged sentence

The following table provides the activity for the contract liabilities recognized:

Three Months Ended

Six Months Ended

Beginning Balance

5 unchanged sentences

SEGMENT REPORTING

The Company has a single reportable segment focused around providing clean-technology innovation focused on providing high-quality, renewably energized products.

The Company has a single reportable segment focused on providing innovative energy, mobility and smart cities technology products.

The Company’s chief operating decision-maker (the “CODM”), who is the Chief Executive Officer, assesses performance for the reportable segment and decides how to allocate resources using net income (loss) as the primary measure of profitability.

19 unchanged sentences

Based upon this review, the Company identified the following subsequent event that requires disclosure but did not require adjustment to the financial statements.

On April 27, 2026, the landlord for our San Diego headquarters exercised its right to terminate the lease by providing ninety days’ written notice.

The lease which was extended on January 26, 2026 and was scheduled to expire on September 30, 2026, will now terminate on July 26, 2026.

The Company is evaluating its options with respect to its headquarters' location and does not expect the termination to have material adverse effect on its operations.

Subsequent to June 30, 2026, the operating lease for the Company’s former headquarters in San Diego, California terminated on July 26, 2026 ( see Note 9 ).

The termination did not result in any termination penalties to the Company, and the Company has no ongoing obligations under that lease following the termination date.

On July 14, 2026, the Company entered into a new two -year lease, commencing July 15, 2026, for approximately 5,000 square feet in San Diego, California, which serves as its headquarters, with aggregate lease payments over the term of approximately $ 0.2 million.

Management ’ s Discussion and Analysis of Financial Condition and Results of Operations

26 unchanged sentences

Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Moreover, we operate in a very competitive and rapidly changing environment.

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.

3 unchanged sentences

Beam is a sustainable technology innovation company headquartered in San Diego, California with offices in the U.S.

in San Diego, California and Broadview, Illinois;

in San Diego, California, Yuma, Arizona, and Broadview, Illinois;

in Europe in Belgrade and Kraljevo, Serbia;

40 unchanged sentences

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);

3 unchanged sentences

Overall Business Outlook

Revenues for the three months ended March 31, 2026 were $3.1 million, a decrease of $3.2 million, compared to $6.3 million for the three months ended March 31, 2025.

The Company believes the decline is primarily a function of order timing rather than a fundamental change in demand for its products.

Historically, the first quarter is the Company’s lowest revenue period, as customer procurement processes, government budget cycles, and project approval timelines tend to be concentrated in later quarters.

As of March 31, 2026, the Company's backlog was approximately $9.0 million, an increase of $3.0 million from $6.0 million as of December 31, 2025.

More than half of the backlog is attributable to our Smart Cities products, approximately one-third to its energy storage products, and the balance to EV ARC™ and related products.

Management believes the strength of the current backlog is indicative of continued demand which we believe will lead to an improvement in revenue in subsequent quarters.

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 51% of revenue for the three months ended March 31, 2026 compared to 25% for the same period in 2025 as a result of our continued integration of our Serbian acquisitions.

Revenues from non-government commercial entities as a percentage of total revenue increased 48% year-over-year and represented 78% of total revenues for the three months ended March 31, 2026.

Sales to federal, state and local governments represented 22% of revenues for the three months ended March 31, 2026 compared to 47% for the same period in 2025.

The Company believes that as electric vehicle adoption continues to expand and its products reach a larger 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 reducing reliance on large individual orders of our EV ARC™ product from federal agencies, while continuing to pursue those opportunities.

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;

3 unchanged sentences

In Q2 2025, the contract was extended until October 31, 2030.

Although this purchasing contract is not being regularly used by U.S.

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.

1 unchanged sentence

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 announced being awarded a cooperative purchasing contract by Sourcewell, expanding it's offerings to U.S.

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.

In the three months ended March 31, 2026, we recorded revenues of $11 thousand for federal customers, compared to $894 thousand for the same period in 2025.

The decrease was primarily attributable to reduced purchasing activity by U.S.

federal agencies following changes in federal executive priorities relating to fleet electrification and EV charging infrastructure.

During prior periods, federal initiatives supporting EV adoption and charging infrastructure contributed to increased federal customer demand for our products.

The timing and extent of any future federal demand will depend in part on federal policy priorities, agency procurement activity, available funding and broader market adoption of electric vehicles and related charging infrastructure.

Our commercial, non-government, revenues increased as a percentage of our revenues from 53% to 78% from the first three months of 2025 compared to the first three months of 2026.

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.

7 unchanged sentences

customers in the United States using a sufficient amount of domestically sourced materials.

Furthermore, 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.

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.

2 unchanged sentences

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 now have facilities in Europe that can manufacture and sell Beam Global products for the European market.

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.

We also expect the EV market to continue to experience significant growth over the next decade which will require additional EV charging infrastructure.

We believe our products are uniquely positioned to benefit from this growth.

The new products we have brought to market offer values which are also not dependent upon US federal government investment.

The EU has mandated a transition to zero emission vehicles by 2035 and they are heavily focused on green and sustainable energy.

6 unchanged sentences

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.

Amiga, now 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.

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 when available for sale.

BeamSpot™ is currently in the process of being installed and we received our first order for that product within two months of it being launched.

In addition, EV ARC™, BeamBike™, BeamWell™ and BeamPatrol™ products have fulfilled the requirements to receive the CE mark (Conformité Européenne), a mandatory symbol indicating that a product meets European Union (EU) health, safety and environmental protection requirements, allowing it to be freely traded within the European Economic Area (EEA).

In 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.

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.

16 unchanged sentences

Results of Operations

Comparison of Results of Operations for the Three Months Ended March 31, 2026 and March 31, 2025

For the three months ended March 31, 2026, our revenues decreased 51% to $3.1 million compared to $6.3 million for the same period in 2025.

Revenues derived from non-government, commercial entities represented 78% of total revenues for the three months ended March 31, 2026 compared to 53% for the three months ended March 31, 2025.

During the three months ended March 31, 2026, $0.7 million, or 22% of product sales, were to federal, state and local government customers compared to 47% for the three months ended March 31, 2025.

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

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.

5 unchanged sentences

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 budget cycles.

However, the Company believes that continued growth in EV adoption, energy 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 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 rapidly deployable infrastructure solutions may be well-positioned to address customer needs in these markets;

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.

1 unchanged sentence

federal customer demand will return to prior levels.

Gross Loss (Profit).

The Company reported a gross loss of $0.4 million, representing a negative gross margin of 13.3% for the three months ended March 31, 2026, compared to a gross profit of $0.5 million, or a positive gross margin of 7.9% for the same period in 2025.

Gross results for the three months ended March 31, 2026 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.

Gross results for the three months ended March 31, 2025 included non-cash charges of $0.6 million for depreciation and $0.2 million for amortization of intangible assets.

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 and Impairment of Goodwill.

Total operating expenses were $6.3 million for the three months ended March 31, 2026, compared to $16.0 million for the same period in 2025.

The prior period included a non-cash goodwill impairment charge of $10.8 million, and no such charge was recorded for the three months ended March 31, 2026.

Adjusted operating expenses increased by approximately $1.0 million for the three months ended March 31, 2026 compared to the same period in 2025.

The increase 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.

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

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 March 31, 2026, we had cash of $2.0 million, compared to $1.0 million at December 31, 2025.

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.

5 unchanged sentences

Net cash provided by (used in) financing activities

For the three months ended March 31, 2026, our cash used in operating activities was $2.3 million compared to $1.8 million for the three months ended March 31, 2025.

Cash used in operations included a $0.1 million increase in prepaid expenses and other current assets, $0.8 million increase in inventory, $0.3 million decrease in operating lease liability, $0.1 million decrease in sales tax payable, and $0.2 million decrease in other long-term liabilities.

In addition, cash provided by operations included $1.7 million increase in accounts receivable, $0.4 million increase in accounts payable, $0.2 million increase in accrued expenses and $0.2 million in deferred revenue.

Cash used in investing activities in the three months ended March 31, 2026 was $47 thousand related to purchase of property and equipment.

Cash used in investing activities during the three months ended March 31, 2025 of $70 thousand was primarily related to $54 thousand of equipment purchases, with remainder related to funding of patent costs.

For the three months ended March 31, 2026, cash provided by our financing activities was $3.4 million related to sale of common stock under the Sales Agreement with B.

Cash used in financing activities during the three months ended March 31, 2025 of $15 thousand was related to repayments of a note payable of a vehicle lease.

Current a ssets decreased t o $19.2 million at March 31, 2026 from $21.0 million at December 31, 2025, primarily d ue to a decrease of $3.5 million in accounts receivable which includes an $1.8 million increase in the reserve for credit losses partially offset by a $1.0 million increase in cash.

C urrent liabilities increased to $13.0 million at March 31, 2026 from $12.1 million at December 31, 2025, due to increases of $0.3 million in accounts payable, $0.2 million in accrued expenses, $0.3 million in deferred revenue, and $0.2 million in operating lease liabilities partially offset by $0.1 million decrease in sales tax payable.

As a result, our working capi tal decreased $2.7 million to $6.2 million at March 31, 2026 from $8.9 million at December 31, 2025.

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.

Current a ssets decreased t o $17.7 million at June 30, 2026 from $21.0 million at December 31, 2025, primarily d ue 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 capi tal 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.

14 unchanged sentences

To date, Beam Global has not drawn on this line of credit.

On April 11, 2025, we entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B.

On April 11, 2025, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with B.

Riley Securities, Inc.

Riley”), pursuant to which we may issue and sell shares of our common stock from time to time, at our option, through B.

Riley as our sales agent, subject to certain terms and conditions.

Upon our delivery and 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 and us.

Riley may also sell the shares of common stock in negotiated transactions, subject to our prior approval.

Any shares sold will be sold pursuant to our effective shelf registration statement on Form S-3 (File No.

333-272396), as supplemented by a prospectus supplement dated April 11, 2025 and November 13, 2025, which allows us to sell up to $15.6 million in shares of our common stock (the “ATM Prospectus Supplement”).

We will pay B.

Riley and the Company.

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.

As of March 31, 2026, the Company has $11.9 million remaining available for issuance and sale under the ATM Prospectus Supplement to the Company’s effective shelf registration statement on Form S-3.

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.

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements