What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2023-03-31 compared with 2022-03-31 · 416 added, 361 removed, 201 unchanged (79% of the section changed)

Beam is a clean-technology

innovation company based in San Diego, California.

We develop, engineer, manufacture and sell sustainable, renewable energy infrastructure

products for transportation, energy storage, energy security and outdoor media.

Our renewable energy products enable vital and highly

valuable services in locations where it is either too expensive, too 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 Electric

Vehicle (EV) charging companies;

rather, we enable such companies by providing 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 chargers.

also do not compete with utilities.

Our products provide utilities with another tool to deliver reliable and low-cost electricity to EV

chargers and, in the case of a grid failure, to first responders and others, through our integrated emergency power panels.

storage technologies make commodity battery cells safer, longer lasting and more energy efficient whilst our battery management systems

(BMS) and packaging make batteries safe and usable in a variety of mobility, security and stationary applications.

Our 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 project.

Our clean-technology products are designed to replace a complicated, expensive, time consuming

and risk prone process with an easy, low total cost of ownership, robust and reliable product.

Beam’s renewable energy infrastructure products and proprietary technology solutions target four markets

that are experiencing significant growth with annual global spending in the billions of dollars.

Beam is a clean-technology innovation

company based in San Diego, California.

We develop, manufacture and sell high-quality, renewably energized infrastructure products for

electric vehicle charging infrastructure, energy storage, energy security, disaster preparedness and outdoor media advertising.

Vehicle (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, too 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;

we enable such companies by providing 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 chargers.

We also do not compete with utilities.

provide utilities with another tool to deliver reliable and low-cost electricity to EV chargers and, in the case of a grid failure, to

first responders and others, through our integrated emergency power panels.

We also provide energy storage technologies that make commodity

battery cells safer, longer lasting and more energy efficient and our battery management systems (BMS) and associated packaging make batteries

safe and usable in a variety of mobility, energy-security and stationary applications.

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 clean-technology products are designed to replace a complicated,

expensive, time consuming and risk prone process with an easy, low total cost of ownership, robust and reliable product.

Beam’s renewable energy

infrastructure products and proprietary technology solutions target four markets that are experiencing significant growth with annual

global spending in the billions of dollars.

electric vehicle charging infrastructure;

energy storage;

energy storage solutions;

energy security and disaster preparedness;

media advertising.

outdoor media advertising.

The Company focuses on creating

high-quality renewable energy products for EV charging, energy storage, energy security and outdoor media that are rapidly deployable,

have diverse use cases and are attractively designed.

We believe that there is a clear need for a rapidly deployable and highly scalable

EV charging infrastructure, and that our EV ARC™ and Solar Tree™ products fulfill that requirement.

We are agnostic as to

the EV charging service equipment as we do not sell EV charging, rather we sell products which enable it.

Our EV ARC™ and Solar

Tree™ products replace the infrastructure required to support EV chargers, not the chargers themselves.

Our ability to make commodity

battery cells safer, longer lived and more energy efficient is, we believe, a significant differentiator as we move to an increasingly

electrified and untethered world.

high-quality renewable energy products that are rapidly deployable, have diverse use cases and are attractively designed.

We believe that

there is a clear need for rapidly deployable and highly scalable EV charging infrastructure, and that our EV ARC™ and Solar Tree™

products fulfill that requirement.

We are agnostic as to the EV charging service equipment as we do not sell EV charging, rather we sell

products which enable it.

Our EV ARC™ and Solar Tree™ products replace the infrastructure required to support EV chargers,

not the chargers themselves.

Our ability to make commodity battery cells safer, longer lived and more energy efficient is, we believe,

a significant differentiator as we move to an increasingly electrified and untethered world.

We believe our chief differentiators

our patented, renewable energy products dramatically reduce the cost, time and complexity of the installation and operation of EV charging infrastructure and outdoor media platforms when compared to traditional, utility grid tied alternatives;

our first-to-market advantage for EV charging infrastructure products that are rapidly deployed and require no construction or electrical work on site;

our proprietary energy storage solutions which proved energy dense,

safe and cost effective battery systems to a variety of applications including EVs, micro mobility, maritime, aviation, drones, stationary

and energy security systems;

our products’ ability to operate during grid outages and to provide a source of EV charging and emergency power during times of emergency or other grid interruptions;

our ability to create new and patentable products using our own proprietary technology and parts, along with other commonly available engineered components, which create a further barrier to entry for our competition.

our patented, renewably energized products

dramatically reduce the cost, time and complexity of the installation and operation of EV charging infrastructure when compared to traditional,

utility grid tied alternatives;

our proprietary and patented energy storage solutions;

our first-to-market advantage with

EV charging infrastructure products which are renewably energized, rapidly deployed and require no construction or electrical work on

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 ability to add sufficient electrical capacity to provide for the

significant increase demand brought by EVs, 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 continuously create new and patentable inventions which are marketable and a complex integration of our proprietary technology and parts, and other commonly available engineered components, which create a further barrier to entry for our competition.

Products and Technologies

Electric vehicle charging infrastructure

All of our infrastructure

products currently incorporate the same underlying technology with a built-in renewable energy source in the form of attached solar panels

and/or a light wind generator, along with battery storage which enables our products to generate and store all of their own electricity

while enabling them to operate without connecting to the grid.

Our products are also able to connect to the grid if a customer values

that capability.

All of our infrastructure products

currently incorporate the same underlying technology with a built-in renewable energy source in the form of attached solar panels and/or

a light wind generator, along with battery storage which enables our products to generate and store all of their own electricity while

operating without connecting to the utility grid.

Our products are also able to connect to the grid if a customer values that capability.

We believe that the U.S.

and global utility grids lack sufficient capacity to supply enough electricity to all the new

EVs and other electrical devices which are becoming increasingly available to consumers, especially considering the number of national

and state governments that have announced future bans on the sale of gasoline and diesel vehicles, such as Norway starting in 2025, and

Germany starting in 2030, with most bans being put in place no later than 2040.

Even locations with a grid connection often lack circuits

which are large enough to support EV charging in any meaningful way.

For example, parking lots might have enough electrical capacity to

power lighting but not enough to power EV charging.

Beam products provide that power without a requirement to increase the electrical

grid capacity at a site which can often be, and we believe will increasingly be, expensive, disruptive, complex and time consuming.

and global utility grids lack sufficient capacity to supply enough electricity to all the new EVs and other electrical

devices which are becoming increasingly available to consumers, especially considering the number of national and state governments that

have announced future bans on the sale of gasoline and diesel vehicles, as early as 2025 in Norway, and 2030 in Germany, with most bans

being put in place no later than 2040.

Even locations with a grid connection often lack circuits which have enough capacity to support

EV charging in any meaningful way.

For example, parking lots might have enough electrical capacity to power lighting but not enough to

power EV charging.

Beam products provide that power without a requirement to increase the electrical grid capacity at a site which can

often be, and we believe will increasingly be, expensive, disruptive, complex and time consuming.

We believe that there will

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provide a similar solution for this need as effectively as our patented products which are listed below:

EV ARC™ (Electric Vehicle Autonomous Renewable Charger) – Our most popular product, we believe this patented product is the world’s first and only transportable, solar powered EV charger on the market.

The EV ARC™ generates and stores all its own energy and supports Level I, Level II and DC Fast Charging (requiring 4 interconnected units).

The electronics are elevated under the solar canopy which makes the unit flood-proof up to nine and a half feet of water.

It does not need a grid connection and therefore needs no trenching, switch gear, or transformer upgrades.

Because there is no foundation, trench or electrical infrastructure, the EV ARC™ typically does not require a building or any other kind of permit, and it is easily transportable if a different location is desired.

EV ARC™ products can charge between one and six EVs simultaneously and a single unit can provide EV charging to as many as 12 parking spaces.

Because the EV ARC™ systems are

solar powered, they are not disrupted during grid interruptions such as black-outs or brown-outs which is becoming increasingly important

as more transportation relies on electricity for fuel.

There are no utility bills to pay and, as the number of EVs increase at a host

location, more EV ARC™ units can be added without disruptive planning or required permits from the utility or local governments.

Current grid-tied EV chargers are often placed in locations where a suitable circuit is most easily accessed and cheapest to install,

rather than in the most convenient and desirable locations for EV drivers.

EV ARC™ systems do not need to be connected to the grid

and as such, can be placed anywhere, making them a rapidly deployable and highly scalable solution to EV charging infrastructure.

In 2019, we deployed our first EV ARC™

DC Fast Charging units that provide a 50kW DC fast charge to electric vehicles which provides a

ARC™ (Electric Vehicle Autonomous Renewable Charger) – Our most popular product, we believe this patented product

is the world’s first and only transportable, solar powered EV charging infrastructure product on the market that fits in

a parking space but does not reduce available parking.

The EV ARC™ generates and stores all its own energy and supports Level I,

Level II and DC Fast Charging (requiring 4 interconnected units).

The electronics are elevated under the solar array which makes the

unit flood-proof in up to nine and a half feet of water.

It does not need a grid connection and therefore needs no trenching, switch

gear, or transformer upgrades.

Because there is no foundation, trench or electrical infrastructure, the EV ARC™ typically does

not require a building or any other kind of permit, and it is easily transportable if a different location is desired.

products can charge between one and six EVs simultaneously and a single unit can provide EV charging to as many as 12 parking spaces.

Because the EV ARC™ systems are solar powered, they

are not disrupted during grid interruptions such as black-outs or brown-outs which is becoming increasingly important as more transportation

relies on electricity for fuel.

There are no utility bills to pay and there is generally no disruptive planning or required permits from

the utility or local governments.

Current grid-tied EV chargers are often placed in locations where a suitable circuit is most easily

accessed and cheapest to install, rather than in the most convenient and desirable locations for EV drivers.

EV ARC™ systems do

not need to be connected to the grid and as such, can be placed anywhere, making them a rapidly deployable and highly scalable solution

for EV charging infrastructure deployed where it is wanted and needed rather than where it is cheapest and easiest to connect to the

utility grid.

2019, we deployed our first EV ARC™ DC Fast Charging units that provide a 50kW DC fast charge to electric vehicles providing a

range of up to 1,100 miles per day .

We also have a patent pending on a version of the EV ARC TM which, when fully developed,

will be able to provide wireless charging to suitably equipped EVs.

Because EV ARC™ systems are highly

visible, we believe that they are an ideal platform for sponsored deployments wherein networks of EV ARC™ systems are deployed and

owned by us and monetized through sponsorship and naming-rights agreements with corporate sponsors who are eager to have their brands

associated with renewable, clean-energy by sponsoring a city-wide sponsorship of free EV charging through what we refer to as the “Driving

on Sunshine” network which we intend to deploy in highly populated areas where we will deliver free EV charging while monetizing

the network of EV ARC TM systems through corporate sponsorship programs.

Our products also create significant reductions in

greenhouse gas and CO2 emissions which, we believe, is a further inducement to encourage corporations to sponsor our network as they may

benefit from the carbon offsets generated by a network of EV ARC™ systems.

SolarTree® Products – This patented product

is used for larger scale solar powered EV charging applications.

We believe our Solar Tree® product to be the only single

column, sun tracking, solar support structure with integrated energy storage, EV charging and media platforms available today.

design of our Solar Tree® systems are ideal for charging electric buses, electric heavy-duty vehicles, electric agricultural

equipment, public transportation and electric vehicles used in the construction industry.

In 2020, we launched our new generation of

Solar Tree® DCFC products with on-board battery storage that do not require a utility grid connection (though grid connection

capability is available).

As a result, these products can be rapidly deployed and enable EV charging in remote locations where it

would otherwise be impossible or economically infeasible, such as rest areas, park and ride locations, construction sites, or any

location with insufficient grid connectivity.

The costs and environmental impact associated with delivering a 50kW or greater

circuit to a remote rest area may be prohibitive, whereas a Solar Tree® DCFC can be deployed with minimal site

We also have a patent pending on a version of the EV ARC™ which, when fully developed, will

be able to provide wireless charging to suitably equipped EVs.

EV ARC™ systems are highly visible, we believe that they are an ideal platform for sponsored deployments wherein networks of EV

ARC™ systems are deployed and owned by us and monetized through sponsorship and naming-rights agreements with corporate sponsors

who are eager to have their brands associated with renewable, clean-energy by sponsoring a city-wide sponsorship of free EV charging

through what we refer to as the “Driving on Sunshine” network.

We intend to deploy our “Driving on Sunshine”

network in highly populated areas where we will deliver free EV charging while monetizing the network of EV ARC™ systems through corporate

sponsorship programs.

Our products also create significant reductions in greenhouse gas and CO2 emissions which, we believe, is a further

inducement to encourage corporations to sponsor our network as they may benefit from the carbon offsets generated by a network of EV

ARC™ systems.

SolarTree® Products – This patented product is used for larger scale solar powered EV charging applications.

We believe our Solar Tree® product to be the only single column, sun tracking, solar support structure with integrated energy storage, EV charging and media platforms available today.

The design of our Solar Tree® systems are ideal for charging electric buses, electric heavy-duty vehicles, electric agricultural equipment, public transportation and electric vehicles used in the construction industry.

In 2020, we launched our new generation of Solar Tree® DCFC products with on-board battery storage that do not require a utility grid connection (though grid connection capability is available).

As a result, these products can be rapidly deployed and enable EV charging in remote locations where it would otherwise be impossible or economically infeasible, such as rest areas, park and ride locations, construction sites, or any location with insufficient grid connectivity.

The costs and environmental impact associated with delivering a 50kW or greater circuit to a remote rest area may be prohibitive, whereas a Solar Tree® DCFC can be deployed with minimal site disturbance.

We believe our Solar Tree® products

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experienced with traditional signage.

The National Electric Vehicle Infrastructure program

(NEVI) requires 600kW of DC fast charging every 50 miles on US highways.

We do not believe that the utility grid can provide this level

of capacity in all locations, especially not in remote parts of the country.

We believe that our Solar Tree® product could contribute

to providing a solution in many of the underserved locations.

We believe that this is a good example of the sort of opportunity for growth

that the Solar Tree® product can contribute to Beam Global.

EV-Standard™ Product – On December 31, 2019, we were issued a patent for this product from the United States Patent and Trademark Office.

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Densely populated areas do not have large open parking lots and will require EV charging solutions where drivers park on the street.

The EV Standard TM can provide that without having to invest in expensive, disruptive and time-consuming construction or electrical work.

The EV Standard TM can provide that without investment in expensive, disruptive and time-consuming construction or electrical work.

This product will continue to charge during grid failures and greatly reduces the cost of electricity when compared to an all grid-powered solution.

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We believe our patented EV Standard™ product, when developed, will create a significant additional opportunity for product sales and revenue generation.

UAV ARC™ drone charging product – On November 24, 2020, we were issued a patent for this product from the United States Patent and Trademark Office.

This product is currently in development.

The UAV ARC™ is a rapidly deployable, highly scalable, range extending drone recharging product which forms a network intended to provide a range-extending source of battery recharging for drones that would otherwise be limited by range or payload restrictions.

UAV ARC™ also captures various data from the drone, such as, its state of health.

This and other information will be transmitted to Beam and potentially can be monetized through a variety of business models such as making such data available to the operator of the drone fleet.

Beam is considering business models, including a subscription-based model for fuel and data.

The ability to recharge on a network of UAV ARC™ products deployed on rooftops in built up areas, undeveloped regions or at sea (marinized version) should dramatically increase the potential range and utility of UAVs.

Each UAV ARC™ unit generates and stores all its power from renewable sources so drones will receive clean renewable electricity with no cost-per-unit of energy.

The units are completely independent from the power grid, allowing them to provide charging during grid outages and in remote locations.

UAV ARC™ will be deployed without the requirement for construction or electrical work.

Energy Storage

– The global lithium-ion battery market size

is projected to grow from USD 41.1 billion in 2021 to USD 116.6 billion by 2030 ;

it is expected to grow at a CAGR of 12.3% from 2021 to 2030 according to MarketsandMarkets Analysis.

We are living in an

increasingly electrified world and more of the devices we rely on are no longer connected to a wall socket or any kind of utility

This untethering requires energy storage to be more energy dense and packaged in increasingly smaller and lighter

Physics dictates that the storage and release of electrical energy will create a thermal event.

In extreme cases this has

led to some well publicized fires.

Our energy storage business unit creates high

performance energy storage solutions used in electric vehicles, micro mobility, aviation, robotics, stationary storage and maritime

applications.

We believe that we are unique in the EV charging industry in that we have our own proprietary energy storage

Our proprietary and patented passive thermal management, modular platform architecture, and scalable battery management

systems (BMS), enhance safety and performance while extending battery life and reducing lifetime stored energy costs.

safe, scalable and high-powered energy storage solutions which have enabled electrified applications in many formats for Fortune 100

companies in the U.S and Internationally.

Energy Storage Solutions

global lithium-ion battery market size is projected to grow from USD 41.1 billion in 2021 to USD 116.6 billion by 2030;

expected to grow at a compound annual growth rate (CAGR) of 12.3% from 2021 to 2030 according to MarketsandMarkets Analysis.

We are living

in an increasingly electrified world and more of the devices we rely on are no longer connected to a wall socket or any kind of utility

This untethering requires energy storage to be more energy dense and packaged in increasingly smaller and lighter formats.

Physics dictates that the storage and release of electrical energy will create heat.

In extreme cases this can lead to a chain reaction

within a group of battery cells that can be difficult to stop, known as “thermal runaway”, which has led to some well publicized

Our energy storage products create high performance energy storage solutions used in EV charging, electric vehicles, micro mobility,

aviation, medical devices, robotics, stationary storage and maritime applications.

We believe that we are unique in the EV charging industry

in that we use our own proprietary energy storage solutions in our EV ARC™ units.

Our proprietary and patented passive thermal management,

modular platform architecture, and scalable battery management systems (BMS), enhance safety and performance to prevent thermal events,

while extending battery life and reducing lifetime stored energy costs.

We provide safe, scalable and high-powered energy storage solutions

which have enabled electrified applications in many formats for Fortune 100 companies in the U.S and Internationally.

Energy Security and Disaster Preparedness

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government has evidence of intrusions by nefarious nation state actors.

these events constitute significant vulnerabilities which are expensive, disruptive, inconvenient, and dangerous.

As we electrify our

transportation fleets, these events may become catastrophic.

Wall Street Journal article reported that attacks on the US power grid rose 71% in 2022 over 2021.

A division of the grid oversight body

known as the North American Electric Reliability Corporation found that ballistic damage, intrusion and vandalism largely drove this increase.

All of these events constitute significant vulnerabilities which are expensive, disruptive, inconvenient, and dangerous.

As we electrify

our transportation fleets, these events may become catastrophic.

has a Strategic Petroleum Reserve (SPR) to ensure that it never

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In fact, many markets are operating at capacity during peak

Beam’s products provide

a hedge against grid failures.

Our EV ARC™ and Solar Tree® provide locally generated and stored electricity and are a highly

robust and secure source of power to EVs.

We are engaged with government officials at every level to increase awareness of our products

and the benefits they can bring to energy security.

We are increasingly hearing suggestions that 25% of all EV charging infrastructure

should be independent of the centralized grid.

We believe that our products are uniquely positioned to fulfill this need.

contracts with California, Florida, New York City, and the Federal government through our General Services Administration (GSA) Multiple

Award Schedule Contract should ideally position us to take advantage of what we believe will be a significant increase for the requirements

of robust and sustainable EV charging infrastructure.

The Biden administration has stressed increased commitment to:

products provide a hedge against grid failures.

Our EV ARC™ and Solar Tree® currently provide, and our EV Standard™ will provide,

locally generated and stored electricity and are a highly robust and secure source of power to EVs.

We are engaged with government officials

at every level to increase awareness of our products and the benefits they can bring to energy security.

We are increasingly hearing

suggestions that 25% of all EV charging infrastructure should be independent of the centralized grid.

We believe that our products are

uniquely positioned to fulfill this need.

Our current contracts with California, Florida, New York City, and the Federal government through

our General Services Administration (GSA) Multiple Award Schedule Contract should ideally position us to take advantage of what we believe

will be a significant increase for the requirements of robust and sustainable EV charging infrastructure.

The Biden administration has

stressed increased commitment to:

American made products

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We believe that our Driving on Sunshine network will become more valuable

as more EVs are purchased and used by the public.

In 2020, the Company entered

into a collaboration agreement with the City of San Diego to deploy our solar-powered EV charging infrastructure products across San Diego

as more EVs are used by the public.

In 2020, the Company entered into

a collaboration agreement with the City of San Diego to deploy our solar-powered EV charging infrastructure products across San Diego

(Driving on Sunshine network) and we have engaged a consultant to identify potential sponsors to take advantage of this naming rights

The consultant has elected not to take fees from us on retainer and instead provide services for a percentage of the revenues

we derive from the Driving on Sunshine network in the event that we are successful with this endeavour.

The percentage payment is calculated

on and in addition to our pricing and therefore not dilutive to our profitability.

We view this industry expert’s willingness to

work for success only fees as an indication that this business model continues to have merit.

Target Markets

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include the U.S.

Federal Government, including the United States Marine Corps, and many other federal agencies, the State of California,

which is a conglomeration of California state agencies and municipalities, and the City of New York.

The most attractive markets for Beam

have been New York and California, but we are now seeing growing opportunities throughout the U.S.

Federal Government, including the Department of Homeland Security, United States Marine Corps, and many other federal

agencies, the State of California, which is a conglomeration of California state agencies and municipalities, and the City of New York.

Historically, the most attractive markets for Beam have been New York and California, but we have expanded the sale of units to 29 states

throughout the U.S., as well as Puerto Rico and Canada.

Currently the largest customer using our products is the US Army through our contract

with TechFlow followed by the Veteran’s Administration purchased through the General Services Administration.

The factors below have been

considered in determining favorable markets for our products:

Political Factors .

Political statements, mandates and laws supporting policy to reduce carbon emissions through the electrification of transportation.

State and local governments focusing on the transportation industry and the electrification of fleet vehicles to reduce carbon emissions.

Economic Factors .

The use of grants and incentives to advance the adoption of EVs and EV charging infrastructure.

Regions with difficult, time consuming permitting and regulatory requirements and high construction costs.

Our ability to deploy

EV charging infrastructure with a fixed cost in environments with difficult, time consuming permitting and regulatory requirements and

high construction and electrical costs.

Speed to deploy.

As EV adoption increases the requirement for EV charging infrastructure becomes more acute and

We are able to provide EV charging to locations in many cases in less time than it would take them to pull permits for

grid-tied solutions.

Because we are not constrained by local construction, electrical and permitting requirements we are

able to scale up EV charging deployments in a manner which is not feasible with traditional approaches because of construction, design

and engineering challenges inherent in in-the-ground solutions.

Sociocultural Factors .

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Consumer Products.

Auto manufacturers are delivering more diverse and

popular EV models such as Ford’s F150 Lightning, GM’s electric Hummer, Rivian’s RT1, Ford’s E Mustang and Kia’s

Many of these factors have

been important since the early days of EV adoption.

Government tail winds are stronger than ever with many nations and states announcing

the outright banning of gasoline and diesel vehicle sales during the next two decades.

In the U.S., California has announced a ban starting

in 2035 and the State of Washington has a ban starting in 2030, less than eight years away.

In addition, automotive manufacturers have

started production of electric vehicles which are more consistent with traditional car models that have been popular with U.S.

Ford announced an all-electric F150 pickup truck, available in 2022.

Since 1981, the F150 has been the most popular vehicle in the US

and the top selling pickup truck for forty-two years in a row.

The electric version of the F150 will have the same towing and payload

capacity and will be able to accelerate from 0 to 60 mph in under four seconds.

GM has announced an electric Hummer which will have 1000HP

(compared to the gasoline version with 300HP) with a similar acceleration rate as the F150.

A record number of new electric vehicles in

the light-, medium- and heavy-duty categories will be coming to market in 2022.

We believe that the consumer

will adopt EVs faster than many experts are predicting and that as a result, the requirement for growth in EV charging infrastructure

will be more urgent than is currently forecasted or contemplated.

We also believe that as the easiest (low hanging fruit) locations for

grid-tied chargers are used up, the process of deploying traditionally installed and powered grid-tied EV chargers will become more expensive

and time consuming.

At the same time, we believe that we will continue to reduce the costs to produce our products and become faster at

deploying them.

During a period of significant and increasing demand, we believe that our scalability and rapid deployment will create

a significant advantage for our products and our position in the market.

Auto manufacturers are delivering more diverse and popular EV models such as Ford’s F150 Lightning, GM’s electric Hummer, Rivian’s RT1, Ford’s E Mustang and Kia’s EV6

Political Factors .

Political statements, mandates and laws supporting policy to reduce carbon emissions through the electrification of transportation.

State and local governments focusing on the transportation industry and the electrification of fleet vehicles to reduce carbon emissions.

Many of these factors have been

important since the early days of EV adoption.

Government tail winds are stronger than ever with many nations and states announcing the

outright banning of gasoline and diesel vehicle sales during the next two decades.

In the U.S., California, Oregon and the State of Washington

have announced bans starting in 2035, less than seven years from now.

In addition, automotive manufacturers have started production of

electric vehicles which are more consistent with traditional car models that have been popular with U.S.

Ford is selling an

all-electric F150 pickup truck which launched in 2022.

Since 1981, the F150 has been the most popular vehicle in the US and the top selling

pickup truck for forty-two years in a row.

The electric version of the F150 has the same towing and payload capacity and will be able

to accelerate from 0 to 60 mph in under four seconds.

GM has launched an electric Hummer which has 1000HP (compared to the gasoline version

with 300HP) with a similar acceleration rate as the F150.

A record number of new electric vehicles in the light-, medium- and heavy-duty

categories were introduced in 2022.

We believe that the consumer will

adopt EVs faster than many experts are predicting and that as a result, the requirement for growth in EV charging infrastructure will

be more urgent than is currently forecasted or contemplated.

We also believe that as the easiest (low hanging fruit) locations for grid-tied

chargers are used up, the process of deploying traditionally installed and powered grid-tied EV chargers will become more expensive and

time consuming.

At the same time, we believe that we will continue to reduce the costs to produce our products and become faster at deploying

During a period of significant and increasing demand, we believe that our scalability and rapid deployment will create a significant

advantage for our products and our position in the market.

We have recently demonstrated our ability to have a single person deploy two

of our EV ARC™ systems, each capable of supporting as many as six EV chargers, in a customer parking lot at the same time.

Growth Strategy

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is expected to grow at a rapid pace.

According to Goldman Sachs, the EV infrastructure market is expected to receive $6 trillion in investments.

Bloomberg forecasts 559M EVs on the road by 2040.

In addition, General Motors has committed to only offer zero-emissions vehicles by 2035.

California’s Governor has also issued an executive order that by 2035, all new cars and passenger trucks sold in California must

be zero-emission vehicles.

Massachusetts and New Jersey have followed suit and others are expected to follow .

We currently operate in three rapidly growing markets:

EV charging infrastructure, outdoor media advertising and energy security and disaster

preparedness.

Our products are being used in 29 U.S.

states, 170 municipalities, three international countries, and the U.S.

Virgin Islands

in the Caribbean.

We believe that our products have a global appeal and that we are only at a very early stage in t he development

of our sector.

We believe that our strategic growth plan will enable us to increase our user base and revenues while increasing profitability.

Research reports indicate that the EV infrastructure market is expected to reach $222 Billion

by 2030 which is a 31% compound annual growth rate (CAGR) between 2023 – 2030.

California approved a plan for nearly $2.9

billion in funding for 90,000 new electric vehicle chargers in the state in December 2022 through its California Energy Commission.

In addition, General Motors has committed to only offer zero-emissions vehicles by 2035 and six major automakers including Ford,

Mercedes-Benz, Volvo and 3 others, along with 30 nations, signed a pledge to eliminate sales of new gas and diesel-powered cars by

2035 in leading markets.

California’s Governor has also issued an executive order that by 2035, all new cars and passenger

trucks sold in California must be zero-emission vehicles.

Massachusetts and New Jersey have followed suit, as has the European

Union, and others are expected to follow .

17 other states bind their emissions

standards to California’s.

We currently operate in four rapidly growing markets:

charging infrastructure, energy storage (batteries) outdoor media advertising and energy security and disaster preparedness.

products are being used in 29 U.S.

states, over 170 municipalities, three international countries, Puerto Rico and the U.S.

Islands in the Caribbean.

We believe that our products have a global appeal and that we are only at a very early stage in t he

development of our sector.

We believe that our strategic growth plan will enable us to increase our user base and revenues while

increasing profitability.

Our strategic growth plan includes:

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specialists, or Clean Mobility Experts, to ensure their needs are met.

Our sales process is heavily

focused on educating prospective customers about our products.

We have been heavily investing more in marketing materials and videos,

and we have engaged a public relations firm to help us to educate the market.

Beam uses research to identify potential customers, as well

as contacts established through trade show events and in-bound calls.

We also utilize a combination of regional and industry focused campaigns,

nurturing campaigns, speaking opportunities, product demonstrations, press releases and social media (Facebook, Instagram, Twitter, and

Beam is, we believe, an industry leader in the sustainable EV charging infrastructure space, and we use our website and social

media to highlight our innovative products and offerings.

Our sales process is

heavily focused on educating prospective customers about our products.

We have been heavily investing more in marketing materials and

videos, and we have engaged a public relations firm to educate the market.

Beam uses research to identify potential customers,

as well as contacts established through trade show events and in-bound calls.

We also utilize a combination of regional and industry focused

campaigns, nurturing campaigns, speaking opportunities, product demonstrations, press releases and social media (Facebook, Instagram,

Twitter, and LinkedIn).

Beam is, we believe, an industry leader in the sustainable EV charging infrastructure space, and we use our website

and social media to highlight our innovative products and offerings.

The sale of our products often

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Rule 179 Depreciation or Bonus Depreciation - allows our customers to accelerate depreciation of their solar energy system up to 80% of the cost of the system in the first year it is in service.

Rule 30 C is a tax credit of up to 30% of the cost of the EVSE

The recent Bipartisan Infrastructure Law includes an update to an incentive

which helps make EV chargers more accessible for commercial use.

The tax credit for commercial entities now can be used for up to $100,000

per deployment.

In addition, President Biden

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Some of the federal and state funding programs include:

A federal infrastructure bill passed in November 2021 designated $7.5

billion for the deployment of 500,000 EV charging stations across the US, $5.0 billion of which will be made available under the new

National Electric Vehicle Infrastructure (NEVI) Formula Program which is allocated to state transportation departments and an

additional $2.5 billion is available in grant opportunities to help connect rural and marginalized communities to electric vehicles.

The Federal Government released a guidance manual on how NEVI funds

should be spent in the first quarter of 2022.

A picture of Beam Global’s products was used to illustrate the front cover of that

In January 2022, Governor Newsom presented the California Blueprint, which is his budget proposal that includes $6.1 billion for electric vehicle related initiatives.

A federal infrastructure bill passed in November 2021 designated $7.5 billion for the deployment of 500,000 EV charging stations across the US, $5.0 billion of which will be made available under the new National Electric Vehicle Infrastructure (NEVI) Formula Program which is allocated to state transportation departments and an additional $2.5 billion is available in grant opportunities to help connect rural and marginalized communities to electric vehicles.

The Federal Government released a guidance manual on how NEVI funds should be spent in the first quarter of 2022.

A picture of Beam Global’s products was used to illustrate the front cover of that manual.

California approved a plan for nearly $2.9 billion in funding for 90,000 new electric vehicle chargers in the state in December 2022 through its California Energy Commission.

The Federal Highway Administration (FHWA) of the US Department of Transportation published a final rule on February 29, 2023 establishing regulations setting minimum standards and requirements for projects funded under the NEVI Program which will be effective March 30, 2023 through its California Energy Commission.

Department of Transportation’s new Charging and Fueling Infrastructure (CFI) Discretionary Grant Program, established by the Bipartisan Infrastructure Law, will provide $2.5 billion over five years to a wide range of applicants, including cities, counties, local governments, and tribes.

This round of funding makes up to $700 million from Fiscal Years (FY) 2022 and 2023 funding available to strategically deploy EV charging and other alternative vehicle-fueling infrastructure projects in publicly accessible locations in urban and rural communities, as well as along designated Alternative Fuel Corridors (AFCs)

We believe that because our

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Major Customer Contracts

In 2021 and 2020, we had three

major customer contracts, the State of California, the General Services Administration (GSA) Multiple Award Schedule (MAS) and Electrify

America, LLC that accounted for a substantial portion of our revenue.

Contract with the California

Department of General Services .

On June 12, 2015, our bid for solicitation was accepted by the California Department of General

Services (the “California Contract”).

The term of the California Contract was initially for one year with two extension options

for one year.

California elected to exercise both options to extend.

In June 2018, the California Contract was renewed for up to four

more years (two years with two additional one-year options), and its scope was expanded to include more of our products, including our

EV ARC™ DC Fast Charging Electric Vehicle Autonomous Renewable Charger, with a California estimated value of over $20 million.

January 2021, the contract was extended through June 2022 and was expanded to be utilized by agencies across the U.S.

The California Contract

permits California state and local government agencies, including cities, counties, special districts, California State universities,

University of California systems, K-12 school districts, and community colleges, to purchase EV ARCs™, ARC Mobility Trailers, and

related accessories from us.

We have sold 161 EV ARCs TM for a total of $11,187,513 through December 31, 2021, which includes

75 units totaling $5,097,631 in 2021.

In 2022 and 2021, we had two

major customer contracts, the State of California and the General Services Administration (GSA) Multiple Award Schedule (MAS) that accounted

for a substantial portion of our revenue.

with the California Department of General Services .

The California Contract permits California state and local government agencies,

including cities, counties, special districts, California State universities, University of California systems, K-12 school districts,

and community colleges, to purchase EV ARCs™, ARC Mobility™ Trailers, and related accessories from us.

The initial term of

our contract with the California Department of General Services (the “California Contract”) was for one year with two extension

options for one year, which were exercised.

In June 2018, the California Contract was renewed for up to four more years (two years with

two additional one-year options), and its scope was expanded to include more of our products, including our EV ARC™ DC Fast Charging

Electric Vehicle Autonomous Renewable Charger, with a California estimated value of over $20 million.

In January 2021, the contract was

extended through June 2022 and was expanded so that it could be utilized by government agencies across the U.S.

In June 2022, we were

awarded a new three-year state-wide contract which can be used by state, local and municipal government entities throughout the U.S.

We have sold 234 EV ARCs™ through this contract, for a total of $16.4 million through December 31, 2022, of which 73 units totaling $5.2

million were sold in 2022.

GSA MAS Contract .

This is a five-year contract effective as of November 1, 2020.

It was awarded by the GSA following an extensive evaluation process.

contract simplifies the federal procurement process and ensures best pricing for our customers.

We sold 23 EV ARCs through this contract

totaling $1,853,374 in 2021.

Electrify America Contract.

In October 2019, Beam responded to a Request for Proposal with Electrify America, a subsidiary of Volkswagen Group of America.

21, 2020, Beam was awarded a contract for 30 EV ARC units to be deployed in rural areas in central California.

During the years ended

December 31, 2021 and 2020, we recognized revenues totaling $1,833,698 for this contract.

Beam continues to develop a business relationship

with Electrify America.

We do not compete with

EV charging companies or utilities.

In fact, we support the major EV charging product and service providers by factory integrating

installing their products into ours prior to deployment.

We have deployed ChargePoint, Blink, Enel, Electrify America and many other

quality charging brands.

We also do not compete with utilities who use our product as another tool to provide electricity, primarily

for EV charging to their customers.

We currently have six utility customers and anticipate that that number will grow as more

utilities become engaged in EV charging and also in deploying distributed generation resources to enhance grid stability.

aware of other companies that provide an infrastructure product similar to ours, utilizing solar energy to power EV charging in a

rapidly deployed and highly scalable construction-free format.

We have responded to several competitively bid contracts issued by,

for example, New York City, California, Florida and Massachusetts where we were the only responding company with products that met

the specifications cited in the Request For Proposal.

We do compete with a number of companies which are involved in the

design, construction and installation of fixed grid-connected EV charging stations that depend on the utility grid for a source of

power, and on the construction and civil and electrical engineering services for the installation of traditional infrastructure.

challenge is to market our products to ensure that potential customers are aware of our product offering.

The GSA MAS contract is a five-year contract effective as of November 1, 2020, awarded by the GSA following an extensive evaluation process.

This contract simplifies the federal procurement process and ensures best pricing.

We sold 96 EV ARCs™ through this contract totaling

$7.9 million in 2022.

We do not compete with EV charging

companies or utilities.

In fact, we support the major EV charging product and service providers by factory integrating their products

onto ours prior to deployment.

We have deployed ChargePoint, Blink, Enel, Electrify America and many other quality charging brands.

also do not compete with utilities who use our product as another tool to provide electricity, primarily for EV charging to their customers.

We currently have seven utility customers and anticipate that that number will grow as more utilities become engaged in EV charging and

also in deploying distributed generation resources to enhance grid stability.

Our product is unique in that we are a complete solution

for EV charging infrastructure requirements.

Our product provides both a renewable energy source, and EV charging capability in a rapidly

deployed and highly scalable construction-free format.

We do compete with a number of companies which are involved in the design, construction

and installation of fixed grid-connected EV charging stations that depend on the utility grid for a source of power, and on the construction

and civil and electrical engineering services for the installation of traditional infrastructure.

Competition in the solar renewable

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Our EV ARC™ units incorporate whatever charger the customer

wants, so in most cases, we are not competing with the charger company, but rather creating opportunities for them which they might not

otherwise have had.

offers an off-grid charging solution using solar power to charge batteries, but their product is not transportable, does not have solar

tracking, does not fit in a standard parking space and requires permitting, construction and electrical work for its installation.

wants, so we are not competing with the charger company, but rather creating opportunities for them which they might not otherwise have

ISUN) offers an off-grid charging solution using solar power to charge batteries,

but their product is not transportable, does not have solar tracking, does not fit in a standard parking space and requires permitting,

construction and electrical work for its installation.

· EV Sheltron uses 20ft shipping containers with batteries inside, solar panels on the roof and an EV charger

bolted to the outside.

They can deploy almost as fast as we can and operate off grid but there are several clear disadvantages:

o Containers render a parking space unusable.

Our products do not do that and that strength is protected by one of our patents.

jurisdictions have a minimum number of parking spaces required for the use on the property.

If you remove even one parking space then

the property can drop out of compliance.

Our products do not reduce available parking but shipping containers in a parking space do.

o A 20ft shipping container does not fit into a standard legal parking space which measures 9’X18’.

Two feet of the container

will encroach on the drive aisle which is generally not a good idea and often illegal because drive aisles can also serve as fire lanes.

o Container does not have BeamTrak™, our patented sun tracking and as such cannot get the same energy

density which means less electricity to deliver to EVs.

o Containers can be considered unsightly and many property owners may not want them in their parking lots

even without the above points being made.

We have been told that our products are viewed as attractive and we often hear that they have

a sort of “Apple” look about them which enhances the customer location.

· Paired Power offers a “pop up” solar canopy but we do not believe that it fits inside a legal

sized parking space without reducing available parking.

We also do not believe that it can withstand the same environmental conditions

such as wind and seismic that our EV ARC™ product can.

It also must be assembled by on-site personnel in contrast to EV ARC™’s

rapid assembly-free unfolding deployment.

· Volta (NYSE:

San Francisco based EV charging company which derives revenue through the sale of advertising.

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business model.

Many solar companies are now

fixing EV chargers to their parking lot structures and some are offering packages combining solar rooftop installations and EV charger

installations for the residential marketplace.

These installations are almost always grid-tied, require construction and electrical work

and do not include energy storage.

Another example of an entity

which is providing free or discounted EV charging infrastructure is Electrify America, the EV charging provider is required to spend approximately

Volta was recently acquired by Shell.

Many solar installation

companies are now fixing EV chargers to their parking lot structures and some are offering packages combining solar rooftop

installations and EV charger installations for the residential marketplace.

These installations are almost always grid-tied, require

construction and electrical work and do not include energy storage.

Another example of an entity which

is providing free or discounted EV charging infrastructure is Electrify America, the EV charging provider is required to spend approximately

$2 billion on EV charging infrastructure ($800 million in California) to satisfy the requirements of a settlement with the U.S.

Electrify America is a customer of Beam and has used our products to assist in the deployment of their EV charging network.

We also face competition,

to some extent, from entities which are offering free or discounted EV charging infrastructure to our prospective customers.

such as the three large IOUs (investor-owned utilities) in California (SDG&E, PG&E, SCE) have successfully lobbied the California

Public Utility Commission for permission to rate base the costs of installations of EV chargers.

Electrify America is a customer of Beam Global and has used our products to assist in the expansion of their EV charging network.

We also face competition, to some

extent, from entities which are offering free or discounted EV charging infrastructure to our prospective customers.

Utilities such as

the three large IOUs (investor-owned utilities) in California (SDG&E, PG&E, SCE) have successfully lobbied the California Public

Utility Commission for permission to rate base the costs of installations of EV chargers.

As a result, they can offer the installation,

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to certain customers.

We are adding utilities to our customer base and have provided product to six utilities to date.

We are adding utilities to our customer base and have provided product to seven utilities to date.

We do not view

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Where energy security is concerned,

we view the competition from companies that produce generators and combined solar and storage solutions.

we consider the competition from companies that produce generators and combined solar and storage solutions.

Companies in this space range

from small startup companies like Green Charge Networks to behemoths like General Electric and NEC.

Siemens, Eaton, Schneider and other

large electrical component companies are all also working on combined renewables/storage product solutions.

We are in contact with all

these companies and have not observed that any of them have a product which provides all the same value and differentiation that our EV

ARC™ product delivers because our EV ARC™ systems are transportable, rapidly deployed and offer multiple layers of value beyond

EV charging and emergency power.

For example, during 2020, our EV ARC™ products were repurposed by our customers from customer locations

to Covid-19 Emergency Pop-Up Centers to provide remote emergency power and EV charging.

Siemens, Eaton, Schneider, Generac

and other large electrical component companies are all also working on combined renewables/storage product solutions.

We are in contact

with all these companies and have not observed that any of them have a product which provides all the same value and differentiation that

our EV ARC™ product delivers because our EV ARC™ systems are transportable, rapidly deployed and offer multiple layers of

value beyond EV charging and emergency power.

For example, during 2020, some of our EV ARC™ products were repurposed by our customers

from customer locations to Covid-19 Emergency Pop-Up Centers to provide remote emergency power and EV charging.

Our competitive advantage

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Rapid deployability and scalability of our products.

Our products offer a turnkey product solution that is manufactured in our facility and delivered to a customer and deployed in minutes.

Our products offer a turnkey solution that is manufactured in our facility and delivered to a customer and can be deployed in less than an hour.

This compares with requiring an entire ecosystem involving the design, engineering, permitting and constructing of civil projects which requires engaging a company, or group of companies, including architects, civil engineers, electrical engineers, zoning specialists, consultants, general contractors, electrical contractors, and EVSE vendors.

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Ability to operate during blackouts and brownouts.

In addition, most units provide an emergency power panel that can be used for emergency power to charge other devices and emergency equipment during outages.

Most of the EV ARC™

systems we deploy include an emergency power panel that can be used for emergency power to charge other devices and emergency equipment

during outages.

Typical grid-tied solutions fail during grid failures and do not provide a source of emergency power.

Even those grid-tied solutions that have back up battery integration rely on the grid to charge their batteries.

During prolonged grid failures, those systems fail while Beam products continue to operate.

Because a grid connection is not required, Beam’s EV ARC™

can be located anywhere, including remote locations that are hard to connect to a grid.

Most grid-tied chargers are deployed in locations

where the utility grid is easy and inexpensive to connect to.

Many EV drivers have experienced this when they find charging units behind

supermarkets next to dumpsters.

This is because the utility grid interconnection exists at the back of the store and as such that is the

cheapest place to deploy.

We believe that early adopters of EVs are more willing to make these sorts of concessions than mainstream consumers

We believe that in the future two impacts will drive the installation of EV chargers in more expensive and complicated locations

where grid connection is concerned.

First, the locations close to grid connections will be used first and second mainstream consumers

will not be content with parking and charging in less convenient locations.

Both impacts will drive the deployment of EV chargers

in front of stores and other locations where people want to park.

Those locations typically do not have readily available grid connections

so the cost and complexity to bring the grid to the charger will increase dramatically.

The cost and complexity to deploy our products

will not increase and in fact, we believe that, like any other manufacturing company, our costs will decrease while our efficiency and

deployment velocity increases.

Environmentally sound product using clean energy.

Even those grid-tied

solutions that have back up battery integration rely on the grid to charge their batteries.

During prolonged grid failures, those systems

fail while Beam products continue to operate.

Because a grid connection is not required, Beam’s EV ARC™ can be located anywhere, including remote locations that are hard to connect to a grid.

Most grid-tied chargers are deployed in locations where the utility grid is easy and inexpensive to connect to.

Many EV drivers have experienced this when they find charging units behind supermarkets next to dumpsters.

This is because the utility grid interconnection exists at the back of the store and as such that is the cheapest place to deploy.

We believe that early adopters of EVs are more willing to make these sorts of concessions than mainstream consumers will be.

We believe that in the future two impacts will drive the installation of EV chargers in more expensive and complicated locations where grid connection is concerned.

First, the locations close to grid connections will be used first and second mainstream consumers will not be content with parking and charging in less convenient locations which are generally perceived as unsafe or ugly or both.

Both impacts will drive the deployment of EV chargers in front of stores and other locations where people want to park.

Those locations typically do not have readily available grid connections so the cost and complexity to bring the grid to the charger will increase dramatically.

The cost and complexity to deploy our products will not increase and in fact, we believe that, like any other manufacturing company, our costs will decrease while our efficiency and deployment velocity increases.

We believe that the utility grid lacks sufficient capacity to replace oil as transportation fuel.

The grid was not designed and has not been updated to do this.

In many markets the grid is already operating at maximum capacity particularly during hot weather when people increase their air conditioning requirements.

Our products provide extra capacity to charge EVs without requiring complicated, time consuming, environmentally impactful and risky expansions of the centralized utility grid infrastructure.

Environmentally sound

product using clean energy.

Grid-tied chargers rely upon electricity, more than 60% of which is generated by burning fossil fuels.

The electricity our products provide is 100% emissions free.

Furthermore, the construction activities required to dig trenches, pour concrete and perform the other tasks related to the construction and electrical installation of a grid-tied charger are environmentally impactful and reduce the environmental benefits of EVs.

Our products are deployed with minimal or no disruption or environmental impact making them a cleaner choice.

Furthermore, the construction activities required to dig trenches,

manufacture and pour concrete and perform the other tasks related to the construction and electrical installation of a grid-tied

charger are environmentally impactful and reduce the environmental benefits of EVs.

Our products are deployed with minimal or no

disruption or environmental impact making them a cleaner choice.

Beam products can be relocated which gives the customer the flexibility to move it if a job site changes or business needs change.

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Manufacturing

We are headquartered in San

Diego, California in a leased building of approximately 53,000 square feet professionally equipped to handle the significant growth possibilities

We are headquartered in San Diego,

California in a leased building of approximately 53,000 square feet professionally equipped to handle the significant growth possibilities

we believe are in front of us.

The facility houses our corporate operations, sales, design, engineering and product manufacturing.

are currently staffed for one shift, five days a week and believe that at that level we can produce approximately 260 EV ARC™ units

2022, we were staffed for one shift, five days a week and believe that at that level we can produce approximately 260 EV ARC™ units

We also believe that with an expansion of human resources, capital investment, increased engagement of contract manufacturing

and operating 3 shifts, seven days a week we could produce approximately 4,000 EV ARC™ units a year from our current facility.

a result of our recent acquisition, we now also lease an 18,000 sq/ft facility in Broadview Il where we produce our energy storage products

for our own products and also for a variety of other customers who need energy storage solutions.

and operating extra shifts, we could produce approximately 4,000 EV ARC™ units a year from our current facility.

As a result of

our recent acquisition of All Cell in 2022, we also lease an 18,000 sq/ft facility in Broadview, Illinois where we produce our energy

storage products for our own products and also for a variety of other customers who need energy storage solutions.

All of our products are currently

designed, developed and manufactured in this facility.

We have been able to reduce our costs and improve our quality by performing fabrication

This also provides a good environment for improving the manufacturing process as well as for the development of new products.

designed, developed and manufactured in one or other of these facilities.

We have been able to reduce our costs and improve our quality

by performing fabrication in-house.

This also provides a good environment for improving the manufacturing process as well as for the development

of new products.

Many of our suppliers are local which allows for shorter lead times and lower transportation costs.

The EV ARC™ product family requires

no field installation work and is typically delivered to the customer site by us or by a third-party transportation company for a fee.

We sell our Solar Tree® products as an engineered kit of parts to be installed by third parties employed by the buyer of the Solar

We continually endeavor to

reduce component costs and make production improvements in both our products and our processes to reduce our manufacturing costs, while

maintaining the high quality for which we strive.

As unit sales continue to increase, we anticipate that we will be able to spread our

fixed overhead costs over more units, reducing the cost per unit.

product family requires no field installation work and is typically delivered to the customer site by us or by a third-party transportation

company for a fee.

We sell our Solar Tree® products as an engineered kit of parts to be installed by third parties employed by the

buyer of the Solar Tree® kit.

We continually endeavor

to reduce component costs and make production and design improvements in both our products and our processes to reduce our

manufacturing costs, while maintaining the high quality for which we strive.

As unit sales continue to increase, we anticipate that

we will be able to spread our fixed overhead costs over more units, reducing the cost per unit.

Customer Concentration

During 2022, 62% of our revenue

was attributable to the state agencies and municipalities in the State of California.

was attributable to federal, state and local governments, compared to 87% in 2021.

Furthermore, 23% of our revenue was attributable to

the state agencies and municipalities in the State of California, compared to 55% in 2021.

Our backlog at December 31,

2022 was $59.3 million, of which $58.8 million is deliverable within twelve months.

Reported backlog represents firm purchase orders or

contracts received by customers for deliveries scheduled in the future.

Our backlog at December 31, 2021 was $4.1 million,

of which $3.9 million is deliverable within twelve months.

Reported backlog represents firm purchase orders or contracts received by customers

for deliveries scheduled in the future.

Government Regulation

Businesses in general are subject to extensive regulation at the federal, state, and local level.

We are subject

to extensive government regulation relating to employment, health, safety, working conditions, labor relations, and the environment in

the course of the conduct of our business.

In order for our customers to enable the installation of some of our products, they can be

required to obtain permits from local and other governmental agencies.

In the case of our grid-tied products, they must comply with the

applicable rules and regulations of the relevant state public utility agencies.

In order for our customers to take advantage of available

tax and other governmental incentives associated with the installation of solar power production facilities, and the production and use

or sale of solar power, they must comply with the applicable regulatory terms and conditions.

Changes to new government regulations may

have a material adverse impact on our business, operating results, and financial condition.

Businesses in general are subject

to extensive regulation at the federal, state, and local level.

We are subject to extensive government regulation relating to employment,

health, safety, working conditions, labor relations, and the environment in the course of the conduct of our business.

In order for our

customers to enable the installation of some of our products, they can be required to obtain permits from local and other governmental

In the event that our customers elect to connect our products to the utility grid, they must comply with the applicable rules

and regulations of the relevant state public utility agencies.

In order for our customers to take advantage of available tax and other

governmental incentives associated with the installation of solar power production facilities, and the production and use or sale of solar

power, they must comply with the applicable regulatory terms and conditions.

Changes to new government regulations may have a material

adverse impact on our business, operating results, and financial condition.

As of the date

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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-K

Item 1. Business