What changed in this filing

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Item 1A. Risk Factors

2024-05-20 compared with 2023-11-14 · 7 added, 134 removed, 5 unchanged (97% of the section changed)

In addition to the other information

set forth in this Form 10-Q and the risk factors set forth below, you should carefully consider the factors discussed in Part I, “Item

Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, which could materially affect our business,

In addition to the other

information set forth in this Form 10-Q, you should carefully consider the factors discussed in Part I, “Item 1A.

Risk Factors”

in our Annual Report on Form 10-K for the year ended December 31, 2023, which could materially affect our business, financial condition,

liquidity or future results.

The risks described in our Annual Report on Form 10-K are not the only risks facing our company.

risks and uncertainties not currently known to us or that we currently deem to be immaterial may materially adversely affect our business,

financial condition, liquidity or future results.

The risks described in our Annual Report on Form 10-K are not the only risks facing

Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may materially adversely

affect our business, financial condition, liquidity or future results.

If we are not able to comply with the applicable

continued listing requirements or standards of Nasdaq, our common stock may be delisted.

Our common stock is currently

listed on Nasdaq.

In order to maintain such listing, we must satisfy minimum financial and other continued listing requirements and standards,

including those regarding director independence and independent committee requirements, minimum stockholders’ equity, minimum share

price, and certain corporate governance requirements.

On June 2, 2023, the Company

notified Nasdaq that effective as of June 30, 2023 it was not in compliance with Nasdaq Listing Rule 5605(c)(2)(A) as a result of the

resignation, for personal reasons, of a member of the Company’s board who was also a member of the Company’s Audit Committee.

Nasdaq Listing Rule 5605(c)(2)(A) requires the Audit Committee to have at least three independent members (as defined by Nasdaq Listing

Rule 5605(a)(2) and Rule 10A-3(b)(1) under the Securities Exchange Act of 1934), at least one of whom is an audit committee financial

As a result of the resignation of Nancy Floyd, the Company no longer has an Audit Committee comprised of three independent

The Nasdaq Listing Rules provide for a cure period during which the Company may regain compliance with Nasdaq Listing Rule

5605(c)(2)(A).

Under Nasdaq Listing Rule 5605(c)(4), the Company shall have until the earlier of its next annual meeting of stockholders

or one year from the occurrence of the event that caused the failure to comply with Nasdaq Listing Rule 5605(c)(2)(A);

provided, however,

that if the next annual meeting of stockholders occurs no later than 180 days following the event that caused the vacancy, the Company

shall instead have 180 days from such event to regain compliance.

The Company is currently interviewing candidates to fill this board

vacancy and to chair the audit committee and intends to do so within the applicable cure period.

There can be no assurances

that we will be able to regain compliance with Nasdaq’s listing standards or if we do later regain compliance with Nasdaq’s

listing standards, will be able to continue to comply with the applicable listing standards.

If we are unable to maintain compliance with

these Nasdaq requirements, our common stock will be delisted from Nasdaq.

If Nasdaq delists our common

stock, we could face significant material adverse consequences, including:

limited availability of market quotations for our securities;

determination that our common stock is a “penny stock” which will require brokers trading in our common stock to adhere to

more stringent rules and possibly resulting in a reduced level of trading activity in the secondary trading market for our common stock;

limited amount of news and analyst coverage for our company;

decreased ability to issue additional securities or obtain additional financing in the future.

We may fail to realize all of the anticipated

benefits of the acquisition of Amiga or those benefits may take longer to realize than expected and our business, financial condition

and results of operation could be materially and adversely affected.

We may also encounter significant difficulties in integrating Amiga

with Beam and its operations.

Our ability to realize the

anticipated benefits of the acquisition of Amiga will depend, in part, on our ability to integrate Amiga, which may be a complex, costly

and time-consuming process.

We will be required to devote significant management attention and resources to integrate the business practices

and operations of the acquired business.

The integration process may disrupt our business and, if implemented ineffectively, could restrict

the realization of the full expected benefits.

In addition, the integration of the acquired business may result in material unanticipated

issues, expenses, liabilities, competitive responses, and diversion of management’s attention.

The failure to meet the challenges

involved in the integration process and to realize the anticipated benefits of the acquisition could cause an interruption of, or a loss

of momentum in, our operations and could materially and adversely affect our business, financial condition and results of operations.

Many of these factors will

be outside of our control and any one of them could result in increased costs, decreases in the amount of expected benefits and diversion

of management’s time and energy, which could adversely affect our business, financial condition and results of operations and result

in us becoming subject to litigation.

In addition, even if the acquisition were to be integrated successfully, the full anticipated benefits

of the acquisition may not be realized within the anticipated time frame, or at all.

We may not be able to maintain the results of operations

or operating efficiency that we and the acquired business have achieved or might achieve separately.

Further, additional unanticipated

costs may be incurred in the integration process as a result of risks currently unknown to us.

All of these factors could cause reductions

in our earnings per share, decrease or delay any accretive or other beneficial effect of the acquisition and negatively impact the price

of our common stock.

Amiga is a private Serbian company that

has not been subject to an audit by an accounting firm under U.S.

GAAP standards and has not previously been subject to the Sarbanes-Oxley

Act of 2002, the rules and regulations of the SEC or other corporate governance requirements.

Amiga is a private Serbian

To date, Amiga has not had its financial statements reviewed or audited by an accounting firm under U.S.

GAAP standards and has

not been subject to the Sarbanes-Oxley Act of 2002, the rules and regulations of the SEC, or other corporate governance requirements to

which public reporting companies may be subject.

As a result, we will be required to implement the appropriate internal control processes

and procedures over Amiga’s financial accounting and reporting.

The combined company may incur significant legal, accounting and

other expenses in efforts to ensure that Amiga meets these requirements.

Implementing the controls and procedures at Amiga that

are required to comply with the various applicable laws and regulations may place a significant burden on our management and internal

The diversion of management’s attention and any difficulties encountered in such an implementation could adversely affect

our business, financial condition and operating results.

Our inability to successfully integrate Amiga’s operations

could adversely affect our operations;

potential need for additional financing.

Our acquisition of

Amiga represents a significant investment.

The acquisition requires our and Amiga’s significant attention and resources, which

could reduce the likelihood of achievement of other corporate goals.

Both we and Amiga have experienced significant operating

As a result, we may need additional financing to help fund our business and satisfy our obligations, which will

require additional management time to address.

There is no assurance that we will realize the benefits of the acquisition of

Amiga that we hope will be achieved.

As a result of the acquisition of Amiga,

Beam expects to generate an increasing portion of its revenue internationally in the future and may become subject to various additional

risks relating to its international activities, which could adversely affect its business, operating results and financial condition.

Beam has limited experience

operating internationally and engaging in international business involves a number of difficulties and risks, including:

the challenges associated with building local brand awareness, obtaining local key opinion leader support and clinical support, implementing reimbursement strategies and building local marketing and sales teams;

required compliance with foreign regulatory requirements and laws, including regulations and laws;

trade relations among the United States and those foreign countries in which Beam’s future customers, distributors, manufacturers and suppliers have operations, including protectionist measures such as tariffs and import or export licensing requirements, whether imposed by the United States or such foreign countries;

difficulties and costs of staffing and managing foreign operations;

difficulties protecting, procuring or enforcing intellectual property rights internationally;

required compliance with anti-bribery laws, such as the U.S.

Foreign Corrupt Practices Act, data privacy requirements, labor laws and anti-competition regulations;

laws and business practices that may favor local companies;

longer payment cycles and difficulties in enforcing agreements and collecting receivables through certain foreign legal systems;

political and economic instability;

potentially adverse tax consequences, tariffs, customs charges, bureaucratic requirements and other trade barriers.

In the event that Beam dedicates

significant resources to its international operations and is unable to manage these risks effectively, Beam’s business, operating

results and financial condition may be adversely affected.

We are subject to foreign currency exchange

rate and other related risks.

With the acquisition of Amiga,

we are subject to foreign currency exchange rate risk to the extent that our costs are denominated in currencies other than those in which

we earn revenues.

In addition, since our financial statements are denominated in U.S.

dollars, changes in foreign currency exchange rates,

especially the Euro and the Serbian Dinar, between the U.S.

dollar and other currencies will impact our results of operations, financial

condition and cash flows.

We also face risks arising from the imposition of foreign exchange controls and currency devaluations.

exchange controls may limit our ability to convert foreign currencies into U.S.

dollars or to remit dividends and other payments by our

foreign subsidiaries or businesses located in or conducted within a country imposing control.

Currency devaluations result in a diminished

value of funds denominated in the currency of the country instituting the devaluation.

Unregistered Sales of Equity Securities and Use of Proceeds

3 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 1A. Risk Factors