Beam (US:BEEM)2022-05-24 16:00Revenue Growth - Revenues increased 175% from $1.4 million in Q1 2021 to $3.8 million in Q1 2022, driven by investments in sales and marketing and the acquisition of All Cell Technologies [73]. - Revenues from federal customers and corporate enterprises showed strong growth, with California representing 48% of total revenues, primarily from state agencies and municipalities [80]. - Revenue for Q1 2022 was 175% higher than Q1 2021, continuing the trend of significant revenue growth [91]. Acquisition and Product Development - The acquisition of All Cell Technologies is expected to improve gross margins by utilizing Beam's All Cell battery technology at a lower cost [74]. - The company recorded $0.4 million in revenues for energy storage in March 2022 following the acquisition of All Cell Technologies [80]. - The acquisition of All Cell Technologies, LLC was completed for approximately $14.4 million in stock and $0.8 million in cash, aimed at enhancing manufacturing capabilities and revenue [94]. - The company is developing new patented products, EV Standard™ and UAV ARC™, to expand its product offerings and enter new markets [76]. Market Trends - The electric vehicle market is projected to grow significantly, with 61 new electric vehicles expected to launch in 2022, increasing demand for EV charging infrastructure [73]. Cost Management and Margins - Gross margins improved in Q1 2022 compared to Q1 2021, despite inflation and supply chain cost increases, with expectations for further reductions in product costs [77]. - The company expects to see a decrease in cost per unit as material costs normalize post-pandemic, contributing to improved gross profit margins [81]. - Management anticipates that increased production volumes and efficiencies will lead to reduced fixed overhead costs per unit [91]. - The company is implementing lean manufacturing process improvements to reduce costs and increase gross margins [77]. Financial Performance - Total operating expenses increased by 79% to $2.0 million for Q1 2022, compared to $1.1 million for the same period in the prior year [82]. - Cash used in operating activities was $1.9 million for Q1 2022, up from $0.9 million for the same period in 2021 [86]. - The company had cash of $19.2 million as of March 31, 2022, down from $21.9 million at December 31, 2021 [83]. - Current assets increased to $28.0 million at March 31, 2022, while current liabilities rose to $6.1 million, resulting in a decrease in working capital to $21.8 million [90]. - For the quarter ended March 31, 2022, the gross loss was $0.3 million, or 8% of sales, an improvement from $0.1 million, or 11% of sales in the same quarter of the prior year [81]. Contracts and Procurement - Beam is engaged in a contract renewal process with the State of California's Department of General Services to streamline procurement for EV ARCs [80]. - The company has 505,714 warrants remaining that could generate an additional $3.2 million in proceeds over the next two years [93].