Beam Global (BEEM) risk factors, FY2024 10-K

Other

1. 01We have sustained recurring losses since inception and expect to incur additional losses in the foreseeable future
2. 02We may need to raise additional capital or financing to continue to execute and expand our business
3. 03Our revenues are concentrated in a small number of customers and our revenue may decrease significantly if we were to lose one of these customers
4. 04Our revenue growth, in part, depends on consumers’ willingness to adopt electric vehicles
5. 05We may acquire other businesses, which could require significant management attention, disrupt our business, dilute stockholder value and harm our business, revenue and financial results
6. 06We may fail to realize all of the anticipated benefits of our acquisitions of All Cell, Amiga and Telcom 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
7. 07Amiga and Telcom are private Serbian companies that have 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
8. 08Our inability to successfully integrate Amiga and Telcom’s operations could adversely affect our operations; potential need for additional financing
9. 09As a result of the acquisitions of Amiga and Telcom, 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
10. 10We are subject to foreign currency exchange rate and other related risks
11. 11We face intense competition, and many of our competitors have substantially greater resources than we do
12. 12A significant portion of our revenue is derived from our core product category
13. 13The renewably energized EV charging industry is an emerging market that is constantly evolving and may not develop to the size or at the rate we expect
14. 14Tariffs imposed pursuant to Section 201 of the Trade Act of 1974 could significantly and adversely affect our business, revenues, margins, results of operations, and cash flows
15. 15We face risks related to the uncertainty regarding the future of international trade agreements and the United States’ position on international trade
16. 16Existing regulations and policies and changes to these policies may present technical, regulatory, and economic barriers to the purchase and use of solar power products, which may significantly reduce demand for our products and services
17. 17In high demand locations, the use of our products could exhaust its electricity supply on particular days, even with our storage batteries
18. 18Developments in alternative technologies or improvements in distributed solar energy generation may have a material adverse effect on demand for our offerings
19. 19Defects or performance problems in our products could result in loss of customers, reputational damage, and decreased revenue, and we may face warranty, indemnity, and product liability claims arising from defective products
20. 20We may be subject to product liability claims
21. 21If we are unable to keep up with advances in EV technology, we may suffer a decline in our competitive position
22. 22If a third party asserts that we are infringing upon its intellectual property, it could be costly and time-consuming litigation, and our business may be harmed
23. 23The success of our business depends in large part on our ability to protect and enforce our intellectual property rights
24. 24The success of our business depends on the continuing contributions of Desmond Wheatley and other key personnel who may terminate their employment with us at any time, and we will need to hire additional qualified personnel
25. 25If we are unable to attract, train and retain highly qualified personnel, the quality of our services may decline, and we may not successfully execute our growth strategies
26. 26We are exposed to various possible claims and hazards relating to our business, and our insurance may not fully protect us
27. 27Cyber-attacks or other breaches of information technology security could adversely impact on our business and operations
28. 28We may face litigation in the future
29. 29The costs incurred by us to develop and manufacture our products may be higher than anticipated which could hurt our ability to earn a profit
30. 30The equipment comprising our products currently charge at rates that are comparable to the average charging speed of competitors, but that may change in the future
31. 31Our Company depends on key suppliers
32. 32We may be adversely affected by inflationary or market fluctuations, including impact of tariffs, in the cost of component products that are used in our products or our cost of labor
33. 33We have experienced technological changes in our industry. New technologies may prove inappropriate and result in liability to us or may not gain market acceptance by our customers
34. 34Existing regulations, and changes to such regulations, may present technical, regulatory and economic barriers to the purchase and use of our products, which may significantly reduce demand for our products
35. 35Our media branding and advertising strategy may not be profitable
36. 36Our business may be impacted by the availability to our customers of rebates, tax credits and other financial incentives, the reduction, elimination or uncertainty of which would reduce the demand for our products
37. 37Compliance with new and existing environmental laws and rules is required
38. 38The success of our product offering may in some instances require the availability of locations provided by municipalities or private owners of real estate
39. 39Our cash and cash equivalents could be adversely affected if the financial institutions at which we hold our cash and cash equivalents fail
40. 40Privacy concerns and laws, or other domestic or foreign regulations, may adversely affect our business
41. 41Failure to comply with anticorruption and anti-money laundering laws, including the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), and similar laws associated with activities outside of the United States, could subject us to penalties and other adverse consequences

Risks Relating to our Organization and our Common Stock

1. 42Our failure to meet the continued listing requirements of Nasdaq could result in the delisting of our common stock, which could negatively impact the market price and liquidity of our common shares and our ability to access the capital markets
2. 43Our stock price may be volatile
3. 44Offers or availability for sale of a substantial number of shares of our common stock may cause the price of our common stock to decline