# EDGAR Filing Document

**Accession Number:** 0001398805
**File Stem:** 0001437749-26-011890
**Filing Date:** 2026-4
**Character Count:** 404857
**Document Hash:** 93d651c85638dfedb6e041aa1f9cf588
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-011890.hdr.sgml**: 20260409

**ACCESSION NUMBER**: 0001437749-26-011890

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 99

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260409

**DATE AS OF CHANGE**: 20260409

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Beam Global
- **CENTRAL INDEX KEY:** 0001398805
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 208457250
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38868
- **FILM NUMBER:** 26851526

**BUSINESS ADDRESS:**
- **STREET 1:** 5660 EASTGATE DRIVE
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92121
- **BUSINESS PHONE:** 858-799-4583

**MAIL ADDRESS:**
- **STREET 1:** 5660 EASTGATE DRIVE
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92121

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Envision Solar International, Inc.
- **DATE OF NAME CHANGE:** 20100407

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Casita Enterprises, Inc.
- **DATE OF NAME CHANGE:** 20070508

?xml version='1.0' encoding='ASCII'? beem20251231_10k.htm

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**UNITED STATES**

 **SECURITIES AND EXCHANGE COMMISSION** 

Washington, D.C. 20549

**FORM 10-K**

☒ Annual Report pursuant to Section 13 or 15(d) of Securities Exchange Act of 1934

**For the fiscal year ended December 31, 2025**

or

☐ Transition Report pursuant to Section 13 or 15(d) of Securities Exchange Act of 1934

For the transition period from __________ to __________

*Commission File Number 001-38868* 

**Beam Global**

(Exact name of Registrant as specified in its charter)

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| | |
|:---|:---|
| **Nevada** | **26-1342810** |
| (State of Incorporation) | (IRS Employer ID Number) |

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5660 Eastgate Dr.

San Diego, California 92121

(858) 321-2223

(Address and telephone number of principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

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| | |
|:---|:---|
| Title of each class | Name of principal U.S. market on which traded |
| Common stock, $0.001 par value<br> BEEM | Nasdaq Capital Market |

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Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | |
|:---|:---|
| Large accelerated filer ☐ | Accelerated filer ☐ |
| Non-accelerated filer ☒ | Smaller reporting company ☒ |
|  | Emerging growth company ☐ |

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262 (b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The aggregate market value of the voting and non-voting common stock held by nonaffiliates of the registrant as of June 30, 2025 (the last business day of the registrant's most recently completed second fiscal quarter) was approximately $23,280,367 based upon the closing price of $1.46 on the NASDAQ Capital Market on June 30, 2025.

The number of registrant's shares of common stock, $0.001 par value, issuable and outstanding as of April 7, 2026 was 21,136,983.

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  | [PART I](#part1) | [1](#part1) |
| ITEM 1 | [Business](#business)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [2](#business) |
| ITEM 1A | [Risk Factors](#risk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [17](#risk) |
| ITEM 1B | [Unresolved Staff Comments](#unresolved)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [26](#unresolved) |
| ITEM 1C | [Cybersecurity](#cyber)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [26](#cyber) |
| ITEM 2 | [Properties](#properties)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [27](#properties) |
| ITEM 3 | [Legal Proceedings](#legal)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [27](#legal) |
| ITEM 4 | [Mine Safety Disclosures](#mine)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [27](#mine) |
|  | [PART II](#part2) | [28](#part2) |
| ITEM 5 | [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](#market)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | [28](#market) |
| ITEM 6 | [\[Reserved\]](#reserved)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [28](#reserved) |
| ITEM 7 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#mda)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | [29](#mda) |
| ITEM 7A | [Quantitative and Qualitative Disclosures About Market Risk](#quant)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [34](#quant) |
| ITEM 8 | [Financial Statements and Supplementary Data](#finstmts)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [34](#finstmts) |
| ITEM 9 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#changes)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [34](#changes) |
| ITEM 9A | [Controls and Procedures](#controls)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [34](#controls) |
| ITEM 9B | [Other Information](#otherinfo)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [36](#otherinfo) |
| ITEM 9C | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#disclosure)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [36](#disclosure) |
|  | [PART III](#part3) | [37](#part3) |
| ITEM 10 | [Directors, Executive Officers and Corporate Governance](#directors)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [37](#directors) |
| ITEM 11 | [Executive Compensation](#executive)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [42](#executive) |
| ITEM 12 | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#security)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [45](#security) |
| ITEM 13 | [Certain Relationships and Related Transactions, and Director Independence](#certain)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [47](#certain) |
| ITEM 14 | [Principal Accounting Fees and Services](#principal)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [47](#principal) |
|  | [PART IV](#part4) | [48](#part4) |
| ITEM 15 | [Exhibits and Financial Statement Schedules](#exhibits)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [48](#exhibits) |
| ITEM 16 | [Form 10-K Summary](#summary)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [50](#summary) |

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**PART I**

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

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This report contains forward-looking statements that are based on current expectations, estimates, forecasts, and projections about us, the industry in which we operate and other matters, as well as management's beliefs and assumptions and other statements regarding matters that are not historical facts. These statements include, in particular, statements about our plans, strategies and prospects. For example, when we use words such as "projects," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "should," "would," "could," "will," "opportunity," "potential" or "may," and variations of such words or other words that convey uncertainty of future events or outcomes, we are making forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

These forward-looking statements are subject to numerous assumptions, risks and uncertainties that may cause the Company's actual results to be materially different from any future results expressed or implied by the Company in those statements. The most important factors that could prevent the Company from achieving its stated goals include, but are not limited to, the following:

(a) volatility or decline of the Company's stock price, or absence of stock price appreciation;

(b) fluctuation in quarterly results;

(c) failure of the Company to earn revenues or profits;

(d) inadequate capital to continue or expand its business, and the inability to raise additional capital or financing to implement its business plans;

(e) reductions in demand for the Company's products and services, whether because of competition, general industry conditions, loss of tax incentives for solar power, technological obsolescence, or other reasons;

(f) litigation with or legal claims and allegations by outside parties;

(g) insufficient revenues to cover operating costs, resulting in persistent losses;

(h) rapid and significant changes to costs of raw materials from government tariffs or other market factors;

(i) significant currency fluctuation or foreign regulations that could impact our business;

(j) the preceding and other factors discussed in Part I, Item 1A, "Risk Factors," and other reports we may file with the Securities and Exchange Commission from time to time; and

(k) the factors set forth in Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations."

We caution you that the foregoing list may not contain all of the forward-looking statements made in this annual report on Form 10-K.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this annual report on Form 10-K primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled "Risk Factors" and elsewhere in this annual report on Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this annual report on Form 10-K. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this annual report on Form 10-K relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances or to reflect new information or the occurrence of unanticipated events, except as required by law.

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|:---|:---|
| **ITEM 1.** | **BUSINESS.** |

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**Overview**

Beam is a sustainable technology innovation company headquartered in San Diego, California with offices in the U.S. in San Diego, California and Broadview, Illinois; in Europe in Belgrade and Kraljevo, Serbia; and in Abu Dhabi, United Arab Emirates ("UAE"). We develop, design, engineer, manufacture, and sell high-quality, rapidly-deployed and autonomous infrastructure products for electric vehicle ("EV") and autonomous vehicle ("AV") charging, energy security and disaster preparedness and highly energy-dense battery solutions in safe, compact, unique and bespoke form-factors which we believe are ideal for the rapidly growing mobile and stationary equipment product market which often requires electrical energy without being connected to the electrical grid. Additionally, we manufacture structures with integrated intelligence and electronics such as streetlighting, cell towers and energy infrastructure products for Smart Cities (the interconnected physical and digital elements within a city that utilize technology to enhance efficiency, sustainability, and quality of life for residents). We further design, engineer and manufacture specialized power electronics including inverters, charge controllers, power supplies and LED lighting.

Our charging products are rapidly deployed without the need for construction or electrical work. 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 sustainable technology products are designed to replace a complicated, expensive, time-consuming and risk-prone construction and electrical installation process with an easy, robust and reliable product at a low cost of total ownership.

We provide energy storage technologies that make commodity battery cells safer, longer lasting and more energy efficient. Our battery management systems (BMS), and associated thermal packaging, make batteries safer and usable in a variety of mobility, energy-security, and stationary applications.

Our streetlighting and other street furniture products are mass produced in our factories in Serbia and have been sold in 18 nations globally. We are increasingly adding power electronics, energy storage, computing, sensing and reporting to our street furniture products as we evolve them to provide greater levels of Smart Cities services.

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

● EV and AV charging infrastructure;

● Smart Cities infrastructure;

● Energy storage solutions;

● Energy security and disaster preparedness;

● Transportation infrastructure products; and

● Power electronics and telecommunications equipment.

The Company creates high-quality innovative products that are powered primarily by secure and innovative energy sources, rapidly deployable, have diverse use cases and are attractively designed. We believe that there is a growing demand for rapidly deployable and highly scalable EV and AV charging and infrastructure for Smart Cities, and that our EV ARC™, BeamSpot™ and other street furniture products are designed to address this demand. We are agnostic to the EV charging service equipment as we do not sell EV charging, rather we sell products which enable it. Our EV ARC™ and BeamSpot™ products replace the infrastructure required to support EV chargers, not the chargers themselves.

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We have over thirty years of experience deploying street-lighting, transportation, energy and telecommunications infrastructure products as a result of our 2023 acquisition of Amiga in Serbia. We also acquired relationships with existing customers to whom we are now able to sell our portfolio innovative energy, mobility and transportation infrastructure products as well as our other Smart Cities products.

Our ability to make commodity battery cells safer, longer lasting and more energy efficient in bespoke enclosures is, we believe, a significant differentiator as we move to an increasingly electrified and untethered world. All our renewably energized products generate their own electricity which is stored in our integrated batteries. Our ability to develop energy-dense, highly safe batteries in unique shapes and sizes, allows us to serve customers with specialized needs, including manufacturers of drones, robots, medical devices, top secret military applications, submersibles, refrigerated transport units, and a wide range of other applications.

We believe our chief differentiators are:

● Our patented, renewably energized products dramatically reduce the cost, time and complexity of the installation and operation of EV and AV charging infrastructure when compared to traditional, utility grid tied alternatives;

● Our proprietary and patented energy storage solutions;

● Our first-to-market advantage with EV and AV charging infrastructure products which are renewably energized, rapidly deployed and require no construction or electrical work on site;

● 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 electrical capacity to provide for the significant increase demand brought by electrified transportation, data centers, AI and the electrification of the industry, 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 create new and patentable products which are marketable and consist of a complex integration of our proprietary technology and parts with other commonly available engineered components, which create a further barrier to entry for our competition;

● Our ability to create products which provide valuable solutions to nascent industries with very large market opportunities globally; and

● Our geographic footprint in North America, Europe, the Middle East, and existing customer base and contracts.

**Products and Technologies**

<u>EV and AV Charging Infrastructure.</u>

Our clean energy infrastructure products currently incorporate the same underlying technology with a built-in renewable energy source within attached solar panels and/or a light wind generator, along with battery storage, which enables our products to generate and store 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 are not expanding quickly enough to keep pace with accelerated electrification of transportation and rapidly growing digital infrastructure. Governments are advancing aggressive mandates, including the European Union policy requiring that all new cars sold from 2035 produce zero CO2 emissions, ending new internal combustion vehicle sales across its member states. At the same time, global data center electricity consumption is projected to grow by approximately 15 percent per year from 2024 through 2030, more than four times faster than total electricity demand growth from other sectors. Even before this additional strain, power outages were costing the U.S. economy an estimated $150 billion annually, according to the U.S. Department of Energy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In many cases, sites with an existing grid connection lack sufficient electrical capacity to support EV charging in any meaningful way. For example, parking lots may have adequate electrical capacity to power lighting but not enough to power EV charging. Beam products are designed to provide that power without requiring increases in on-site grid capacity, which can often be, and we believe will increasingly be, expensive, disruptive, complex and time consuming.

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We believe that there will be an increasing demand and need for rapidly deployed and highly scalable EV charging infrastructure products which do not require construction or electrical work, and which do not rely on the utility grid for a supply of electricity. We are not aware of any other products which provide a similar solution for this need as effectively as our patented products which are listed below:

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| ●  | ***EV ARC***™ ***(EV and AV Autonomous Renewable Charger)*** – 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 through its combination of tracking solar array and integrated batteries, so there are no utility bills to pay. EV ARC™ features our patented BeamTrak<sup>TM</sup> sun tracking technology that follows the sun to generate up to an additional 25% of solar electrical power. It does not need a grid connection or foundations which eliminates the need for lengthy construction projects, trenching, switch gear, or transformer upgrades. The EV ARC<sup>TM</sup> can be delivered to its intended location and is set up and charging in less than an hour. 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 support Level I, Level II and DC Fast Charging (requiring 4 interconnected units) and can charge between one and six EVs simultaneously. A single unit can provide EV charging to as many as 12 parking spaces. The electronics are elevated under the solar array which is designed to make the unit flood-proof in up to nine and a half feet of water. EV ARC™ systems have been independently rated to withstand winds up to 160mph. |
|  | 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. 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 and AV charging infrastructure. |
|  | We received a patent in 2024 for a version of the EV ARC™ which, will be able to provide wireless charging to suitably equipped EVs and to autonomous vehicles (AVs). Autonomous vehicles are currently typically plugged into a grid tied EV charger by a human being meaning that their operations are not entirely autonomous. Our patented wireless charging capability will enable AVs to charge without human intervention. |
|  | Because EV ARC™ systems are highly visible, we believe they are an ideal platform for sponsored deployments. Under this model, networks of EV ARC™ systems can be deployed and owned by us and monetized through sponsorship and naming-rights agreements with corporate sponsors seeking to associate their brands with renewable, clean-energy initiatives by sponsoring a city-wide sponsorship offering free EV charging which we refer to as our "Drive on Sunshine"™ network. We intend to deploy our Drive 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. In 2024, we deployed our first sponsorship funded network of EV ARC™ systems at Belgrade International Airport in Serbia. Beam Global retains title to the EV ARC™ and receives recurring payments from Globos Osiguranje, a prominent Serbian insurance company. Globos Osiguranje benefits from the promotion of their business as a result of their branding being prominently displayed on the EV ARC™ systems which are deployed in parking spaces in parking lots nearest to the airport terminal buildings. The Globos Osiguranje branded EV ARC™ systems are placed in locations that are visible upon arrival and departure from the airport. We also entered into an agreement with Vinci Airports, the world's leading private airport operator with over 70 airports under management internationally, which does not require us to pay rent because of the amenity value that is delivered to the airport through the provision of free Drive on Sunshine™ experience for their visitors and guests. We believe that we may be able to repeat this model in other Vinci airports around the world. We also believe that now that we have successfully proved that this business model works, we can further expand it into different types of environments where there are sufficient densities of people to make the advertising worthwhile. |

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● EV ARC™ DCFC – DC Fast Charging system for charging EVs comprised of four interconnected EV ARC™ systems and a 24kW DC fast charger.

● BeamSpot™ – patent issued on December 31, 2019, and first installations were made in 2025. BeamSpot™ is an EV and AV charging and emergency power product which uses an existing streetlight's foundation and a combination of solar, wind, grid connection and onboard energy storage to provide curbside charging and emergency power without the need to do extensive construction or electrical work. Beam Europe is one of Europe's largest manufacturers of streetlights. We believe that BeamSpot™ has the potential to become one of our largest selling products.

● BeamSkoot™ is a rapidly deployed charging infrastructure product for electric mopeds. There's no construction or electrical work and because it generates and stores its own electricity it does not require a connection to the utility grid and it does not generate a utility bill. It is capable of charging 4 electric mopeds at the same time, and we will sell it either without electric mopeds so that existing owners and users can charge outdoors, or as a bundle with the mopeds included through our partnership Benzina Zero.

● BeamBike™ - rapidly deployed, construction free, solar-powered charging system based on the patented EV ARC™ platform which generates and stores its own clean electricity, accessed through twelve integrated, weatherized 120 V outlets supporting any eBike charger or through proprietary charging ports for Beam branded e-bikes for rentals or sharing. Supports 12 eBikes and is available with or without bundled eBike packages and a mobile app which takes payments and locks and tracks the locations and usage of the e-bikes.

● BeamPatrol™ - Rapidly deployed and easily transported, the BeamPatrol™ station allows law enforcement and safety personnel to charge and quickly access electric motorcycles without the need for any additional infrastructure or fuel. This innovative solution is ideal for law enforcement, customs and border patrol, the military, park services, air and seaport operations and any situation where the ability to rapidly gain access to an environment, without alerting targets of the operation, is required. BeamPatrol™ and its motorcycles generally have low maintenance and fuel costs and provide a highly reliable mobility solution while assisting in the carbon reduction efforts of the agencies that use the product. BeamPatrol™ is made available with, or without bundled eMotorcyles.

● BeamWell™ - based on the patented EV ARC™ system, is a self-sufficient, self-contained operational system for use in war zones and remote or disaster areas where only salt, brackish or dirty water is available because a reliable clean water supply is not available or has been interrupted. The BeamWell™ system provides three essential services to regions in crisis: it turns seawater into fresh water, which is then stored in an integrated 3000-liter tank that is replenished daily; it provides a source of electricity which can be used for medical or communications devices as well as cooking, refrigeration and lighting; and it charges four integrated electric mopeds for the rapid distribution of food, water, medications or other vital resources, to those in need.

● Smart Cities Infrastructure products – Streetlighting, street furniture, communications infrastructure products, energy infrastructure products, with electronics integration including renewable energy sources, battery storage, sensors and IoT integration.

● BeamFlight™ - patent issued on November 24, 2020, and currently under development. An off-grid, renewably energized and rapidly deployed product and network used to charge aerial drone (UAV) fleets.

● Power electronics and energy storage solutions for telecommunications, energy infrastructure and, in the future, our own patented product portfolio.

<u>Energy Storage Solutions</u>

According to MarketsandMarkets Analysis, the global lithium-ion battery market size is projected to grow from $195 billion in 2025 to $426 billion by 2033; and it is expected to grow at a compound annual growth rate (CAGR) of 10% from 2025 to 2033. 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 connection. This untethering requires energy storage to be more energy dense and packaged in increasingly smaller and lighter formats. 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 can be difficult to control and has, in certain instances, resulted in fires. We have demonstrated that our energy storage products create high performance energy storage solutions used in drones, EV charging, EVs, micro mobility, aviation, medical devices, robotics, stationary storage, and military 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™, BeamSpot™ and other EV charging products. We believe our proprietary and patented passive thermal management, modular platform architecture, and scalable 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 militaries, government agencies, Fortune 100 companies and many others in the U.S and Internationally.

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<u>Energy Security and Disaster Preparedness</u>

According to the United States Department of Energy, if projected load growth continues, driven by the electrification of transportation, AI driven data centers, and expanding digital infrastructure, without corresponding upgrades to grid infrastructure and capacity, the risk of power outages could increase by as much as 100 times by 2030. Our products are fully sustainable and include battery energy storage that can be used during times of grid or hydrocarbon fueled generator failure or during public safety power shutoff ("PSPS") as may be required in certain jurisdictions. Our primary focus in energy security is to ensure access to EV recharging infrastructure during grid failures, such as blackouts. As the adoption of EVs increases, it will be critical to have fuel (recharging) infrastructure that is not reliant on the utility grid with its centralized vulnerabilities. We have witnessed power outages in Texas due to cold weather, in California due to wildfires and in California and New York due to hot weather and in other parts of the nation whenever inclement conditions such as high winds or flooding occur. California has also been susceptible to PSPS to prevent fires during high wind events. There have been kinetic and cyber-attacks on the grid, and the U.S. government has evidence of intrusions by nefarious nation state actors. A Wall Street Journal article reported that attacks on the US power grid rose 71% in 2022 over 2021. In April 2024, North American Electric Reliability Corporation, a division of the grid oversight body, reported that physical assaults on the grid have remained high since rising in 2022, with about 2,800 reports of gunfire, vandalism and other strikes on electrical networks in 2023. Events such as these constitute significant vulnerabilities which are expensive, disruptive, inconvenient, and dangerous. As we electrify our transportation fleets, these events may become catastrophic. The U.S. has a Strategic Petroleum Reserve to ensure that it never runs out of gasoline and diesel, but there is no strategic electric reserve. The electrical grid faces unprecedented challenges as a result of increased frequency and intensity of extreme weather events, such as heat waves, wildfires, hurricanes, floods and other climate events which can disrupt the generation, transmission and distribution of electricity.

On April 28, 2025, a major blackout across Spain and Portugal affected over 55 million people for more than half a day, disrupting transportation, communications, and critical services. During this the power outage, Beam Global's EV ARC™ continued to operate seamlessly providing critical solar-powered EV charging and emergency power where traditional infrastructure failed. This event highlighted the vulnerability of centralized electricity grids and the growing importance of decentralized, resilient energy infrastructure.

We believe Beam's products are a highly robust and secure source of power for EVs and provide a hedge against grid failures. Our EV ARC™, BeamSpot™, BeamBike™, BeamPatrol™ and BeamWell™ products currently provide locally generated and stored electricity which is not impacted by grid failures. 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. We believe that our current contracts with California, Florida, New York City, and the Federal government through our General Services Administration (GSA) Multiple Award Schedule Contract and Sourcewell, a government purchasing organization that enables state and local governmental entities and other eligible agencies to procure products through a competitively solicited process, position us to take advantage of what we believe will be a significant increase in the requirements of robust and sustainable EV charging and energy security infrastructure. We believe that we produce products which are valuable and politically popular regardless of which administration is currently in power because they provide:

1. American made products

2. Reliable innovative Energy

3. Energy Security

4. American fueled transportation

5. Communications and energy infrastructure

We believe that our products are ideally suited to fulfill all these requirements.

<u>Traffic Telecommunications and Energy Infrastructure Products</u>

On October 20, 2023, Beam acquired Amiga DOO Kraljevo ("Amiga"), a business located in Serbia that manufactures and distributes steel structures with electronic integration. Amiga, which we renamed Beam Europe following the acquisition, has sold the following products throughout the European region, in North America and in countries across Africa:

(i) infrastructure products for public lighting;

(ii) infrastructure products for mobile telephones, networks, and transmission lines.

(iii) infrastructure products for trams, trolleybus, and railways.

(iv) infrastructure products for contact networks, masts, portals and semi-portals for road and railway signaling;

(v) large steel lattice structures for specific purposes (e.g., stadiums, factories, power plants, etc.); and

(vi) distribution and command electrical cabinets.

We have observed that our European operations have strong engineering, product development and manufacturing capabilities which is well suited to manufacture Beam's current products and the development and manufacture of Beam's new products. We intend to introduce our portfolio of patented renewably energized products further in Europe, the Middle East and Africa.

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On August 30, 2024, Beam acquired Telcom d.o.o. Beograd ("Telcom"), a business located in Serbia and engaged in the manufacturing of power electronics and telecommunications equipment. Telcom engineers and manufacturers specialized power electronics including inverters, charge controllers, power supplies and LED lighting. Telcom has electrical engineering, product development and manufacturing capabilities which are ideally suited to improve the Company's current and future products for the global market. We believe Telcom has a well-respected and highly talented team of electrical engineers, focused on power electronics and the integration of renewables and energy storage. We continue to grow Telcom's legacy business, and we believe that Telcom's portfolio of existing customers offers further opportunities for expansion of our products in Europe.

<u>Outdoor Media Advertising</u>

We believe there is opportunity in the outdoor advertising space to place outdoor advertising content on Beam's infrastructure products. The objective is to sell advertising space on our products to a company, with the proceeds being used to fund the delivery of EV ARC™ systems. We believe this is a proven, successful business model, and our EV ARC<sup>TM</sup> provides a good platform for advertising for a company who seeks to promote their support of clean energy. In November 2024, we announced our first sponsorship agreement with Globos Osiguranje, one of Serbia's premier insurance companies. Under the agreement, Globos Osiguranje sponsored five EV ARC™ solar-powered EV charging stations that provide free public EV charging which were deployed at Belgrade Nikola Tesla Airport, Serbia's busiest international travel hub. In order to facilitate this sponsored "Driving on Sunshine" initiative, Beam Global previously secured an agreement with Belgrade Airport, part of VINCI Airports, an operator of over 70 airports in 14 nations across the globe, to operate the network in prime locations at Belgrade Nikola Tesla Airport with further cooperation with VINCI Airports to be considered.

This three-way partnership marked Beam Global's entry into an owner-operator business model, where we generate income through a long-term annuity stream of recurring payments. By retaining ownership of the EV ARC™ systems, Beam Global secures a steady, predictable revenue stream while delivering sustainable solutions. Globos Osiguranje is able to provide "Driving on Sunshine" sponsored EV charging for free to EV owners because EV ARC™ systems do not require utility electricity and do not generate costs for the energy dispensed. Providing the EV charging for free while monetizing the sponsorship significantly lowers Beam's administrative costs and risks associated with collecting payments or personal information from the EV drivers. We believe that the amenity value delivered to site hosts enables Beam Global to receive highly favorable economic terms on the parking spaces in which the EV ARC™ systems are placed. This model is designed so that sponsorship payments are not diluted by typical operating costs, which might burden companies that do not have Beam Global's technology advantage.

**Strategy**

<u>Target Markets</u>

Beam's target markets consist of several broad segments including: state, municipal and federal governments and agencies, militaries, corporations, universities, retail, hospitality, Tribal Nations and international markets. These segments can further be broken down into increasingly granular segments as different market opportunities are identified.

Beam's largest customers have historically included the U.S. Federal Government, including the U.S. Army, Department of Veterans Affairs, Department of Homeland Security, United States Marine Corps, and many other federal agencies, and the State of California, which is a conglomeration of California state agencies and municipalities. We have expanded the sale of EV ARC™ systems to 41 states throughout the U.S., and countries in Europe and the Middle East, Puerto Rico and the U.S. Virgin Islands in the Caribbean. The largest customers that we sold to in 2025 were Advanced Energy Mahine (AEM), City of Dallas and Upscale Developers and in 2024 were the US Army, Department of Homeland Security, followed by the State of California.

In October 2023, Beam acquired Amiga DOO Kraljevo ("Amiga") which we renamed Beam Europe following the acquisition, is a business located in Serbia and engaged in the manufacture and distribution of steel structures with electronic integration, such as streetlights, cell towers, and transportation portals. We believe Amiga's manufacturing capabilities are well suited to manufacture and sell Beam's current products into the European market, which is a larger market, with 420 million cars, than the U.S. which has 290 million. We believe that Amiga has also a strong engineering team that is currently helping to develop our new products for sale in both the U.S. and Europe. We believe this provides a strong growth opportunity for Beam's products. Amiga's target customers have typically been municipalities and other government entities. Amiga's target market is very similar to the target market that we have pursued in the U.S. As a result, we are now able to expand our sales efforts into larger markets, which we believe may provide enhanced growth opportunities.

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On August 30, 2024, Beam acquired Telcom d.o.o. Beograd ("Telcom"), a business located in Serbia and engaged in the manufacturing of power electronics and telecommunications equipment specializing in power electronics including inverters, charge controllers, power supplies and LED lighting. We believe Telcom has a well-respected and highly talented team of electrical engineers, focused on power electronics and the integration of innovative energy generation and energy storage. Telcom's sales have typically been focused on telecommunications infrastructure providers as well as providers of material rehandling equipment and other consumers of power electronics particularly where inversion and energy storage are concerned. We believe that the acquisition of Telcom creates opportunities for Beam to broaden our target markets while at the same time improving our existing portfolio of products.

We consider the factors below in determining favorable markets for our products:

● ***For transportation and mobility*.** 

● Are there high or growing concentrations of electric or autonomous vehicles?

● Are there now, or will there be in the future, laws or other regulatory requirements which incentivize the adoption of entry vehicles?

● Are there now, or will there be in the future, laws or other regulatory requirements which penalize the use of internal combustion engine vehicles?

● Is there a requirement for rapidly deployed and highly scalable charging infrastructure?

● Is the cost of construction and electrical work required to install traditional grid tied chargers high?

● Is the process for acquiring environmental impact studies, zoning, permitting, and other permissions and regulatory hurdles complex or time-consuming?

● Is the cost of electricity high, growing or likely to grow?

● Is there a lack of sufficient capacity on the existing utility grid infrastructure?

● Does the likelihood of blackouts or other grid interruptions make it important to have other sources of electricity which are immune to those types of interruptions?

● Are there potential customers who are operating in leased premises who might not be in a position to invest in tenant improvements, and who would rather acquire equipment which they can take with them at the end of the lease?

● Are there requirements for EV or AV charging fluid and potentially likely to change?

● Are there incentives or other political or regulatory incentives, which might encourage the deployment of charging infrastructure for electric vehicles, energy storage, innovative sources of energy?

● Are there high volumes of tourists or others who might benefit from using shared electric bicycles?

● Are there large compass environments where the use of electric bicycles, electric scooters or electric motorcycles make more sense than the use of traditional internal combustion engine vehicles?

● Is the complexity of extending the electrical grid to locations where electricity or charging infrastructure required too complicated, disruptive or impossible?

● Are there local environmental considerations which make construction or electrical work too risky?

● ***For energy security.***

● Is the vulnerability to grid interruptions too high because of the potential for inclement weather conditions, or some other input like terrorism or nefarious state actors?

● Is the mission so critical that any sort of interruption of utility electricity supply insupportable?

● Could the cost of interruptions to utility Electricity be greater than the Cost of our products?

● Is a reliable grid supply too expensive to deliver to the location?

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● ***For energy storage.***

● Does the customer require highly energy dense battery packs?

● Is thermal management and the prevention of thermal runway important?

● Does the customer have specific form factor requirements wherein a traditional square or rectangular battery would not serve as well as our bespoke form factored solutions?

● Are there complex engineering or development requirements for the creation of the energy storage solutions which can be met by our team of highly skilled engineers and scientists?

● Is the mission to be performed by the energy storage solution more important than low costs?

● Is the customer looking for a non commodity solution?

● Is it important to the customer to have the highest energy density to weight ratio commonly available?

● Is it important for the customer to have a made in America energy storage solution?

● ***For smart cities infrastructure.***

● Is the city looking for forward-looking tech technology solutions?

● Is the city considering any type of lighting upgrades or other measures to reduce energy consumption?

● Does the city value gathering data to make the lives of citizens safer and more efficient?

● Is the city looking to lower its operational costs?

● Are there mandates or other regulatory incentives which encourage the deployment of Smart cities technologies?

● Is pollution, crime, violence, severe weather, or other environmental considerations important to the decision makers in the city?

Many of these factors have been important since the early days of EV adoption. According to the International Energy Agency, more than 50 countries, representing around 60% of the global population, have policies in place to incentivize the adoption of electric vehicles, signaling strong government support for transportation electrification. In the U.S., while the federal government has become less enthusiastic about the acquisition of EVs and EV charging infrastructure, there are still currently nine states that have announced plans to prohibit the sale of new internal combustion engine automobiles after 2035. California has announced a similar ban, and seventeen other states have historically followed California's regulations. In addition to all-electric car manufacturers such as Tesla, BYD, Lucid Motors, Rivian, Polestar, etc., most car companies now offer EV options for various types of vehicles. 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 no later than 2040 in leading markets. Automotive manufacturers have started production of EV which are more consistent with traditional car models that have been popular with U.S. consumers. GM has launched an electric Hummer which has 1000HP (compared to the gasoline version with 300HP) with a similar acceleration rate as the all-electric F150. The European Union has also announced a ban of the sale of internal combustion engine vehicles in 2035. Europe is the largest automotive market in the world with 405 million cars versus 320 million in China and 290 million in the U.S.

We believe that consumers 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 established, 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 of producing 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.

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<u>Growth Strategy</u>

Our growth strategy can be broken into the following sectors:

1. Geographic expansion

2. Product and technology portfolio expansion

3. Customer segment diversification

4. Targeted selective acquisitions

**Geographic Expansion**

Prior to 2023, our revenues and growth were from the U.S. market. As a result of our acquisitions of two companies in Serbia and a recent expansion through the creation of Beam Middle East based in Abu Dhabi, we are now selling into the U.S., North and South America, Europe and The Middle East and Africa. The needs in each of these markets are similar and our products' capability of addressing those needs is, we believe, universal.

Since the fourth quarter of 2023, we have been selling our products in the European market with, for example, sales of EV ARCs™ to the British Army in Cyprus and the deployment of a sponsored network of EV ARCs™ at the Belgrade International Airport. Our Spanish partners GECI have sold EV ARCs™ in Spain, and our Romanian partners have recently closed a sale in Romania. In the second quarter of 2025, we expanded into the Middle East where we have deployed both EV ARC™ products and our BeamBike™ solution. We now have sales representatives in many countries in Europe as well as in the Middle East and in Africa. We believe that this level of geographic expansion will create many opportunities for us to increase our sales and revenues in the coming quarters. We are increasing our offering of our electrified, transportation products, our energy storage and energy security products, and our smart cities infrastructure products in the U.S., Europe, the Middle East and Africa. We believe that our expansion into these new markets, where the requirements are the same or similar as they are in the U.S., should offer a significant opportunity for growth as the sales cycles in each of these markets matures.

**Product and technology portfolio expansion**

Historically the majority of our revenues have been generated through the sale of a single product - the EV ARC™. In the fourth quarter of 2024 Beam Global introduced several new products targeting energy security and the electrification of transportation which are described above the section "Products and Technologies".

As a result of our acquisition of Amiga in 2023, Beam Europe is one of the largest manufacturers of streetlights in Europe. We have an extensive portfolio of bespoke and mass-produced streetlighting solutions which we sell in countries across the region. We also manufacture other steel structures with integrated electronics such as renewable energy production, telecommunications infrastructure and traffic portals.

We are increasingly enhancing our portfolio of products through the addition of software, power electronics and sensors. A significant part of our growth strategy is based upon our belief that our customers will increasingly value data delivered to them from our extensive portfolio of products which we are continuing to make further developments in this area. We intend to make further developments in this area and we'll use a combination of in-house development solutions, solutions acquired from others from potential acquisitions. We believe that combining machine learning with AI in the type of sensor rich environments which we can deploy may create significant revenue opportunities in the future.

**Customer Segment Expansion**

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**Targeted Selective Acquisitions**

Through our acquisitions, we have gained new technologies, new customers and new market opportunities while at the same time adding capabilities which have reduced our costs and enhanced our gross margins. Our acquisition of All Cell Technologies ("AllCell") in 2022, a battery manufacturing company based in Illinois, expanded our patent portfolio, provided access to new industries and opportunities, strengthened our supply chain, and reduced our cost of goods sold while improving our product. Our acquisition of Amiga included a 250,000 square foot factory facility in Kraljevo, Serbia which opened up new markets to us in Europe, the Middle East and Africa. It also enabled us to develop our BeamSpot™ product, and reduced our costs of manufacturing both in Europe and the U.S.. We believe it also enhanced our engineering and product development team in a highly cost-efficient manner. Our acquisition of Telcom, a power electronics company also based in Serbia, allows us to create bespoke electronics solutions for our products which will enable us to reduce our costs while improving our production. This acquisition also allowed us access to new customer segments.

We take a highly disciplined and deliberate approach to acquisitions, focusing on targets that are good strategic fits, include capable and engaged management teams, and are acquired at valuation and on terms that we believe are favorable to all parties, with particular emphasis on delivering value to Beam Global shareholders.

In addition to the acquisitions above, we have entered into a joint venture agreement with the Platinum Group L.L.C. in the Emirate of Abu Dhabi, UAE, which will sell and manufacture our products across the Middle East and African regions.

We continue to actively search for opportunities which we believe will continue to improve our business model, our business operations, our revenues and profitability. We believe that there are areas of opportunity in further sourcing our manufacturing operations through the acquisition of companies who make components that are necessary to the operation of our products. We also believe that there are opportunities for us to acquire companies which may bring new technological progress to our organization in order to increase the barrier to entry for our competition and our ability to generate further revenues at higher gross profits. We will continue to seek targets and to endeavor to negotiate beneficial deals for Beam Global while at all times retaining our discipline and our commitment to making acquisitions that are well priced, well-structured and in the best interests of our shareholders.

The EV market is expected to grow at a rapid pace, and it is expected that the EV infrastructure market will grow at a comparable pace to support the EVs. According to Grand View Research, research indicates that the EV-charging infrastructure market is expected to reach $238.8 Billion by 2033 which is a 25% compound annual growth rate (CAGR) between 2026 – 2033. In December 2024, the California Energy Commission approved a plan for nearly $1.4 billion in funding for 17,000 new light-duty chargers statewide. We currently operate in three rapidly growing markets: The electrification of transportation and mobility, energy storage (batteries), and security and smart cities infrastructure. We believe that our products have a global appeal and that we are at a very early stage in the development of our sector. We believe that our strategic growth plan will enable us to increase our user base and revenue while increasing profitability. Further growth steps include:

● Engaging government relations experts internationally to educate decision makers on the value of our products.

● Increase marketing efforts to educate potential customers.

● Expanding our geographic footprint and customer base, in Europe, the world's largest automotive market and the Middle East and Africa, a region set to invest over $1 trillion in renewable energy by 2030. 

● Increasing our gross margins by increasing production volumes, improving operating efficiencies and reducing the cost of materials and production.

● Increasing leverage of outsourcing as our manufacturing process scales.

● Expanding our recurring revenue business.

● Educating potential customers regarding government grants, investment tax credits, and other incentives available to our customers.

● Capturing market share of the electrified personal and public transportation space.

● Continuing to develop and innovate new products and build a strong IP portfolio.

**Sales and Marketing**

Beam utilizes a combination of an in-house sales team and outside consultants, pairing customers with our sales specialists, to ensure customers' needs are met. Historically, almost all of our sales have been made by a relatively small in-house sales team based largely within the U.S. In 2024, we started to execute on a new strategy of engaging outside sales resources such as distributors, resellers and agents. We view this salesforce strategy as an important part of our plan to increase sales while maintaining our operating costs at a low and stable level. The agreements we have put in place with distributors, resellers and agents are all performance-based which allows us to expand sales without a corresponding increase in fixed operating expenses.

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We believe we are able to be successful with an outside sales strategy due to the maturation of our internal sales processes and materials. We have designed a thorough selling process flow instruction manual and a Sales Resource Center which is hosted online and available to anyone we authorize. This centralized Sales Resource Center provides standardized training materials, product specifications, marketing collateral, demonstration content, and sales process documentation designed to ensure consistent messaging and effective engagement across our internal sales team, resellers, and external sales partners.

We now have resellers and agents in the U.S., Spain, Portugal, Italy, Caribbean, Central America, the Balkans, the Middle East, Africa and Australia. Certain of our marketing materials have already been translated into multiple languages and we created video and other content which is used as selling aids. These international channel partners expand our geographic coverage and provide localized sales support for governments, utilities, commercial organizations and institutional buyers who are seeking EV charging and clean energy infrastructure solutions. The external resources which we have engaged have established track records and relevant experience in selling infrastructure products to the types of customers with whom we have had success historically. Many of our partners have longstanding relationships within transportation, government, utilities, and commercial infrastructure sectors which align closely with Beam Global's target customer segments. We have recognized the benefits of this strategy in 2025 and we believe that it will support increased revenue and profitability in both new and existing markets.

Our U.S. sales process is heavily focused on driving awareness of our products and solutions for charging needs. We have been investing more in marketing and videos. These efforts include educational content, digital marketing campaigns, product demonstrations, and industry outreach designed to increase market awareness of Beam Global's off-grid EV charging infrastructure solutions. 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, X, Google and LinkedIn). Our marketing programs are designed to reach customers across multiple vertical markets including government agencies, transportation authorities, universities, commercial fleets, hospitality organizations, utilities, and commercial property owners. 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.

Sales of our products often have long sales cycles due to the capital expense, budgeting cycles, and the sophisticated nature of our products. We are working to decrease the time of our sales cycles and believe that expanding our focus beyond government agencies will improve timelines as awareness and acceptance of our products increase, along with the urgency surrounding the deployment of EV charging infrastructure. Sales often rely on bureaucratic processes and funding approval which can result in extended sales cycles. We support our customers by identifying tax credits, grants and government programs to reduce the cost of their purchase.

Our products may be eligible for various taxes and other incentives, which can significantly reduce the out-of-pocket expenses paid by our customers. Examples of these incentives include:

● Federal Solar Investment Tax Credit (ITC) (Section 48E of the tax code). For eligible projects, customers may qualify for the federal Clean Electricity Investment Credit under Section 48E of the Internal Revenue Code, which generally replaced the prior Section 48 investment tax credit for property placed in service after 2024. The base credit may increase if applicable domestic content, energy community, prevailing wage, and apprenticeship requirements are satisfied

● Section 179 and Bonus Depreciation – Our customers may be able to expense or accelerate depreciation on qualifying equipment, which can provide substantial first year tax benefits depending on the property, the customer's tax profile, and the year the property is placed in service. IRS guidance for 2026 reflects a Section 179 deduction limit of $2,560,000, and current IRS guidance also reflects 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025.

● The Inflation Reduction Act of 2022 extended and amended the 30C Alternative Fuel Vehicle Refueling Property Credit (30C credit) which provides an income tax credit for qualified alternative fuel vehicle refueling property, including certain property for the recharging of an EV. This program is available through January 1, 2033, and may provide an income tax credit for businesses up to $100,000 per deployment, which helps to make EV chargers more accessible for commercial use.

We believe that because our products are rapidly deployed, enhanced energy security and are made in America, we are well positioned to benefit from these and other initiatives.

<u>Major Customer Contracts</u>

In 2025 and 2024, we had two major customer contracts, the State of California and the General Services Administration (GSA) Multiple Award Schedule (MAS) that accounted for 29% and 58% of revenues for the years ended December 31, 2025 and 2024, respectively. Each of these contracts represents a highly diverse and dispersed customer prospect pool for Beam Global due to the extensive and varied nature of government departments within the Federal and California government spheres.

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***GSA MAS and GSA BPA Contracts*.** Since November 2020, following an extensive evaluation process, we have had in place a Multiple Award Schedule Contract with the General Services Administration ("GSA") that helps streamline purchases from federal agencies and state and local governments. In addition, the GSA awarded Beam Global a federal blanket purchase agreement in April 2022 which provides federal agencies a streamlined procurement process for procuring EV ARC™ systems. In Q2 2025, the contract was extended until October 31, 2030. Both contracts help to simplify the procurement process and ensure the best pricing for the applicable agencies. We have sold 906 EV ARCs™ through these contracts for $72.1 million prior to 2025 and 28 EV ARCs<sup>TM</sup> for $4.3 million in 2025.

***Sourcewell***. On November 12, 2025, we announced being awarded a cooperative purchasing contract by Sourcewell, expanding our access to U.S. military, state and local government agencies and higher education institutions across North America. Sourcewell combines the purchasing power of over 50,000 participating public agencies, offering hundreds of awarded supplier contracts across public sector and educational organizations to procure our sustainable infrastructure and energy storage solutions through a ready-to-use, negotiated, Sourcewell-vetted contract, thereby streamlining the public purchasing process.

**Competitors**

**<u>EV Charging Infrastructure</u>**

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 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 have sold products to seven utility customers and anticipate that that number will grow as more utilities become engaged in EV charging and in deploying distributed generation resources to enhance grid stability. Our EV ARC™ product is unique in that we are a complete solution for EV charging infrastructure requirements. EV ARC™ provides both a renewable energy source, and EV charging capability in a rapidly deployable and highly scalable construction-free format. We do compete with several 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 energy and EV charging industries is intense and fragmented among a wide variety of participants. Companies such as Schneider, Eaton and Bosch manufacture EV charging units but generally do not offer charging services. Companies such as ChargePoint (NYSE: CHPT) and Blink (NASDAQ: BLNK) offer EV charging services and hardware but not, typically, installation. There are many companies which offer installation services for the EV charging market. They are typically electrical and general contracting companies as well as some larger project management firms such as Black and Veatch, Bechtel, CH2M Hill and AECOM.

Our EV ARC™ units incorporate whatever charger the customer wants, so we are not competing with the charger company, but rather creating opportunities for them which they might not otherwise have had.

Certain competitors offer containerized or canopy-based solar-powered EV charging solutions. For example, some solutions utilize shipping container-based designs that incorporate batteries, solar panels, and EV chargers. Compared to our EV ARC™ systems, these solutions may require the use of dedicated parking space or additional site area, which could reduce available parking or require site modifications depending on local regulations. In addition, such designs may not include solar tracking capabilities, which can affect energy generation efficiency.

Other competitors, such as Paired Power, offer solar canopy-based EV charging solutions that may require on-site assembly and installation. In contrast, our EV ARC™ systems are designed for rapid deployment without the need for on-site construction.

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&nbsp;&nbsp;&nbsp;&nbsp;Many solar installation companies are now affixing 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 generally grid-tied, require construction and electrical work and do not include energy storage.

Electrify America is another example of an entity which is providing free or discounted EV charging infrastructure. Electrify America plans to spend $2 billion by the end of 2026 on EV charging infrastructure access and education programs in the U.S. ($800 million in California). 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 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, or "make readies" of electrical circuits and other civil infrastructure, for a lower price or in some instances for free, to certain customers. We have added utilities to our customer base and have provided product to seven utilities to date. We do not view utilities as competition and instead view them as a significant opportunity as they increasingly add off grid solutions to their energy mix.

Our electric bike recharging product competes with a variety of installers of bike sharing stalls and electric bike charging stations. Most electric bike stations that we are aware of are connected to utility grid and as a result rely on construction and electrical projects and the utility grid connection. We believe no other company is producing a rapidly deployed charging station which provides a secure location for the bicycles, the charging infrastructure, and all of the electricity that bicycles will ever consume.

In general, adopters of electric motorcycles often engage separate contractors and service providers for the provision of the charging which is necessary to keep those motorcycles active. We are not aware of any other company which provides a turn-key solution which includes a bundle with the motorcycles, the charging infrastructure and the fuel for the motorcycles under a single invoice. There's no construction electrical work or project management or planning required under our solution.

**<u>Energy Security</u>**

Where energy security is concerned, we compete with companies that produce generators and combine 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, 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 observed that none of them have a product which provides all the same value and differentiation that our energy security products deliver because our systems are transportable, rapidly deployed and offer multiple layers of value.

Our competitive advantage over these other solutions includes:

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| o | **Rapid deploy ability and scalability of our products.** Our products are manufactured in our facilities and delivered as turnkey solutions that can be deployed in less than an hour after delivery to a customer without the need for on-site construction. In contrast, grid-tied alternatives typically require design, engineering, permitting, and construction processes that can extend project timelines. |

| o | **Ability to operate during blackouts and brownouts.** Our products incorporate battery storage and are designed to operate independently of the utility grid, which may enable continued operation during grid outages. Most of the EV ARC™ systems we deploy include an emergency power panel that provide emergency power to operate 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 our products continue to operate. |
| o | **Located anywhere.** Because a grid connection is not required, our EV ARC™ can be located anywhere, including prime locations in the front of buildings or 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, which may be locations that are not easily accessible or unsafe for drivers. We believe that as EV charging expands, the cost of grid tied installations will increase dramatically for desirable locations such as in front of stores or where people want to park due to the cost and complexity of bringing the grid to the charger. 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.  |

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| o | **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. |
| o | **Environmentally sound products use 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, 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. |
| o | **Relocation.** Beam Global's products can be transportable and relocated, which gives the customer the flexibility to move it if a job site changes or business needs change. Grid-tied installations are a permanent solution. Many of our customers operate in leased facilities. The transportability of our products means that a customer can remove them when a lease matures whereas grid-tied solutions become tenant improvements and a sank investment. |
| o | **BeamTrak™**, our patented solar tracking solution is designed to follow the sun generating up to 25 percent more electricity than a fixed array, is a significant advantage for our products over any similar offering.  |
| o | **Product Improvements.** Over time, we have continued to make improvements to our product, which increases our product's energy production while reducing product costs, whereas the grid-tied competition is stuck at a theoretical maximum amount of energy that can be delivered at a given location.<br>**Streetlights and integrated steel structures**<br>The streetlight and integrated steel structure industry is highly competitive and there are several companies operating in Europe who directly compete with us. Cost is generally a major factor for our customers. Our European operations have over 30 years of experience serving customers in these markets, which we believe supports long-standing customer relationships and repeat business. Smaller competitors are generally less well equipped and because they buy less raw materials, particularly steel, they tend to have higher cost structures where direct costs are concerned. We are often able to compete with the larger competitors through our local presence in the Balkans, operational flexibility and ability to deliver customized solutions.<br>Representative competitors include:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;Valmont Polska Sp. z.o.o.V– Poland <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Zincometal SA Kilikis - Greece <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;Omega D.D. - Croatia <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;Dalekovod D.D. – Croatia <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;Petitejean S.A.S. - France |

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We believe that the combination of our legacy streetlight business with our patented portfolio of renewable energy security and EV charging products as well as our ability to create bespoke custom batteries, makes our product offering unique within the markets we are targeting period. We further believe that in certain circumstances the unique nature of our business will create a barrier to entry for our competition even in the legacy Streetlighting and other integrated steel structure product businesses.

**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 believe are in front of us. The facility houses our corporate operations, sales, design, engineering and product manufacturing. The San Diego lease expires on September 30, 2026, and we are currently exploring options with respect to the facility.

We also lease a 37,800 square foot facility in Broadview, Illinois, where we produce our energy storage products for our own products and for a variety of other customers who need energy storage solutions.

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In Europe we own a 450,000 square foot office and manufacturing facility in Kraljevo, Serbia on 6 acres of land that has adequate space and capacity to manufacture their legacy product offerings as well as EV ARC™s and our other products as needed for the European market. We also lease a 5,000 square foot business office in Belgrade, Serbia for our power electronics location and another business office for sales, product development and administrative which is 1,639 square feet.

In UAE, we lease a 535 square foot office as part of a much larger office facility shared with our joint venture partner, the Platinum Group, in Omniah Tower, Corniche Abu Dhabi. The facility houses our Sales and administrative team.

All of our products are currently designed, developed and manufactured in one or more 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 including BeamBike™, BeamPatrol™, BeamWell™ and BeamSkoot™ 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. Our BeamSpot™ product requires minor on-site work to modify the existing foundation so that it can support the extra load which BeamSpot™, with its solar array and wind turbine, creates.

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, which, along with our other cost controlling efforts will reduce the cost per unit.

**Customer Concentration**

During 2025, 29% of our revenue was attributable to federal, state, and local governments, compared to 62% in 2024. Furthermore, 14% of our revenue was attributable to the state agencies and municipalities in the State of California, compared to 25% in 2024.

**Backlog**

Our backlog on December 31, 2025, was $6.0 million. Our backlog on December 31, 2024, was $5.6 million. Reported backlog represents firm purchase orders or contracts received by customers for deliveries scheduled in the future. More than 50% of our 12/31/25 backlog is for Smart Cities products, and more than 30% is for our energy storage products. These backlog percentages demonstrate that our strategy to diversify our revenue opportunities is working. In prior years the majority of our revenues were derived from sales of EV ARC™ products. At 12/31/25 our EV ARC™ sales backlog only accounted for approximately 11% of total backlog.

**Government Regulation**

Businesses in general are subject to extensive regulations 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 during 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 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. or 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. There may also be government regulations that could impact us as we begin to sell in the European market. Changes to new government regulations may have a material adverse impact on our business, operating results, and financial condition.

**Employees**

As of December 31, 2025, we have 220 employees, of which 23 are temporary employees. Most of the temporary employees are retained through a temporary employment agency to maximize our flexibility and to reduce the risks and costs associated with permanent employees. We believe our employee relations to be good. None of our employees are represented by a labor union or collective bargaining agreement.

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| **ITEM 1A.** | **RISK FACTORS.** |

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*You should carefully consider the following risk factors, in addition to the other information contained in this report on Form 10-K, including the section of this report titled* "*Management*'*s Discussion and Analysis of Financial Condition and Results of Operations*" *and our financial statements and related notes. If any of the events described in the following risk factors and the risks described elsewhere in this report occurs, our business operating results and financial condition could be seriously harmed. This report on Form 10-K also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of factors that are described below and elsewhere in this report.*

***We have sustained recurring losses since inception and expect to incur additional losses in the foreseeable future.*** We were formed on June 12, 2006, and have reported annual net losses since inception. For our fiscal years ended December 31, 2025 and December 31, 2024, we experienced net losses of $27.0 million and $11.3 million, respectively, including cash and non-cash expenses under generally accepted accounting principles. Non-cash expenses including depreciation, amortization, non-cash compensation and contingent consideration included in the above losses are $15.3 million and $1.1 million for fiscal years ended December 31, 2025 and December 31, 2024, respectively. Further, as of December 31, 2025, we had an accumulated deficit of $131.6 million. In addition, we expect to incur additional losses in the future, and there can be no assurance that we will achieve profitability. Our future viability, profitability and growth depend upon our ability to raise capital and successfully operate and expand our operations. We cannot ensure that any of our efforts will prove successful or that we will not continue to incur operating losses.

***We may need to raise additional capital or financing to continue to execute and expand our business.*** We will require additional funding in the near term to fund our operations and provide working capital. However, there is no guarantee that we can raise capital at terms that are acceptable to the Company. We may be required to pursue sources of additional capital through various means, including private and public offerings of our securities, sale and leasing arrangements, and debt financing. If the amount of capital we can raise from financing activities, together with our revenues from operations, is not sufficient to satisfy our capital needs, we may have to reduce our operations accordingly. If we do not have sufficient funds to continue operations, we could be required to seek dissolution and liquidation, bankruptcy protection or other alternatives that would likely result in our shareholders losing some or all of their investment in us. Even if we obtain equity or debt financing, it may be on terms not favorable to us, it may be costly and it may require us to agree to covenants or other provisions that may adversely affect our business. Additional funding, if obtained, may also result in significant dilution to our shareholders.

***Our revenues are sometimes concentrated in a small number of customers and our revenue may decrease significantly if we were to lose one of these customers***. We have a few large customers including the City of Dallas, Upscale Developers, and US Department of State that generated 4%, 3%, and 3%, respectively, of revenues in 2025. The loss of or a significant decline in sales to any of these customers could adversely affect our business, results of operations, and financial condition. Our customer concentration may fluctuate from period to period based on the timing and size of customer orders, which are often project-based in nature. The loss of any significant customer, a reduction in orders, delays in customer purchasing decisions, changes in government funding or procurement priorities, or the inability to replace such customers with new customers on comparable terms could result in significant revenue volatility and could materially adversely affect our business, results of operations and financial condition.

***Our revenue growth, in part, depends on consumers***' ***willingness to adopt EVs.*** Our growth is highly dependent upon the adoption of EVs. If the market for EVs does not gain broad market acceptance or develops more slowly than we expect, our business, prospects, financial condition and operating results may be harmed. The market for alternative fuel vehicles is relatively new, rapidly evolving, characterized by rapidly changing technologies, price competition, additional competitors, evolving government regulation and industry standards, frequent new vehicle announcements, long development cycles for EV original equipment manufacturers, and changing consumer demands and behaviors. Factors that may influence the purchase and use of alternative fuel vehicles, and specifically EVs, include:

● perceptions about EV quality, safety (in particular with respect to lithium-ion battery packs), design, performance and cost, especially if adverse events or accidents occur that are linked to the quality or safety of EVs;

● the limited range over which EVs may be driven on a single battery charge and concerns about running out of power without access to sufficient charging infrastructure;

● improvements in the fuel economy of the internal combustion engine;

● the environmental consciousness of consumers;

● volatility in the cost of oil and gasoline;

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● consumers' perceptions of the dependency on oil from unstable or hostile countries and the impact of international conflicts;

● government regulations and economic incentives promoting fuel efficiency and alternate forms of energy;

● access to charging stations and consumers' perceptions about convenience and cost to charge an EV; and

● the availability of tax and other governmental incentives to purchase and operate EVs or future regulation requiring increased use of nonpolluting vehicles.

The influence of any of these factors may negatively impact the widespread consumer adoption of EVs, which could materially adversely affect our business, operating results, financial condition and prospects.

***We may acquire other businesses, which could require significant management attention, disrupt our business, dilute stockholder value and harm our business, revenue and financial results.*** As part of our business strategy, we intend to make acquisitions to add complementary companies, products or technologies, such as our acquisitions of All Cell, Amiga and Telcom and joint ventures such as with The Platinum Group. Our acquisitions and joint ventures may not achieve our goals, and we may not realize benefits from any acquisition or joint venture. Any integration process will require significant time and resources, and we may not be able to manage the process successfully. If we fail to successfully integrate acquisitions, or the personnel or technologies associated with those acquisitions, the business, revenue and financial results of the combined company could be harmed. We may not successfully evaluate or utilize the acquired assets and accurately forecast the financial impact of an acquisition, including accounting charges. We may also incur unanticipated liabilities that we assume as a result of acquiring companies. We may have to pay cash, incur debt or issue equity securities to pay for any such acquisition, each of which could affect our financial condition or the value of our securities. We would expect to finance any future acquisitions or joint venture through one or a combination of equity, debt or cash from operations. The sale of equity to finance any such acquisition or joint venture could result in dilution to our stockholders. The incurrence of indebtedness would result in increased fixed obligations and could also include covenants or other restrictions that would impede our ability to manage our operations. In the future, we may not be able to find other suitable acquisition or joint venture candidates, and we may not be able to complete acquisitions or joint ventures on favorable terms, if at all. Our acquisition and joint venture strategy could require significant management attention, disrupt our business and harm our business, revenue and financial results.

***We 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 the joint venture and acquisitions with Beam Global and its operations.***

Our ability to realize the anticipated benefits of our acquisitions of All Cell, Amiga and Telcom will depend, in part, on our ability to integrate them, 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 fully 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 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 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 and Telcom are private Serbian companies were not subject to an audit by an accounting firm under U.S. GAAP standards and were not previously subject to the Sarbanes-Oxley Act of 2002, the rules and regulations of the SEC or other corporate governance requirements.*** Amiga and Telcom are private Serbian companies. Prior to our acquisition of Amiga and Telcom, they had not had financial statements reviewed or audited by an accounting firm under U.S. GAAP standards and have 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 are required to implement the appropriate internal control processes and procedures over their financial accounting and reporting. We may incur significant legal, accounting, and other expenses in efforts to ensure that they meet these requirements. Implementing the controls and procedures that are required to comply with the various applicable laws and regulations may place a significant burden on our management and internal resources. The diversion of management's attention and any difficulties encountered in such an implementation could adversely affect our business, financial condition and operating results.

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***Our inability to successfully integrate our acquisitions could adversely affect our operations and may require additional financing.*** The integration of our acquisitions requires significant management attention and resources and may divert focus from other strategic priorities. We may encounter operational, financial and administrative challenges in integrating these businesses, including aligning systems, controls and processes. We have experienced operating losses and may require additional financing to support our operations and integration efforts. There can be no assurance that we will successfully integrate these acquisitions or realize the anticipated benefits, and any failure to do so could adversely affect our business, financial condition and results of operations.

***As a result of the acquisitions of Amiga and Telcom, Beam Global 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 Global has limited experience operating internationally and, though we have retained the majority of the local management, former owners and teams who are familiar with operating in their respective regions, 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 U.S. and those foreign countries in which Beam Global'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 U.S. 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; and

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

In the event that Beam Global dedicates significant resources to its international operations and is unable to manage these risks effectively, Beam Global'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 acquisitions in Serbia and our recent growth into the Middle East, 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, the Serbian Dinar and the UAE Dirham, 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. Foreign 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.

***We face intense competition, and many of our competitors have substantially greater resources than we do.*** Some companies are beginning to offer similar products that provide a similar infrastructure product that we do, utilizing solar energy to power EV charging in a transportable product, but currently they do not provide all of the features and advantages that we offer, and which are patent protected. However, we compete with traditional grid-tied charging stations. Our challenge is to market our products to ensure that potential customers in this industry are aware of our product offering. Competition in the solar renewable energy and EV charging industries is intense, and competition is fragmented among a wide variety of entities. We operate in a highly competitive environment that is characterized by price fluctuations and rapid technological change. Our competitors often have greater market recognition and substantially greater resources than we do. Competition in our market may intensify in the future. Competitors may develop products that may ultimately have costs similar to, or lower than, our projected costs. If we fail to compete successfully, our business will suffer and we may lose or be unable to gain market share and our business and results of operations would be adversely affected.

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***A significant portion of our revenue is derived from our core product category, and a decline in demand for these products could adversely affect our business.*** We have historically been dependent on revenues from our EV ARC™ products for a substantial portion of our revenue. While we have expanded our product offerings to include new products such as BeamBike™ and BeamSpot™, energy storage products following our acquisition of All Cell Technologies, Inc. in 2022, steel structures with integrated electronics from our acquisition of Amiga d.o.o Belgrade in 2023, and specialized power electronics from our acquisition of Telcom in 2024, there can be no assurance that these products will achieve or maintain market acceptance or generate significant revenue. If demand for our EV ARC™ products declines, or if our newer products fail to gain traction, our business, results of operations, financial condition and liquidity could be materially adversely affected.

***The 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.*** Solar and wind powered EV charging, is an emerging and constantly evolving market. We believe the industry may take several years to fully develop and mature, and we cannot be certain that the market will grow at the rate we expect. Any future growth of EV charging, and the success of our products depend on many factors beyond our control. These factors include without limitation recognition and acceptance of EVs and EV charging products by customers and users, the pricing of alternative sources of energy, a favorable regulatory environment, the continuation of expected tax benefits and other incentives and our ability to provide our product offerings cost-effectively. If the markets for EV charging do not develop at the rate we expect, our business may be adversely affected.

***Changes in trade policy, including the imposition or expansion of tariffs, export controls, sanctions and other trade restrictions, could increase our costs, disrupt our supply chain and adversely affect our business.*** Trade policies in the United States and other jurisdictions are rapidly evolving and may result in the imposition, expansion or modification of tariffs, duties, import or export restrictions, sanctions or other trade barriers affecting the products we purchase or sell. While certain of our current suppliers or components may not be subject to existing tariffs or may benefit from exemptions, such exemptions may be reduced or eliminated, and new tariffs or restrictions may be imposed on additional components, including those used in our batteries and electronic systems. In recent periods, the United States has imposed tariffs and other trade measures on imports from China and may expand such measures to additional countries or products. Ongoing trade tensions, including between the United States and China, and the potential for retaliatory actions by affected countries, create uncertainty and may further disrupt global supply chains, increase costs, limit the availability of components, delay shipments or require us to identify alternative suppliers, which may not be available on favorable terms or at all. The imposition or expansion of tariffs or other trade restrictions could increase our cost of goods sold and reduce our margins. If we seek to pass increased costs on to our customers, demand for our products may decline. In addition, changes in trade policy, including export controls, capital controls or renegotiation of trade agreements, could adversely affect our ability to source materials, manufacture products competitively or access certain markets. Any of these factors could materially adversely affect our business, revenues, margins, results of operations and cash flows.

***Existing 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.*** The market for electric generation products is heavily influenced by federal, state and local government laws, regulations and policies concerning the electric utility industry in the U.S. and abroad. Changes that make solar power less competitive with other power sources could result in a significant reduction in the demand for our products. The market for electric generation equipment is also influenced by trade and local content laws, regulations and policies that can discourage growth and competition in the solar industry and create economic barriers to the purchase of solar power products, thus reducing demand for our products. Any new regulations or policies pertaining to our products may result in significant additional expenses to us, which could cause a significant reduction in demand for our solar power products.

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***Geopolitical conflicts and instability, including tensions in the Middle East, may disrupt supply chains, increase costs and adversely affect our business***. Geopolitical conflicts and instability, including the conflict in Ukraine, tensions in the Middle East and other regional disputes, may disrupt global supply chains, energy markets, increase commodity, freight, insurance and component costs, and contribute to broader economic and market volatility. These events may also impair the operations of suppliers, customers and other counterparties on which we rely. Any such disruptions could adversely affect our business, financial condition and results of operations.

***Escalation of conflict in the Middle East, including tensions involving Iran, could disrupt our operations, increase our costs, and adversely affect our business.* **We have operations, business relationships and growth initiatives in international markets, including the Middle East. Escalation of hostilities involving Iran, Israel, the United States or regional proxy groups could adversely affect regional stability, disrupt shipping lanes, impair access to ports and transportation routes, increase fuel, freight, insurance and security costs, and delay or prevent the movement of components and finished products. Recent disruptions in and around the Strait of Hormuz have demonstrated the potential for armed conflict or related governmental actions to materially interfere with commercial shipping and global trade. In addition, expanded sanctions, export controls, customs restrictions, currency instability, or other governmental measures affecting the region could impair our ability to conduct business, collect receivables, perform under contracts, or repatriate funds. Any such events could also reduce customer demand, delay projects, disrupt our supply chain, expose us to contractual disputes, and adversely affect our business, financial condition and results of operation.

***In high demand locations, the use of our products could exhaust its electricity supply on particular days, even with our storage batteries.*** Our solar products create and store electricity during daylight hours. While this process has generally been effective to meet daily EV charging and energy storage demand, it is possible that heavy charging could cause a power draw exceeding the onboard electricity generation and storage capacity. In such instances, except for our grid-connected products, the EV charger would have to recharge through solar energy replenishment or other direct outside charge before EV charging could resume.

***Developments in alternative technologies or improvements in distributed solar energy generation may have a material adverse effect on demand for our offerings.*** Significant developments in alternative technologies, such as advances in other forms of distributed solar power generation, storage solutions, such as batteries, the widespread use or adoption of fuel cells for residential or commercial properties or improvements in other forms of centralized power production, transmission and distribution, may have a material adverse effect on our business and prospects. Any failure by us to adopt new, or enhanced technologies or processes, or to react to changes in existing technologies, could result in product obsolescence, the loss of competitiveness of our products, decreased revenue and a loss of market share to competitors.

***Defects 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.*** Although our products meet our stringent quality requirements, they may contain undetected errors or defects, especially when first introduced or when new generations are released. Errors, defects, or poor performance can arise due to design flaws, defects in raw materials or components or manufacturing difficulties, which can affect both the quality and the yield of the product. Any actual or perceived errors, defects, or poor performance in our products could result in the replacement or recall of our products, shipment delays, rejection of our products, damage to our reputation, lost revenue, diversion of our engineering personnel from our product development efforts, and increases in customer service and support costs, all of which could have a material adverse effect on our business, financial condition, and results of operations.

***We may be subject to product liability claims***. If one of our products were to cause injury to someone or cause property damage, including as a result of product malfunctions, defects, or improper installation, then we could be exposed to product liability claims. We could incur significant costs and liabilities if we are sued and if damages are awarded against us. Further, any product liability claim we face could be expensive to defend and could divert management's attention. The successful assertion of a product liability claim against us could result in potentially significant monetary damages, penalties or fines, subject us to adverse publicity, damage our reputation and competitive position, and adversely affect sales of our products. In addition, product liability claims, injuries, defects, or other problems experienced by other companies in the solar industry could lead to unfavorable market conditions for the industry as a whole and may have an adverse effect on our ability to attract new customers, thus harming our growth and financial performance.

***If we are unable to keep up with advances in EV technology, we may suffer a decline in our competitive position.*** The EV industry is characterized by rapid technological change. We do not manufacture the Electric Vehicle Supply Equipment (EVSE) which connects to the EV, rather, we deliver power to other vendors' EVSE products. As such, we believe that we are less prone to impacts caused by changes in EV technology. Nevertheless, if we are unable to keep up with changes in EV technology or the costs associated with such changes, our competitive position may deteriorate which would materially and adversely affect our business, prospects, operating results and financial condition. As technologies change, we plan to upgrade or adapt our EV products in order to continue to provide EV charging services with the latest technology.

***If 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.*** The EV and EV charging industries are characterized by the existence of a large number of patents, copyrights, trademarks and trade secrets. Although we are not presently aware of any current or threatened third party intellectual property rights claims against the Company, there is a risk that the Company could face third party intellectual rights claims against its products and challenges to the validity or enforceability of its products and trademarks in the future which could harm our relationships with our customers, may deter future customers from subscribing to our services or could expose us to litigation with respect to these claims.

***The success of our business depends in large part on our ability to protect and enforce our intellectual property rights.*** We rely on a combination of patent, copyright, service mark, trademark, and trade secret laws, as well as confidentiality procedures and contractual restrictions, to establish and protect our proprietary rights. We cannot assure you, however, that we will be successful in obtaining more patents, service marks or trademarks, or that these applications will not be challenged, that others will not attempt to infringe upon our rights, or that these filings will afford us adequate protection or competitive advantages. If we are unable to protect our rights to our intellectual property or if such property infringes on the rights of others, our business could be materially adversely affected.

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***The 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.*** We rely heavily on the services of Desmond Wheatley, our chairman and chief executive officer, as well as other management personnel. The loss of the services of Mr. Wheatley or any such individual would adversely impact our operations. In addition, we believe our technical personnel represent a significant asset and provide us with a competitive advantage over many of our competitors. Our future success will depend upon our ability to retain these key employees and our ability to attract and retain other skilled financial, engineering, technical and managerial personnel.

***If 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.*** Our success depends in large part upon our ability to continue to attract, train, motivate and retain highly skilled and experienced employees, including technical personnel. The loss of personnel or our inability to hire or retain sufficient personnel at competitive rates of compensation could impair our ability to secure and complete customer engagements and could harm our business.

***We are exposed to various possible claims and hazards relating to our business, and our insurance may not fully protect us.*** Although we maintain modest theft, casualty, liability and property insurance coverage, along with worker's compensation and related insurance, we cannot assure that we will not incur uninsured liabilities and losses as a result of the conduct of our business. In particular, we may incur liability if one or more of our other products are deemed to have caused a personal injury. Should uninsured losses occur, they would have a material adverse effect on our operating results, financial condition, and business performance.

***Cyber-attacks or other breaches of information technology security could adversely impact on our business and operations.***

Cyber-attacks or other breaches of network or information technology security may cause equipment failure or disruption to our operations. Such attacks, which include the use of malware, computer viruses and other means for disruption or unauthorized access, on companies have increased in frequency, scope and potential harm in recent years. While, to the best of our knowledge, we have not been subject to cyber-attacks or to other cyber incidents which, individually or in the aggregate, have been material to our operations or financial conditions, the preventive actions we take to reduce the risk of cyber incidents and protect our information technology and networks may be insufficient to repel a major cyber-attack in the future. To the extent that any disruption or security breach results in a loss or damage to our data or unauthorized disclosure of confidential information, it could cause significant damage to our reputation, affect our relationship with our customers, suppliers and employees, and lead to claims against us and ultimately harm our business. Additionally, we may be required to incur significant costs to protect against damage caused by these disruptions or security breaches in the future.

***We may face litigation in the future.*** As a manufacturer and seller of goods, we are exposed to the risk of litigation for a variety of reasons in addition to reasons relating to intellectual property rights, product liability lawsuits, employee lawsuits, commercial contract disputes, government enforcement actions, and other legal proceedings. We cannot assure that future litigation in which we may become involved will not have a material adverse effect on our financial condition, operating results, business performance, and business reputation.

***The costs incurred by us to develop and manufacture our products may be higher than anticipated which could hurt our ability to earn a profit.*** We may incur substantial cost overruns in the development, manufacture, and distribution of products. Unanticipated costs may force us to obtain additional capital or financing from other sources and would hinder our ability to earn a profit. If we incur cost overruns, there is no assurance that we could obtain the financing or capital to cover them.

***The 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.*** Our standard EV ARC™ as a stand-alone does not provide a DC Fast Charge, rather, it charges EVs at a Level II pace which is consistent with the majority of installed EV chargers in the U.S. To date, we have found that since most EV trips are relatively short and local, the standard EV ARC™ has satisfied consumer demand. Our EV ARC™ HP DC Fast Charging EV Autonomous Renewable Charger can provide a DC Fast Charge, so we believe we can compete in that market. Nevertheless, the demand for faster EV charging may increase in the future, requiring us to adjust our marketing and sales strategies. There is no assurance that our equipment will remain competitive in the market in the future, causing possible customer complaints and claims, and a loss of sales in the future.

***Our Company depends on key suppliers***. The Company sources its materials and components from a wide variety of vendors. They are standard off-the-shelf components, but these components differ between manufacturers in terms of their specifications and performance. If one of these components became unavailable, it could hinder our ability to operate profitably and have a material adverse impact on our operating results, financial condition and business performance. We may be able to secure supply from another source and incorporate it in our design, but it would require modifications which could impact product deliveries. For these components, we maintain adequate supply to mitigate any supply risk.

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***We 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.*** The prices we pay for the principal items we use for the production of our products and materials are dependent primarily on current market prices. Our products may be impacted by commodity pricing factors, including the impact of tariffs, which in many cases are unpredictable and outside of our control. Any increased costs for materials and components used in our products could adversely affect our operating performance. Our cost of labor may be influenced by factors in certain market areas. Our hourly employees could be affected by wage rate increases in the federal or state minimum wage rates, wage inflation or local job market adjustments which could adversely impact our operating performance.

***We 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.*** The industries in which we operate are subject to constant technological change. Our future success will depend on our ability to appropriately respond to changing technologies and changes in function of products and quality. If we adopt products and technologies that are not attractive to consumers, we may not be successful in capturing or retaining a significant share of our market. In addition, some new technologies are relatively untested and unperfected and may not perform as expected or as desired, in which event our adoption of such products or technologies may cause us to lose money.

***Existing 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.*** Installation of a small number of our products is subject to oversight and regulation in accordance with national and local ordinances, building codes, zoning, environmental protection regulation, utility interconnection requirements for metering and other rules and regulations. In particular, our new BeamSpot™ product, designed to provide curbside EV charging through existing or newly installed street lampposts owned by municipalities and utilities, will require close cooperation with, and supervision by, local government agencies. We attempt to keep up to date about these requirements on a national, state, and local level, and must design systems to comply with varying standards. Certain cities may have ordinances that increase the cost of installation of our products. In addition, new government regulations or utility policies pertaining to power systems are unpredictable and may result in significant additional expenses or delays in the installation of our grid-connected products and, as a result, could cause a significant reduction in demand, especially for our BeamSpot™ product.

***Our media branding and advertising strategy may not be profitable.*** We are able to equip certain of our product platforms with advertising with content that can be controlled directly, and in some cases, remotely. We may also sell other forms of media across our product platforms, such as naming rights or sponsorship deals, as well as traditional fixed media. There is no assurance that the revenue model crafted for this capability will be successful or profitable or will not result in operating losses or rejection by government regulators or consumers. Sponsors and advertisers for the service may not materialize or be willing to pay the rates sought by us or our customers.

***Our business may be adversely affected by changes in the availability of rebates, tax credits and other financial incentives that support the demand for our products.*** Demand for our products is influenced in part by the availability of federal, state and local incentives that support solar power systems, battery storage systems and EV charging infrastructure. These incentives can take many forms, including direct rebates, state tax credits, system performance payments Renewable Energy Credits and favorable tax treatment, such as accelerated depreciation. . Uncertainty about the introduction of, reduction in, or elimination of such incentives, or delays or interruptions in the implementation of favorable federal or state laws could substantially increase the cost of our systems to some of our customers, potentially resulting in significant reductions in demand for our products from non-governmental customers, which would negatively impact our sales. As a result, our business, financial condition and results of operations could be materially adversely affected.

***Compliance with new and existing environmental laws and rules is required.*** Compliance with new and existing environmental laws and rules could significantly increase construction and start-up costs for our customers, deterring customers from purchasing a small sub-set of our products and services. To install Beam Global's BeamSpot™ or certain other smart cities products, our customers may be required to obtain and comply with a number of permitting requirements. As a condition of granting necessary permits, regulators could make demands that increase our customers' expected costs of construction and operations, in which case they may delay or cancel delivery of certain sub-sets of our products. Environmental issues, such as contamination and compliance with applicable environmental standards could arise at any time during the construction and operation of a customer's project. If this occurs, it could require a customer to spend additional resources to remedy the issues and may delay or prevent construction or operation of the project. This is why we have focused on the development of autonomous infrastructure products which do not require construction for their deployment.

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***The success of our product offerings may depend, in part, on our ability to secure suitable locations provided by municipalities or private owners of real estate.*** Our ability to sell branding opportunities or licenses could be highly dependent on the availability of real estate to locate our product, or municipal approval for visible branding. We cannot assure that these rights will be available to us in the future or will be available on terms acceptable to us. The lack of availability of these rights could have a material adverse effect on our results of operations and financial condition in our media business unit. We may operate part of our business in which leasing or licensing agreements with venues or municipalities are necessary, so the long-term success of this aspect of our business could depend upon our ability to initiate such agreements and to renew these agreements upon their termination. We cannot assure that we will be able to renew these agreements on acceptable terms or at all, or that we will be able to obtain attractive agreements with substitute venues.

***Our cash and cash equivalents could be adversely affected if the financial institutions at which we hold our cash and cash equivalents fail.*** We maintain substantially all of our cash and cash equivalents in accounts with U.S. banks and financial institutions, and our deposits at these institutions exceed insured limits. Market conditions can impact the viability of these institutions. There is no guarantee that the Federal Reserve Board, the U.S. Treasury Department and the FDIC will provide access to uninsured funds in the future in the event of the closure of any other banks or financial institutions in a timely fashion or at all. Any inability to access or delay in accessing these funds could adversely affect our business, financial position, and liquidity.

If we do not effectively diversify our bank deposits and investment portfolio, the value and liquidity of our investments may fluctuate substantially, which could affect our access to capital and results of operations in a material way. Furthermore, our access to our cash and cash equivalents in amounts adequate to finance our operations could be significantly impaired if the financial institutions with which we have arrangements directly face liquidity constraints or failures. Investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us to acquire financing on acceptable terms or at all. Any material decline in available funding or our ability to access our cash and cash equivalents could adversely impact our results of operations and liquidity.

***Privacy concerns and laws, or other domestic or foreign regulations, may adversely affect our business.*** We are currently subject, and/or may in the future be subject, to numerous privacy and data security laws. For example, some U.S. states, members of the European Economic Area and other jurisdictions in which we operate have adopted some form of privacy and data security laws and regulations which impose significant compliance obligations. Management's attention may be diverted, and our compliance costs and potential liability may increase as a result of additional national and international regulatory requirements related to data privacy and data security.

***Failure 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 U.S., could subject us to penalties and other adverse consequences.*** We are subject to the FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the U.S. Travel Act, the USA PATRIOT Act, the Anti-Bribery Act, and possibly other anti-bribery and anti-money laundering laws in countries in which it conducts activities. It faces significant risks if it fails to comply with the FCPA and other anti-corruption laws that prohibit companies and their employees and third-party intermediaries from promising, authorizing, offering, or providing, directly or indirectly, improper payments or benefits to foreign government officials, political parties and private-sector recipients for the purpose of obtaining or retaining business, directing business to any person or securing any advantage. Any violation of the FCPA, other applicable anti-corruption laws, and anti-money laundering laws could result in whistleblower complaints, adverse media coverage, investigations, loss of export privileges, or severe criminal or civil sanctions, which could have a materially adverse effect on our reputation, business, operating results, and prospects. In addition, ensuring compliance may be costly and time-consuming, and responding to any enforcement action may result in a significant diversion of management's attention and resources, significant defense costs, and other professional fees.

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**Risks Relating to our Organization and our Common Stock**

***Our 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.*** Our common stock is listed on the Nasdaq Capital Market. If we fail to satisfy the continued listing requirements of Nasdaq, such as the corporate governance requirements and the minimum bid price requirement, Nasdaq may take steps to delist our common stock. Such a delisting would have a negative effect on the price of our common stock, impair the ability to sell or purchase our common stock when people wish to do so, and any delisting materially adversely affect our ability to raise capital or pursue strategic restructuring, refinancing or other transactions on acceptable terms, or at all. Delisting from the Nasdaq Capital Market could also have other negative results, including the potential loss of institutional investor interest and fewer business development opportunities. In the event of a delisting, we would attempt to take actions to restore our compliance with Nasdaq's listing requirements, but we can provide no assurance that any such action taken by us would allow our common stock to become listed again, stabilize the market price or improve the liquidity of our common stock, prevent our common stock from dropping below the Nasdaq minimum bid price requirement or prevent future non-compliance with Nasdaq's listing requirements.

***We have identified and continue to have material weaknesses in our internal controls over financial reporting. These material weaknesses could continue to adversely affect our ability to report our results of operations and financial condition accurately and in a timely manner. If we fail to comply with the rules under the Sarbanes-Oxley Act of 2002 related to disclosure controls and procedures, or, if we discover material weaknesses and other deficiencies in our internal controls over financial reporting, our stock price could decline and raising capital could be more difficult.*** Our management is responsible for establishing and maintaining adequate internal control over financial reporting designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Our management is likewise required, on a quarterly basis, to evaluate the effectiveness of our internal controls and to disclose any changes and material weaknesses identified through such evaluation in those internal controls. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. If we fail to comply with the rules under the Sarbanes-Oxley Act of 2002 related to disclosure controls and procedures, or, if we discover material weaknesses and other deficiencies in our internal control and accounting procedures, our stock price could significantly decline, and our business and financial condition could be adversely affected. If material weaknesses or significant deficiencies are discovered or if we otherwise fail to achieve and maintain the adequacy of our internal control, we may not be able to ensure that we can conclude on an ongoing basis that we have effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act. Moreover, effective internal controls are necessary for us to produce reliable financial reports and are important to helping prevent financial fraud. If we cannot provide reliable financial reports or prevent fraud, our business and operating results could be harmed, investors could lose confidence in our reported financial information, and the trading price of our common stock could decline significantly.

***Our stock price may be volatile.*** The public market trading price of our common stock is likely to be highly volatile, may decline, and could fluctuate widely in response to various factors, many of which are beyond our control, including the following:

● changes in our industry;

● competitive pricing pressures;

● our ability to obtain working capital financing;

● additions or departures of key personnel;

● limited "public float" in the hands of a small number of persons whose sales or lack of sales could result in positive or negative pricing pressure on the market price for our common stock;

● sales of our common stock privately or in the public market, by us or by other shareholders;

● our ability to execute our business plan;

● operating results that fall below expectations;

● loss of any strategic relationship;

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● adverse regulatory developments;

● adverse economic and other external factors;

● additional dilution of ownership because of the issuance of new securities by us, and period-to-period fluctuations in our financial condition or operating results.

In addition, the securities markets have, from time to time, experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of our common stock.

***Offers or availability for sale of a substantial number of shares of our common stock may cause the price of our common stock to decline.*** If our stockholders sell substantial amounts of our common stock in the public market, or upon the expiration of any statutory holding period under Rule 144 or issued upon the exercise of outstanding options or warrants, the market price of our common stock could decline because of or in anticipation of the selling pressure. The existence of anticipated sales, whether or not sales have occurred or are occurring, also could make more difficult our ability to raise additional financing through the sale of equity or equity-related securities in the future at a time and price that we deem reasonable or appropriate.

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| **ITEM 1B.** | **UNRESOLVED STAFF COMMENTS.** |

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None.

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| **ITEM *1C.*** | **CYBERSECURITY.** |

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We recognize the importance of identifying, assessing and managing material risks associated with cybersecurity threats, as such term is defined in Item *106*(a) of Regulation S-K. These risks include, among other things: operational risks, intellectual property theft, fraud, extortion, harm to employees or customers and violation of data privacy or security laws.

Identifying and assessing cybersecurity risk is integrated into our overall risk management systems and processes. Cybersecurity risks related to our business, technical operations, privacy and compliance issues are identified and addressed through a multi-faceted approach including third party assessments, internal IT controls, governance, risk and compliance reviews.

We describe whether and how risks from cybersecurity threats are reasonably likely to materially affect us, including our results of operations and financial condition, under the heading "*Cyber-attacks or other breaches of information technology security could adversely impact our business and operations.*" in Item *1A,* "Risk Factors" of Part I of this report.

We believe we maintain an information technology and cybersecurity program appropriate for a company our size, taking into account our operations and risks. We are committed to cybersecurity and vigilantly protecting all our resources and information from unauthorized access. Our cybersecurity approach incorporates an employee policy, external resources to manage and monitor the evolving threat landscape, effective board oversight of cybersecurity risks and knowledgeable teams responsible for preventing and detecting cybersecurity risks.

**<u>Management and Board Oversight</u>**

Our Audit Committee is responsible for overseeing cybersecurity risks and updates our Board of Directors on cybersecurity matters as needed. The Audit Committee receives periodic updates from management regarding cybersecurity matters and is notified as promptly as practicable of significant new cybersecurity threats or incidents.

Management is responsible for the operational oversight of the company-wide cybersecurity strategy, policy, and standards across relevant departments to assess and help prepare us to address cybersecurity risks.

**<u>Cybersecurity Risks</u>**

As of December 31, 2025, we are not aware of any cybersecurity threats, including as a result of any previous cybersecurity incidents that have materially affected the business strategy, results of operations or financial condition of the Company or are reasonably likely to have such a material effect. However, any future potential risks from cybersecurity threats, including but not limited to exploitation of vulnerabilities, ransomware, unauthorized transactions, or other similar threats may materially affect us, including our execution of business strategy, reputation, results of operations and/or financial condition.

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| **ITEM 2.** | **PROPERTIES.** |

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Our corporate headquarters are located at 5660 Eastgate Dr., San Diego, California 92121. We lease approximately 53,000 square feet of office and warehouse space that terminates on September 30, 2026. We are currently exploring options. Our Broadview, Illinois office consists of 37,800 square feet of office and warehouse space and is located at 2600 S. 25<sup>th</sup> Avenue, Suite Z, Broadview, Illinois, 60155 with a lease term through January 31, 2029. We own a 450,000 square foot office and manufacturing facility on 6 acres of land at 1G Aerodromska Street in Kraljevo, Serbia and we lease a small business office in Belgrade, Serbia through April 2027. We also lease a 1,639 square foot small business office at 27 Svetog Nikole street, Belgrade, Serbia month to month. In UAE, we lease a 535 square foot office in Omniah Tower, Corniche Abu Dhabi. The facility houses our Sales team.

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| **ITEM 3.** | **LEGAL PROCEEDINGS.** |

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The Company may be involved in legal actions and claims arising in the ordinary course of business from time to time. As of December 31, 2025, and the date of this report, the Company is not involved in any material litigation matters.

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| **ITEM 4.** | **MINE SAFETY DISCLOSURES.** |

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Not Applicable.

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**PART II**

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| **ITEM 5.** | **MARKET FOR REGISTRANT**'**S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.** |

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Our common stock is traded on the NASDAQ Capital Market under the symbol "BEEM."

On April 7, 2026, there were approximately 169 holders of record of our common stock. Because some of our shares of common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of beneficial stockholders represented by these record holders.

We have not declared or paid any cash dividends on our common stock and do not anticipate declaring or paying any cash dividends in the foreseeable future. We can give no assurance that we will ever have excess funds available to pay dividends.

**Recent Sales of Unregistered Securities**

None.

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| **ITEM 6.** | **RESERVED.** |

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| **ITEM 7.** | **MANAGEMENT**'**S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.** |

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For the fiscal year ended December 31, 2025, the Company reported total revenue of $28.2 million, representing a 42.8% decrease compared to $49.3 million in fiscal 2024. This contraction was primarily driven by a material reduction in orders from U.S. Federal government agencies. While federal customers accounted for more than 60% of total revenue in 2023 and 30% in 2024, they represented less than 5% of total revenue in 2025. Management attributes this decline to a shift in federal executive priorities and the subsequent reversal of prior electrification initiatives. Additionally, the expiration of federal tax credits and other purchase incentives for electric vehicles has further constrained domestic demand for certain charging products. In response to these headwinds, the Company has realigned its sales and marketing infrastructure to target corporate, municipal, and international markets. These efforts have yielded a significant increase in sales to domestic and international commercial entities, as well as non-U.S. government agencies, which has partially mitigated the loss of U.S. Federal revenue. Despite the reduction in direct federal vehicle procurement, the Company continues to supply certain energy storage products to federal agencies via third-party relationships. While the Company believes that federal demand for transportation electrification infrastructure may resume in future cycles, we cannot provide assurance as to the timing or certainty of such a recovery. We remain focused on our diversified growth strategy and have implemented new marketing protocols to capture broader market share. Although our prospective customer pipeline has increased during the current period, the conversion of these opportunities into realized revenue remains subject to inherent market risks and timing uncertainties.

In 2025 the Company's strategically shifted its focus toward commercial customers by expanding its direct sales force and reseller network in response to a decline in federal revenue opportunities as a result of changes in U.S. government programs. Our non-government revenue grew from 38.2% of total revenue in 2024 to 72.0% in 2025, reflecting meaningful progress in our commercial diversification strategy, despite this shift, total revenue decreased by 42.8%. Our pipeline of prospective customer orders has increased during the same period, although we cannot be sure of when, or if, those prospective orders will turn into actual sales.

International customers comprised 42% of the revenues as of December 31, 2025 verses 25% for the year ended December 31, 2024 as a result of our continued integration of our Serbian acquisitions. Revenues derived from non-government commercial entities increased by 8% year-over-year and represent approximately 72% of total revenues in 2025.

For the twelve months ended, December 31, 2025, the Company's sales to federal government customers represented 4% of revenues versus 32% of revenues in 2024. State and local government customers represented approximately 24% of revenues versus 30% of total revenues in 2024, reflecting increased growth in our non-government customer base.

We continue to invest in sales personnel, marketing resources, and new product development, while also expanding our geographic footprint, with the goal of reducing reliance on large individual orders of our EV ARC™ product from federal agencies, while continuing to pursue those opportunities.

Order timing may continue to be uneven due to customer procurement processes, approval timelines and budget cycles; however, we believe that increased global EV adoption, continued expansion into international markets and the marketing of our new products will reduce the impact of variability in individual order timing on our overall business.

We have in place a Multiple Award Schedule Contract with the General Services Administration (GSA) that helps streamline purchases from Federal agencies and state and local governments. In addition, the General Services Administration (GSA) awarded Beam Global a federal blanket purchase agreement (BPA) in April 2022 which provides federal agencies a streamlined procurement process for procuring EV ARC™ systems. In Q2 2025, the contract was extended until October 31, 2030. Although this purchasing contract is not being regularly used by U.S. Federal government agencies, we have made sales to other non-Federal government entities in the U.S. using this contract vehicle and we believe that having this contract extended through 2030 and also having it made available to non-Federal government agencies has assisted us in closing sales in 2025 and will continue to assist in streamlining our selling processes in 2026. To the extent the federal government resumes procurement of electric vehicles and EV charging infrastructure, we believe this contract provides a streamlined and efficient channel to sell to the federal government, which operates the largest fleet in the world.

On November 12, 2025, the Company announced the was awarded a cooperative purchasing contract by Sourcewell, expanding its offerings to U.S. military, expanding its offerings to U.S. military, state and local government agencies, and higher education institutions across North America. Sourcewell combines the purchasing power of over 50,000 participating public agencies, offering hundreds of awarded supplier contracts across public sector and educational organizations to procure the Company's sustainable infrastructure and energy storage solutions through a ready-to-use, negotiated, Sourcewell-vetted contract, streamlining the public purchasing process.

With our acquisitions of Amiga and Telcom, we now have a facility in Europe that can manufacture and sell Beam Global products for the European market. Europe is the largest market in the world for EVs and is a strong proponent of clean energy. We believe there is a lot of potential for growth in this region. We also expect the EV market to continue to experience significant growth over the next decade which will require additional EV charging infrastructure. We believe our products are uniquely positioned to benefit from this growth. Our geographic expansion into Europe and our additional business development activities in the Middle East and Africa are, we believe, also providing opportunities for growth which are not dependent on, or impacted by, shifts in US government and zero emission vehicle strategies. The new products we have brought to market offer values which are also not dependent upon US federal government investment. The EU has mandated a transition to zero emission vehicles by 2035 and they are heavily focused on green and sustainable energy. An increase in electric vehicles adoptions will increase the demand for charging infrastructure. We believe that our sustainably energized EV ARC<sup>TM</sup> and BeamSpot™ products can play a major role in the provision of EV charging infrastructure in Europe.

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Our energy security business is also connected with the deployment of our EV charging infrastructure products and serves as an additional benefit to the value proposition of our charging products which, along with their integrated emergency power panels, can continue to operate, charge EVs, and deliver emergency power during utility grid failures. Our state-of-the-art storage batteries installed on our EV charging systems are immune to grid failures and provide another benefit for customers such as municipalities, counties, states, the federal government, hospitals, fire departments, large private enterprises with substantial facilities, and vehicle fleet operators. Drones, submersibles, recreational products and a host of micro mobility and EV products are already benefiting from our Beam All-Cell™ highly differentiated products. With the continued growth of untethered electrification, we believe there is an opportunity for increased demand in these markets and others.

We are in development on our newest patented products which include- BeamSpot™, BeamFlight™ and others, which we expect will continue to expand our product offerings leveraging the same proprietary technology as our current products and allow us to expand into new markets. Amiga, now Beam Europe, is one of Europe's largest manufacturers of streetlights and has a team of qualified structural, electrical and civil engineers who are experts in the field of development and deployment of streetlighting. They are working with our engineers in San Diego and Broadview to continually improve the engineering and development of our new BeamSpot™ product. We believe that BeamSpot™ may become our largest selling product when available for sale. BeamSpot™ is currently in the process of being installed and we received our first order for that product within two months of it being launched.

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

The Company reported gross profit of $3.5 million for the year ended December 31, 2025, compared to $7.3 million for the year ended December 31, 2024. Gross margin was 12.5% in 2025 compared to 14.8% in 2024, representing a decline of 2.3 percentage points year-over-year. The decrease in gross margin was primarily attributable to lower sales volume, which resulted in reduced absorption of fixed overhead costs. Our unit economics continue to improve, even in the face of reduced volumes.

Gross profit included non-cash depreciation and intangible amortization of approximately $3.0 million in 2025 and $3.2 million in 2024. Excluding these non-cash items, adjusted gross margin improved to 23.0% in 2025 compared to 21.2% in 2024. We expect our costs of goods sold to continue to decline over time as we continue to implement lean manufacturing process improvements, engineering design changes and operational efficiencies, as well as recognizing synergies from our acquisitions. Many of the components and sub-assemblies integrated into our products are manufactured by third parties. This approach is consistent with our strategy to leverage the investments made by large, well-funded suppliers in improving performance and reducing costs of key components, which we integrate into our finished products. We continue to evaluate opportunities to outsource additional components and sub-assemblies where doing so may be cost-effective, which we believe could further reduce our manufacturing costs, improve gross margins, and significantly increase the potential production output from our factory. Furthermore, we believe we are seeing increase interest in our highly specialized energy storage products, which in many cases, result in revenues that come with higher gross profits. As these volumes increase, the impact of the higher gross margin percentages from these revenues should, we believe, have a positive impact on our overall gross profit. Order timing may continue to result in quarter-to-quarter variability in revenue over the long term, we expect revenue growth to be driven by expansion of our product offerings, increased geographic reach, and growth in demand for EV charging infrastructure, electrified transportation, and mobility energy storage and security and smart cities infrastructure products. We believe that increased demand, combined with our cost-reduction initiatives, will contribute to continued improvement in our gross margins over time. Beam Europe has the capability to perform certain manufacturing and operational activities that are currently outsourced in the U.S. In combination with a generally lower operating cost environment in Serbia, we believe this may allow us to produce certain products in Europe at a lower cost than in the U.S., even as we continue to pursue cost reductions in our U.S. operations.

<u>Critical Accounting Estimates</u>

The financial statements and related disclosures were prepared in accordance with U.S. generally accepted accounting principles which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates and assumptions on historical experience and on various other factors that we believe to be reasonable under the circumstances, and we continually evaluate our assumptions and modify as needed. To the extent there are material differences between our estimates and the actual results, our future results of operations will be affected.

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*Valuation of Inventory and standard cost allocations.* Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method of accounting. Inventory costs primarily relate to purchased raw materials and components used in the manufacturing of our products, work in process for products being manufactured, and finished goods. Included in these costs are direct labor and certain manufacturing overhead costs associated with normal capacity in the manufacturing process. During 2023, the Company applied labor and overhead based on a standard costing model that required a number of assumptions to determine an optimal labor and overhead allocation which requires an estimate of total shipments and forecasted spending. In addition, a review of inventory is required to estimate whether specific reserve estimates are needed for warranty or for excess or obsolete inventory. Changes in demand can significantly impact our amount of excess inventory or inventory shortages. Availability of product and unusually long lead times that were not anticipated could impact our production.

*Valuation Allowance on Deferred Income Taxes*. The Company ensures that taxes are computed in accordance with ASC 740 and the appropriate valuation allowance is recorded. Management estimates the percentage change in pre-tax book loss/income and makes projections of future taxable loss/income in order to perform this assessment. We have recorded a valuation allowance to reduce our net deferred tax assets to zero, primarily due to historical net operating losses ("NOLs") and uncertainty of generating future taxable income. If we determine that it is more likely than not that we will realize a deferred tax asset that currently has a valuation allowance, we will need to reverse the valuation allowance, reflecting an income tax benefit in our statements of operations at that time. This type of adjustment could result in a material adjustment to our financial statements.

*Valuation of Share-Based Costs*. We may issue share-based awards that include warrants, stock options, restricted stock awards, restricted stock units and performance stock units. We measure and recognize compensation expenses for all share-based payments based on an estimation of grant date fair value of our share-based awards. The fair value of stock options and the warrants are calculated using a Black-Scholes model which requires input of interest rates, stock volatility, stock prices, etc. Share-based compensation expense is then recognized based on an allocation of the fair value on a straight-line basis over the requisite service periods of the awards. The RSU and RSAs fair value is based on the market price of our common stock on the date of grant. The determination of the amount of share-based compensation expense for our performance stock units requires the use of certain estimates and assumptions that affect the amount of share-based compensation expense recognized in our consolidated statements of operations.

<u>Results of Operations</u>

***Comparison of Results of Operations for Fiscal Years Ended December 31, 2025 and 2024***

*Revenues.* For the year ended December 31, 2025, revenues decreased 43% to $28.2 million compared to $49.3 million for the year ended December 31, 2024. The decrease in revenues was primarily due to a complete cessation of any federal orders for our products and the reversal of incentives for the purchase of EVs in the U.S. by the federal government. During the year ended December 31, 2025, $1.1 million, or approximately 4% of total revenue was derived from sales to federal government customers and $6.8 million, or approximately 24% was derived from state and local government customers. We continue to invest in sales, marketing and government relations personnel, as well as related programs and resources, to increase awareness of the benefits and value of our products. The timing of orders may continue to be uneven due to customer approval processes and government budget cycles; however, we believe that as EV adoption increases and our energy storage and security and smart cities products are increasingly adopted, our business may become less impacted by variability in the timing of individual orders.

*Gross Profit/(Loss).* The Company reported gross profit of $3.5 million, a 12.5% gross margin for the year ended December 31, 2025, compared to $7.3 million, a 14.8% gross margin for the year ended December 31, 2024. The 2.3 percentage point year-over year decrease in gross margin was primarily attributable to lower sales volume, which resulted in reduced absorption of fixed overhead costs and non-cash depreciation and amortization. Gross profit included non-cash depreciation and amortization of approximately $3.0 million in 2025 and $3.2 million in 2024. The amortization of intangible assets relates to the AllCell acquisition. Because of our improving unit economics throughout 2025, and excluding these non-cash expenses, gross margin improved in 2025 1.8 percentage points to 23.0% from 2024, 21.2%. We expect that as revenue grows, the Company's ability to absorb fixed overhead costs will improve, which may have a positive impact on gross margins.

*Operating Expenses and Impairment of Goodwill.* Total operating expenses were $31.1 million for the year ended December 31, 2025, compared to $19.0 million for the year ended December 31, 2024. Operating expenses for 2025 included a non-cash goodwill impairment charge of $10.8 million. Excluding this impairment charge, operating expenses were approximately $20.3 million for 2025, compared to $19.0 million in the prior year. The Company believes the goodwill impairment reported during the three months ended March 31, 2025 is not a negative indicator of historic or current operating results and not a negative indicator of the future performance of our acquired entities or the Company in general have taken and continue to take significant steps to diversify our geographical reach and product offerings while focusing on strategic growth. The Company believes that the resulting non-cash charge has no impact on the Company's cash flows or available liquidity. During the three months ending March 31, 2025, the Company continued to experience a decline in its stock price resulting in the total market value of its common stock outstanding ("market capitalization") being less than the carrying value of the reporting unit. Management believes this decline in market value is due to a variety of factors, as further described below, but not the actual value of the acquired entities which included the goodwill which is being impaired. Considering the circumstances and indicators of potential impairment described above, Management performed an interim quantitative goodwill impairment test as of March 31, 2025. Management first considered whether any impairment was present for the Company's long-lived assets, concluding that no such impairments were present. The Company does not have any indefinite lived assets other than goodwill.

The Company concluded that the sustained stock price decline in the Company's common stock and its market capitalizations as of March 31, 2025 was a triggering event which required Management to perform a quantitative goodwill impairment test. Management determined the value of goodwill largely based on the Company's stock price and not on the activities or performance of the acquired entities. The results of the Company's test for impairment of goodwill as of March 31, 2025, utilizing recent trends in stock price over a reasonable period, created a condition in which the accounting rules determined that the fair value of goodwill fell below its book value. Based on the results of the goodwill impairment procedures, the Company recorded a $10.8 million goodwill impairment for the single reporting unit during the three months ended March 31, 2025.

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**Liquidity and Capital Resources**

At December 31, 2025, we had cash of $1.0 million, compared to cash of $4.6 million at December 31, 2024. We have historically met our cash needs through a combination of debt and equity financing and more recently through gross profit contributions. Our cash requirements are generally for operating activities and acquisitions.

Our working capital balance at December 31, 2025 was $8.9 million. Working capital primarily consists of cash, inventory, accounts receivable, net of accounts payable, and accrued expenses. In general, we expect to convert each of these short-term assets into cash within 180 days which allows us to operate with a lower cash balance on any specific date.

Management believes the Company's present cash flow will enable it to meet its obligations for twelve months from the date of these financial statements. Management will continue to assess its operational needs and seek additional financing as needed to fund its operations.

Our cash flows from operating, investing and financing activities, as reflected in the statements of cash flows, are summarized in the table below:

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Cash provided by (used in): |  |  |
| Net cash used in operating activities | $(10482) | $(2193) |
| Net cash used in investing activities | $(482) | $(4054) |
| Net cash provided by financing activities | $7467 | $1203 |

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For the year ended December 31, 2025, our cash used in operating activities was $10.5 million compared to $2.2 million for the year ended December 31, 2024. Cash used in operations included a $3.3 million decrease in accounts payable, $1.1 million decrease in noncurrent liabilities, $0.6 million decrease in deferred tax liabilities, a $0.3 million decrease in accrued expenses related to short term taxes payable, $0.5 million increase in accounts receivable, and $0.1 million increase in prepaid expenses and other current assets. In addition, cash provided by operations included $2.8 million decrease in inventory and $0.8 million increase in deferred revenue.

For the year ended December 31, 2025, cash used in investing activities was $0.5 million which included $0.4 million for the purchase of equipment to increase the throughput in our facilities and $0.1 million for the funding of patent costs. Cash used in investing activities in the year ended December 31, 2024, included $4.7 million cash for the acquisition of Amiga, net of cash acquired, $0.9 million for the purchase of equipment to increase the throughput in our facilities to meet the increased production levels and $0.1 million for spending on patents. For the year ended December 31, 2024, cash used in investing activities was $4.1 million which included $2.7 million cash for payment of deferred consideration in connection with the acquisition of Amiga, $0.8 million for the purchase of equipment to increase the throughput in our facilities and $0.5 million cash for the acquisition of Telcom, net of cash acquired.

For the year ended December 31, 2025, cash generated by our financing activities was $7.5 million which included $7.8 million proceeds from the sale of common stock under our at-the-market (ATM) facility. For the year ended December 31, 2024, cash generated by our financing activities was $1.2 million which included $0.8 million proceeds from public warrant exercises, and $0.5 million from the sale of stock under our committed equity facility offset by $0.2 million taxes paid related to net share settlement of equity awards.

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Current assets decreased to $21.0 million at December 31, 2025 from $27.1 million at December 31, 2024, primarily due to a $2.5 million decrease in inventory and $3.6 million decrease in cash. Current liabilities decreased to $12.1 million at December 31, 2025 from $13.3 million at December 31, 2024, primarily due to a $3.0 million decrease in accounts payable, $0.2 million decrease in current operating lease liabilities, partially offset by an increase of $0.4 million in accrued expenses, $0.6 million in sales tax payable, and $1.0 million of current deferred revenue. As a result, our working capital decreased to $8.9 million at December 31, 2025 compared to $13.8 million at December 31, 2024.

The Company has continued to invest in sales and marketing initiatives intended to increase revenue and expand market awareness of its products. These efforts which were primarily focused on sales to federal and other government entities contributed to revenue growth of 144% from 2021 to 2022 and 206% from 2022 to 2023. Beginning in 2024 we started seeing a decline in revenue which we believe is primarily attributable to many of our customer targets starting to assume that there would be a change in the political administration and therefore a change in the federal government's appetite for renewable energy. These declines continued in 2024 and after. Although revenues decreased by 43% from 2024 to 2025, the Company believes that its continued investment in sales and marketing has strengthened its market presence and expanded its pipeline of prospective opportunities. As revenues increase, the Company expects fixed overhead costs to be spread across a greater number of units, which may reduce the per-unit cost of production. In addition, the Company has realized material cost reductions from operational synergies, particularly in steel and battery cell sourcing, and expects these improvements to continue. These cost reductions, together with ongoing engineering and manufacturing process improvements, are expected to support improvements in gross margin over time.

The Company may be required to raise capital to fund its operations until it achieves positive cash flow, which is predicated on increasing sales volumes and the continuation of production cost reduction measures. The Company could pursue other equity or debt financing. The proceeds from these offerings are expected to provide working capital to fund business operations and the development of new products. Management cannot currently predict when or if it will achieve positive cash flow. There is no guarantee that profitable operations will be achieved, or that additional capital or debt financing will be available on a timely basis, on favorable terms, or at all, and such funding, if raised, may not be sufficient to meet our obligations or enable us to continue to implement our long-term business strategy. In addition, obtaining additional funding or entering into other strategic transactions could result in significant dilution to our stockholders. The proceeds from these offerings are expected to provide working capital to fund business operations and the development of new products. Management cannot currently predict when or if it will achieve positive cash flow.

On March 22, 2023, the Company entered into a Supply Chain Line of Credit with OCI Limited ("OCI") for a five-year term, whereby OCI may provide a supply chain line of credit in the amount of up to $100 million based on the amounts of approved accounts receivable of the Company (the "Credit Facility"). In order to request a drawdown on the Credit Facility, the Company is required to submit a transaction request to OCI which sets forth the terms of the applicable account receivables, including but not limited to the name of the party responsible for the applicable account receivables (the "Obligor"), the terms of repayment and the amount of such receivables. The Company has no obligation to submit a drawdown request and OCI is not obligated to accept any drawdown request from the Company. In the event OCI accepts a drawdown request of the Company and upon satisfaction of certain conditions required by OCI to issue the drawdown, OCI will disburse funds to the Company for such drawdown in an amount equal to the full value of the applicable account receivables assigned to OCI minus any transaction expenses incurred by OCI and the full amount of interest to be incurred for such receivables over the term of the drawdown. The Company will pay interest on any drawdown at the Secured Overnight Financing Rate +300 basis points. Upon the disbursement of funds to the Company for a drawdown, the Company will assign all rights to such account receivables of the Obligor to OCI. The Company will act as collection agent on any account receivable assigned to OCI and agrees to establish a designated bank account for the purpose of collecting payment on any applicable account receivable that are assigned to OCI. In the event (i) the Company is in material breach of the Credit Facility, (ii) the Company or the Obligor is insolvent or is subject to reorganization or liquidation, or (iii) any dispute related to an agreement with an Obligor or non-payment by an Obligor, OCI has the right to exercise any contractual rights it may have against Obligor, increase the interest rate to the agreed upon default interest rate, and demand immediate repayment by the Company for the outstanding amounts owed under such account receivables. The Company has also agreed to indemnify OCI for any losses incurred by OCI in connection with the Credit Facility. Either party may terminate the Credit Facility at any time by providing fifteen (15) days prior written notice to the other party. To date, Beam Global has not drawn on this line of credit.

Management believes that evolution in the operations of the Company may allow it to execute its strategic plan and enable it to experience profitable growth in the future. This evolution is anticipated to include the following continual steps: addition of sales personnel and independent sales channels, reductions in direct costs due to engineering and manufacturing improvements, continued management of overhead costs, increased overhead absorption resulting from volume growth, process improvements and vendor negotiations leading to cost reductions, increased public awareness of the Company and its products, and the continued acceleration of average sales cycle opportunities. Management believes that these steps, if successful, may enable the Company to generate sufficient revenue to continue operations. There is no assurance, however, as to if or when the Company will be able to achieve those operating objectives.

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**Off-Balance Sheet Arrangements** 

We do not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources, that are material to investors.

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|:---|:---|
| **ITEM 7A.** | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.** |

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Not applicable.

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|:---|:---|
| **ITEM 8.** | **FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.** |

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The financial statements required by this item begin on page F-1 with the index to financial statements followed by the financial statements.

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|:---|:---|
| **ITEM 9.** | **CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.** |

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None.

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|:---|:---|
| **ITEM 9A.** | **CONTROLS AND PROCEDURES** |

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**Evaluation of Disclosure Controls and Procedures**

Our management is responsible for establishing and maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the "SEC"), and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 15d-15(e) under the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our disclosure controls and procedures as of December 31, 2025. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2025, our disclosure controls and procedures of were not effective due to the material weaknesses in our internal control over financial reporting as identified below under "Management's Report on Internal Control Over Financial Reporting".

**Management**'**s Report on Internal Control Over Financial Reporting**

Our management, including our Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal controls over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S. GAAP. Accordingly, even effective internal controls can provide only reasonable assurance with respect to financial statement preparation.

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Management conducted an evaluation of the effectiveness of our internal control over financial reporting as December 31, 2025 using the criteria set forth in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2025, our internal control over financial reporting was not effective due to the material weaknesses described below.

The following material weaknesses, which were identified as of December 31, 2024, continued to exist as of December 31, 2025:

**Material Weaknesses**

● Ineffective design and implementation over Information Technology General Controls ("ITGCs")

● Insufficient controls over inventory accounting, including controls to ensure inventory is accurately tracked, recorded and valued on a timely basis

● Insufficient controls over the preparation, review and approval of account reconciliations and financial reporting schedules, including lack of appropriate documentation and evidence of review

● Inadequate segregation of duties and user access controls, including limitations due to personal resources and overlapping responsibilities

● Insufficient controls over financial reporting processes and oversight related to our international operations, including Beam Europe

These material weaknesses will not be considered to be remediated until the applicable remediated controls are operating for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

**Remediation Efforts**

To address the material weaknesses described above, we have undertaken, and continue to undertake, measures to remediate the identified material weaknesses including:

● Implementing and enhancing information technology general controls, including controls over user access and system monitoring

● Implementing NetSuite enterprise resource planning (ERP) system to automate key accounting, manufacturing and inventory processes and strengthen control over financial reporting

● Enhancing controls over account reconciliations, including formalizing review and approval procedures and documentation requirements

● Improving segregation of duties through role-based access controls and reassignment of responsibilities, where feasible

● Providing additional training to accounting and finance personnel and enhancing oversight of financial reporting processes

While we believe these efforts will improve our internal control over financial reporting, there can be no assurance that these measures will be sufficient to remediate the material weaknesses or prevent future deficiencies.

**No Attestation Report by Independent Registered Accountant**

Since we are a smaller reporting company, our independent registered public accounting firm has not audited the effectiveness of our internal control over financial reporting as of December 31, 2025.

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**Changes in Internal Controls Over Financial Reporting**

During the quarter ended December 31, 2025, we implemented changes to our internal control over financial reporting as part of our remediation efforts described above, including enhancements to our accounting processes and documentation, implementation of new accounting procedures, and training of our accounting personnel. These changes have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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|:---|:---|
| **ITEM *9B.*** | **OTHER INFORMATION.** |

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During the *three* months and the year ended *December 31, 2025*, no director or officer of the Company adopted or terminated a "Rule *10b5*-*1* trading arrangement" or "non-Rule *10b5*-*1* trading arrangement," as each term is defined in Item *408*(a) of Regulation S-K.

**Amended and Restated Employment Agreement**

On *April 7, 2026,* the Company entered into an amended and restated employment agreement with Desmond Wheatley, the Company's Chief Executive Officer (the "Amended Employment Agreement"). The Amended Employment Agreement extends the term of Mr. Wheatley's employment through *December 31, 2028.* The Amended Employment Agreement otherwise continues the current terms and conditions of Mr. Wheatley's employment. A copy of the Amended Employment Agreement is filed as Exhibit *10* to this Annual Report on Form *10*-K.

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|:---|:---|
| **ITEM 9C.** | **DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.** |

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None.

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**PART III**

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|:---|:---|
| **ITEM 10.** | **DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.**  |

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The following table sets forth information about our directors and executive officers as of *December 31, 2025*:

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| | | |
|:---|:---|:---|
| Name | Age | Position |
| Desmond Wheatley | *59* | President, Chief Executive Officer, and Chairman of the Board of Directors |
| Lisa Potok | *56* | Chief Financial Officer |
| Anthony Posawatz | *65* | Director |
| Judy Krandel | *60* | Director |
| George Syllantavos | *61* | Director |

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Below is a summary of the business experience of each of our executive officers and directors:

***Desmond Wheatley*** has served as our president, chief operating officer, and secretary since September 2010. Mr. Wheatley was appointed chief executive officer and director in August 2011, and he became the chair of our board of directors in December 2016. He is an inventor of the EV ARC™, BeamTrak™, BeamFlight™, BeamSpot™ and several other patented inventions which differentiate our products. Mr. Wheatley has two decades of senior international management experience in technology systems integration, energy management, communications and renewable energy. Prior to joining Beam Global, Mr. Wheatley was a founding partner in the international consulting practice Crichton Hill LLC in 2009 and he was chief executive officer of iAxis FZ LLC, a Dubai-based alternative energy and technology systems integration company from 2007 to 2009. From 2000 to 2007, Mr. Wheatley held a variety of senior management positions at San Diego-based Kratos Defense and Security Solutions, formally known as Wireless Facilities, with the last five years as president of ENS (Enterprise Network Solutions, a division of Wireless Facilities Inc (NASDAQ: WFII now KTOS)), then the largest independent security and energy management systems integrator in the U.S.. Prior to forming ENS in 2002, Mr. Wheatley held senior management positions in the cellular and broadband wireless industries, deploying infrastructure and lobbying in Washington DC on behalf of major wireless service providers. Mr. Wheatley's teams led turnkey deployments of thousands of cellular sites and designed and deployed broadband wireless networks in many MTAs across the U.S. Mr. Wheatley has founded, funded, and operated four profitable start-up companies and was previously engaged in merger and acquisition activities. Mr. Wheatley evaluated acquisition opportunities, conducted due diligence and raised commitments of $500 million in debt and equity.

***Lisa Potok*** has served as our chief financial officer since December 2023. Ms. Potok served as chief financial officer, treasurer, and secretary of Nice North America LLC from 2022 to 2023. Prior to that, Ms. Potok held positions as the vice president of global finance, investor relations and M&A for Newegg Inc. (NASDAQ: NEGG) during 2021, vice president of global finance at Club Demonstration Services, (NASDAQ: ADV) from 2019 to 2020, a product demonstration company, and vice president of finance/divisional chief financial officer at FTD, Inc.'s Provide Commerce division (NASDAQ: FTD) from 2016 to 2019. Ms. Potok is a CPA and holds a Bachelor of Arts in Accounting from Hillsdale College, and a Master of Business Administration from The Paul Merage School of Business at the University of California.

***Anthony Posawatz*** has served as a director of the Company since February 2016. He currently serves as our lead director and is a member of Compensation, Nominating and Governance and Equity Oversight Committees. Mr. Posawatz has been an automotive industry professional for over 40 years and over 30 years in an executive capacity. He currently serves as CEO of Fermata Energy and of his consulting advisory firm, Invictus iCAR LLC. He has previously served as the president, chief executive officer, and a director of Fisker Automotive from August 2012 to August 2013. Mr. Posawatz worked for General Motors ("GM") for more than 30 years. As GM's vehicle line director for the Chevrolet Volt and key leader of global electric vehicle development, he was responsible for bringing the Chevrolet Volt from concept to production launch in 2010. He currently serves on the boards of Zapp EV (NASDAQ: ZAPP), Nanoramic Laboratories and Fermata Energy. Mr. Posawatz is a licensed professional engineer (P. E.) in Michigan and was both a General Motors Undergraduate Scholar at Wayne State University where he earned a Bachelor of Science degree in Mechanical Engineering, and a Graduate Fellow at Dartmouth College, Tuck School of Business where he earned a Master of Business Administration degree.

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***Judy Krandel*** has served as director of the Company since December 2023. She currently serves on our Audit, Compensation, Nominating and Governance and Equity Oversight Committees. Mrs. Krandel currently serves as the CFO of Nephros, Inc (NASDAQ: NEPH). since November 2023. Mrs. Krandel served as the Chief Financial Officer of Recruiter.com Group, Inc. (NASDAQ: RCRT) from June 2020 to September 2023. From November 2016 until December 2019, she served as Chief Financial Officer, and then Senior Business Development Consultant for PeerStream, Inc. From March 2012 until November 2016, Mrs. Krandel was the Portfolio Manager for Juniper Investment Company, a small-cap hedge fund. Mrs. Krandel spent the early part of her career as an equity analyst and portfolio manager focusing on small-cap public equities. In the past, she had served on the board of directors of Lincoln First Bancorp, Snap Interactive (NASDAQ: PALT) and Cynergistek in the digital media and healthcare cybersecurity industries. She is a graduate of the Wharton School of Business of the University of Pennsylvania with a degree in finance and the Booth School of Business of the University of Chicago with an MBA in finance and accounting.

***George Syllantavos*** has served as director of the Company since December 2023. He currently serves on our Audit, Compensation, Nominating and Governance and Equity Oversight Committees. My Syllantavos has served as the Founder, Co-CEO and CFO of Stellar V Capital Inc. since September 2022. Mr. Syllantavos is a Non-Executive Director of SevenSeas Investment Fund since March 2019, Founder and Managing Director of Nautilus Energy Management since February 2013. Previously, Mr. Syllantavos was the Founder, co-CEO and CFO of Growth Capital Acquisition Corp. (NASDAQ: GCAC) from May 2020 to February 2022, has served as a board member and the Chair of the audit committee of ITHAX Acquisition Corp. (NASDAQ: ITHX) February 2021 to July 2022 and has served as a board member of Phunware Inc. (NASDAQ: PHUN) from December 2018 to December 2021. Mr. Syllantavos holds a bachelor's degree in industrial engineering from Roosevelt University in Chicago, IL and a Masters of Business Administration in Operations Management, International Finance and Transportation Management from the Kellogg Graduate School at Northwestern University, in Evanston, IL.

Each executive officer serves at the discretion of our Board of Directors and holds office until his or her successor is duly elected and qualified or until his or her earlier resignation or removal. There are no family relationships among any of our directors or executive officers.

**Director Experience, Qualifications, Attributes and Skills**

We believe that the backgrounds and qualifications of our directors, considered as a group, provide a broad mix of experience, knowledge and abilities that will allow the Board to fulfill its responsibilities. We believe that our Board is composed of a group of leaders in their respective fields. All of the current directors have executive experience at public companies, as well as experience serving on other companies' boards, which provides an understanding of different business processes, challenges and strategies facing other companies. Further, our directors also have other experiences that make them valuable members and provide insight into issues relevant to the Company.

The following highlights the specific experience, qualification, attributes and skills of our individual Board members, or nominees for the Board, that have led our Nominating and Governance Committee and the Board to conclude that these individuals are qualified to serve on our Board:

Mr. Wheatley provides leadership and industry experience to the Board of Directors gained by being our chief executive officer since August 2011 and president since September 2010. Mr. Wheatley has held numerous executive positions in international organizations including five years as president of a publicly traded technology and energy management company. Mr. Wheatley was the founding member of an international consulting company with expertise in the renewable and energy sectors. He has held various executive level positions in multiple infrastructure deployment companies and has been involved in energy management and renewables since 2002. Mr. Wheatley also provides the Board of Directors with significant corporate finance experience.

Mr. Posawatz provides leadership and industry experience to the Board of Directors gained by being the chief executive officer of several companies and leading the development of several electric vehicle products including GM's Chevrolet Volt.

Mrs. Krandel provides leadership and industry experience to the Board of Directors gained by executive level and board of director positions at other NASDAQ companies. Mrs. Krandel's experience in investment management provides the company with additional expertise in capital markets and investor relations.

Mr. Syllantavos provides leadership and industry experience to the Board of Directors gained by serving as a chief executive officer and chief financial officer of a number of public and private companies in the fields of transportation, logistics, infrastructure and technology. Mr. Syllantavos also brings on experience in transactions and mergers and acquisitions through his service in such executive positions and also contributes his corporate governance experience pursuant to his service on the Board of a number of public companies.

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**Director Independence**

Our Board of Directors currently consists of four directors. Three of our directors are "independent" as defined in Rule 4200 of FINRA's listing standards and the NASDAQ Capital Market criteria. In accordance with the standards of the NASDAQ Capital Market, these directors are considered "independent" because they are not employees or executive officers of the Company and have not been paid more than $120,000 of compensation by the Company, other than for their service as members of our Board of Directors, in any consecutive 12-month period during the past three years. Furthermore, they have no family members being paid compensation by the Company, and they do not serve as directors or officers of any companies that conduct business with the Company as outside vendors or service providers. We plan to appoint additional independent directors to our board of directors in the future.

**Board Committees**

Our Board of Directors currently has an audit committee, a compensation committee, a nominating and governance committee and an equity oversight committee. The composition and responsibilities of each of the committees of our Board of Directors are described below. Members serve on these committees until their resignation or until otherwise determined by our Board of Directors.

*Audit Committee*. The Audit Committee of the Board of Directors currently consists of three independent directors of which at least one, the Chairman of the Audit Committee, qualifies as a qualified financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Judy Krandel is the Chairman of the Audit Committee and our Audit Committee financial expert, and George Syllantavos and Anthony Posawatz are the other members of the Audit Committee. The Audit Committee's duties are to recommend to our Board of Directors the engagement of an independent registered public accounting firm to audit our consolidated financial statements and to review our accounting and auditing principles. The Audit Committee reviews the scope, timing and fees for the annual audit and the results of audit examinations performed by any internal auditors and independent public accountants, including their recommendations to improve the system of accounting and internal controls. The Audit Committee will at all times be composed exclusively of directors who are, in the opinion of our Board of Directors, free from any relationship that would interfere with the exercise of independent judgment as a committee member and who possess an understanding of consolidated financial statements and generally accepted accounting principles. The charter of the Audit Committee is available on our website at www.beamforall.com.

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*Compensation Committee*. The Compensation Committee establishes our executive compensation policy, determines the salary and bonuses of our executive officers and recommends to the Board stock option grants for our executive officers. George Syllantavos is the Chairman of the Compensation Committee, and Anthony Posawatz and Judy Krandel and are the other directors who are members of the Compensation Committee. Each of the members is independent under NASDAQ's independence standards for compensation committee members. Our chief executive officer often makes recommendations to the Compensation Committee and the Board concerning the compensation of other executive officers. The Compensation Committee seeks input on certain compensation policies from the chief executive officer. The charter of the Compensation Committee is available on our website at www.beamforall.com.

*Nominating and Governance Committee*. The Nominating and Governance Committee is responsible for matters relating to the corporate governance of our Company and the nomination of members of the Board and committees thereof. Anthony Posawatz is the Chairman of the Nominating and Governance Committee, and George Syllantavos and Judy Krandel are the other director members of the Committee. Each of the members is independent under NASDAQ's independence standards. The charter of the Nominating and Governance Committee is available on our website at www.beamforall.com.

*Equity Oversight Committee*. The Equity Oversight Committee is responsible for matters related to the offering of securities of the Company. Anthony Posawatz, George Syllantavos, and Judy Krandel are members of the Equity Oversight Committee.

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**Code of Business Conduct and Ethics**

We have adopted a Code of Business Conduct and Ethics that is applicable to all of our employees, officers, and directors, including our Chief Executive Officer, Chief Financial Officer and other executive and senior financial officers. A copy of our Code of Business Conduct and Ethics is available in the Investors Relations section of our website at beamforall.com under "Governance Documents."

**Board Leadership Structure**

The Board has not adopted a specific policy on whether the same person should serve as both the Chief Executive Officer and Chair of the Board or, if the roles are separate, whether the chair should be selected from the non-employee directors or should be an employee. The Board believes it is appropriate to retain discretion and flexibility to make these determinations from time to time as needed to provide appropriate leadership for the Company. At this time, the Board believes that a combined role of Chairman of the Board and Chief Executive Officer, along with Board committees that are chaired by independent directors is the appropriate leadership structure for the Company at this time. The combined role fosters open communication between the Board and management team, provides both groups with unified leadership and promotes efficient development and execution of the Company's strategic plan. The board appointed Anthony Posawatz as its lead independent director on April 16, 2021.

The independent directors meet as frequently as they desire, but at least once per year, in an executive session.

**Board**'**s Role in Risk Oversight**

In addition to the responsibilities performed by our audit committee, the Board of Directors plays an active role in overseeing management of the Company's risks. The Board of Directors focuses on the most significant operational risks facing our Company related to our business, assets, and liabilities, as well as our key financial risks, such as credit risk, interest rate risk, liquidity risk, and other market-related risk. Our Board seeks to ensure that risks undertaken by the Company are consistent with an overall risk profile that is appropriate for the Company and the achievement of its business objectives and strategies. The Board of Directors recognizes that risk management and oversight comprise a dynamic and continuous process and therefore reviews the Company's risk model and process periodically. The Board of Directors performs these tasks both in collaboration with and independently of the audit committee and Company management.

**Non-Employee Director Compensation**

The following table summarizes compensation paid to our non-employee directors during the year ended December 31, 2025. Directors who are also our employees receive no additional compensation for their service as a director. During the year ended December 31, 2025, Mr. Wheatley, our current President and Chief Executive Officer, was an employee. Compensation for Mr. Wheatley is discussed in "Executive Compensation."

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| | | | |
|:---|:---|:---|:---|
|  | **Fees Earned or** | **Restricted** |  |
| **Name** | **Paid in Cash<sup>(1)</sup>** | **Stock Awards** | **Total** |
| Anthony Posawatz | $100000 | $125000 | $225000 |
| Judy Krandel | $80000 | $125000 | $205000 |
| George Syllantavos | $75000 | $125000 | $200000 |

---

(1) Represents the cash quarterly retainer and the meeting attendance fees earned by the non-employee directors.

**<u>Non-Employee Director Compensation Policy</u>**

**Cash Compensation**

Each non-employee director received a quarterly cash retainer of $15,000 for serving on our Board of Directors. The retainer is payable in arrears, subject to such director's continued service on the last day of the preceding quarter and prorated as necessary to reflect service commencement or termination during the quarter. In addition, each non-employee director receives an additional amount based on the committee position held per quarter as follows: (i) $10,000 lead director (ii) $5,000 audit chair (iii) $3,750 compensation chair and (iv) $2,500 nominating and governance chair.

All directors are reimbursed for reasonable expenses incurred in connection with attendance at board or committee meetings.

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**Equity Compensation**

In January of each year, each non-employee director is granted a certain number of shares of restricted common stock equal to $125,000 divided by the average daily closing price of our common stock for the preceding month and rounded up to the nearest 100. The restricted common stock vests quarterly in four (4) equal installments.

**<u>Insider Trading Policy</u>**

We have adopted an Insider Trading Policy (the "Insider Trading Policy") containing policies and procedures governing the purchase, sale and/or other dispositions of our securities by Company Insiders (including officers and directors as well as certain other employees identified pursuant to the Insider Trading Policy), or by us. Such policies and procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations, and any listing standards applicable to us. A copy of our Insider Trading Policy is filed as an Exhibit to this annual report on Form 10-K. In addition, it is our practice to comply with applicable laws and regulations relating to insider trading.

**Delinquent Section 16(a) Reports**

Section 16(a) of the Exchange Act requires directors, certain officers, and ten percent (10%) stockholders to file reports of ownership and changes in ownership with the SEC. Based upon a review of filings with the SEC and/or written representations that no other reports were required, we believe, except as set forth below, that all reports for the Company's officers and directors that were required to be filed under Section 16 of the Exchange Act were timely filed in 2025:

● Judy Krandel, George Syllantavos, and Anthony Posawatz, the Company Directors, filed late Form 4s reporting restricted stock awards granted to each on January 2, 2025, which were reported on January 31, 2025.

● Desmond Wheatley, the Company's Chief Executive Officer, filed two late Forms 4 reporting (i) stock awards granted to him and the withholding of a portion of those awards on February 1 and February 28, 2025, which were reported on March 14, 2025, and (ii) a stock award granted to him and the withholding of a portion of that award on June 4, 2025, which was reported on June 9, 2025.

● George Syllantavos, the Company's Director, filed a late Form 4 reporting stock sold on September 10, 2025 which was reported on September 17, 2025.

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| | |
|:---|:---|
| **ITEM 11.** | **EXECUTIVE COMPENSATION.** |

---

The following table sets forth all compensation awarded, earned or paid for services rendered in all capacities to the Company during the years ended *December 31, 2025* and *2024* to (i) each person who served as the Company's chief executive officer during fiscal *2025*, (ii) the *two* most highly compensated officers other than the chief executive officer who were serving as executive officers at the end of fiscal *2025* and whose total compensation for such year exceeded *$100,000,* and (iii) up to *two* additional individuals for whom disclosures would have been provided in this table but for the fact that such persons were *not* serving as executive officers as of the end of *2025* (the "Named Executive Officers").

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  | **Non-Equity** |  |  |
|  |  |  | **Deferred** |  | **Stock** | **Option** | **Incentive Plan** | **All Other** |  |
|  | **Fiscal** | **Salary** | **Compensation** | **Bonus** | **Awards** | **Awards** | **Compensation** | **Compensation** | **Total** |
| **Name and Principal Position** | **Year** | **($)** | **($)** | **($)** | **($)** | **($)** | **($)** | **($)(*1*)** | **($)** |
| Desmond Wheatley | *2025* | *400000* |  | *400000* | *827305* |  |  | *537403* | *2164708* |
| *President and Chief* | *2024* | *384616* |  | *400000* |  |  |  | *264317* | *1048933* |
| *Executive Officer* |  | | | | | | | | |
| Lisa Potok | *2025* | *310000* |  | *155000* |  |  |  |  | *465000* |
| *Chief Financial Officer* | *2024* | *298702* |  | *155000* |  |  |  |  | *453702* |
| Mark Myers (*2*) | *2025* | *225478* |  | *90000* |  |  |  |  | *315478* |
| *Chief Operating Officer* | *2024* | *231369* |  | *90000* |  | *223500* |  |  | *544869* |
| Officers as a Group | *2025* | *935478* |  | *645000* | *827305* |  |  | *537403* | *2945186* |
|  | *2024* | *1131469* |  | *645000* |  | *461000* |  | *413672* | *2651141* |

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(*1*) All other compensation reflects RSAs and RSUs vested.

(*2*) Mr. Myers resigned from the company as of *October 29, 2025*

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**Executive Employment Arrangements**

Desmond Wheatley. On *April 7, 2026,* the Company entered into an Amended and Restated Employment Agreement (the "Employment Agreement") with Desmond Wheatley, the Company's president and Chief Executive Officer, to amend and restate Mr. Wheatley's prior employment agreement. The Employment Agreement is on substantially the same terms and conditions as Mr. Wheatley's prior employment agreement, which was entered into as of *January 1, 2016,* and amended restated on *February 9, 2022.* The Employment Agreement extends the term of the Employment Agreement to *December 31, 2028* and reflects Mr. Wheatley's current annual cash compensation of *$400,000* and his current target bonus of *100%* of his annual cash compensation.

On *November 10, 2022,* the Board approved a stock grant to Mr. Wheatley under the Company's *2021* Equity Incentive Plan, consisting of (i) a *one*-time grant of *142,500* restricted stock units ("RSUs") and (ii) a target number of *142,500* performance restricted stock units ("PRSUs") to further incentivize and align Mr. Wheatley's interest with the Company. For the RSUs, *50%* vested upon the grant date, *25%* vested on *February 1, 2024* and *25%* vested on *February 1, 2025.* The PRSUs were tied to *three*-year revenue and gross margin goals for the company and vested upon determination of performance by the Compensation Committee. The number of shares issued under the PSUs were determined based on the achievement of performance metrics specific to the Company that were measured at the end of fiscal year *2024.* The fair value of both the RSUs and PSUs were based on the stock price of *$13.05* per share on the date of grant. The PSUs were further reviewed to determine estimated performance over the term and then a factor was applied ranging from *0%* to *150%* of the grant date fair value. As of *December 31, 2024,* the PSUs vested at the "maximum" *three*-year cumulative revenue payout of *150%* and the "threshold" *three*-year average gross margin of *75%,* resulting in the issuance of an additional *44,531* shares of common stock for a total of *187,031* shares granted under the PSU.

Lisa Potok. Ms. Potok, the Company's Chief Financial Officer, and the Company agreed to an offer letter dated *November 10, 2023,* whereby the Company agreed to pay Ms. Potok an annual salary of *$310,000* per year. Ms. Potok is eligible for an annual bonus up to *50%* of her base salary subject to performance metrics established by the Company. Upon Ms. Potok's appointment as its Chief Financial Officer, the Company also granted Ms. Potok an option to purchase up to *75,000* shares of the Company's common stock at an exercise price equal to *$5.50* which vests over a *four*-year period.

**Severance and Change in Control Agreements**

Mr. Wheatley's employment agreement with the Company provides for a payment in an amount equal to *four* times his annual compensation if he is terminated for reasons other than mutual agreement, his death, his breach or other cause, or upon his disability, as defined in the agreement.

On *February 9, 2021,* the Board adopted a Change in Control Severance Benefit Plan. The Plan provides severance benefits to eligible participants upon selected terminations of service in connection with a change of control of the Company. The Plan provides that upon termination of service of a participant by voluntary resignation of employment by the participant for good reason (which good reason occurred within the *three* (*3*) months prior to or *twelve* (*12*) months following the effective date of a change of control), or by the Company without cause, and the satisfaction of certain other requirements, the participant *may* receive certain (i) cash severance payments; (ii) bonus severance payments; (iii) health insurance premium payments; or (iv) acceleration of vesting of outstanding options or other equity awards as provided in the Plan. The Company's Chief Financial Officer, Lisa Potok is a participant under the Plan.

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**<u>Outstanding Equity Awards at Fiscal Year-End</u>**

The following table sets forth information regarding outstanding stock options held by our named executive officers as of *December 31, 2025*.

<u>Option Awards</u>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of** | **Number of** |  |  |  |
|  | **securities** | **securities** |  |  |  |
|  | **underlying** | **underlying** |  |  |  |
|  | **unexercised** | **unexercised** |  | **Option** | **Option** |
|  | **options (#)** | **options (#)** |  | **exercise** | **expiration** |
| **Name and Principal Position** | **exercisable (*1*)** | **unexercisable**  |  | **price ($)** | **date** |
| **Desmond Wheatley** | *87000* |  |  | *7.50* | *10/17/2026* |
| *President and Chief Executive Officer* |  |  |  |  |  |
| **Lisa Potok** | *39479* | *35521* | (*2*) | *5.50* | *12/4/2033* |
| *Chief Financial Officer* | | | | | |
| **Mark Myers** | *22673* | *27327* | (*3*) | *5.90* | *1/27/2026* |
| *Chief Operations Officer* | | | | | |

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(*1*) Stock options to purchase our common stock were granted pursuant to our *2021* Stock Incentive Plan except for Mr. Wheatley's grant of *87,000* options, which was granted pursuant to our *2011* Equity Incentive Plan.

(*2*) *1,563* of these stock options vest monthly and will be fully vested on *November 30, 2027.*

(*3*) Mr. Myers resigned from the company as of *October 29, 2025* and his stock options expired on *January 27, 2026.*

**<u>Equity Benefit and Stock Plans</u>**

*Stock Incentive Plan*

On *August 10, 2011,* in order to provide an incentive to attract and retain directors, officers, consultants, advisors and employees whose services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons in our development and financial success, the Company adopted the *2011* Stock Incentive Plan (the *"2011* Plan"), pursuant to which *600,000* shares plus annual increases as provided in the *2011* Plan for a total of *30,000* shares as of *December 31, 2019,* were reserved for issuance as awards to employees, directors, consultants and other service providers. Under the *2011* Plan, we were authorized to issue incentive stock options intended to qualify under Section *422* of the Code and non-qualified stock options. The *2011* Plan is administered by our Board of Directors until such time as such authority has been delegated to a committee of the Board of Directors. The *2011* Plan was ratified by our shareholders in *2012* and expired in *2021.*

On *June 9, 2021,* the Company's stockholders approved the Beam Global *2021* Equity Incentive Plan (the *"2021* Plan") under which *2,000,000* shares of the Company's common stock are reserved to be issued pursuant to the exercise of stock options or other awards granted under such plan in addition to the *630,000* shares previously reserved under the Beam Global *2011* Stock Incentive Plan. The number of shares reserved for issuance under the *2021* Plan will increase automatically on *January 1* of each of *2022* through *2031* by the number of shares equal to *5%* of the aggregate number of outstanding shares of the Company's common stock as of the preceding *December 31,* or a lesser number as *may* be determined by our board of directors or compensation committee.

We provide the following discussion of the timing of option awards in relation to the disclosure of material nonpublic information, as required by Item *402*(*x*) of Regulation S-K. Equity awards are discretionary, and our Compensation Committee did *not* take material nonpublic information into account when determining the timing and terms of equity awards in *2024,* and the Company does *not* time the disclosure of material nonpublic information for the purpose of affecting the value of executive compensation.

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*Incentive Plan Awards*

From *January 1, 2025* through *December 31, 2025*, the Company granted a total of *224,500* stock options under the *2021* Plan, which were granted to *58* of its employees.

The following table sets forth certain information regarding our *2011* and *2021* Plan as of *December 31, 2025*:

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| | | |
|:---|:---|:---|
|  |  | **Number of** |
| **Number of** |  | **securities** |
| **Securities** | **Weighted-** | **remaining** |
| **to be issued** | **average** | **available for** |
| **upon exercise** | **exercise price** | **future issuance** |
| **of outstanding** | **of outstanding** | **under equity** |
| **stock options** | **stock options** | **compensation plans** |
| *737450* | *$5.33* | *3928688* |

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**<u>Limitation of Liability and Indemnification Matters</u>**

Under Nevada General Corporation Law and our articles of incorporation, our directors and officers will have *no* personal liability to us or our stockholders for monetary damages incurred as the result of the breach or alleged breach by a director or officer of his "duty of care." This provision does *not* eliminate or limit the liability of a director or officer for (i) acts or omissions that involve intentional misconduct or a knowing violation of law or (ii) the payment of dividend in violation of Section *78.300* of the Nevada Revised Statutes. This provision would generally absolve directors of personal liability for negligence in the performance of duties, including gross negligence.

The effect of this provision in our articles of incorporation is to eliminate the rights of Beam Global and our stockholders (through stockholder's derivative suits on behalf of Beam Global) to recover monetary damages against a director or officer for breach of his fiduciary duty of care (including breaches resulting from negligent or grossly negligent behavior) except in the situations described in clauses (i) through (ii) above. This provision does *not* limit or eliminate the rights of Beam Global or any stockholder to seek non-monetary relief such as an injunction or rescission in the event of a breach of a director's or officer's duty of care. Nevada General Corporation Law grants corporations the right to indemnify their directors, officers, employees and agents in accordance with applicable law. Our bylaws provide for indemnification of such persons to the full extent allowable under applicable law. These provisions will *not* alter the liability of the directors under federal securities laws.

We intend to enter into agreements to indemnify our directors and officers, in addition to the indemnification provided for in our bylaws. These agreements, among other things, indemnify our directors and officers for certain expenses (including attorneys' fees), judgments, fines, and settlement amounts incurred by any such person in any action or proceeding, including any action by or in the right of Beam Global, arising out of such person's services as a director or officer of Beam Global, any subsidiary of Beam Global or any other company or enterprise to which the person provides services at the request of Beam Global. We believe that these provisions and agreements are necessary to attract and retain qualified directors and officers.

Insofar as indemnification for liabilities arising under the Securities Act *may* be permitted to directors, officers, or persons controlling Beam Global pursuant to the foregoing provisions, Beam Global has been informed that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

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| | |
|:---|:---|
| **ITEM 12.** | **SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.** |

---

The following table sets forth information regarding beneficial ownership of our common stock as of April 7, 2026 by:

(1) each person or group of affiliated persons known by us to be the beneficial owner of more than 5% of our common stock;

(2) each of our named executive officers;

(3) each of our directors; and

(4) all of our executive officers and directors as a group.

We have determined beneficial ownership in accordance with the rules of the SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Unless otherwise indicated below, to our knowledge, the persons and entities named in the table have sole voting and sole investment power with respect to all shares that they beneficially own, subject to community property laws where applicable. To our knowledge, no person or entity, except as set forth below, is the beneficial owner of more than 5% of the voting power of our common stock as of the close of business on April 7, 2026.

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Under SEC rules, the calculation of the number of shares of our common stock beneficially owned by a person and the percentage ownership of that person includes both outstanding shares of our common stock then owned as well as any shares of our common stock subject to options or warrants held by that person that are currently exercisable or exercisable within 60 days of April 7, 2026. Shares subject to those options or warrants for a particular person are not included as outstanding, however, for the purpose of computing the percentage ownership of any other person. We have based percentage ownership of our common stock on 21,136,983 shares of our common stock outstanding as of April 7, 2026.

Unless otherwise indicated, the address of each beneficial owner listed in the table below is c/o Beam Global, 5660 Eastgate Drive, San Diego, California 92121.

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| | | |
|:---|:---|:---|
|  | **Number of Shares** | **Percent of Shares** |
| **Name of Beneficial Owner** | **Beneficially Owned** | **Outstanding** |
| **Named Executive Officers, Directors and Director Nominees:** |  |  |
| Desmond Wheatley (1) | 622279 | 2.93% |
| Lisa Potok (2) | 145313 |  |
| Anthony Posawatz (3) | 202111 |  |
| Judy Krandel (4) | 133019 |  |
| George Syllantavos (5) | 112083 |  |
| All current executive officers and directors as a group (5 persons) (6) | 1214805 | 5.68% |

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\* Represents beneficial ownership of less than 1% of the outstanding shares of our common stock.

(1) Mr. Wheatley is our President, Chief Executive Officer and Chairman of our Board of Directors. His beneficial ownership includes 87,000 shares of common stock issuable pursuant to stock options exercisable within 60 days after April 7, 2026.

(2) Ms. Potok is our Chief Financial Officer. Her beneficial ownership consists of 145,313 shares of common stock issuable pursuant to stock options exercisable within 60 days after April 7, 2026.

(3) Mr. Posawatz serves as a member of our Board of Directors. His beneficial ownership consists of 202,111 shares that have been issued pursuant to RSAs and subject to vesting.

(4) Mrs. Krandel serves as a member of our Board of Directors. Her beneficial ownership consists of 133,019 shares that have been issued pursuant to RSAs and subject to vesting.

(5) Mr. Syllantavos serves as a member of our Board of Directors. His beneficial ownership consists of 112,083 shares that have been issued pursuant to RSAs and subject to vesting.

(6) Beneficial ownership consists of 232,313 shares of common stock subject to options exercisable within 60 days of April 7, 2026, in each case beneficially owned by our current executive officers and directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46

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[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **ITEM 13.** | **CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.** |

---

In addition to the director and executive officer compensation arrangements and indemnification arrangements discussed above under "Directors, Executive Officers and Corporate Governance" and "Executive Compensation," since January 1, 2024, we have not been a party to any transactions in which the amount involved exceeded or will exceed the lesser of (i) $120,000 or (ii) one percent of the average of our total assets at year-end for the last two fiscal years, and in which any of our directors, executive officers, beneficial holders of more than 5% of our capital stock, or entities affiliated with them, had or will have a direct or indirect material interest, other than compensation described above in "Non-Employee Director Compensation" and "EXECUTIVE COMPENSATION".

**Policies and Procedures for Related Party Transactions**

Our audit committee charter states that our audit committee is responsible for reviewing and approving in advance any related party transaction, which is a transaction between us and related persons in which the aggregate amount involved exceeds or may be expected to exceed or will exceed the lesser of (i) $120,000 or (ii) one percent of the average of our total assets at year-end for the last two fiscal years, and in which a related person has or will have a direct or indirect interest. Our audit committee has adopted policies and procedures for review of, and standards for approval of, such a related party transaction. For purposes of these policies and procedures, a related person is defined as an executive officer, director, or nominee for director, including his or her immediate family members, or a beneficial owner of greater than 5% of our common stock, in each case since the beginning of the most recently completed year. Prior to the creation of our audit committee, our full Board of Directors reviewed related party transactions, with any directors abstaining from matters in which the director had an interest.

It is our intention to ensure that all future transactions between us and our officers, directors, and principal stockholders and their affiliates are approved by the audit committee of our Board of Directors and are on terms no less favorable to us than those that we could obtain from unaffiliated third parties.

---

| | |
|:---|:---|
| **ITEM 14.** | **PRINCIPAL ACCOUNTING FEES AND SERVICES.** |

---

The following table sets forth all fees accrued or paid for audit and tax fees for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| Audit Fees (1) | $759110 | $798765 |
| Audit Related Fees (2) |  |  |
| Tax Fees |  |  |
| All Other Fees |  |  |
|  | $759110 | $798765 |

---

(1) Audit Fees consist of professional services rendered in connection with the audit of our annual consolidated financial statements, including audited financial statements and services that are normally provided by the independent registered public accountants in connection with statutory and regulatory filings or engagements for those fiscal years. 

(2) Audit Related Fees consist of professional services related to issuance of consent letters.

*Pre-approval Policy*. Under our audit committee's policy governing our use of the services of our independent registered public accountants, the audit committee is required to pre-approve all audit and permitted non-audit services performed by our independent registered public accountants in order to ensure that the provision of such services does not impair the public accountants' independence. In the years ended December 31, 2025 and 2024, all fees identified above under the captions "Audit Fees," and "All Other Fees" that were billed and were approved by the audit committee in accordance with SEC requirements.

In the year ended December 31, 2025, there were no other professional services provided by CBIZ, other than those listed above, that would have required our audit committee to consider their compatibility with maintaining the independence of CBIZ.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 47

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[**Table of Contents**](#toc)

**PART IV**

---

| | |
|:---|:---|
| **ITEM 15.** | **EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.** |

---

1. Financial Statements

The financial statements required by this item are submitted in a separate section beginning on page F-1 of this annual report.

2. Financial Statement Schedules

None

3. Exhibits

The following exhibits are included with this filing:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |  |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **File No.** | **Exhibit** | **Filing**<br> **Date** | **Filed**<br> **Herewith** |
| 2.1 | [Asset Purchase Agreement By and Between Beam Global and All Cell Technologies, LLC dated February 16, 2022](http://www.sec.gov/Archives/edgar/data/1398805/000168316822001216/beam_ex1001.htm) | 8-K | 001-38868 | 10.1 | 2/23/2022 |  |
| 2.2 | [Share Sale and Purchase Agreement dated October 6, 2023](http://www.sec.gov/Archives/edgar/data/1398805/000168316823006985/beam_ex1001.htm) | 8-K | 001-38868 | 10.1 | 10/6/2023 |  |
| 2.3 | [Amendment to Share Sale and Purchase Agreement dated February 16, 2024](http://www.sec.gov/Archives/edgar/data/1398805/000168316824001054/beam_ex1001.htm) | 8-K | 000-53204 | 10.1 | 2/16/2024 |  |
| 2.4 | [Share Sale and Purchase Agreement dated August 30, 2024](http://www.sec.gov/Archives/edgar/data/1398805/000168316824006204/beam_ex1001.htm) | 8-K | 001-398805 | 10.1 | 9/5/2024 |  |
| 3.1 | [Articles of Incorporation](http://www.sec.gov/Archives/edgar/data/1398805/000116552707000601/ex3-1.txt) | SB-2 | 333-147104 | 3.1 | 11/2/2007 |  |
| 3.2 | [Amendment to Articles of Incorporation dated December 23, 2016](http://www.sec.gov/Archives/edgar/data/1398805/000168316819000953/envision_s1a-ex030102.htm) | S-1/A | 333-226040 | 3.1.2 | 4/4/2019 |  |
| 3.3 | [Certificate of Change to Articles of Incorporation dated April 11, 2019](http://www.sec.gov/Archives/edgar/data/1398805/000168316819001119/envision_ex0301.htm) | 8-K | 001-38868 | 3.1 | 4/18/2019 |  |
| 3.4 | [Certificate of Amendment to Articles of Incorporation dated September 14, 2020](http://www.sec.gov/Archives/edgar/data/1398805/000168316820003120/envision_ex0301.htm) | 8-K | 001-38868 | 3.1 | 9/14/2020 |  |
| 3.5 | [Certificate of Amendment to Articles of Incorporation dated July 19, 2021](http://www.sec.gov/Archives/edgar/data/1398805/000168316821003012/beam_ex0301.htm) | 8-K | 001-38868 | 3.1 | 7/20/2021 |  |
| 3.6 | [Certificate of Correction to the Amendment After Issuance of Stock, filed December 15, 2023](http://www.sec.gov/Archives/edgar/data/1398805/000168316825002475/beam_ex0306.htm) |  |  |  |  |  |
| 3.7 | [Bylaws of Registrant](http://www.sec.gov/Archives/edgar/data/1398805/000116552707000601/ex3-2.txt) | SB-2 | 333-147104 | 3.2 | 11/2/2007 |  |
| 3.8 | [Amendment to Bylaws](http://www.sec.gov/Archives/edgar/data/1398805/000106594914000166/ex102.txt) | 8-K | 000-53204 | 10.2 | 7/16/2014 |  |
| 4.1 | [Description of Registrant's Securities Pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.](http://www.sec.gov/Archives/edgar/data/1398805/000168316825002475/beam_ex0401.htm) |  |  |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 10.1\* | [2011 Stock Incentive Plan of Envision Solar International, Inc., dated as of August 10, 2011](http://www.sec.gov/Archives/edgar/data/1398805/000101968711002596/evsi_10q-ex0401.htm) | 10-Q | 001-38868 | 4.1 | 8/15/2011 |  |
| 10.2\* | [Form of Restricted Stock Agreement](http://www.sec.gov/Archives/edgar/data/1398805/000168316819003632/envision_ex1003.htm) | 10-Q | 001-38868 | 10.3 | 11/14/2019 |  |
| 10.3\* | [Form of Stock Option Agreement](http://www.sec.gov/Archives/edgar/data/1398805/000168316819003632/envision_ex1004.htm) | 10-Q | 001-38868 | 10.4 | 11/14/2019 |  |
| 10.4\* | [Change in Control Severance Benefit Plan](http://www.sec.gov/Archives/edgar/data/1398805/000168316821000547/beam_ex1002.htm) | 8-K | 000-53204 | 10.2 | 2/12/2021 |  |
| 10.5 | [Lease Agreement – 5660 Eastgate Dr.](http://www.sec.gov/Archives/edgar/data/1398805/000168316820003853/beam_ex1001.htm) | 10-Q | 000-53204 | 10.1 | 11/12/2020 |  |
| 10.6 | [2021 Beam Global Equity Incentive Plan](http://www.sec.gov/Archives/edgar/data/1398805/000168316821002520/beam_8k-1001.htm) | 8-K | 001-38868 | 10.1 | 6/14/2021 |  |
| 10.9\* | [Restricted Stock Unit Award Agreement](http://www.sec.gov/Archives/edgar/data/1398805/000168316822007856/beam_ex1001.htm) | 8-K | 001-38868 | 10.1 | 11/17/2022 |  |
| 10.10\* | [Performance Stock Unit Award Agreement](http://www.sec.gov/Archives/edgar/data/1398805/000168316822007856/beam_ex1002.htm) | 8-K | 001-38868 | 10.2 | 11/17/2022 |  |
| 10.11 | [Binding Letter of Intent Agreement dated June 12, 2023](http://www.sec.gov/Archives/edgar/data/1398805/000168316823004217/beam_ex1001.htm) | 8-K | 001-38868 | 10.1 | 6/16/2023 |  |
| 10.12\* | [Offer Letter to Lisa Potok dated November 15, 2023](http://www.sec.gov/Archives/edgar/data/1398805/000168316823008723/beam_ex1001.htm) | 8-K | 001-38868 |  |  |  |
| 10.15 | [Amended and Restated Lease Agreement dated February 1, 2024](http://www.sec.gov/Archives/edgar/data/1398805/000168316824001808/beam_ex1001.htm) | 8-K | 000-53204 |  |  |  |
| 10.16\* | [Consulting agreement with Kathy McDermott](http://www.sec.gov/Archives/edgar/data/1398805/000168316824008129/beam_ex1003.htm) | 10-Q | 001-38868 |  |  |  |
| 10.17 | [At Market Issuance Sales Agreement with B. Riley Securities, Inc. dated as of April 11, 2025](http://www.sec.gov/Archives/edgar/data/1398805/000168316825002475/beam_ex1017.htm) | 10-K | 001-38868 | 10.17 | 4/11/2025 |  |
| 10.18 | [Lease Extension Agreement dated January 26, 2026](http://www.sec.gov/Archives/edgar/data/1398805/000143774926002333/ex_913021.htm) | 8-K | 001-38868 | 10.1 | 1/29/2026 |  |
| 10.19 | [Amended and Restated Employment Agreement with Desmond Wheatly dated April 7, 2026](ex_941038.htm) | 10-K |  |  |  | X |
| 19.1 | [Beam Global Insider Trading Compliance Policy](http://www.sec.gov/Archives/edgar/data/1398805/000168316825002475/beam_ex1901.htm) | 10-K | 001-38868 | 19.1 | 4/11/2025 |  |
| 21.1 | [List of Subsidiaries of the Registrant](ex_875122.htm) |  |  |  |  | X |
| 23.1 | [Consent of Independent Registered Public Accounting Firm (CBIZ CPAs P.C.)](ex_940177.htm) |  |  |  |  | X |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49

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---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 23.2 | [Consent of Independent Registered Public Accounting Firm (Marcum LLP)](ex_875123.htm) |  |  |  |  | X |
| 31.1 | [Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act](ex_875124.htm) |  |  |  |  | X |
| 31.2 | [Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act](ex_875125.htm) |  |  |  |  | X |
| 32.1 | [Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act](ex_875126.htm) |  |  |  |  | X |
| 32.2 | [Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act](ex_875127.htm) |  |  |  |  | X |
| 97.1 | [Clawback Policy](http://www.sec.gov/Archives/edgar/data/1398805/000168316825002475/beam_ex9701.htm) | 10-K | 001-38868 | 97.1 | 4/11/2025 |  |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |  |  |  |  | X |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |  |  |  |  | X |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  |  | X |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |  |  |  |  | X |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |  |  |  |  | X |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  |  | X |
| 104 | Cover Page Interactive Data File (formatted in IXBRL, and included in exhibit 101). |  |  |  |  | X |

---

\* Indicates a management contract or compensatory plan or arrangement

---

| | |
|:---|:---|
| **ITEM 16.** | **FORM 10-K SUMMARY** |

---

**Not applicable**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50

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[**Table of Contents**](#toc)

**Beam Global**

**Index to Financial Statements**

---

| | |
|:---|:---|
|  | Page |
| [Report of Independent Registered Public Accounting Firm for the year ended December 31, 2025 (CBIZ CPAs P.C PCAOB ID 199)](#report) | [F-2](#report) |
| [Report of Independent Registered Public Accounting Firm for the year ended December 31, 2024 (Marcum LLP PCAOB ID 0688)](#reporttwo) | [F-3](#reporttwo) |
| [Balance Sheets at December 31, 2025 and 2024](#balancesheet)  | [F-4](#balancesheet) |
| [Statements of Operations and Comprehensive Loss for the Years Ended December 31, 2025 and 2024](#operations)  | [F-5](#operations) |
| [Statements of Changes in Stockholders' Equity for the Years Ended December 31, 2025 and 2024](#equity)  | [F-6](#equity) |
| [Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#cashflows)  | [F-7](#cashflows) |
| [Notes to Financial Statements](#notes)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [F-8](#notes) |

---

&nbsp;&nbsp;&nbsp;&nbsp; F-1

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[**Table of Contents**](#toc)

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and Board of Directors of

Beam Global

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheet of Beam Global (the "Company") as of December 31, 2025, the related consolidated statements of operations and comprehensive loss, changes in stockholders' equity and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

**Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ CBIZ CPAs P.C.

**CBIZ CPAs P.C.**

We have served as the Company's auditor since 2024 (such date takes into account the acquisition of the attest business of Marcum LLP by CBIZ CPAs P.C. effective November 1, 2024).

New York, NY

April 9, 2026

&nbsp;&nbsp;&nbsp;&nbsp; F-2

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[**Table of Contents**](#toc)

 **Report of Independent Registered Public Accounting Firm**

To the Stockholders and Board of Directors of

Beam Global

**Opinion on the Financial Statements**

We have audited the accompanying Consolidated balance sheet of Beam Global (the "Company") as of December 31, 2024, the related consolidated statements of operations and comprehensive loss, changes in stockholders' equity and cash flows for the year ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Marcum LLP

**Marcum LLP**

We served as the Company's auditor from 2023 to 2025.

New York, NY

April 11, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-3

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[**Table of Contents**](#toc)

**Beam Global**

**Consolidated Balance Sheets** 

**(In thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **Assets** |  |  |
| Current assets |  |  |
| Cash | $969 | $4572 |
| Accounts receivable, net of allowance for credit losses of $939 and $259 | 8236 | 8027 |
| Prepaid expenses and other current assets | 2070 | 2243 |
| Inventory | 9766 | 12284 |
| Total current assets | 21041 | 27126 |
| Property and equipment, net | 13093 | 13704 |
| Operating lease right of use assets | 1358 | 1893 |
| Goodwill |  | 10580 |
| Intangible assets, net | 7127 | 8037 |
| Deposits | 113 | 119 |
| Total assets | $42732 | $61459 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities |  |  |
| Accounts payable | $5925 | $8959 |
| Accrued expenses | 2885 | 2462 |
| Sales tax payable | 843 | 195 |
| Deferred revenue, current | 1800 | 847 |
| Note payable, current | 68 | 63 |
| Contingent consideration, current | 104 | 93 |
| Operating lease liabilities, current | 484 | 696 |
| Total current liabilities | 12109 | 13315 |
| Deferred revenue, noncurrent | 690 | 800 |
| Note payable, noncurrent | 131 | 199 |
| Contingent consideration, noncurrent |  | 216 |
| Other liabilities, noncurrent | 2939 | 3380 |
| Deferred tax liabilities, noncurrent | 1203 | 1290 |
| Operating lease liabilities, noncurrent | 815 | 971 |
| Total liabilities | 17887 | 20171 |
| Commitments and contingencies (Note 10) |  |  |
| Stockholders' equity |  |  |
| Preferred stock, $0.001 par value, 10,000,000 authorized, none outstanding as of December 31, 2025 and December 31, 2024. |  |  |
| Common stock, $0.001 par value, 350,000,000 shares authorized,19,124,163 and 14,835,630 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively. | 19 | 15 |
| Additional paid-in-capital | 156446 | 147072 |
| Accumulated deficit | (131646) | (104643) |
| Accumulated Other Comprehensive Income (AOCI) | 26 | (1156) |
| Total stockholders' equity | 24845 | 41288 |
| Total liabilities and stockholders' equity | $42732 | $61459 |

---

The accompanying notes are an integral part of these Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-4

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[**Table of Contents**](#toc)

**Beam Global**

**Consolidated Statements of Operations and Comprehensive Loss**

**(In thousands, except per share data)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| Revenues | $28236 | $49336 |
| Cost of revenues | 24715 | 42040 |
| Gross profit | 3521 | 7296 |
| Operating expenses | 20273 | 18953 |
| Impairment of goodwill | 10780 |  |
| Loss from operations | (27532) | (11657) |
| Other income (expense) |  |  |
| Interest income | 56 | 205 |
| Other income | 93 | 110 |
| Interest expense | (26) | (34) |
| Total other income | 123 | 281 |
| Loss before income tax expense | (27409) | (11376) |
| Income tax benefit | (406) | (94) |
| Net Loss | $(27003) | $(11282) |
| Net foreign currency translation adjustments | 1182 | (1781) |
| Total Comprehensive Loss | $(25821) | $(13063) |
| Net Loss per share - basic/diluted | $(1.61) | $(0.77) |
| Weighted average shares outstanding - basic/diluted | 16814 | 14621 |

---

The accompanying notes are an integral part of these Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-5

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[**Table of Contents**](#toc)

**Beam Global**

**Consolidated Statements of Changes in Stockholders**' **Equity**

**For the Years Ended December 31, 2025 and 2024**

**(In thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | **Accumulated** |  |
|  |  |  | ***Additional*** |  | ***Other*** | ***Total*** |
|  | ***Common Stock*** | ***Common Stock*** | ***Paid-in-*** | ***Accumulated*** | ***Comprehensive*** | ***Stockholders'*** |
|  | ***Stock*** | ***Amount*** | ***Capital*** | ***Deficit*** | ***Income*** | ***Equity*** |
| Balance at January 1, 2024 | 14398 | $14 | $142265 | $(93361) | $624 | $49542 |
| Stock issued for director services - vested | 72 |  | 462 |  |  | 463 |
| Stock issued to (released from) escrow account - unvested | 82 |  |  |  |  |  |
| Stock-based compensation to consultants | 62 |  | 278 |  |  | 278 |
| Employee stock-based compensation expense | *-* |  | 2538 |  |  | 2538 |
| Proceeds from issuance of common stock, pursuant to public offering |  | 1 |  |  |  | 1 |
| Warrants exercised for cash | 128 |  | 810 |  |  | 810 |
| Stock option exercise and restricted stock unit vestings (cashless) | 12 |  | (164) |  |  | (164) |
| Impact of foreign currency translation | *-* |  |  |  | (1780) | (1781) |
| Stock issued for acquisition and expenses | 83 |  | 387 |  |  | 387 |
| Sale of stock under Committed Equity Facility | 82 |  | 496 |  |  | 496 |
| Net loss | *-* |  |  | (11282) |  | (11282) |
| Balance at December 31, 2024 | 14919 | $15 | $147072 | $(104643) | $(1156) | $41288 |
| Stock issued for director services - vested | 121 |  | 376 |  |  | 376 |
| Stock issued to (released from) escrow account - unvested | (121) |  |  |  |  |  |
| Settlement of earnout related to acquisition | 28 |  | 93 |  |  | 93 |
| Employee stock-based compensation expense | 1130 |  | 2270 |  |  | 2270 |
| Shares surrendered for taxes on restricted stock vestings | *(670*) |  | (1157) |  |  | (1157) |
| Impact of foreign currency translation | *-* |  |  |  | 1182 | 1182 |
| Sale of stock under ATM agreement | 3717 | 4 | 7792 |  |  | 7796 |
| Net loss | *-* |  |  | (27003) |  | (27003) |
| Balance at December 31, 2025 | 19124 | $19 | $156446 | $(131646) | $26 | $24845 |

---

The accompanying notes are an integral part of these Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-6

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[**Table of Contents**](#toc)

**Beam Global** 

**Consolidated Statements of Cash Flows**

**F(In thousands)**

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| **Operating Activities:** |  |  |
| Net loss | $(27003) | $(11282) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Depreciation and amortization | 3519 | 3683 |
| Provision on credit losses | 680 | (189) |
| Change in fair value of contingent consideration liabilities | (112) | (4416) |
| Impairment of goodwill | 10780 |  |
| Stock-based compensation | 2966 | 3601 |
| Disposal of property and equipment | 18 | 130 |
| Amortization of operating lease right of use asset | 1012 | 817 |
| Abandoned patent costs |  | 65 |
| Changes in assets and liabilities: |  |  |
| (Increase) decrease in: |  |  |
| Accounts receivable | (526) | 8182 |
| Prepaid expenses and other current assets | (79) | (142) |
| Inventory | 2843 | (201) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 9 | (57) |
| Increase (decrease) in: |  |  |
| Accounts payable | (3336) | (889) |
| Accrued expenses | (253) | (242) |
| Operating lease liability | (752) | (1098) |
| Sales tax payable | 641 | (13) |
| Deferred revenue | 790 | 445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities | (579) |  |
| Other long term liabilities | (1100) | (587) |
| Net cash used in operating activities | (10482) | (2193) |
| **Investing Activities:** |  |  |
| Acquisitions, net of cash acquired |  | (513) |
| Purchase of property and equipment | (418) | (828) |
| Payment of Deferred Consideration |  | (2713) |
| Funding of patent costs | (64) |  |
| Net cash used in investing activities | (482) | (4054) |
| **Financing Activities:** |  |  |
| Proceeds from sale of common stock under ATM agreement, net of offering costs | 7796 | 496 |
| Taxes paid related to net share settlement of equity awards | (329) | (164) |
| Proceeds from warrant exercises |  | 809 |
| Borrowings of note payable |  | 61 |
| Proceeds from issuance of common stock, pursuant to public offering |  | 1 |
| Net cash provided by financing activities | 7467 | 1203 |
| Effect of exchange rate changes | (106) | (777) |
| Net (decrease) increase in cash | (3603) | (5821) |
| Cash at beginning of period | 4572 | 10393 |
| Cash at end of period | $969 | $4572 |
| <u>Supplemental Disclosure of Cash Flow Information:</u> |  |  |
| Cash paid for interest | 26 | 34 |
| Cash paid for taxes | $10 | $(94) |
| <u>Supplemental Disclosure of Non-Cash Investing and Financing Activities:</u> |  |  |
| Right-of-use assets obtained in exchange for lease liabilities | $442 | $1697 |
| Settlement of earnout related to acquisition | $93 | $- |
| Fair value of common stock issued as consideration for business combination | $- | $387 |
| Purchase of property and equipment by incurring current liabilities | $- | $828 |

---

The accompanying notes are an integral part of these Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-7

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**BEAM GLOBAL**

**NOTES TO THE FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

***1.*** **CORPORATE ORGANIZATION, NATURE OF OPERATIONS** 

**CORPORATE ORGANIZATION**

Beam Global was incorporated in *June 2006* as a limited liability company ("LLC"). Through a series of transactions and mergers, including a series of *2010* transactions where the then existing entity was acquired by an inactive publicly held company in a transaction treated as a recapitalization of the Company, the resulting entity became a Nevada Corporation. On *September 15, 2020,* the Company announced its rebranding and changed its corporate name to Beam Global (hereinafter the "Company", "us", "we", "our" or "Beam") and trading on Nasdaq: BEEM.

On *March 4, 2022,* the Company acquired substantially all the assets of All Cell Technologies, LLC ("All Cell"), an energy storage solutions and technologies company based in Broadview, Illinois.

On *October 20, 2023,* the Company completed an acquisition of Amiga DOO Kraljevo ("Amiga"), a company engaged in the manufacture and distribution of steel structures with electronic integration located in Kraljevo, Serbia.

On *August 30, 2024,* Beam Global acquired Telcom d.o.o. Beograd ("Telcom"), a business located in Serbia and engaged in the manufacturing of power electronics and telecommunications equipment. Refer to note *4,* Business Combinations for additional details.

On *June 20, 2025,* the Company entered into a Joint Venture Agreement (the "Joint Venture Agreement") with The Platinum Group, a company registered with the department of Economy – Abu Dhabi ("TPG"). Pursuant to the Joint Venture Agreement, the Company agreed to establish Beam Middle East Limited, a limited liability company in Abu Dhabi, United Arab Emirates for the purpose of marketing, selling, manufacturing and distributing the Company's products (the "Joint Venture") in accordance with the terms of the Joint Venture Agreement and the strategy, business plan, and budget of the Joint Venture (the "Plan"). The Company and TPG each have a 50% equity interest in the Joint Venture. Refer to note *4,* Business Combinations for additional details.

**NATURE OF OPERATIONS**

Beam is a clean-technology innovation company headquartered in San Diego, California with offices in the U.S. in San Diego, California and Broadview, Illinois; in Europe in Belgrade and Kraljevo, Serbia; and in Abu Dhabi, United Arab Emirates. We develop, design, engineer, manufacture, and sell high-quality, renewably energized infrastructure products for electric vehicle ("EV") charging, infrastructure for Smart Cities (the interconnected physical and digital elements within a city that utilize technology to enhance efficiency, sustainability, and quality of life for residents), energy security and disaster preparedness and highly energy-dense battery solutions in safe, compact and unique form-factors. Additionally, we manufacture structures with electronic integration such as streetlighting, cell towers and energy infrastructure products as well as power electronics including invertors, charge controllers, power supplies and LED lighting. Beam's energy storage products provide high energy density in safe, compact and bespoke form-factors, which we believe are ideal for the rapidly growing mobile and stationary equipment product market which often requires electrical energy without being connected to the electrical grid.

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

● EV charging infrastructure;

● energy storage solutions;

● energy security and disaster preparedness;

● mobile and stationary equipment;

● transportation infrastructure products; and

● power electronics and telecommunications equipment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-8

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***2.*** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**PRINCIPLES OF CONSOLIDATION**

These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The accompanying consolidated financial statements include our accounts. All intercompany accounts and transactions have been eliminated. Certain amounts in prior periods have been reclassified to conform to the current period presentation. The effects of the reclassification were *not* material to the consolidated financial statements.

**USE OF ESTIMATES**

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying financial statements include the allowance for credit losses (CECL), valuation of inventory and standard cost allocations, depreciable lives of property and equipment, valuation of contingent consideration liability, valuation of intangible assets, estimates of loss contingencies, estimates of the valuation of lease liabilities and the related right of use assets, valuation of share-based costs, and the valuation allowance on deferred tax assets.

**CONCENTRATIONS**

<u>Credit Risk</u>

Financial instruments that potentially subject us to concentrations of credit risk consist of cash and accounts receivable.

The Company maintains its cash in banks and financial institution deposits that at times *may* exceed federally insured limits. The Company has *not* experienced any losses in such accounts from inception through *December 31, 2025*. As of *December 31, 2025*, approximately $350 thousand of the Company's cash deposits were greater than the federally insured limits.

<u>Major Customers</u>

The Company continually assesses the financial strength of its customers. We are *not* aware of any material credit risks associated with our customers. For the year ended *December 31, 2025*, no customer accounted for more than *10%* of total revenues and for the year ended *December 31, 2024*, one customer accounted for 15% of total revenues. At *December 31, 2025* and *2024,* accounts receivable from one customer accounted for 27% of total accounts receivable. The Company's concentration of sales to federal, state and local governments represented 29% of revenues for the year ended *December 31, 2025* and 62% of revenues for the same period ended *2024.*

<u>Foreign Operations</u>

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

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Assets - Serbia | $19144 | $25020 |
| Assets - U.S. | 23479 | 36439 |
| Assets – UAE | 109 |  |
| Total Assets | $42732 | $61459 |
| Liabilities - Serbia | $7490 | $8297 |
| Liabilities - U.S. | 10376 | 11874 |
| Liabilities - UAE | 21 |  |
| Total Liabilities | $17887 | $20171 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *9*

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| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Sales – Serbia | $11399 | $11843 |
| Sales - U.S. | 16837 | 37493 |
| Total Revenues | $28236 | $49336 |
| Net Loss - Serbia | $(7018) | $(732) |
| Net Loss - U.S. | (19954) | (10550) |
| Net Loss - UAE | (31) |  |
| Total Net Loss | $(27003) | $(11282) |

---

**CASH**

For the purposes of the statements of cash flow, the Company considers all liquid investments with an original maturity of *three* months or less when purchased to be cash equivalents. There were no cash equivalents at *December 31, 2025* or *December 31, 2024*.

**FOREIGN CURRENCY TRANSLATION**

The Company's reporting currency is U.S. dollars. The functional currency of the Company is the U.S. dollar. The functional currency of Amiga and Telcom is the Serbian Dinar. The Company translates the assets and liabilities at the exchange rates in effect on the balance sheet date. The Company translates the revenue, costs, and expenses at the average rate of exchange rates in effect during the period. The Company includes translation gains and losses in the stockholders' equity section of the Company's consolidated balance sheet in accumulated other comprehensive income or loss. Transactions undertaken in other currencies are translated using the exchange rate in effect as of the transaction date and any exchange gains and losses resulting from these transactions are included in the consolidated statements of operations in other income. The translation gain for the year ending *December 31, 2025* was $1.2 million, compared to a translation loss of $1.8 million for the year ending *December 31, 2024*, resulted from the fluctuation in the exchange rates when translating the financial statements of foreign subsidiaries from their functional currencies into U.S. dollar.

**FAIR VALUE MEASUREMENTS**

The Company follows the authoritative guidance that establishes a formal framework for measuring fair values of assets and liabilities in the consolidated financial statements that are already required by generally accepted accounting principles to be measured at fair value. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability.

The Company utilizes market data or assumptions that market participants who are independent, knowledgeable, and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

The Company is able to classify fair value balances based on the observability of those inputs. The guidance establishes a formal fair value hierarchy based on the inputs used to measure fair value. The hierarchy gives the highest priority to Level *1* measurements and the lowest priority to level *3* measurements, and accordingly, Level *1* measurement should be used whenever possible.

The hierarchy is broken down into *three* levels based on the reliability of inputs as follows:

Level *1* – Quoted prices in active markets for identical assets or liabilities or published net asset value for alternative investments with characteristics similar to a mutual fund.

Level *2* – Inputs other than quoted prices included within Level *1* that are observable for the asset or liability, either directly or indirectly.

Level *3* – Unobservable inputs for the asset or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *10*

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The methods used *may* produce a fair value calculation that *may not* be indicative of net realizable value or reflective of future fair values. Furthermore, while management believes its valuation methods are appropriate, the fair value of certain financial instruments could result in a difference fair value measurement at the reporting date. There were *no* changes in the Company's valuation methodologies from the prior year.

For purpose of this disclosure, the carrying amounts for financial assets and liabilities such as cash and cash equivalents, accounts receivable – trade, other prepaid expenses and current assets, accounts payable and other current liabilities, all approximate fair value due to their short-term nature as of *December 31, 2025*. The Company had Level *3* liabilities as of *December 31, 2025*. There were *no* transfers between levels during the reporting period.

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| | | | |
|:---|:---|:---|:---|
|  | ***Level 1*** | ***Level 2*** | ***Level 3*** |
| Contingent Consideration as of December 31, 2023 | $– $|  | $4725 |
| Additions | – |  | 259 |
| Change in fair value | – |  | (4675) |
| Contingent Consideration as of December 31, 2024 | $– $|  | $309 |
| Additions | – |  |  |
| Change in fair value | – |  | (205) |
| Contingent Consideration as of December 31, 2025 | $– $|  | $104 |

---

**ACCOUNTS RECEIVABLE**

In *2023,* the Company adopted Accounting Standards Update (ASU) *2016*-*13,* Financial Instruments – Credit Losses (Topic *326*): Measurement of Credit Losses on Financial Instruments. The amendments in this ASU replace the incurred loss model for recognition of credit losses with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. This update did *not* have a significant impact on the Company's consolidated financial statements. The Company does business and extends credit based on an evaluation of each customer's financial condition, generally without requiring collateral. Management reviews accounts receivable on a periodic basis to determine if any receivables *may* become uncollectible. Management's evaluation includes several factors including the aging of the accounts receivable balances, a review of significant past due accounts, dialogue with the customer, the financial profile of a customer, our historical write-off experience, net of recoveries, and economic conditions. Exposure to losses from receivables is expected to vary by customer due to the financial condition of each customer. The Company estimates future credit losses based on the age of customer receivable balances, collection history and forecasted economic trends. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for expected credit losses was $0.9 million at *December 31, 2025* and $0.3 million at *December 31, 2024*.

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| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Allowance for credit losses: |  |  |
| Beginning of period | $259 | $448 |
| Net provision for credit losses | 782 | (72) |
| (Charge-offs)/recoveries, net | (102) | (117) |
| En |  |  |

---

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| | | |
|:---|:---|:---|
| d of Period | $939 | $259 |

---

**INVENTORY**

Inventory is stated at the lower of cost and net realizable value. Cost is determined using the *first*-in, *first*-out method of accounting. Inventory costs primarily relate to purchased raw materials and components used in the manufacturing of our products, work in process for products being manufactured, and finished goods. Included in these costs are direct labor and certain manufacturing overhead costs associated with normal capacity in the manufacturing process. The Company regularly reviews inventory components and quantities on hand and performs annual physical inventory counts.

**PROPERTY, EQUIPMENT AND DEPRECIATION**

Property and equipment is recorded at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets of 3 to 7 years, except for leasehold improvements for which the depreciation is recorded over the shorter of the lease term or the estimated useful life. Expenditures for maintenance and repairs, along with fixed assets below our capitalization threshold, which is $5 thousand, are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *11*

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Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset *may not* be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the year ended *December 31, 2025,* the Company evaluated its long-lived assets for impairment and determined that *no* impairment of long-lived assets was required.

Property and equipment are carried at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Amortization of leasehold improvements is computed using the shorter of the lease term or estimated useful life of the asset. Additions and improvements are capitalized, while repairs and maintenance are expensed as incurred. Useful lives of each asset class are as follows:

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| | |
|:---|:---|
| **Asset Category** | **Useful Life** |
| Office and furniture and equipment (years) | 5 - 7 |
| Computer equipment and software (years) | 5 |
| Land, buildings and leasehold improvements | *Lesser of lease term or useful life* |
| Autos (years) | 5 |

---

**LEASES**

At the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company's assessment is based on: (*1*) whether the contract involves the use of a distinct identified asset, (*2*) whether we obtain the right to substantially all the economic benefit from the use of the asset throughout the period, and (*3*) whether it has the right to direct the use of the asset. The Company allocates the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments. The Company has elected to *not* recognize right of use assets and lease liabilities for short term leases that have a term of *12* months or less.

**BUSINESS COMBINATION**

The purchase price of an acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets assumed, such excess is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows and estimates made by management. The Company records the net assets and results of operations of an acquired entity from the acquisition date. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred.

Assets acquired, including identifiable intangible assets, are recorded at fair value upon acquisition and are carried at cost less accumulated amortization. Identifiable intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives except for customer relationships, for which the amortization is recorded on an accelerated method over the estimate useful life.

Contingent consideration liability is recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration liability are recognized in operating expenses in the statement of operations. Contingent consideration liability related to the acquisition consists of commercial milestone payments and are valued using a Monte Carlo simulation. The fair value of commercial milestone payments reflects management's estimates of discount rates and probability of achieving certain milestones.

**FINITE-LIVED INTANGIBLE ASSETS** 

Administrative costs for patents are accumulated on the balance sheet as a patent asset until such time as a patent is issued. The costs of these intangible assets are classified as a long-term asset and amortized on a straight-line basis over the legal life of such asset, which is typically 20 years. In the event a patent is denied or abandoned, all accumulated administrative costs will be expensed in the period in which the patent was denied or abandoned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *12*

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**GOODWILL**

Goodwill represents the excess of the purchase prices of an acquired business over the fair value of the underlying net tangible and intangible assets. The Company is required to assess goodwill for impairment annually, or more frequently if circumstances indicate impairment *may* have occurred. Such assessment is performed at the reporting unit level, for which the Company has one. The Company *first* assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test, including macroeconomic conditions, industry and market considerations, and our overall financial performance. If, after completing the qualitative assessment, it is determined it is more likely than *not* that the estimated fair value is greater than the carrying value, the Company concludes *no* impairment exists. Alternatively, if the Company determines in the qualitative assessment, it is more likely than *not* that the fair value is less than its carrying value, then the Company performs a quantitative goodwill impairment test to identify both the existence of an impairment and the amount of impairment loss, by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit is less than the carrying value, then a goodwill impairment charge is recognized in the amount by which the carrying amount exceeds the fair value, limited to the total amount of goodwill allocated to that reporting unit. The goodwill annual assessment test is performed in the *fourth* quarter of every year or when an event occurs, or circumstances change such that it is reasonably possible that an impairment *may* exist.

During the year ended *December 31, 2025,* the Company continued to experience a decline in its stock price resulting in the total market value of its common stock outstanding ("market capitalization") being less than the carrying value of the reporting unit. Management believes this decline in market value is due to a variety of factors, as further described below, but *not* the actual value of the acquired entities which included the goodwill which is being impaired. Considering the circumstances and indicators of potential impairment described above, Management performed an interim quantitative goodwill impairment test as of *March 31, 2025.* Management *first* considered whether any impairment was present for the Company's long-lived assets, concluding that *no* such impairments were present. The Company does *not* have any indefinite lived assets other than goodwill. The Company concluded that the sustained stock price decline in the Company's common stock and its market capitalizations as of *March 31, 2025* was a triggering event which required Management to perform a quantitative goodwill impairment test. Management determined the value of goodwill largely based on the Company's stock price and *not* on the activities or performance of the acquired entities. The results of the Company's test for impairment of goodwill as of *March 31, 2025,* utilizing recent trends in stock price over a reasonable period, created a condition in which the accounting rules determine that the fair value of goodwill fell below its book value. Based on the results of the goodwill impairment procedures, the Company recorded a $10.8 million goodwill impairment for the single reporting unit during the year ended *December 31, 2025.*

**REVENUE RECOGNITION**

Revenue is recognized by applying the following *five* steps: *1*) identify the contracts with a customer; *2*) identify the performance obligations in the contract; *3*) determine the transaction price; *4*) allocate the transaction price to the performance obligations; and *5*) recognize revenue when (or as) we satisfy a performance obligation.

Revenues are primarily derived from the direct sales of manufactured products. Revenues *may* also consist of maintenance fees for the maintenance of previously sold products and revenues from sales of professional services.

Revenues from inventoried product are recognized upon the final delivery of such product to the customer or when legal transfer of ownership takes place. Revenue values are fixed price arrangements determined at the time an order is placed, or a contract is entered into. The customer is typically obligated to make payment for such products within a *30* to *45*-day period after delivery.

Revenues from maintenance fees for services provided by the Company are recognized equally over the period of the maintenance term. Revenue values are fixed price arrangements determined at the time an order is placed, or a contract is entered into. The customer is typically obligated to make payment for the service in advance of the maintenance period.

Extended maintenance or warranty services, where the customer has the option to purchase this extension as a separate purchase option, are considered a separate performance obligation. If the Company does *not* control the extended services, in terms of having the responsibility for fulfillment of the obligation or the option to choose who will perform the services, the Company is acting as an agent and would report the revenues on a net basis.

Revenues from professional services such as relocations, charger replacements or out of warranty repairs are recognized when services are performed. Revenue values are based upon fixed fee arrangements or hourly fee-based arrangements with agreed hourly rates of service categories in line with expertise requirements. These services are billed to a customer as such services are provided and the customer will be obligated to make payments for such services typically within a *30* to *45*-day period.

Revenue is recorded net of discounts and sales taxes collected on behalf of governmental authorities; shipping and handling fees billed to customers are recorded as revenues.

Any deposits received from a customer prior to delivery of the purchased product or monies paid prior to the period for which a service is provided are accounted for as deferred revenue on the balance sheet.

The Company generally provides a standard *one*-year warranty on its EV charging infrastructure products for materials and workmanship but *may* provide multiple-year warranties as negotiated, and it will pass on the warranties from its vendors, if any, which generally covers this *one*-year period. Effective *Q3 2024,* the Company increased the warranties, offered on new customer orders, to *five*-year warranties. The Company accrues for product warranties when the loss is probable and can be reasonably estimated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *13*

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<u>Disaggregation of Revenue from Contracts with Customers</u>

The following table disaggregates gross revenue from our clients by significant geographic area for the years ending *December 31, 2025* and *2024*:

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| | | |
|:---|:---|:---|
|  | ***Year Ended*** | ***Year Ended*** |
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| United States | $16837 | $37493 |
| Serbia | 6349 | 6951 |
| Romania | 1746 | 1970 |
| Cyprus |  | 1008 |
| Croatia | 1186 | 697 |
| Montenegro | 1119 | 646 |
| Bosnia | 762 | 271 |
| Other | 237 | 300 |
| **Total revenue** | $28236 | $49336 |

---

**COST OF REVENUES**

The Company records direct material and component costs, direct labor and associated benefits, and manufacturing overhead costs such as supervision, manufacturing equipment depreciation, rent, and utility costs, all of which are capitalized into inventory prior to a sale, and once sold are recorded as costs of revenues. The Company further includes shipping and handling costs as cost of revenues.

**RESEARCH AND DEVELOPMENT**

Expenditures for research and development of the Company's products are expensed when incurred and are included in operating expenses. The Company recognized research and development costs of $0.6 million and $1.8 million for the years ending *December 31, 2025* and *2024*, respectively.

**ADVERTISING**

The Company conducts advertising for the promotion of its products and services. Advertising costs are charged to operations and included in operating expenses when incurred. Such amounts aggregated $0.1 million for the year ending *December 31, 2025* and $0.2 million for the year ending *December 31, 2024*.

**STOCK-BASED COMPENSATION**

Compensation expense related to stock awards is measured at estimated fair market value and the expense is amortized over the vesting period using the straight-line attribution method and expense for performance-based stock grants is amortized over the service period.

The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option pricing model. Forfeitures are accounted for as incurred, as a reversal of share-based compensation expense related to awards that will *not* vest. The fair value of restricted stock units is determined based on the closing market price of the Company's common stock on the grant date. Compensation expense for time-based restricted stock units (RSUs) is recognized ratably over the vesting period. A portion of RSUs granted contain performance conditions for vesting tied to specific company goals, such as gross margin and revenue targets (PSUs). The Company has calculated the results for fiscal year *2025* and determined that the "maximum" performance measure for cumulative revenue and the "threshold" performance measure for gross margin were achieved as of *December 31, 2025*.

**INCOME TAXES**

The Company accounts for income taxes pursuant to the provisions of ASC Topic *740,* "Income Taxes," which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than *not* that the net deferred asset will *not* be realized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *14*

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The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than *not* that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are *not* offset or aggregated with other positions. Tax positions that meet the more-likely-than-*not* recognition threshold are measured as the largest amount of tax benefit that is more than *50* percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceed the amount measured as described above should be reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has *not* recorded a liability for unrecognized tax benefits. All tax returns will remain open for examination by the federal and state taxing authorities for *three* and *four* years, respectively, from the date of utilization of any net operating loss carryforwards. The Company has received *no* notice of audit from the IRS for any of the open tax years. The Company's policy is to record estimated interest and penalties related to uncertain tax benefits as income tax expense. As of *December 31, 2025* and *2024,* the Company had no accrued interest or penalties recorded related to uncertain tax positions.

In *December 2023,* the FASB issued ASU *2023*-*09,* Income Taxes (Topic *740*): Improvements to Income Tax Disclosures, which provides for improvements to income tax disclosures primarily related to the effective tax rate reconciliation and income taxes paid information. The Company adopted this standard, on a prospectively basis, on *January 1, 2025.*

On *July 4, 2025,* the One Big Beautiful Bill Act, or OBBBA, was enacted. The legislation includes several changes to the U.S. federal corporate income tax law, among other things, reinstating *100%* bonus depreciation on qualified fixed assets, immediate expensing of domestic research and development expenditures, and favorable rules for determining the limitation on business interest expense. These changes were retroactively enacted for tax years beginning after *December 31, 2024,* with certain provisions effective after *January 19, 2025.* The provisions of the OBBBA did *not* have a material impact on the effective income tax rate.

**NET LOSS PER SHARE**

Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the periods presented. Diluted net loss per common share is computed using the weighted average number of common stock outstanding for the period, and, if dilutive, potential common stock outstanding during the period. Potential common stock consists of the incremental shares of common stock issuable upon the exercise of stock options, stock warrants, convertible debt instruments or other common stock equivalents. Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive.

The following shares were *not* included in the computation of diluted loss per share for the years ended *December 31, 2025* and *2024* because the effects would have been anti-dilutive. These options and warrants *may* dilute future earnings per share.

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Stock Options | 737450 | 663004 |
| Warrants | 200000 | 200000 |
| Restricted Stock Units |  | 178125 |
| Total Shares | 937450 | 1041129 |

---

**COMMITMENTS AND CONTINGENCIES** 

Certain conditions *may* exist as of the date the financial statements are issued, which *may* result in a loss to the Company, but which will only be resolved when *one* or more future events occur or fail to occur. Company management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that *may* result in such proceedings, the Company's legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potentially material loss contingency is *not* probable but is reasonably possible, or is probable but cannot be reasonably estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable would be disclosed. The Company does *not* include legal costs in its estimates of amounts to accrue.

**RISKS AND UNCERTAINTIES**

The continuing impacts of rising interest rates, inflation, changes in foreign currency exchange rates and geopolitical developments, such as the imposition of tariffs and shifts in international alliances, have resulted, and *may* continue to result, in a global slowdown of economic activity, which *may* decrease demand for a broad variety of goods and services, including those provided by the Company's clients and as a result, the Company, while also disrupting supply channels, sales channels and advertising and marketing activities for an unknown period of time. Additionally, recent changes to U.S. policy implemented by the U.S. Congress, and the Executive Branch and the responses of other nations to such actions have impacted and *may* in the future impact, among other things, the U.S. and global economy, international alliances and trade relations, international conflicts, unemployment, immigration, healthcare, taxation, the U.S. regulatory environment, inflation and other areas. As a result of the current uncertainty regarding economic activity, the Company is unable to predict the size and duration of the impact of its revenue and its results of operations, if any, of actions taken to date and those that *may* occur in the future. The extent of the potential impact of these macroeconomic factors on the Company's operational and financial performance will depend on a variety of factors, including the extent of geopolitical disruption and its impact on the Company's clients, partners, industry and employees, all of which are uncertain at this time and cannot be accurately predicted. The Company continues to monitor the effects of these macroeconomic factors and intends to take steps deemed appropriate to limit the impact on its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *15*

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There can be *no* assurance that precautionary measures, whether adopted by the Company or imposed by others, will be effective, and such measures could negatively affect its sales, marketing, and client service efforts, delay and lengthen its sales cycles, decrease its employees', clients', or partners' productivity, or create operational or other challenges, any of which could harm its business and results of operations.

**SEGMENTS**

The Company assesses its segment reporting based on how it internally manages and reports the results of its business to its chief operating decision maker. Management reviews financial results, manages the business and allocates resources on an aggregate basis. Therefore, financial results are reported in a single operating segment.

**RECENT ACCOUNTING PRONOUNCEMENTS**

*Recently adopted pronouncement*s

In *December 2023,* the FASB issued ASU *No. 2023*-*09,* "*Income Taxes (Topic *740*): Improvements to Income Tax Disclosures*" ("ASU *2023*-*09"*). ASU *2023*-*09* requires disaggregated information about a company's effective tax rate reconciliation and information on income taxes paid. The standard is effective for Beam beginning with our annual financial statements for the fiscal year ending *December 31, 2025.* Early adoption is permitted. We adopted this ASU prospectively on *January 1, 2025. See Note *14.* Income Taxes*

In *July 2025,* the FASB issued ASU *No. 2025*-*05, "Financial Instruments - Credit Losses"* ("ASU *2025*-*05"*), to introduce a practical expedient for all entities, which simplifies the calculation required for estimating credit losses and assumes that current conditions as of the balance sheet date do *not* change for the remaining life of the asset. ASU *2025*-*05* is effective for annual reporting periods beginning after *December 15, 2025,* and interim reporting periods within those annual reporting periods; however, early adoption is permitted. ASU *2025*-*25* allows for adoption using a prospective method. The Company early adopted this standard as of *January 1, 2025.* The adoption of this standard did *not* have a material impact on the Company's consolidated financial statements.

*Recent pronouncement *not* yet adopted*

In *October 2023,* the FASB issued ASU *2023*-*06,* "Disclosure Improvements" ("ASU *2023*-*06"*), which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standard Codification (the "Codification"). The ASU was issued in response to the SEC's disclosure update and signification initiative issued in *August 2018.* The effective date for the amendments for each topic will be the date on which the SEC's removal of that related disclosure from Regulation S-*X* or Regulation S-K becomes effective, with early adoptions prohibited.

In *November 2024,* the FASB issued ASU *2024*-*03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Topic *220*): Disaggregation of Income Statement Expenses."* This guidance requires additional disclosure of certain amounts included in the expense captions presented on the Statement of Operations as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after *December 15, 2026* and interim reporting periods beginning after *December 15, 2027.* Early adoption is permitted for annual financial statements that have *not* yet been issued. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and related disclosures.

In *November 2024,* the FASB issued ASU *2024*-*04, "Debt with Conversion and Other Options"* ("ASU *2024*-*04"*), which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. ASU *2024*-*04* is effective for annual periods beginning after *December 15, 2025,* and interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update *2020*-*06.* Adoption can be on a prospective or retrospective basis. The Company is currently evaluating the disclosure impact that ASU *2024*-*04 may* have on its financial statement presentation and disclosures.

In *December 2025,* the FASB issued ASU *2025*-*11,* Interim Reporting (Topic *270*), Narrow-Scope Improvements, to provide clarity about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements. The amendments in ASU *2025*-*11* result in a comprehensive list of interim disclosures that are required by GAAP. The amendments in ASU *2025*-*11* also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in ASU *2025*-*11* are effective for interim reporting periods within annual reporting periods beginning after *December 15, 2027* and early adoption is permitted. The amendments in ASU *2025*-*11* can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the disclosure impact that ASU *2025*-*11 may* have on its financial statement presentation and disclosures.

Other recent accounting pronouncements did *not* or are *not* believed by management to have a material impact on the Company's present or future consolidated financial statements.

***3.*** **LIQUIDITY**

The Company had net losses of $27.0 million for the year ended *December 31, 2025* which includes $18.9 million of non-cash expenses that mainly included impairment of goodwill of $10.8 million, employee stock-based compensation of $3.0 million, depreciation and amortization of $3.5 million and $1.0 million of amortization of operating lease right of use asset. The Company had net cash used in operating activities of $10.5 million for the year ending *December 31, 2025.*

At *December 31, 2025,* the Company had a cash balance of $1.0 million and working capital of $8.9 million. Based on the Company's current operating plan and the available working capital it believes can be converted to cash (specifically the accounts receivable balance of approximately $8.2 million), the Company believes that it has the ability to fund its operations and meet contractual obligations for at least *twelve* months from the date of this report.

In *March 2023,* the Company entered into a supply chain line of credit agreement with OCI Group for up to $100 million with a *5*-year term to further support our working capital requirements. Subject to the terms of the agreement, OCI Group will make available to the Company funding based on amounts owed to the Company by its customers. To date, the Company has not borrowed against this line of credit.

On *April 11, 2025,* we entered into an At Market Issuance Sales Agreement (the "Sales Agreement") with B. Riley Securities, Inc. ("B. Riley"), pursuant to which we *may* issue and sell shares of our common stock from time to time, at our option, through B. Riley as our sales agent, subject to certain terms and conditions. Upon our delivery and B. Riley's acceptance of a placement notice, B. Riley will use commercially reasonable efforts to sell shares, consistent with its normal trading and sales practices, in transactions deemed to be "at the market" offerings as defined in Rule *415* of the Securities Act of *1933,* as amended, including by means of ordinary brokers' transactions at market prices, in block transactions or as otherwise agreed by B. Riley and us. B. Riley *may* also sell the shares of common stock in negotiated transactions, subject to our prior approval. Any shares sold will be sold pursuant to our effective shelf registration statement on Form S-*3* (File *No. 333*-*272396*), as supplemented by a prospectus supplement dated *April 11, 2025* and *November 13, 2025,* which allows us to sell up to $15.6 million in shares of our common stock. We will pay B. Riley a commission of up to 2.5% of the gross proceeds of the sale of any shares sold through B. Riley.

As of December *31, 2025,* the Company has received gross proc eeds of $8.0 million from sales of its common stock under the Sales Agreement.

Although the Company believes that it will become profitable in the next few years as our revenues grow, our gross profit improves and we leverage our overhead costs, we expect to continue to incur losses for a period of time. If necessary, the Company *may* raise additional capital to finance its future operations through equity or debt financings. There is *no* guarantee that profitable operations will be achieved, or that additional capital or debt financing will be available on a timely basis, on favorable terms, or at all, and such funding, if raised, *may not* be sufficient to meet our obligations or enable us to continue to implement our long-term business strategy. In addition, obtaining additional funding or entering into other strategic transactions could result in significant dilution to our stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *16*

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***4.*** **BUSINESS COMBINATIONS AND JOINT VENTURES**

**<u>Telcom</u>**

On *August 30, 2024,* the Company acquired Telcom d.o.o Beograd ("Telcom"), pursuant to a Share Sale and Purchase Agreement dated as of *August 30, 2024 (*the "Agreement") with the owners (the "Sellers") of Telcom. Telcom is a business located in Serbia and engaged in the manufacturing of telecommunications equipment. Beam Global acquired all of the equity stock of Telcom from the Sellers in exchange for cash and Beam Global common stock. The total purchase price was subject to adjustment based on the amount of cash held by Telcom at closing. Based on Telcom's cash balance at closing equal to approximately EUR 220,298, Beam Global paid to the Sellers a purchase price equal to EUR 815,298 which was paid to the Sellers as follows: (i) EUR 430,000 cash and (ii) issued 82,506 shares of Beam Global common stock. At closing, Telcom had a positive working capital balance of approximately EUR 500,000 which consisted of (i) a cash balance equal to EUR 220,000, accounts receivables of approximately EUR 115,000, inventory of approximately EUR 275,000 and accounts payable of approximately EUR 110,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *17*

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In addition to the above payments, the Telcom Sellers were eligible to earn up to EUR 250,000 (the "Earnout Cap") in additional shares of Beam common stock if Telcom meets certain revenue milestones for fiscal years *2024* and *2025* (the "Telcom Earnout Consideration"). The Telcom Earnout Consideration that the Telcom Sellers were eligible to receive for *2024* was equal to the amount the net revenue of Telcom ("Telcom Net Revenue") exceeded EUR 850,000 for *2024* up to the Earnout Cap. The Company issued 27,836 shares of stock valued at $0.1 million as payment for the *2024* Telcom Earnout Consideration. The Telcom Earnout Consideration was less than the Earnout Cap, and the Telcom Sellers will be eligible for additional Telcom Earnout Consideration in *2025* if (i) *2025* Telcom Net Revenue exceeds *2024* Telcom Net Revenue, and (ii) *2025* Telcom Net Revenue exceeds *$850,000.* The Telcom Earnout Consideration for *2025* will be calculated based on the amount the *2025* Net Revenue exceeds the *2024* Net Revenue subject to the Earnout Cap. In *no* event, will the Telcom Earnout Consideration for *2024* and *2025,* in the aggregate, exceed the Earnout Cap. The Telcom Earnout Consideration for each period will be calculated based on the volume weighted average price of Beam's common stock for the *thirty* trading days prior to the end of the applicable calendar year. In *no* event and under *no* circumstances will the Telcom Sellers receive from Beam or will Beam issue to the Telcom Sellers in connection with the transaction Beam's common stock in an amount that exceeds 19.99% of the outstanding common stock of Beam immediately prior to closing. The Company issued 59,546 shares of stock valued at $0.1 million as payment for the *2025* Telcom Earnout Consideration

The acquisition was accounted for as a business combination in accordance with Accounting Standards Codification (ASC) *805, Business Combinations*. Goodwill represents the premium the Company paid over net fair value of tangible and intangible assets acquired.

The valuation of the Earnout Consideration was performed using a discounted cash flow analysis to determine the fair value of the contingent consideration, which includes estimates and assumptions such as forecasted revenues of Telcom, discount rates, and the milestone settlement value. As such valuation includes the use of unobservable inputs, it is considered to be a Level *3* measurement. The fair value of the Earnout Consideration will be reassessed on a quarterly basis with the change recorded to operating expenses. Refer to Note *2* for changes in the fair value of the Earnout Consideration during the years ended *December 31, 2025* and *2024.*

The following table summarizes the estimated fair value allocation of consideration exchanged for the estimated fair value of tangible assets acquired and liabilities assumed at the acquisition date. The estimated fair value for working capital is generally equivalent to the net book value of the acquired assets and liabilities on the acquisition date. Fair value assigned to property, plant and equipment is based on real estate appraisals, market value comparisons, or acquired net book value of recently acquired assets. The valuation of the contingent consideration is based on a discounted cash flow analysis using the Company's forecasted results for the operations for the *two* years subject to revenue earn-out targets.

Consideration is comprised of the following:

---

| | |
|:---|:---|
| Cash | $481 |
| Common Stock | 387 |
| Earnout Consideration | 276 |
| Total consideration | $1144 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *18*

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The following table shows the allocation of consideration to assets and liabilities at fair value:

---

| | |
|:---|:---|
| <u>Assets Acquired</u> |  |
| Cash and cash equivalents | $244.0 |
| Accounts receivable | 224.0 |
| Inventory | 296.0 |
| Prepaid expenses | 2.0 |
| Property, plant and equipment | 30.0 |
| Goodwill | 692.0 |
| Total assets acquired | $1488.0 |
| <u>Liabilities Assumed</u> |  |
| Accounts payable | $266.0 |
| Accrued expenses | 10.0 |
| Other liabilities | 68.0 |
| Total liabilities assumed | $344.0 |
| Net assets acquired | $1144.0 |

---

The Company believed it to be probable the maximum amount of Earnout Consideration would be earned and therefore accrued the full amount in the opening balance sheet. The estimated fair values were assigned to identifiable assets acquired and liabilities.

**<u>Beam Middle East Limited</u>**

On *June 20, 2025,* the Company entered into a Joint Venture Agreement (the "Joint Venture Agreement") with The Platinum Group, a company registered with the department of Economy – Abu Dhabi ("TPG"). Pursuant to the Joint Venture Agreement, the Company agreed to establish Beam Middle East Limited, a limited liability company in Abu Dhabi, United Arab Emirates for the purpose of marketing, selling, manufacturing and distributing the Company's products (the "Joint Venture") in accordance with the terms of the Joint Venture Agreement and the strategy, business plan, and budget of the Joint Venture (the "Plan"). The Company and TPG each shall have a 50% equity interest in the Joint Venture. TPG is engaged in the fields of energy, real estate, finance and investing, healthcare, information technology, sports and entertainment, food services and legal services.

Pursuant to the Joint Venture Agreement, the Company shall be responsible to make timely capital contributions to the Joint Venture to cover all expenses as mutually agreed in the Plan to the extent *not* covered by Joint Venture cash flows or by authorized borrowings of the Joint Venture. As of *December 31, 2025,* there have been no capital contributions. All of the profits generated by the Joint Venture will be distributed to the Company until such time as any capital contributions made by the Company have been returned to the Company. Thereafter each of the Company and TPG shall receive an equal share of the profits in accordance with their equity ownership. The Joint Venture is managed by *five* (*5*) directors (the "JV Board"), *two* (*2*) of which are appointed by TPG (the "TPG Directors"), *two* (*2*) of which are appointed by the Company (the "Company Directors"), and a *fifth* being an independent director appointed by mutual approval of both TPG and the Company. The JV Board has full power to manage and control all aspects of the Joint Venture's business and affairs; provided, that, certain "Major Decisions" (as defined in the Joint Venture Agreement) must be approved by each of the Company Directors. The Joint Venture Agreement *may* be terminated upon the expiration or non-renewal of the License Agreement (as defined below), by unanimous resolution of the Company and TPG, or upon a judicial determination. The Company consolidates the financials of Beam Middle East Limited in accordance with ASC *810*-*10.*

In connection with entering into Joint Venture Agreement, the Company agreed to enter into a license agreement with the Joint Venture (the "License Agreement"), permitting the Joint Venture to use certain of the Company's intellectual property, without additional compensation, on and subject to the terms set forth in the License Agreement. The License Agreement continues for a period of *five* (5) years, with subsequent *five*-year renewal options. The Company *may* terminate the License Agreement (i) in the event of a default of TPG; (ii) if the Company *no* longer controls at least *fifty* percent (*50%*) of the voting interest of the Joint Venture and the right to appoint *two* (*2*) of the *five* (*5*) directors of the Joint Venture; or (iii) upon *thirty* (*30*) days' prior written notice to the Joint Venture and TPG if the Joint Venture does *not* reasonably commence development, production, or sales efforts on or before *December 31, 2025.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *19*

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***5.*** **PREPAID EXPENSES AND OTHER CURRENT ASSETS**

Prepaid expenses and other current assets are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Vendor prepayments | $1303 | $1884 |
| Prepaid insurance | 111 | 135 |
| Other | 656 | 224 |
| Total prepaid expenses and other current | $2070 | $2243 |

---

***6.*** **INVENTORY**

Inventories are stated at the lower of cost and net realizable value. Costs are determined using the *first* in-*first* out (FIFO) method. As of *December 31, 2025* and *2024*, inventory consists of the following:

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Finished goods | $5176 | $4929 |
| Work in process | 729 | 1147 |
| Raw materials | 3861 | 6208 |
| Total inventory | $9766 | $12284 |

---

***7.*** **PROPERTY AND EQUIPMENT**

Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Office furniture and equipment | $275 | $227 |
| Computer equipment and software | 310 | 283 |
| Land, buildings and leasehold improvements | 8665 | 7528 |
| Autos | 771 | 769 |
| Machinery and equipment | 10404 | 9207 |
| Total property and equipment | 20425 | 18014 |
| Less accumulated depreciation | (7332) | (4310) |
| Property and Equipment, net | $13093 | $13704 |

---

Depreciation expense for the years ended *December 31, 2025* and *2024* was $2.5 million and $2.6 million, respectively. For the years ended *December 31, 2025* and *December 31, 2024*, depreciation expense recognized in Operating expenses was $0.3 million in each year, and $2.2 million and $2.4 million in Cost of Good Sold, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *20*

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***8.*** **GOODWILL AND INTANGIBLE ASSETS**

Intangible assets, net as of *December 31, 2025* and *2024* consists of the following**:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***December 31, 2024*** | ***December 31, 2024*** | ***December 31, 2024*** | ***December 31, 2024*** |
|  |  |  |  | ***Weighted-*** |
|  | ***Gross*** |  | ***Net*** | ***average*** |
|  | ***Carrying*** | ***Accumulated*** | ***Carrying*** | ***Amortization*** |
|  | ***Amount*** | ***Amortization*** | ***Amount*** | ***Period (yrs)*** |
| Developed technology | $8074 | $(2080) | $5994 | 11 |
| Trade name | 1756 | (498) | 1258 | 10 |
| Customer relationships | 444 | (158) | 286 | 13 |
| Backlog | 185 | (185) |  | 1 |
| Patents | 576 | (77) | 499 | 20 |
| Intangible assets | $11035 | $(2998) | $8037 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***December 31, 2025*** | ***December 31, 2025*** | ***December 31, 2025*** | ***December 31, 2025*** |
|  |  |  |  | ***Weighted-*** |
|  | ***Gross*** |  | ***Net*** | ***average*** |
|  | ***Carrying*** | ***Accumulated*** | ***Carrying*** | ***Amortization*** |
|  | ***Amount*** | ***Amortization*** | ***Amount*** | ***Period (yrs)*** |
| Developed technology | $8074 | $(2814) | $5260 | 11 |
| Trade name | 1756 | (673) | 1083 | 10 |
| Customer relationships | 444 | (199) | 245 | 13 |
| Backlog | 185 | (185) |  | 1 |
| Patents | 640 | (101) | 539 | 20 |
| Intangible assets | $11099 | $(3972) | $7127 |  |

---

Amortization expense for each of the years ended *December 31, 2025* and *2024* was $1.0 million. Amortization expense for intangible assets held as of *December 31, 2025* will be $1.0 million for each of the years *2026* – *2028.* For both years ending *December 31, 2025* and *December 31, 2024*, amortization expense recognized in Operating expenses was $0.2 million and $0.2 million respectively and $0.8 million and $0.7 million in Cost of Good Sold respectively.

The Company's acquisitions identified Goodwill and intangible assets. Goodwill represents the purchase price in excess of fair values assigned to the underlying identifiable net assets of the acquired business. Goodwill as of *December 31, 2025* and *2024* consists of the following:

---

| | |
|:---|:---|
|  | ***Goodwill*** |
| Balance as of December 31, 2023 | $10270 |
| Acquisition of Telcom | 692 |
| Currency impact | (382) |
| Balance as of December 31, 2024 | $10580 |
| Impairment of goodwill | (10780) |
| Currency impact | 200 |
| Balance as of December 31, 2025 | $- |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *21*

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***9.*** **ACCRUED EXPENSES AND LONG-TERM LIABILITIES**

The major components of accrued expenses and long-term liabilities are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***December 31,*** |  | ***December 31,*** |  |
|  | ***2025*** |  | ***2024*** |  |
| *Accrued Expenses:* |  | |  | |
| Accrued salaries and bonus | $1239 |  | 1498 |  |
| Accrued vacation | 309 |  | $271 |  |
| Vendor accruals | 57 |  | 75 |  |
| Accrued warranty | 6 |  | 6 |  |
| Other accrued expense | 1274 |  | 612 |  |
| Total accrued expenses | $2885 |  | $2462 |  |
| *Other Long-Term Liabilities:* |  | |  | |
| Long-term deferred tax liability | $1203 |  | $1290 |  |
| Acquired long-term liability | 2939 |  | 3380 |  |
| Total long-term liabilities | $4142 |  | $4670 |  |

---

Acquired long-term liability of $2.9 million consists of a restructuring debt settlement from the acquisition of Amiga. Approximately $0.5 million is current and included in other accrued expenses and the rest is categorized in long-term liability. The debt restructuring was entered into in *2021* for a *nine*-year term with *five* years remaining at *December 31, 2025*. Payments are due quarterly as a percentage of the remaining balance due.

***10.*** **COMMITMENTS AND CONTINGENCIES**

<u>Legal Matters:</u>

The Company *may* from time to time become party to actions, claims, suits, investigations or proceedings arising from the ordinary course of our business, including actions with respect to intellectual property claims, breach of contract claims, labor and employment claims and other matters. Any litigation could divert management time and attention from the Company, could involve significant amounts of legal fees and other fees and expenses, or could result in an adverse outcome having a material adverse effect on our financial condition, cash flows or results of operations. Actions, claims, suits, investigations and proceedings are inherently uncertain, and their results cannot be predicted with certainty. We are *not* currently involved in any legal proceedings that we believe are, individually or in the aggregate, material to our business, results of operations or financial condition. However, regardless of the outcome, litigation can have an adverse impact on us because of associated cost and diversion of management time. As of *December 31, 2025*, after consulting with legal counsel, management believes there were *no* pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *22*

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***11.*** **LEASES**

On *September 1, 2020,* the Company entered into a five-year operating lease for their headquarters building in San Diego, California. The term of the existing lease was extended until *February 28, 2026* and subsequently until *September 30, 2026.* The agreement also provides that the Landlord *may* terminate the lease upon *sixty* (*60*) days' prior written notice to the Company. At this time, it is *not* reasonably certain that the Company will extend the term of the lease and, therefore, the renewal periods have been excluded from the right-of-use ("ROU") asset.

As part of the All Cell acquisition, the Company assumed a facility lease located in Broadview, Illinois, and recorded $0.2 million in right-of-use asset and lease liability. The lease term ended on *August 31, 2023* and contains clauses for annual rent escalation. The present values of the lease payment streams were calculated using an effective borrowing rate of 10%. The Company remained in the facility on a month-to-month lease and then entered into a five-year lease extension effective *February 1, 2024* and recorded $1.4 million in right-of-use asset and lease liability.

As part of the acquisitions in Serbia, the Company assumed a lease for a small office and a few minimal leases in Belgrade, Serbia, which have an indefinite term and *may* be terminated at any time with *30* days' notice. Because of the short term and small value, these leases were *not* capitalized.

During the *twelve* months ended *December 31, 2025* and *2024*, cash paid for amounts included in the measurement of operating lease liabilities were $0.8 million and $1.1 million, respectively. Operating lease costs for the *twelve* months ended *December 31, 2025* and *2024* were $0.8 million and $1.0 million, respectively.

The table below summarizes the Company's lease-related assets and liabilities as of *December 31, 2025* and *2024*:

---

| | | |
|:---|:---|:---|
|  | ***Year Ended*** | ***Year Ended*** |
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| **Lease assets** | $1358 | $1893 |
| **Lease liabilities** |  |  |
| Current operating lease liabilities, included in current liabilities | $484 | $696 |
| Noncurrent operating lease liabilities, included in long-term liabilities | 815 | 971 |
| **Total Lease liabilities** | $1299 | $1667 |

---

Supplemental cash flow information related to the lease is as follows:

---

| | | |
|:---|:---|:---|
|  | ***Year Ended*** | ***Year Ended*** |
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| Operating cash flows from operating leases | $752 | $1098 |
| Right-of-use assets obtained in exchange for lease obligations: |  |  |
| Operating leases | $442 | $1697 |
| Weighted Average Remaining Lease Term: |  |  |
| Operating leases | 2.67 | 3.22 |
| Weighted Average Discount Rate: |  |  |
| Operating leases | 10% | 10% |

---

As the Company's leases do *not* provide an implicit rate, the Company uses its incremental borrowing rate to discount the lease payments to present value. The estimated incremental borrowing rate is derived from information available at the lease commencement date. The future minimum rental commitments for our operating leases is as follows:

---

| | |
|:---|:---|
| 2026 | $598 |
| 2027 | 500 |
| 2028 | 390 |
| Thereafter |  |
| Total undiscounted future minimum payments | 1488 |
| Less imputed interest | (189) |
| Total lease liability | $1299 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *23*

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***12.*** **STOCKHOLDERS**' **EQUITY**

<u>Stock Issued for Acquisitions</u>

The Company issued 82,506 shares of its common stock upon acquiring Telcom during the year ended *December 31, 2024.* See further discussion in note *4.* Business Combination.

<u>Committed Equity Facility</u> 

In *2022,* the Company entered into a Common Stock Purchase Agreement and Registration Rights Agreement with B. Riley Principal Capital II, LLC under which the Company issued 281,157 shares for approximately $3.0 million. As consideration for B. Riley's commitment to purchase shares of the Company's common stock, the Company issued B. Riley 10,484 shares of its common stock in both *September 2022* and *April 2023.* The facility was terminated on *October 1, 2024.*

The Company issued 281,157 shares under the Purchase Agreement for $3.0 million in proceeds, of which $0.5 million was offset by the offering costs as of *December 31, 2024.* 

<u>Awards Under Stock Incentive Plans</u>

On *June 9, 2021,* the Company's stockholders approved the Beam Global *2021* Equity Incentive Plan (the *"2021* Plan") under which 2,000,000 shares of the Company's common stock are allowed to be issued pursuant to the exercise of stock options or other awards granted under such plan in addition to the 630,000 shares previously allowed under the Beam Global *2011* Stock Incentive Plan. The number of shares reserved for issuance under the *2021* Plan will increase automatically on *January 1* of each of *2022* through *2031* by the number of shares equal to 5% of the aggregate number of outstanding shares of the Company's common stock as of the immediately preceding *December 31,* or a lesser number as *may* be determined by our board of directors or compensation committee. As of *December 31, 2025*, 3.9 million shares remain available to grant under the *2021* Plan.

***Stock Options***

Stock options are granted to new and existing employees. New employee option grants generally have a term of ten years and vest ratably over four years. Existing employee option grants generally have a term of ten years and vest immediately upon grant.

The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model. This model incorporates certain assumptions for inputs including a risk-free market interest rate, expected dividend yield of the underlying common stock, expected option life and expected volatility in the market value of the underlying common stock based on our historical volatility. The Company uses the simplified method to estimate the expected term. The expected term of stock options granted to employees is equal to the contractual term of the option award. The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have *no* vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility because the Company's stock options and warrants have characteristics different from those of its traded stock, and because changes in the subjective input assumptions can materially affect the fair value estimate.

We used the assumptions in the table below and we assumed there would *not* be dividends granted for the options granted in fiscal *2025* and *2024*:

---

| | | |
|:---|:---|:---|
|  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
|  | ***2025*** | ***2024*** |
| Expected volatility | 86.90% - 91.08% | 89.04% - 92.70% |
| Expected term (years) | 5 - 7 | 5 - 7 |
| Risk-free interest rate | 3.79% - 4.16% | 3.63% - 4.48% |
| Weighted-average FV | $1.22 | $4.02 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *24*

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Option activity for the years ended *December 31, 2025* and *2024* is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | ***Weighted*** |  |
|  |  | ***Weighted*** | ***Average*** | ***Aggregate*** |
|  |  | ***Average*** | ***Remaining*** | ***Intrinsic*** |
|  | ***Number of*** | ***Exercise*** | ***Contractual*** | ***Value*** |
|  | ***Options*** | ***Price*** | ***Life (years)*** | ***(in thousands)*** |
| Outstanding at December 31, 2023 | 481858 | $10.41 | 7.18 | 233 |
| Granted | 358700 | 5.13 |  |  |
| Forfeited | (177554) | 9.92 |  |  |
| Outstanding at December 31, 2024 | 663004 | $6.69 | 7.75 | $- |
| Exercisable at December 31, 2024 | 384755 | $8.63 | 6.65 | $- |
| Granted | 224500 | 1.65 |  |  |
| Forfeited | (150054) | 5.86 |  |  |
| Outstanding at December 31, 2025 | 737450 | $5.33 | 7.66 | $- |
| Exercisable at December 31, 2025 | 554061 | $5.90 | 7.43 | $- |

---

The Company's stock option compensation expense was $0.4 million and $0.8 million for the years ended *December 31, 2025* and *2024*, respectively, and there was $3.9 million of total unrecognized compensation costs related to outstanding stock options at *December 31, 2025* which will be recognized over 5.3 years. There were no options exercised in the year ended *December 31, 2025*, and the total intrinsic value of options exercised was immaterial for the year ended *December 31, 2024*. Number of stock options vested and unvested as of *December 31, 2025* were 554,061 and 183,389, respectively. During the years ended *December 31, 2025* and *2024*, the weighted average fair value of options granted was $5.90 and $4.02 per share, respectively. Stock-based compensation expense is generally included in selling, general and administrative expenses in the consolidated statement of operations.

***Restricted Stock Units and Common Stock***

During the year ended *December 31, 2025,* the Company granted 222,656 restricted stock units (RSUs), 187,031 of which contain performance conditions (PSUs), as well as 870,000 shares of the Company's common stock to its Chief Executive Officer. All units and shares vested upon issuance.

A summary of activity of the RSUs for the year ended *December 31, 2025* is as follows:

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted*** |
|  |  | ***Average Grant*** |
|  | ***Shares*** | ***Date Fair Value*** |
| Unvested at beginning of 2025 | 36 | $13.05 |
| Granted | 36 | 2.59 |
| Vested | (72) | 7.82 |
| Forfeited |  |  |
| Unvested at end of 2025 |  | $- |

---

A summary of activity of the PSUs for the year ended *December 31, 2025* is as follows:

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted*** |
|  |  | ***Average Grant*** |
|  | ***Shares*** | ***Date Fair Value*** |
| Unvested at beginning of 2025 |  | $- |
| Granted | 187 | 2.38 |
| Vested | (187) | 2.38 |
| Forfeited |  |  |
| Unvested at end of 2025 |  | $- |

---

Stock compensation expense related to restricted stock units was $0.5 million during the year ended *December 31, 2025*, with no further unrecognized stock compensation expense to be recognized as of *December 31, 2025*. Stock compensation expense related to common stock granted was $1.3 million during the year ended *December 31, 2025*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *25*

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***Restricted Stock Awards***

The Company issues restricted stock to the members of its board of directors as compensation for such members' services. Such grants generally vest ratably over *four* quarters. Through *2022,* the Company also issued restricted stock to its CEO, for which generally 50% of the shares granted vest ratably over *four* quarters and the remaining 50% vest ratably over *twelve* quarters. The common stock related to these awards are issued to an escrow account on the date of grant and released to the grantee upon vest. The fair value is determined based on the closing stock price of the Company's common stock on the date granted and the related expense is recognized ratably over the vesting period.

A summary of activity of the restricted stock awards for the years ended *December 31, 2025* and *2024* is as follows:

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted*** |
|  | ***Nonvested*** | ***Average Grant*** |
|  | ***Shares*** | ***Date Fair Value*** |
| Nonvested at December 31, 2023 | $1238 | $20.17 |
| Granted | 80645 | 6.20 |
| Vested | (71803) | 6.44 |
| Forfeited | (10080) | 6.20 |
| Nonvested at December 31, 2024 | $- | $- |
| Granted | 121359 | 3.09 |
| Vested | (121359) | 2.13 |
| Forfeited |  |  |
| Nonvested at December 31, 2025 | $- | $3.09 |

---

Stock compensation expense related to restricted stock awards was $0.4 million for the year ended *December 31, 2025* and $0.5 million for the year ended *December 31, 2024*, respectively. Fair values of restricted stock vested during each of the years ended *December 31, 2025* and *2024* were 0.4 million.

As of *December 31, 2025*, there were no unvested shares of common stock.

<u>Warrants</u>

As of *December 31, 2025*, the Company had outstanding warrants to purchase up to 200,000 shares of the Company's common stock at a price per share equal to $17.00 to a consultant for investor relations services to be provided over a five-year period. The warrants are immediately exercisable but are subject to repurchase by the Company until the required service is provided. The fair value of such warrants was $8.05 per share or $1.6 million on the date of grant using the Black-Scholes option-pricing model. This model incorporated certain assumptions for inputs including a risk-free market interest rate of 3.86%, expected dividend yield of the underlying common stock of 0%, expected life of 2.5 years and expected volatility in the market value of the underlying common stock based on our historical volatility of 99.6%. The fair value of the warrants was recorded to prepaid expenses and other current assets to be recognized over the service period. During the year ended *December 31, 2025*, $0.3 million was recorded as expense and at *December 31, 2025*, $0.7 million of cost has *not* been recognized and will be recognized over the next 2.25 years.

A summary of activity of warrants outstanding for the years ended *December 31, 2025* and *2024* is as follows:

---

| | | |
|:---|:---|:---|
|  |  | ***Weighted*** |
|  |  | ***Average*** |
|  | ***Number of*** | ***Exercise*** |
|  | ***Warrants*** | ***Price*** |
| Outstanding at December 31, 2023 | 610745 | $9.80 |
| Granted |  |  |
| &nbsp;&nbsp;&nbsp; Expired | (282334) | 6.40 |
| Exercised | (128411) | 6.30 |
| Outstanding at December 31, 2024 | 200000 | $17.00 |
| Granted |  |  |
| Expired |  |  |
| Exercised |  |  |
| Outstanding at December 31, 2025 | 200000 | 17.00 |
| Exercisable at December 31, 2025 |  | $- |

---

Outstanding warrants as of *December 31, 2025* have a weighted average remaining contractual life of 2.25 years and will expire in *March 2028.* The outstanding shares of the warrants at *December 31, 2025* have no intrinsic value.

During the year ended *December 31, 2025*, no warrants were exercised, and in the year ended *December 31, 2024*, 128,411 warrants to purchase shares of the Company's registered common stock were exercised generating $0.8 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *26*

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***13.*** **REVENUES**

For each of the identified periods, revenues can be categorized into the following:

---

| | | |
|:---|:---|:---|
|  | ***Twelve Months Ended*** | ***Twelve Months Ended*** |
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Product sales | $24351 | $46057 |
| Maintenance fees | 304 | 129 |
| Professional services | 2912 | 1127 |
| Shipping and handling | 728 | 2266 |
| Discounts and allowances | (59) | (243) |
| Total revenues | $28236 | $49336 |

---

During the year ended *December 31, 2025* and *2024*, 29% and 62% of revenues were derived from federal, state and local governments, respectively. In addition, 40% of revenues in the year ended *December 31, 2025* were international sales compared to 25% in the prior year.

At *December 31, 2025* and *2024*, deferred revenue was $2.5 million and $1.6 million, respectively. These amounts consisted mainly of customer deposits in the amount of $1.5 million and $0.6 million for *December 31, 2025* and *2024*, respectively and prepaid multi-year maintenance plans for previously sold products which account for $1.0 million and $1.1 million for *December 31, 2025* and *2024*, respectively, and pertain to services to be provided through *2035*. Revenue recognized during the year ended *December 31, 2025* and *2024* which pertained to revenue deferred in prior years was $0.1 million and $1.0 million respectively.

The balance of contract assets is driven by the difference in timing of when revenue is recognized from performance obligations satisfied in the current reporting period and when amounts are invoiced to the customer. The balance of contract liabilities is driven by the difference in timing between when cash is received pursuant to a contract and when the Company's performance obligations under the contract are satisfied.

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

---

| | | |
|:---|:---|:---|
|  | ***For the Year Ended*** | ***For the Year Ended*** |
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Beginning Balance | $1647 | $1230 |
| Additions | 1038 | 662 |
| Recognized in revenue | (195) | (245) |
| Ending Balance | $2490 | $1647 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *27*

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***14.*** **INCOME TAXES**

The provision for income taxes consists of the following:

---

| | | |
|:---|:---|:---|
|  | ***2025*** | ***2024*** |
| <u>Current:</u> |  |  |
| Federal |  |  |
| State | $10 | $14 |
| Foreign | (164) | 199 |
|  | (154) | 213 |
| <u>Deferred:</u> |  |  |
| Federal |  |  |
| State |  |  |
| Foreign | (252) | (307) |
|  | (252) | (307) |
| **Net benefit** | $**(406)** | $**(94**) |

---

The components of loss from continuing operations before provision for income taxes consists of the following:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| United States | $19975 | $10537 |
| International | 7434 | 839 |
| Total | $27409 | $11376 |

---

The Company's tax expense differs from the "expected" tax expense for Federal income tax purposes, (computed by applying the United States Federal tax rate of 21% to loss before taxes). The following is a reconciliation of the Company's effective tax rate on income and the statutory rate for the year ended *December 31, 2025.*

---

| | |
|:---|:---|
|  | **December 31, 2025** |
|  | **%** |
| Tax benefit at the U.S. statutory rate) | 21.00% |
| State and local income tax (net of FBOS) | (1.67)% |
| Change in Valuation Allowance | (13.13)% |
| Nontaxable or nondeductible items) | 0.02% |
| Foreign tax effects: |  |
| Serbia: |  |
| Goodwill impairment | (3.63)% |
| Rate differential | (1.63)% |
| Prior year deferred true-up) | 0.82% |
| Other) | 0.27% |
| Other: |  |
| Prior Year True-Up | (0.57)% |
| Total) | 1.48% |

---

As previously disclosed, prior to the adoption of ASU *2023*-*09,* the difference between the provision (benefit) for income taxes and the amount computed by applying the U.S. federal income tax rate for the year ended *December 31, 2024* is as follows:

---

| | |
|:---|:---|
|  | Year Ended December 31, |
|  | 2024 |
| Computed "expected" tax expense (benefit) | $(2389) |
| State taxes, net of federal benefit | (761) |
| Change in FV of Contingent Consideration | (982) |
| Non-deductible stock options | 336 |
| Non-deductible items | 11 |
| Foreign tax rate differential | 69 |
| True-up to tax return | 210 |
| Change in deferred tax asset valuation allowance | 3412 |
| Total | $(94) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *28*

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Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The effects of temporary differences that gave rise to significant portions of deferred tax assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
|  | ***2025*** | ***2024*** |
| Deferred tax assets: |  |  |
| Stock options | $1531 | $1081 |
| Deferred Revenue | 223 | 151 |
| Capitalized R&D | 600 | 828 |
| Patents/Intangible Assets | 2589 | 1424 |
| Lease Liability | 300 | 456 |
| Other | 444 | 310 |
| Net operating loss carryforward | 26446 | 22167 |
| Total gross deferred tax assets | 32133 | 26417 |
| Less: Deferred tax asset valuation allowance | (31810) | (25913) |
| Total net deferred tax assets | 323 | 504 |
| Deferred tax liabilities: |  |  |
| ROU Asset | (290) | (442) |
| Depreciation | (1236) | (1352) |
| Total deferred tax liabilities | (1526) | (1794) |
| Total net deferred taxes | $(1203) | $(1290) |

---

As a result of the Company's history of incurring operating losses, a valuation allowance has been established. The valuation allowance at *December 31, 2025* was $31.8 million. The increase in the valuation allowance during *2025* was $5.9 million which was all recorded through deferred taxes.

At *December 31, 2025*, the Company has a Federal net operating loss carry forward of $92.8 million, of which $25.1 million is available to offset future net income through *2037.* The net operating loss ("NOL") expires during the years *2027* to *2037* and $67.7 million *may* be carried forward indefinitely and limited to offsetting 80% of taxable income. At *December 31, 2025*, the Company has a state net operating loss carryforward of $97.2 million and no foreign net operating loss carry forward. The utilization of the net operating loss carryforwards is dependent upon the ability of the Company to generate sufficient taxable income during the carryforward period. In the event that a significant change in ownership of the Company occurs as a result of the Company's issuance of common stock, the utilization of the NOL carry forward will be subject to limitation under certain provisions of the Internal Revenue Code. Management does *not* presently believe that such a change has occurred.

*No* liability related to uncertain tax positions is recorded on the financial statements related to uncertain tax positions. There are no unrecognized tax benefits as of *December 31, 2025*. The Company does *not* expect that uncertain tax benefits will materially change in the next *12* months.

The Company will file U.S. Federal, California, Illinois, Michigan, New York, Tennessee, Texas and Wisconsin State tax returns, and a New York City tax return. All tax returns will remain open for examination by the Federal and State taxing authorities for *three* and *four* years, respectively, from the date of utilization of any net operating loss carryforwards.

The cash paid for income tax (net of refunds) during the year consists of $6 thousand for state income taxes and $4 thousand for foreign income taxes. Domestic income taxes included $3 thousand for New York City, $1 thousand for New York State, and $2 thousand for Texas. Foreign income taxes included $4 thousand for Serbia.

***15.*** **SEGMENT REPORTING**

The Company has a single reportable segment focused around providing clean-technology innovation focused on providing high-quality, renewably energized products. The Company's chief operating decision-maker (the "CODM"), who is the Chief Executive Officer, assesses performance for the reportable segment and decides how to allocate resources using net income (loss) as the primary measure of profitability. The CODM is *not* regularly provided with specific segment expenses, but focuses on revenue, gross profit, and net income. Expense information, including cost of sales, can be easily computed from the provided information. These segment (and consolidated) measures of profitability are shown in the statements of operations. The measure of segment assets are reported on the balance sheets as total assets.

***16.*** **SUBSEQUENT EVENTS**

Management has evaluated events that have occurred subsequent to the date of these condensed consolidated financial statements through the date of filing. Based upon this review, the Company identified the following subsequent event that requires disclosure but did *not* require adjustment to the financial statements.

In *February 2026,* the Company entered into an agreement to extend its lease in San Diego for an additional *seven*-month period, through *September 30, 2026.*

On *April 7, 2026,* the Company executed an Amended and Restated Employment Agreement with Desmond Wheatley, President and Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-29

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**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Beam Global** | **Beam Global** |
| Dated: April 9, 2026 | **By:** | **/s/ Desmond Wheatley** |
|  |  | Desmond Wheatley, Chief Executive Officer<br> President and Chairman |

---

**Power of Attorney**

Each person whose signature appears below constitutes and appoints each of Desmond Wheatley and Lisa A. Potok, true and lawful attorney-in-fact, with the power of substitution, for him in any and all capacities, to sign amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that said attorneys-in-fact, or his substitute or substitutes, may do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed by the following persons in the capacities and on the dates indicated:

---

| | | |
|:---|:---|:---|
| **Name** | **Title** | **Date** |
| **Principal Executive Officer:** |  |  |
| **/s/ Desmond Wheatley** | Chief Executive Officer, President and Chairman | April 9, 2026 |
| Desmond Wheatley |  |  |
| **Principal Financial Officer** <br> **and Principal Accounting Officer:** |  |  |
| **/s/ Lisa A. Potok** | Chief Financial Officer | April 9, 2026 |
| Lisa A. Potok |  |  |
| **Directors:** |  |  |
| **/s/ Anthony Posawatz** | Director | April 9, 2026 |
| Anthony Posawatz |  |  |
| **/s/ Judy Krandel** | Director | April 9, 2026 |
| Judy Krandel |  |  |
| **/s/ George Syllantavos** | Director | April 9, 2026 |
| George Syllantavos |  |  |
| **/s/ Desmond Wheatley** | Director | April 9, 2026 |
| Desmond Wheatley |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-30

## Exhibit 10.19

**EXHIBIT 10.19**

**AMENDED AND RESTATED**

**EMPLOYMENT AGREEMENT**

This Amended and Restated EMPLOYMENT AGREEMENT (this "Agreement") is effective as of the 1st day of January 2026, by and between Beam Global, a Nevada corporation (the "Company"), and Desmond Wheatley, an individual ("Employee"), and is made with respect to the following facts:

<u>R E C I T A L S</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company and the Employee entered into entered into that certain employment agreement effective as of January 1, 2016, as amended on July 24, 2018 and on January 1, 2021 (the "Original Employment Agreement").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Original Employment Agreement terminated on December 31, 2025, and, effective as of the date hereof, the parties desire to enter into this Amended and Restated Employment Agreement to set forth the terms and conditions of Employee's continued employment, including compensation and related arrangements, which supersedes and replaces the Original Employment Agreement in its entirety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The parties have entered into this Agreement for the purpose of setting forth the terms of employment of the Employee by the Company.

**NOW, THEREFORE**, in consideration of the premises and mutual covenants herein contained, **THE PARTIES HERETO AGREE AS FOLLOWS**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Employment of Employee and Duties</u>.** The Employee shall continue as the President and Chief Executive Officer and Corporate Secretary of the Company with all of the duties, privileges and authorities usually attendant upon such offices, including but not limited to responsibility for the day-to-day management of the Company's operations. Subject to (a) the general supervision of the Board of Directors, and (b) the Employee's duty to report to the Board of Directors periodically, as specified by them from time-to-time, Employee shall have all of the authority to perform his employment duties for the Company. During the term of this Agreement, Employee shall also be a member of the Company's Board of Directors and Chairman of the Board so long as the appropriate and sufficient votes from the Company's Board of Directors and shareholders support the Employee's Board membership and chairmanship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Time and Effort</u>**. Employee agrees to devote his full working time and attention to the management of the Company's business affairs, the implementation of its strategic plan, as determined by the Board of Directors, and the fulfillment of his duties and responsibilities as the Company's President and Chief Executive Officer and Corporate Secretary. Expenditure of a reasonable amount of time for personal matters and business and charitable activities shall not be deemed to be a breach of this Agreement, provided that those activities do not materially interfere with the services required to be rendered to the Company under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>The Company's Authority</u>.** Employee agrees to comply with the Company's rules and regulations as adopted by the Company's Board of Directors regarding performance of his duties, and to carry out and perform those orders, directions and policies established by the Company with respect to his engagement. Employee shall promptly notify the Company's Board of Directors of any objection he has to the Board's directives and the reasons for such objection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Noncompetition by Employee</u>**. During the term of this Agreement, the Employee shall not, directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, stockholder (in a private company), corporate officer, director, or in any other individual or representative capacity, engage or participate in any business that is in direct competition with the business of the Company or its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Term of Agreement</u>**. This Agreement shall continue until December 31, 2028, unless sooner terminated as provided in Section 15 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Confidential Information: Nondisclosure Covenant</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. **<u>Confidential Information</u>.** As used herein the term "Confidential Information" shall mean all customer and contract lists, records, financial data, trade secrets, business and marketing plans and studies, manuals for employee and personnel policies, manufacturing and/or production manuals, computer programs and software, strategic plans, formulas, manufacturing and production processes and techniques (including without limitation types of machinery and equipment used together with improvements and modifications thereon), tools, applications for patents, designs, models, patterns, drawings, tracings, sketches, blueprints, and all other similar information developed and/or used by the Company in the course of its business and which is not known by or readily available to the general public.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 **<u>Nondisclosure Covenant</u>.** Employee acknowledges that, in the course of performing services for and on behalf of the Company, Employee has had and will continue to have access to Confidential Information. Employee hereby covenants and agrees to maintain in strictest confidence all Confidential Information in trust for the Company, its successors and assigns, and to disclose such information only on a "need-to-know" basis in furtherance and for the benefit of the Company's business. During the period of Employee's employment with the Company and at any and all times following Employee's termination of employment for any reason, including without limitation Employee's voluntary resignation or involuntary termination with or without cause, Employee agrees to not misappropriate, utilize for any purpose other than for the direct benefit of the Company, or disclose or make available to anyone outside the Company's organization, any Confidential Information or anything relating thereof without the prior written consent of the Company, which consent may be withheld by the Company for any reason or no reason at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 **<u>Return of Property</u>**. Upon Employee's termination of his employment with the Company for any reason, including without limitation Employee's voluntary resignation or involuntary termination with or without cause, Employee hereby agrees to promptly return to the Company's possession all copies of any writings, computer discs or equipment, drawings or any other information relating to Confidential Information which are in Employee's possession or control. Employee further agrees that, upon the request of the Company at any time during Employee's period of employment with the Company, Employee shall promptly return to the Company all such copies of writings, computer discs or equipment, drawings or any other information relating to Confidential Information which are in Employee's possession or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 **<u>Rights to Inventions and Trade Secrets</u>**. Employee hereby assigns to the Company all right, title and interest in and to any ideas, inventions, original works or authorship, developments, improvements, or trade secrets which Employee solely or jointly has conceived or reduced to practice, or will conceive or reduce to practice, or cause to be conceived or reduced to practice during his employment with the Company. All original works of authorship which are made by Employee (solely or jointly with others) within the scope of Employee's services hereunder and which are protectable by copyright are "works made for hire," as that term is defined in the United States Copyright Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Noninterference and Nonsolicitation Covenants</u>**. In further reflection of the Company's important interests in its proprietary information and its trade, customer, vendor and employee relationships, Employee agrees that, during the 12 month period following the termination of Employee's employment with the Company for any reason, including without limitation Employee's voluntary resignation or involuntary termination for cause, Employee will not directly or indirectly, for or on behalf of any person, firm, corporation or other entity, (a) interfere with any contractual or other business relationships that the Company has with any of its customers, clients, service providers or materials suppliers as of the date of Employee's termination of employment, or (b) solicit or induce any employee of the Company to terminate his/her employment relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Compensation</u>**. During the term of this Agreement, the Company shall pay the following compensation to Employee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 **<u>Annual Compensation</u>**. Subject to periodic changes made upon the recommendation of the Compensation Committee of the Company's Board of Directors and approval of the Company's Board of Directors, Employee shall be paid a fixed salary of not less than $400,000 per annum, which will be paid in accordance with the Company payroll policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 **<u>Additional Compensation</u>**. In addition to the compensation set forth in Section 8.1 of this Agreement, Employee is eligible for a quarterly and/or annual bonus based upon criteria which will be set by the Board of Directors (the "Bonus Potential"). Employee's total bonus will be based on the Board of Directors' evaluation of the Employee's definable efforts, accomplishments and similar contributions. The bonus will also be based on a consideration of increases in shareholder value, efforts made by the Employee to effect mergers or acquisitions for the Company, if applicable, and other positive results for shareholders based on efforts by the Employee. The Employee's individual performance goals will be duly adopted by the Board of Directors at least annually and no later than the last business day of the first calendar quarter of any given year. In the absence of a written indication of the Employee's Bonus Potential by resolution duly adopted by the Company's Board of Directors, "Bonus Potential" for the purpose of this Agreement will mean 100% of Annual Compensation per annum, pro-rated for partial years. An indication of Bonus Potential for a fiscal year will be deemed to cover all fiscal quarters within such fiscal year. Any quarterly bonus due for a particular fiscal quarter will be paid within fifteen (15) days following the end of each such Company fiscal quarter. Any annual bonus earned will be paid within thirty (30) days) following the filing of the Company's Form 10k for the fiscal year for which the annual bonus was earned. The Employee must be an active employee of the Company at the end of each fiscal quarter during the period for which the quarterly bonus is earned to receive bonuses. Annual bonuses will be deemed earned by the Employee on the 31<sup>st</sup> day of December of the year for which the bonus is earned and will be paid to the Employee in accordance with this section 8.2 of the Agreement regardless of the Employees employment status with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 **<u>Stock Incentives</u>**. Upon recommendation of the Compensation Committee of the Company's Board of Directors and approval of the Company's full Board of Directors, the Employee may be granted additional stock or stock options to purchase additional stock of the Company, depending on the achievement of Company operating milestones such as annual gross revenue and EBIDTA, or time served as an employee, to be established by the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Fringe Benefits</u>**. Employee shall be entitled to all fringe benefits that the Company or its subsidiaries may make available from time-to-time for persons with comparable positions and responsibilities. Without limitation, such benefits shall include participation in any life and disability insurance programs, profit incentive plans, pension or retirement plans, and bonus plans as are maintained or adopted from time-to-time by the Company. The Company shall also provide Employee with any medical and dental group insurance coverage or equivalent coverage for Employee and his dependents as are maintained or adopted from time-to-time by the Company. The medical and dental insurance coverage shall begin at such time as the Company adopts such plans and shall continue throughout the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Office and Staff</u>**. In order to enable Employee to discharge his obligations and duties pursuant to this Agreement, the Company agrees that it shall provide suitable office space for Employee in San Diego, California, or such other location as is mutually agreed by the Employee and the Board of Directors, together with all necessary and appropriate supporting staff and secretarial assistance, equipment, stationary, books and supplies as the Company can reasonably make available as it evolves. Employee agrees that the office space and supporting staff presently in place is suitable for the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Reimbursement of Expenses</u>**. The Company shall reimburse Employee for all reasonable travel, mobile telephone, promotional and entertainment expenses incurred in connection with the performance of Employee's duties hereunder, subject to Section 12 of this Agreement with respect to automobile expenses. Employee's reimbursable expenses shall be paid promptly by the Company upon presentment by Employee of an itemized list of invoices describing such expenses. All compensation provided in Sections 8, 9, 11 and 12 of this Agreement shall be subject to customary withholding tax and other employment taxes, to the extent required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Automobile</u>**. Notwithstanding anything else herein to the contrary, the Company shall pay to the Employee a fixed amount equal to the standard published governmental mileage rate per mile for each mile driven for Company business during the term of this Agreement as reimbursement to the Employee for all expenses incurred by the Employee for the use of his automobile for Company business purposes, including but not limited to depreciation, repairs, maintenance, gasoline and insurance. After the expiration of the first year of the term of this Agreement, the Company's Board of Directors will review and may in its discretion determine to increase the Employee's automobile allowance or authorize the Company to lease an automobile for the Employee. Employee shall not be entitled to any other reimbursement for the use of his automobile for business purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Vacation</u>**. Employee shall be entitled to six weeks of paid vacation per year or pro rata portion of each year of service by Employee under this Agreement, not to be taken consecutively without the prior approval of the Company's Board of Directors, which will not be unreasonably withheld. The Employee shall be entitled to the holidays provided in the Company's established corporate policy for employees with comparable duties and responsibilities. Vacation will be earned and accrued on a prorated basis throughout a given employment year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Rights In And To Inventions And Patents</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 **<u>Description of Parties' Rights</u>**. The Employee agrees that with respect to any inventions made by him or the Company during the term of this Agreement, solely or jointly with others, (i) which are made with the Company's equipment, supplies, facilities, trade secrets or time, or (ii) which relate to the business of the Company or the Company's actual or demonstrably anticipated research or development, or (iii) which result from any work performed by the Employee for the Company, such inventions shall belong to the Company. The Employee also agrees that the Company shall have the right to keep such inventions as trade secrets, if the Company chooses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 **<u>Disclosure Requirements</u>**. For purposes of this Agreement, an invention is deemed to have been made during the term of this Agreement if, during such period, the invention was conceived or first actually reduced to practice. In order to permit the Company to claim rights to which it may be entitled, the Employee agrees to disclose to the Company in confidence the nature of all patent applications filed by the Employee during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Termination</u>**. This Agreement may be terminated in the following manner and not otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 **<u>Mutual Agreement</u>**. This Agreement may be terminated by the mutual written agreement of the Company and Employee to terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 **<u>Termination by Employee for Breach</u>**. Employee may at his option and in his sole discretion terminate this Agreement for the material breach by the Company of the terms of this Agreement if the Company has not cured the breach within 30 days of receipt of written notice of the breach from the Employee. In the event of such termination, Employee shall give the Company 30 day's prior written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 **<u>Termination by the Company for Breach</u>**. The Company may at its option terminate this Agreement in the event that the Employee breaches this Agreement, is convicted of committing a felony under federal, state or local law, commits gross negligence in the performance of his duties under this Agreement, or breaches his fiduciary duty to the Company, to the Board of Directors or to the Company's shareholders; provided, however, that the Company shall give the Employee written notice of specific instances for the basis of any termination of this Agreement by the Company pursuant to Section 15.3 of this Agreement. Employee shall have a period of 10 days after said notice in which to cease the alleged violations before the Company may terminate this Agreement. If Employee ceases to commit the alleged violations within said 10-day period, the Company may not terminate this Agreement pursuant to this Section. If Employee continues to commit the alleged violations after said 10-day period, the Company may terminate this Agreement immediately upon written notification to Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 **<u>Termination Upon Death</u>**. This Agreement shall terminate upon the death of the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5 **<u>Termination Upon the Disability of the Employee</u>**. This Agreement shall terminate upon the disability of the Employee. As used in the previous sentence, the term "disability" shall mean the complete disability to discharge Employee's duties and responsibilities for a continuous period of not less than six months during any calendar year. Any physical or mental disability which does not prevent Employee from discharging his duties and responsibilities in accordance with usual standards of conduct as determined by the Company in its reasonable opinion shall not constitute a disability under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6 **<u>Termination As A Result of A Change in Control of the Company</u>**. In the event of a Change in Control (as defined below) of the Company, if the Employee, negotiating in good faith, is unable to come to an agreement with the surviving Company regarding an employment agreement, then the Employee may terminate this Agreement.

"Change in Control" means the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity's securities outstanding immediately after such merger, consolidation or other reorganization is not owned by persons who were stockholders of the Company immediately prior to such merger, consolidation or other reorganization, in substantially the same relative proportions as their ownership of the combined voting power of the Company immediately prior to such merger, consolidation or other reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) There is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company to an entity, more than 50% of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) When a majority of the incumbent directors on the Board are replaced by new directors within any 18 month period; provided, however, that each director (i) whose election has been approved by a vote of at least a majority of the directors who were either incumbent directors at the beginning of the period or elected or nominated in accordance with clause (i) or (ii) of this Section during such period or (ii) whose nomination for election by the Company's stockholders has been approved by a committee of the Board, a majority of whose members are directors who were either incumbent directors at the beginning of the period or elected or nominated in accordance with clause (i) or (ii) of this Section during such period shall be deemed to be an "incumbent director" and not a "new director" for purposes of this Section; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any "person" that (as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) by the acquisition or aggregation of securities is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company's then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the "Base Capital Stock"); except that any change in the relative beneficial ownership of the Company's securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person's ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person's beneficial ownership of any securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7 **<u>Other Termination by Employee</u>**. If this Agreement is terminated by Employee in writing for a reason other than the Company's breach of this Agreement (i.e. voluntary resignation) then (a) Employer shall not be entitled to assert any claim against the Employee for consequential or indirect damages or for lost profits as a result of the termination; and (b) Employee shall not be entitled to any rights set forth in Section 16 of this Agreement except that Employee shall be entitled to the right to exercise vested restricted stock or stock options, if any, for a period of 90 days after the date of the written notification of termination by the Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Termination Without Cause</u>**. If this Agreement is terminated by Employee for any reason pursuant to Section 15.2 or 15.6 of this Agreement or by the Company in any manner except specifically in accordance with Section 15.1, 15.3, 15.4 or 15.5 of this Agreement, then (i) the Company shall immediately pay to the Employee a lump sum payment in cash equal to four (4) times the Employee's then Annual Compensation, or in the event of a termination as a result of a Change in Control of the Company, the Company shall also immediately pay to Employee a lump sum payment in cash equal to four (4) times the Employee's then Annual Compensation, in either case as full accord and satisfaction of all amounts then owed by the Company to the Employee under Section 8.1 and 8.2 of this Agreement, (ii) Employee shall be entitled to all of the benefits under Section 9 of this Agreement, as amended, for a period of two years from the termination, and (iii) if applicable, all unvested restricted stock or stock options owned by Employee will immediately vest, and Employee shall be entitled to exercise all vested stock options which he owns for a period of 90 days after the date of termination. It is specifically agreed that in such event Employee shall have no duty to mitigate his damages by seeking comparable, inferior or different employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Assignability of Benefits</u>**. Except to the extent that this provision may be contrary to law, no assignment, pledge, collateralization or attachment of any of the benefits under this Agreement shall be valid or recognized by the Company. Except as provided by law, payment provided for by this Agreement shall not be subject to seizure for payment of any debts or judgments against the Employee, nor shall the Employee have any right to transfer, modify, anticipate or encumber any rights or benefits hereunder; provided that any stock issued by the Company to the Employee pursuant to this Agreement shall not be subject to Section 17 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Indemnification of Employee</u>**. The Company shall indemnify and hold Employee harmless as provided in Sections 18.1, 18.2 and 18.3 of this Agreement. The Company shall, upon the request of Employee, assume the defense and directly bear all of the expense of any action or proceedings which may arise for which Employee is entitled to indemnification pursuant to this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 **<u>Indemnification of Employee for Actions by Third Parties</u>**. The Company hereby agrees to indemnify and hold Employee harmless from any liability, claims, fines, damages, losses, expenses, judgments or settlements actually incurred by him, including but not limited to reasonable attorneys' fees and costs actually incurred by him as they are incurred, as a result of Employee being made at any time a party to, or being threatened to be made a party to, any proceeding (other than an action by or in the right of the Company, which is addressed in Section 18.2 of this Agreement), relating to actions Employee takes within the scope of his employment as the President, Chief Executive Officer and Corporate Secretary of the Company or in any other employment capacity, or in his role as a director of the Company, provided that Employee acted in good faith and in a manner he reasonably believed to be in the best interest of the Company and, in the case of a criminal proceeding, had no reasonable cause to believe his conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2 **<u>Indemnification of Employee for Actions in the Right of the Company</u>.** The Company hereby agrees to indemnify and hold Employee harmless from any liability, claims, damages, losses, expenses, judgments or settlements actually incurred by him, including but not limited to reasonable attorneys' fees and costs actually incurred by him as they are incurred, as a result of Employee being made a party to, or being threatened to be made a party to, any proceeding by or in the right of the Company to procure a judgment in its favor by reason of any action taken by Employee as an officer, director or agent of the Company, provided that Employee acted in good faith in a manner he reasonably believed to be in the best interests of the Company and its shareholders, and provided further, that no indemnification by the Company shall be required pursuant to this Section 18.2 (i) for acts or omissions that involve intentional misconduct or a knowing and culpable violation of law, (ii) for acts or omissions that Employee believed to be contrary to the best interests of the Company or its shareholders or that involve the absence of good faith on the part of Employee, (iii) for any transaction from which Employee derived an improper personal benefit, (iv) for acts or omissions that show a reckless disregard by Employee of his duties to the Company or its shareholders in circumstances in which Employee was aware, or should have been aware, in the ordinary course of performing his duties, of a risk of serious injury to the Company or its shareholders, (v) for acts or omissions that constitute an unexcused pattern of inattention that amounts to an abdication of Employee's duties to the Company or its shareholders, or (vi) for any other act by Employee for which Employee is not permitted to be indemnified under the Nevada General Corporations Law and, if applicable, the California Corporations Code. Furthermore, the Company has no obligation to indemnify Employee pursuant to this Section 18.2 in any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** In respect of any claim, issue, or matter as to which Employee is adjudged to be liable to the Company in the performance of his duties to the Company and its shareholders, unless and only to the extent that the court in which such action was brought determines upon application that, in view of all the circumstances of the case, he is fairly and reasonably entitled to indemnity for the expenses and then only in the amount that the court shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** In the event of the application of Section 18.2(A), then for amounts paid in settling or otherwise disposing of a threatened or pending action without court approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** In the event of the application of Section 18.2(A), then for expenses incurred in defending a threatened or pending action which is settled or otherwise disposed of without court approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3 **<u>Reimbursement</u>**. In the event that it is determined by a trier of fact that Employee is not entitled to indemnification by the Company pursuant to Sections 18.1 or 18.2 of this Agreement, then Employee is obligated to reimburse the Company for all amounts paid by the Company on behalf of Employee pursuant to the indemnification provisions of this Agreement. In the event that Employee is successful on the merits in the defense of any proceeding referred to in Sections 18.1 or 18.2 of this Agreement, or any related claim, issue or matter, then the Company will indemnify and hold Employee harmless from all fees, costs and expenses actually incurred by him in connection with the defense of any such proceeding, claim, issue or matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Directors' and Officers' Liability Insurance</u>**. The Company will utilize its best efforts in good faith to purchase directors' and officers' liability insurance for the officers and directors of the Company, which would include the same coverage for Employee. The Company covenants to maintain in effect a directors' and officers' liability insurance policy on the same terms and conditions as applicable to all other officers and directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Notice</u>**. All notices and other communications required or permitted hereunder shall be in writing or in the form of an e-mail (confirmed in writing) to be given only during the recipient's normal business hours unless arrangements have otherwise been made to receive such notice by e-mail outside of normal business hours, and shall be mailed by registered or certified mail, postage prepaid, or otherwise delivered by hand, messenger, or e-mail (as provided above) addressed (a) if to the Employee, at the address for such Employee set forth on the signature page hereto or at such other address as such Employee shall have furnished to the Company in writing or (b) if to the Company, to its principal executive offices and addressed to the attention of the Chairman, or at such other address as the Company shall have furnished in writing to the Employee.

**In case of the Company:**

Beam Global.

5660 Eastgate Drive

San Diego, CA 92121

Attention: Chairman

**In case of the Employee:**

Desmond Wheatley

the address on file with the Company as supplied by Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **<u>Attorneys' Fees</u>**. In the event that any of the parties must resort to legal action in order to enforce the provisions of this Agreement or to defend such suit, the prevailing party shall be entitled to receive reimbursement from the nonprevailing party for all reasonable attorneys' fees and all other costs incurred in commencing or defending such suit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **<u>Entire Agreement</u>**. This Agreement embodies the entire understanding among the parties and merges all prior discussions or communications among them, and no party shall be bound by any definitions, conditions, warranties, or representations other than as expressly stated in this Agreement or as subsequently set forth in a writing signed by the duly authorized representatives of all of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **<u>No Oral Change; Amendment</u>**. This Agreement may only be changed or modified and any provision hereof may only be waived by a writing signed by the party against whom enforcement of any waiver, change or modification is sought. This Agreement may be amended only in writing by mutual consent of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **<u>Severability</u>**. In the event that any provision of this Agreement shall be void or unenforceable for any reason whatsoever, then such provision shall be stricken and of no force and effect. The remaining provisions of this Agreement shall, however, continue in full force and effect, and to the extent required, shall be modified to preserve their validity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **<u>Applicable Law</u>**. This Agreement shall be construed as a whole and in accordance with its fair meaning. This Agreement shall be interpreted in accordance with the laws of the State of California, and venue for any action or proceedings brought with respect to this Agreement shall be in the County of San Diego in the State of California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **<u>Successors and Assigns</u>**. Each covenant and condition of this Agreement shall inure to the benefit of and be binding upon the parties hereto, their respective heirs, personal representatives, assigns and successors in interest. Without limiting the generality of the foregoing sentence, this Agreement shall be binding upon any successor to the Company whether by merger, reorganization or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. **Application of Internal Revenue Code Section 409A**. (a) Notwithstanding anything to the contrary contained in this Agreement, if any payment or reimbursement, or the provision of any benefit under this Agreement that is paid or provided upon Employee's "separation from service" with the Company within the meaning of the Internal Revenue Code of 1986, as amended (the "Code"), Section 409A(a)(2)(A)(i) and would constitute a "deferral of compensation" under Code Section 409A and Employee is a "specified employee" (as determined pursuant to procedures adopted by the Company in compliance with Code Section 409A) on the date of Employee's "separation from service" with the Company within the meaning of Code Section 409A(a)(2)(A)(i), Employee will receive payment or reimbursement of such amounts or the provision of such benefits upon the earlier of (i) the first day of the seventh month following the date of Employee's "separation from service" with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code or (ii) Employee's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent applicable, it is intended that this Agreement comply with the provisions of Code Section 409A, so that the income inclusion provisions of Code Section 409A(a)(1) do not apply to Employee. This Agreement shall be administered in a manner consistent with this intent. Reference to Code Section 409A is to Section 409A of the Internal Revenue Code of 1986, as amended, and will also include any regulations or any other formal guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. **Code Section 280G.** If any payment or benefit Employee would receive from the Company or otherwise ("Payment") would (i) constitute a "parachute payment" within the meaning of Code Section 280G, and (ii) but for this sentence, be subject to the excise tax imposed by Code Section 4999 (the "Excise Tax"), then the Company shall cause to be determined, before any amounts of the Payment are paid to Employee, which of the following two amounts would maximize Employee's after-tax proceeds: (i) payment in full of the entire amount of the Payment (a "Full Payment"), or (ii) payment of only a part of the Payment so that Executive receives the largest payment possible without the imposition of the Excise Tax (a "Reduced Payment"), whichever amount results in Employee's receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. For purposes of determining whether to make a Full Payment or a Reduced Payment, the Company shall cause to be taken into account all applicable federal, state and local income and employment taxes and the Excise Tax (all computed at the highest applicable marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes). If a Reduced Payment is made, (i) the Payment shall be paid only to the extent permitted under the Reduced Payment alternative, and Employee shall have no rights to any additional payments and/or benefits constituting the Payment, and (ii) reduction in payments and/or benefits shall occur in the following order: reduction of cash payments, cancellation of accelerated vesting of stock awards, and reduction of other benefits. In the event that acceleration of compensation from Employee's equity awards is to be reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant unless Employee elects in writing a different order for cancellation.

[SIGNATURES ON FOLLOWING PAGE]

**IN WITNESS WHEREOF**, the parties hereto have executed this Amended and Restated Employee Agreement as of April 7, 2026.

---

| | | |
|:---|:---|:---|
| **THE COMPANY:** |  | **Beam Global** |
|  |  | a Nevada corporation |
| **BEAM GLOBAL**<br> a Nevada corporation |  |  |
| <u>/s/ Lisa A. Potok</u><br> Lisa A. Potok<br> Chief Financial Officer |  |  |
| **EMPLOYEE:** | By:  | /s/ Desmond Wheatley |
|  |  | Desmond Wheatley |

---

<u>/s/ Desmond Wheatley</u>

Desmond Wheatley

## Exhibit 21.1

**EXHIBIT 21.1**

**SUBSIDIARIES OF BEAM GLOBAL**

---

| | |
|:---|:---|
| **Name** | **State/Jurisdiction of Formation** |
| Amiga Doo Kraljevo, a Serbian company | Serbia |
| Telcom Doo Beograd | Serbia |

---

## Exhibit 23.1

**EXHIBIT 23.1**

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-272396) and Form S-8 (Nos. 333-248441 and 333-260036) of our report dated April 9, 2026, with respect to the consolidated financial statements of Beam Global included in this Annual Report on Form 10-K for the year ended December 31, 2025.

/s/ CBIZ CPAs P.C.

New York, NY

April 9, 2026

## Exhibit 23.2

**EXHIBIT 23.2**

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-272396) and Form S-8 (Nos. 333-248441 and 333-260036) of our report dated April 11, 2025, with respect to the consolidated financial statements of Beam Global for the year ended December 31, 2024 included in this Annual Report on Form 10-K for the year ended December 31, 2025.

/s/ Marcum LLP

New York, NY

April 9, 2026

## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION**

I, Desmond Wheatley, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form 10-K of Beam Global;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (of persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date: April 9, 2026

<u>/s/</u> **<u>Desmond Wheatley</u>**<br> Desmond Wheatley, Chief Executive Officer<br> and President (Principal Executive Officer)<br>

## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION**

I, Lisa A. Potok, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form 10-K of Beam Global;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (of persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date: April 9, 2026

<u>/s/</u> **<u>Lisa A. Potok</u>**<br> Lisa A. Potok,<br> Chief Financial Officer<br> (Principal Financial and Accounting Officer)<br>

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Beam Global (the "Company") on Form 10-K for the period ending December 31, 2025 (the "Report") I, Desmond Wheatley, Chief Executive Officer of the Company, certify, pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| /s/ **Desmond Wheatley** | Date: April 9, 2026 |
| Desmond Wheatley, Chief Executive Officer |  |
| and President (Principal Executive Officer) |  |

---

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

## Exhibit 32.2

**EXHIBIT 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Beam Global (the "Company") on Form 10-K for the period ending December 31, 2025 (the "Report") I, Lisa A. Potok, Chief Financial Officer of the Company, certify, pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| **/s/ Lisa A. Potok** | Date: April 9, 2026 |
| Lisa A. Potok, Chief Financial Officer |  |
| (Principal Financial/Accounting Officer) |  |

---

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.