Good afternoon, and welcome to the Beam Global 2025 Year-End Operating Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Lisa Potok, CFO. Please go ahead.

Hi. Good afternoon, and thank you for participating in Beam Global's 2025 Year-End Operating Results Conference Call. We appreciate you joining us today to hear an update on our business. Desmond Wheatley, President, CEO and Chairman of Beam Global, is joining me by phone from Europe on his way to the Middle East. Hopefully, we do not have any technical difficulties during this call. Desmond will be giving his thoughts on 2025 and providing an update on recent activities at Beam, followed by a question-and-answer session. But first, I'd like to communicate to you that during this call, management will be making forward-looking statements, including statements that address Beam's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Beam's most recently filed Form 10-K and other periodic reports filed with the SEC. The content of this call contains time-sensitive information that is accurate only as of today, April 9, 2026. Except as required by law, Beam disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. While 2025 presented near-term revenue headwinds driven by the U.S. federal government reversing its fleet electrification program, it also marked a pivotal inflection point for Beam Global. We significantly reduced our reliance on government customers, expanded into international markets and exited the year with a strong momentum. I'll start with a few key highlights. We delivered 56% sequential revenue growth from Q3 to Q4 of '25, and we fundamentally reshaped our revenue mix. Commercial customers represented 72% of revenue in '25, up from 38% in 2024. And 70% of our Q4 revenue came from…

Well, thanks very much for that, Lisa. And thanks to all of you for joining this call. As Lisa pointed out, I am, in fact, in transit on my way to the Middle East at the moment. And so I don't have 100% faith in the connection that I'm on at the moment. But I'm going to go along with it, and I appreciate all of your patience and hanging in there with me. Timing wasn't ideal, but we're going to get it done anyway. So Lisa just went through the numbers with you, a lot of noncash stuff in there. I'm going to repeat a little bit of what she said because I just want to make sure we make this really clear. And I really encourage you all to take a look at the noncash business, particularly where that impairment of goodwill is concerned because that was a big hit to us. And again, nothing whatsoever to do with our feeling about the value of our acquisitions, but I'll cover that again a bit in a minute. In the fourth quarter of 2025, as she said, we did increase our revenues by 50% over the prior quarter, and that was about 7% increase over the same quarter prior year. At the same time, we reduced our operating costs and improved our gross margins, net of noncash items. We did all of this despite having no contributions to our revenues from our historically largest customer, the U.S. federal government, and despite putting in place several new avenues for sustainable growth like the formation of Beam Middle East, for example. The growth came as a result of our getting our existing and really importantly, new products in front of customers on whom we've not previously focused our sales efforts, both…

[Operator Instructions] The first question is from Craig Irwin with ROTH Capital Partners.

Great. First, congrats, the numbers were actually a little better than what we were looking for. It's an accomplishment in this environment, for sure. So my first question is this, 70% of revenue in the fourth quarter came from new products. Are there any products that you would specifically call out as a large contribution in there, something that's really catching wind in its sales in the market? And then the 6 and change in revenue that they contributed, do you have an approximate number for the year ago? Or is this all fresh revenue in '25? Just so we can get a frame on the organic growth rate there.

Yes. So certainly, our smart cities infrastructure products are contributing significantly. And of course, a lot of that's also contributing to our international growth. Energy storage has picked up its head. And then we just have a much broader selection of products now, Craig. So it's not even that specifically any one of them is pulling hard away from the others. It's just that what's really different about our business is, as I said during my comments, we only ever really had that single -- the EV ARC product. It was fantastically successful with it for many years, and we still are selling a lot of them, but I think the big thing now is just that we are -- we have a much more diversified group of products, and we're taking revenue from all of them one way or another. Sorry, you asked -- you were talking about the backlog, presumably, 6 million of backlog.

Sorry, not the -- I will ask about the backlog, but the revenue from that 70% from new products, right, $6.3 million. How many of those products were sold last year? And can you give us an approximate sort of year-over-year growth rate if there was a revenue contribution from them last year?

That's been really -- the growth rate has been really significant. I don't actually have the exact numbers percentage year-over-year growth, but it's -- but most of them are new. And so the growth rate has been really significant for us. Now we've had the energy storage business for some time. We've been making batteries for some time, but we're just getting a lot better about how we -- how and what we target. And of course, we acquired much of the smart cities infrastructure business with -- through our acquisition in Serbia, but we've made that a very different business. It's -- they're very much modernized and up to date and doing some really exciting things now, which they didn't do in their history. Not because they weren't willing, but they just didn't have the technology and the other things that we're bringing to the table. And so it's been a really good marriage from that point of view.

That's good to hear. So then the backlog, right? $8 million, you are obviously executing because I know you book and ship pretty quick. Are there areas in the backlog where you feel that things are building, maybe supply chain is limiting your ability to ship that maybe we could have had a bigger quarter in the fourth quarter? Is there anything that you would call out in backlog as sort of indicative of changing momentum in the business after the strong finish in '25?

No. So it's a good -- I'm glad you asked that question because, actually, I should have been specific that, that backlog that we have will all be -- I mean, with possible of some minor and immaterial exceptions that will all be executed upon in the next quarter or 2. So it's -- none of it -- these are long-term sort of contracts that we're going to be taking money from in years to come. Not materially. There are a couple of little things in there. So that's the first thing to understand about it. From a supply chain point of view, we're doing pretty well where that's concerned. But one thing, again, that our acquisition in Europe has done has allowed us to spread things out across the year a little bit better. That said, first quarter is historically a slow quarter for us. It's a slow quarter in the infrastructure business. It's also a slow quarter in Europe, particularly in the Balkans because their Christmas and New Year extends halfway through January, and there are other weather-related things. But the good news is that the backlog that we do have right now will all convert -- materially, all convert in a short few number of months. And of course, as you can see, we had $6 million at 12/31. We now have $9 million. As you can no doubt, we imagine we have revenue quite a bit in the first quarter as well. And so we're clearly adding to it. More than just replacing it, we're adding to it.

Understood. Understood. Last question, if I may. So the re-up on GSA is encouraging. Can you maybe clarify for us if this could include slightly different formats of your existing products? There's -- there are emerging applications like drones out there where the government needs these for remote monitoring and other applications, and powering these drones is often quite problematic. I'm not calling that out as the example, but there will be other similar examples. If you were to have to modify the platform, is this something that could be covered under the GSA purchasing agreement at this time?

So better than modifying it, we actually have our patented BeamFlight product, and this is exactly what you've just essentially described. This is essentially an EV ARC, but for drones. It has a completely different form factor, but the same underlying technology. And we are able to deploy it in contested environments on borders anywhere, frankly, without any type of infrastructure requirement. No construction, no electrical work. It generates and stores its own electricity. Drones can land on it autonomously, refuel and take off. Now I've had a pan on that for a couple of years. We haven't been able to do very much with it because as you know, until the last couple of years, drones haven't really taken off, to give the pan. But they are taking off in a major way right now. And we expect to see a lot of business on that -- from that product and also from the fact that we're now putting, we're making bespoke and highly energy dense batteries for drones in a way that nobody else is able to, to my knowledge. To be specific to answer your question, that is not covered under our existing GSA contract. However, I do think it's very encouraging that GSA renewed our contract. I mean, they don't -- they're not out looking for work for nothing. There's a reason that they did that. And we believe that the long-term view is that electrification is going to play a major role in their future plans. And frankly, we've had enough conversations with people within the federal government to know that they believe that, too. The next thing for us to do will, of course, be to do as we've done in the past with some of these big purchasing contracts where we add product.…

The next question is from Tate Sullivan with Maxim Group.

Good to hear from you, Desmond. Can you just -- I didn't hear -- can you talk about BeamSpot a bit? Is BeamSpot in any of the backlog? Or are you focusing sales efforts regionally, anywhere? A little detail on that, please.

Yes. Yes. So BeamSpot is a bit of a paradigm. I love that product. And yes, it's great to say that it is now in the backlog. And actually, the deployment that's in the backlog right now is very exciting because, as I said in my comments, it's not just BeamSpot. It's a combination of BeamSpot, EV ARC, BeamBike and a whole bunch of our other stuff under a single project, which -- we're -- that's been one of our goals and part of our strategy for a long time is to create -- become a solutions provider and create ecosystems with our products. And although they all have the same underlying technology largely, they do a lot of different things for customers, and it's just great to see it coming together. Beyond that, the other thing that's important to mention about BeamSpot is, as you probably remember, one of the deciding factors in my acquiring the company that we acquired in Serbia, which is now Beam Europe, was that, that turned us into the fourth largest streetlight manufacturer. Don't quote me on that. It might be the fifth or the sixth largest or the third largest. I think it moves around a little bit. But certainly, in top single digits, largest streetlight manufacturer in Europe. And they -- what they've done with manufacturing of BeamSpot and improving it and getting it going has been fantastic. And on top of that, I additionally acquired a power electronics firm in Serbia, which allowed us to put bespoke power electronics in the latest version of BeamSpot. So look, said another way, I can presell the negative, if you like. We were probably a little early on releasing BeamSpot because we didn't really know how to sell it, and we've made some very significant upgrades to it. We are much better at knowing how to sell it now, and we have made those upgrades to it. Now it's much more manufacturable than everything else. And I think you're going to see a lot more of it deployed in the near future and adding to our backlog.

Great to hear. And then is your primary assembly manufacturing facility now in Serbia Are you doing some of the battery storage work there as well? Or can you talk about the footprint in manufacturing footprint?

Yes. Yes. No, the answer is no. We are -- Chicago is still, without a question, our battery center of excellence. That's where our scientists and our engineers and technologists who are used to doing that. However, it is part of my plan in the future to start battery manufacturing in Serbia with the excellence and understanding that we have from our Chicago facility. But manufacturing, we're certainly very good at manufacturing in Serbia. BeamSpot will, from a structural elements point of view, certainly be manufactured in Serbia because a lot of it is automated, and we just don't have the machines and everything in the U.S. to do that. We're still manufacturing in the U.S. Frankly, I would have done a lot more manufacturing in Serbia and probably brought some of that into this country if it wasn't for the tariffs. Serbia was hit with 37% tariffs, which is 1 of the highest of all the countries in the world, even though the entire trade is about $800 million. This is a drop in the bucket. Something about the magic in the equations that were used to work out these tariffs. Now of course, those tariffs have been judged illegal or whatever by the Supreme Court, but there is still other tariffs, Section 232 and 300 and so on, that we have to contend with. So that put a bit of a fly in the ointment for the plan there. But now, of course, Beam Europe is the manufacturing center for our beginning efforts in Beam Middle East. Until we get to enough volume there to be manufacturing there, we will use the Serbia as a factory for all of Europe and the Middle East and indeed, into Africa. And by the way, I didn't mention it in the call, but I'm going to East Africa next week. I'll be in Kenya, Tanzania and Rwanda. I'm not going there for sun time. I'm going to because we have tremendous opportunities there as well. And Serbia will be the manufacturing for that again until we get to sufficient volume to do it in the UAE.

The next question is from Ryan Pfingst with B. Riley FBR.

I wanted to come back to the battery product and drone opportunity. You mentioned the energy density. Can you just talk about some of the battery characteristics that make it an attractive product for drone manufacturers, perhaps even what the specific energy density actually is of your battery product? And is the opportunity mainly here in the U.S.? Or is there interest that you're fielding internationally as well?

Yes, those are all great questions. Thank you. So let's start with what differentiates us and why we would be interesting to a company like Ray Systems or to the several there. By the way, just to start off, we put batteries in more drones than I can talk about. Drone manufacturers are quite jealous of their proprietary information. And I wish -- there was a couple of names I wish I could mention to you right now, but I'm not allowed to. We have confidentiality agreements with them. But I just want you on the call to understand it's more than one. It's many, and there are really specific reasons that we do it. So to your questions. First of all, most people, as you know, make batteries that are square or rectangles. Now, I have an engineering background. If I'm going to build a drone, I do not want to build it around somebody else's square or rectangle. Beam, we are able to make bespoke shaped batteries. We can fit energy storage into confined real estate spaces, and we're not slaves to squares and rectangles. And that's really important when you're making drones, particularly the higher up the value chain they are in terms of their missions that they've got to perform. Ray System is a perfect example of this, an incredible device that travels silently underwater over a great distance, almost impossible to detect. They can't just be putting a big lumpy rectangle or square in there. And so our ability to give them energy density and bespoke shapes and real estate is really important. The second thing is, yes, we can increase the energy density. We do increase the energy density. And most of that comes down to our proprietary and patented thermal energy management solutions.…

Great. I appreciate all that detail, Desmond. And then just switching gears and thinking about this year from a high level and understanding there's a lot of moving parts. But could you give some insight on how you're thinking about 2026 from a growth perspective or perhaps a product mix perspective?

Right. Well, so first of all, full disclosure, I'm really s*** at forecasting things. I did not see the election coming. I did not see this war coming right now. I mean, I think we've all seen it coming for a little while. There's a whole lot of things I didn't see coming. So I'm just qualifying what I'm about to tell you by saying that. Because I recognize that about myself, and I think just about any human being, I don't know anybody that can properly forecast these things, the most important takeaway and the most important answer to your question is diversification. What we have done is we have immunized ourselves from the situation that we were in before. And you can say shame on us, but remember, we did $6 million, $9 million, $22 million, $70 million in revenue in those years, selling that EV ARC product. So I think it was appropriate that we stayed the course with that. But we've immunized ourselves from that kind of product concentration and customer concentration. We now have this broad portfolio of products. We're now selling not just in one country, but internationally. So if I was going to answer your question without getting into specific because as I've already said, I'm pretty rubbish at forecasting those kind of things, what I will tell you is this. It makes sense that with a diversified set of products, all of them are very relevant. Energy storage, autonomous vehicles, drones, electrification, smart cities. All these things are very relevant. We're now selling them. We've already sold into 23 nations. We're now selling them globally. We just opened Beam Middle East. So 2026 is going to be a story of diversification and growth and sustainability because if we have a failure in one market or with one product, all the others will continue to operate. That has not been our history, and we paid the price for that heavily in 2025. It was -- in my way -- in many ways, the most challenging year of our history, and we've had some doozies, but we are immunizing ourselves and we're creating opportunities that will not be negatively impact in that way. So sorry, it's a long-winded answer, but the correct answer to your question is revenue will be from diversified products from diversified customers, from diversified geographies, and that's exactly what I want it to be.

The next question is from Noel Parks with Tuohy Brothers Investment Research.

Great. In particular, I was interested in your comments on the smart cities infrastructure products. I just was curious a little bit about the sales process for those. I was wondering if it's more of sort of a push or pull type situation, such as -- are you at Beam sort of presenting the vision to customers for what might be achievable and how they can kind of future-proof themselves? Or is it more of that sort of an incoming planned integrated strategy like sort of formal RFPs coming in that you're responding to?

Right. So another reason that I acquired the company that we acquired that's now Beam Europe is because I really wanted us to get heavily into this space. I love stuff that looks boring, and then the fact is really interesting. So streetlight is a perfect example. What can be more boring than a street light? But if you think about what streetlight is, it's a piece of powered infrastructure every 10 meters on every street and every city in the world. You've got power, and you've got a mounting asset. When you start adding intelligence to that, that starts to become very, very interesting. And that's the area that we're pushing hard into. And I knew it would be a challenge to sell it. And because of what you just pointed out, that frankly, it still is more push than pull. I want it that way, by the way. When it becomes pull, it becomes commoditized, and that drives margins down. What we're doing is we're leveraging all the relationships that we've had as a result of our acquisition, 30 years of selling this type of street furniture and infrastructure across Europe and even into Africa. In fact, even in the U.S., we've got streetlights in the U.S. that we manufactured. We're leveraging those relationships. We know that the direction of all these cities is to move to smart cities infrastructure because they want energy savings and they want information coming from the streets. And our ability to detect a gunshot, hear if a woman screams, know if the air is unhelpful, know if a drone is flying overhead, our ability to do all this and add all of that kind of stuff to build infrastructure, I believe is going to become very, very important to them. And it already is. But it is still more push than pull, but we kind of like it like that, and it's working for us. And I think we're going to really concentrate heavily on that part of the business because it's a massive. I mean, basically, you're turning streets into the Facebook of infrastructure, just gathering a lot of data, making it available to our customers. And we have a tremendous foot up and leg up in our ability to lead in that space.

Great. And sort of building on something you touched on a little earlier with a question about product mix. I was wondering in particular about margin trends this year. And I wondered, do -- sort of the -- sort of full year average margins. Do you anticipate them varying a lot with product mix? And I'm just sort of wondering what your visibility is like there, whether pretty -- you have a pretty good idea of where margins are headed or whether a lot is going to depend on sort of exactly what sells when?

I'm happy that some of the things that we are doing, which are the hardest to do and therefore, capture the highest margins are some areas where we're seeing some growth, some meaningful growth. That's helpful. I'm also happy that we have, for the last several years, improved our unit economics. And those -- across the board. And that goes all the way from the dumbest stuff that we're making to the most expensive stuff we're making. We're just getting better at what we do across the board. So we're -- those unit economics improvement -- you can -- if you're in manufacturing, unit economics is everything. Right? Because if you don't have that, you're losing money every time you sell a product, sort of make it. Well, we're getting better and better at that. And that's being reflected in the growth that we're reporting across the company. I will tell you this, we're not targeting specific areas because of -- because they are higher or lower margin right now. We believe in our strategy. We believe in the 3-legged stool, energy storage and security, smart cities infrastructure, electrification and mobility and transportation. We believe in those 3 stools, and we have capacity to aggressively grow all of them. So at the moment, we're not going to target things over margins. But what I -- from a strategy point of view, what we will continue to do is to seek out the things that are hard to do and require really excellent people, scientists and engineers and the kind of people that we have on our staff and that we proved over and over again can solve problems that other people can't because that's where we're going to get the highest margins. But the batteries for the drones is a perfect example of where we're getting good at selling something, which is more expensive than the off-the-shelf thing and yet helping our customers understand that it will actually cost them less in the long run. And that's the sort of ultimate goal, right? To sell something that's expensive and high margin and you have the customer spend less. Smart cities infrastructure is a perfect example of that. A streetlight with intelligence is going to be a lot more expensive than a dumb streetlight, but the city is going to be better off because of their ability to gather the data and manage the city and do all the other things that they do along with that. I have -- I know I didn't properly answer your question because the answer is I don't know. I don't know exactly where the profit centers are going to be because, as I say, it's pretty fluid, and that's why we've made this very diverse business so that we're confident that we will hit in several of our areas even if we don't hit in all of them.

This concludes our question-and-answer session.

Thanks, operator. No, sorry, I was just saying we're a little over time here, but it sounds as though we've come to the end of the questions anyway. So operator, it's all yours.

I'm just going to turn it back over to you, Mr. Wheatley, for any closing remarks you might have.

Okay. All right. Well, you're probably sick of hearing me talking. I've talked quite a lot here. As you could tell, I still don't lack enthusiasm. I'm very happy about this business. I'm happy that I'm going to go and see our people in the Middle East and all the opportunities that we're building on there. And I just really encourage several things. First of all, look at the noncash operations of the company. Don't just look at the cash line on the balance sheet, look at how much cash we really have in terms of AR and backlog and those sorts of things. And then, yes, what I really want people to understand is that the company you thought we were, the solar powered electric vehicle charging company, we are still that. That's still an important part of our business, particularly where autonomous vehicles is concerned, but it was 11% of our backlog at 12/31. We are doing a yeoman's job of building our energy storage, our smart cities infrastructure and all the other mobility products and everything else that we've got. So please start thinking about us differently, start recognizing that we are that diverse company, and we will return the results to prove that, that's the right way to think about being global moving forward. And with that, I thank you all very much for your time and apologize for going a few minutes over here.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.