Beam Global (NASDAQ:BEEM) Q4 2022 Earnings Call Transcript

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But at the same time, we can’t lose sight of the fact that they sold over $8 million of battery solutions to others. Those are going into drones and robots and submersibles. And I got to tell you that’s a side of the business I am very excited by. I don’t want them just being — just producing batteries for us. I want Beam Global going into all these other spaces. We have a drone recharging product. We have EV recharging products. I’m very, very strongly of the belief that there will be a tremendous increase in the use of robots of all sorts, whether they’re airborne, submersible, terrestrial or just bringing you a beer from your fridge in the future. I think we’re going to see an awful lot of that. All of those devices are going to require energy dense, safe and well-packaged battery solutions.

And that is what we are better, I believe, than anybody else at. So, it’s been a tremendous effort on their part. And we’re going to have to — look, we’re going to have to expand. We have a 20,000 square foot facility in Chicago. We know we can’t stay there because we need to expand. I fully intend to expand our EV charging product manufacturing into the Midwest and expand the battery manufacturing facility into the same location at some point in the future. And I also intend to expand the battery manufacturing into Southern California, so that we’re making the batteries for the EV charging products that we make here right here as opposed to shipping them from Chicago. Not in any way dilutive to what Chicago is doing accretive — to what Chicago is doing.

And the good news is that in the case of both of those expansions, I am led to believe that we will receive a great deal of help from the local governments in those areas. And of course, when I say help, I mean money, and most of it non-dilutive, or all of it, non-dilutive, and certainly most of it, we — probably won’t even come with a repayment term, the grant money. So, lots of great opportunity there.

Tate Sullivan: Great. And then, just on the GSA contracts, you mentioned — just clearing out, you mentioned extensions to contracts with customers through the GSA contracts? Or do you extend the actual GSA contract structure? And how long does that — does the current GSA structure last contracts please?

Desmond Wheatley: Yes. So, to be clear, what I mean when I talk about both the GSA and the California contracts is that again, although those are normally restricted to only — either federal in the case of GSA or California in the case of the California contract, both of those entities have made those contracts available in the case of the federal government to government entities who cited disaster preparedness aspect for their purchasing decision. And of course, that’s one of the great strengths and one of the big decision factors for Army, Marine Corps, New York City and so many others to buy our products, including a lot of corporations by the way. They want to make sure they can still charge vehicles when there are blackouts and brownouts, which are happening more often today than any time in our history.

Our products are a hedge against that sort of thing. And as such a reviewed as a disaster preparedness solution. And quite a lot of buying decisions, buying our products come from that alone, frankly. Never mind that we’re much faster, lower total cost of ownership, and cleaner and greener and everything else like that. Big part of the buying decision for many of our customers, government and corporate, come from the fact that they know that we’ll keep charging their vehicles during blackouts and brownouts. So, the feds have extended their contract vehicles to anyone who has that requirement. And then, California has just offered reciprocity to any other government entity across the nation that just wants to piggyback on their contract, which is fantastic.

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