Q4 2024 Beam Global Earnings Call
Thank you for watching!
Speaker Change: Good day, and welcome to the Beam Global year end 2024 Operating Results Conference Call. All participants will be in the listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
Speaker Change: Our 2020 for revenues of $49 3 million more than double any previous year's revenue in the company's history, excluding 2023.
Speaker Change: It's 124% increase over 22 revenues and Additionally, we have a five year revenue CAGR of 68%.
Speaker Change: We believe that this decrease in revenue as a result of order timing and uncertainty in the U S government zero emission vehicles strategy related to the presidential election.
Speaker Change: These matters have mainly impacted our larger federal customers and we do not believe that they signify any fundamental reduction in global demand for our products.
Speaker Change: We have continued to invest in our sales resources with new sales in both the with new hires in both the U S and Europe in 2024, and we have further expanded our selling resources, who are paid when they achieve sales. So they do not cost us money.
Speaker Change: Our backlog as of December 31 is $5 6 million.
Speaker Change: We generated a positive gross margin for the 12 months, ending 24 or 15% compared to 2% in 2023.
Speaker Change: An improvement of 13 percentage points year over year.
Speaker Change: Our gross profit included a $3 1 million for noncash depreciation and intangible amortization, which negatively impacts our profits.
Speaker Change: None of these noncash items, our gross margin was 21%.
Speaker Change: The continued improvement in gross margin is primarily because we are able to recognize the engineering design changes to our E arc that resulted in cost reductions to our bill of materials and labor efficiencies.
Speaker Change: Additionally, there were reductions in material costs as a result of purchasing discounts as well as operational improvements and positive margins generated from the acquisitions in Europe.
Speaker Change: Additionally, our engineering and operations teams continue to identify further cost reductions and efficiencies, which along with the support from our Europe acquisition, we believe as our revenue grows in the future our fixed overhead absorption will continue to improve resulting in improved gross margins.
Speaker Change: Our operating expenses for 2024 were 19 million compared to $17 5 million and 23.
Speaker Change: If you back out the 400000 positive impact of the noncash expenses, which is non-GAAP and back out the full year operating expenses for the Europe acquisition of $3 8 million the increase year over year, and one 6 million, which is mainly attributable to salaries and benefits of 700000 related to the new.
Speaker Change: Hires that we did in 'twenty four.
Speaker Change: 400000 related to outside services, partially related to the acquisition and.
Speaker Change: And 400000 related to marketing expenses.
Speaker Change: Our loss from operations was $11 7 million for the year ended 24 compared to $16 3 million for 'twenty three.
Speaker Change: When you back out the noncash non-GAAP items that included $3 7 million for depreciation and amortization.
Speaker Change: $3 3 million for stock based comp and 400000 for the allowance for credit loss.
Speaker Change: Offset by the $4 7 million change in the fair value of contingent consideration liabilities pertaining to the true up of the earn out payment for the Omega acquisition.
Speaker Change: The noncash loss from operations was $8 9 million for 'twenty four.
Speaker Change: Compared to loss from operations of $11 8 million for 'twenty three.
Speaker Change: The non-GAAP loss from operations decreased 24% year over year due to the increased gross profit of 13 percentage points in 'twenty, four and the management of our operating expenses.
Speaker Change: As for our cash balance at December 24, It was $4 6 million compared to $10 4 million at the end of 'twenty three.
Speaker Change: The cash decrease between 23 and 'twenty four included cash payments for our acquisition of $3 2 million.
Speaker Change: Net cash used for operating activities.
Speaker Change: It was $2 2 million for the 12 months ended December of <unk> 24, compared to $13 3 million for the same period in 'twenty three.
Speaker Change: We have historically matter cash needs through a combination of debt and equity financing and more recently through our increasing gross profit contributions.
Speaker Change: I will now turn the call over to Doug long to provide a business update.
Doug Long: Alright, Thank you Alicia.
Doug Long: Thank.
Speaker Change: All of you for joining us for being Global's 2020 for full year earnings call.
Doug Long: And for your support on this fantastic company.
Speaker Change: Probably going to repeat a couple of things at least yourself because I think there was a couple of very important comments that you made there.
Doug Long: So just bear with me, while I do that.
Speaker Change: I am speaking to you Tonight from Belgrade, Serbia, where I'm spending a few days before going to Abu Dhabi and Dubai early next week earlier today I was in Bucharest, where I spoke to a congress with over 100 meters and other government leaders about the value and importance of being global products in their market.
Doug Long: I'll do the same in Abu Dhabi and Dubai.
Doug Long: Finished there I'll spend a week in Spain with our partners as we Criss cross the country meeting with prospective customers.
Doug Long: While the broker rush I also met with our first Romanian customers.
Doug Long: Systems operating in that country.
Doug Long: I was honored to speak to the Congress of meters were being global received the award for the most innovative product in sustainable transportation infrastructure.
Speaker Change: First of all real photo solutions that was very well attended Congress so being selected as the most innovative and best product was an owner and recognition indeed of the tremendous value that being globus products deliver to our customers.
Speaker Change: There's tremendous investment in Romania at the moment and transportation infrastructure with funds coming from the European Union and other sources.
Speaker Change: We never have an adjuvant success, we now have actually been successful reseller, Romania. So I look forward to further expanding our opportunities in this market.
Speaker Change: So much opportunity in Europe, the middle East and Africa for beam Global's product and it certainly is very appropriate that we're focusing on taking advantage of those opportunities.
Speaker Change: He wasn't me sleeping under our ROIC for the last couple of months, we will know that the market conditions, the United States are far from ideal at the moment.
Speaker Change: Things were already challenging for everybody in the EV or sustainability spaces with the new administration's decidedly negative view on these fantastic new technologies.
Speaker Change: I know the tariffs are raised a whole new level of uncertainty within our industry and across the broader market.
Speaker Change: I wanted to comment too much on the impact of the tariffs at the moment because no one really knows they are changing daily but suffice it to say that we have good defense is in play for just about anything that can come down the pipe where tariffs are concerned.
Speaker Change: It's a great thing thats been global's into position to take advantage of a massive new set of opportunities, which are neither subject to the Trump administration's terrorists or negative outlook on electric vehicles.
Speaker Change: Spending a lot of time on this side of the Atlantic.
Speaker Change: And to continue to focus a lot of my time and energy on expanding our opportunities in Europe, the middle East in Africa.
Speaker Change: Business development trip on launch a good example of that.
Speaker Change: No no well if you don't have time to listen to this entire call. So im going to start by giving you a few headlines as Lisa said beam Global's revenue in 2024 with more than two times greater than any full year in our history, except for 2023.
Speaker Change: Our five year accumulative annual revenue growth rate stands at 68% and an incredible rate of growth.
Speaker Change: Sales to non government entities increased dramatically throughout the year with corporate sales contribute to 64% of our total in the fourth quarter.
Speaker Change: In 2024, we increased our gross margins from one 3% to 15% gap.
Speaker Change: The gross profit net of noncash is running over 21%, but we brought in over $10 million is cash from $50 million in revenue.
Speaker Change: Our cash burn net of acquisition related spend was less than 400000, a month well getting more efficient every day and our gross profit contributions are increasingly paying our bills.
Speaker Change: We have about $14 million in working capital, which gives us about five months of run rate on our current cash and cash light resources.
Speaker Change: We remain debt free.
Speaker Change: Our continued gross margin improvement Christmas on a trajectory for positive cash flow this year.
Speaker Change: And all the negative impacts of the global economy crude have an impact on this trajectory, but what is clear is that the actions that the management team are taking have set us on the right path what are the things that are within our control are concerned.
Speaker Change: We are excited at being Global's business in 2024 through another acquisition.
Speaker Change: We announced the most significant expansion of our product portfolio in our history.
Speaker Change: We implemented the most significant geographic expansion in our history.
Speaker Change: We continue to win new patents and both our energy storage and infrastructure businesses.
Speaker Change: We generated recurring revenue from a new business model.
Speaker Change: We initiated a program of resellers agents and distributors as a sales force multiplication strategy without adding to our operating costs.
Speaker Change: To sum up while we're facing some of the most challenging times, we've ever seen in the U S. The steps, we've taken to expand geographically and with our new product portfolio sets us up for success, regardless of what takes place in the United States over the next couple of years.
Speaker Change: We're going to have a couple of rough quarters for sure Q4 of 2024 illustrated that frankly, we're going to see a bit more of the same in the first quarter of 2005.
Speaker Change: As a matter of timing.
Speaker Change: With previously derived a great deal of our revenue from sales to the U S. Federal government of our Edr product.
Speaker Change: We're not expecting this election result until late in 2004.
Speaker Change: No. We are in the process of transitioning to sales to non U S federal government customers.
Lastly expanded product portfolio.
Speaker Change: This doesn't happen overnight. It is a process not an event, but we have all the pieces in place and we're executing on our client.
Speaker Change: And now for more detail on some of your past comments.
Speaker Change: 124 was indeed, a year of tremendous expansion for being global.
Speaker Change: A year in which we introduced more new sustainable transportation and energy security products in the last quarter and we've done in the last decade.
Speaker Change: It was also a year in which we expanded geographically into markets with billions of potential new customers for being.
Speaker Change: We completed another acquisition in Serbia, which will make our products less expensive more effective in order to compete with we want new patents as we continued to build our intellectual property portfolio using our technological differentiation, we won new customers with unique requirements that we believe only weekend fulfill.
Speaker Change: With these strategic moves and others, we've created a platform for growth, which is unlike anything that we've had the companys history.
Speaker Change: It is a very good thing that we've taken all the steps over the last couple of years because in the U S. At least we're operating in a period of uncertainty and challenge, which is unlike anything that we've seen.
Speaker Change: Let's deal with the elephant in the room without an election.
Speaker Change: No secret that the new administration is less than favorable views about electric vehicles unless of course, we're talking about the new Tesla, which the president just Paul <unk>.
Speaker Change: The administration seeks to end the tax incentives for electric vehicle ownership and the provision of low interest loans for auto manufacturers to make electric vehicles. The further want to halt the purchase of electric vehicles by federal agencies and to hold the purchase of electric vehicle charging infrastructure.
Speaker Change: Even more perplexing administration has instructed the general services administration or GSA to switch off existing electric vehicle charging stations, which are already paid for by the taxpayer and to find ways to get rid of the electric vehicles they already own.
Speaker Change: This is perplexing because with the money to buy the more expense savings on electric vehicles are very obvious.
Speaker Change: We've heard from the GSA that this move will cost taxpayers about $1 billion.
Speaker Change: And then of course, the government will have to buy diesel and gas vehicles to replace all the electric ones theyre getting rid off and pay for the fuel and maintenance and other costs associated with these moving forward.
Speaker Change: So what we'll do in four years.
Speaker Change: No I personally don't agree with this move on any level, it's going to be expensive for the taxpayer on one of them. It will do nothing to prevent the inevitable electrification of transportation, but it may put us further behind the Chinese than we already are.
Speaker Change: From being global point of view the administration's position on electric vehicles has created a new set of challenges for us and a significant impact on our pipeline of U S sales opportunities.
Speaker Change: POS federal revenues are accounted for more than 50% of our total on the pipeline, which we publish is full of opportunities from federal bars that prior to the election. We had very good reason to believe would turn into revenues in the fairly short term.
Speaker Change: It's important to note that none of these opportunities have gone away I should say that material. None of these buyers have contacted us and told us that they don't intend to move forward at some point they remain interested in our products. However, we have to be realistic we have to assume that the administration does what it says therefore, these federal opportunities, which I'm still starting will happen in the future because as I said electrification.
Speaker Change: Transportation is inevitable may take far longer than we anticipated to come to fruition.
Speaker Change: I do believe that the federal government returned to being a significant opportunity for us in the future.
Speaker Change: The delays caused by the current administration may its the long run if theres being global is positioned with the federal government at some point, you'll have to start restart rather electrifying their fleets and the later they leave the more urgency they will have for the installation of EV charging infrastructure.
She is our favorite word because we have the fastest deployed and most scalable EV charging infrastructure solutions available in the world today.
Speaker Change: Just one more thought on the new administration. It sounds like we have much more in common with them to many people might think well over a decade been global's be disposing secure inexpensive reliable American energy.
Speaker Change: While we do not agree with the drill baby drill mantra or with reversing the great progress. The American companies have made with electric vehicles and infrastructure. We do agree with the administration when it comes to sourcing look energy locally and ensuring that America is an energy powerhouse moving into the next decade.
Speaker Change: I'll be spending time in Washington D. C. In the coming months meeting with members of the Trump administration, and showing them being global products, which are made in America, often by veterans provide excellent energy security and an opportunity to grow onshore U S industry.
Speaker Change: While the federal government may not present, a good opportunity for EV charging infrastructure at the moment, we do believe.
Speaker Change: There may be other opportunities with our energy security products. Once we've had a chance to describe and demonstrate them to the new administration.
Speaker Change: It's also really important to point out that the federal government may be slowing slowing down its efforts. There are many states like California for example, and the 17 states that length of emission standards to California's who are doubling down on the electrification of transportation efforts, California is our largest state customer New York city's our largest municipal customer neither of them show Andy ins.
Speaker Change: <unk> reversing the progress that they've made with evs on the contrary if anything we're seeing a return to increased activity from these entities.
Speaker Change: It's also part of pointing out that while let's try the Trump administration may not like electric vehicles. The consumer still does contrary to what you might have heard in the media EV sales were up about 30% in the United States at the beginning of this year.
Speaker Change: <unk> anticipates that fully a third of its sales this year will be electric vehicles.
Speaker Change: <unk> sales continue to be a bright spot for many manufacturers and American consumers are showing and drove that they like electric vehicles, and they want more and more of them.
Speaker Change: It will increase demand for the charging infrastructure and were seeing some of that increase through a return to sales to non governmental entities as well as those efforts, which I already mentioned in places like California, and New York.
Speaker Change: In the meantime, the rest of the World continues to electrify transportation a pace our international expansion moves have given us great opportunities for growth in the largest markets in the world for our products, but they've also created excellent defensive positions for us as we seek to continue our multi year trend of growth, even though even if we don't win meaningful sales to the U S Federal government.
Speaker Change: Another effect of the new administration policies as the potential impact of tariffs may have on our business.
Speaker Change: Are consumers of steel aluminium and copper and have many other parts and components, which come from countries, which are currently threatened with tariffs or operating under them.
Speaker Change: Our products are Bubba compliant, which means that they comply with the buy American build American requirements that certain federal and other government agencies have been buying products. We've historically endeavor to source materials and components from U S producers wherever possible. So achieving bubba compliance did not require significant changes to our manufacturing our purchasing processes. For example, we typically only use you.
Speaker Change: Steel to make our products.
Speaker Change: However, impossible in this day and age to make any complex product without sourcing at least some components from overseas.
Speaker Change: Nevertheless, our historic reliance on U S reduce raw materials and components work to reduce the impact of any tariffs on foreign imported items. Unfortunately, we've experienced rises in U S produced materials prices, which have already come about as a result of the new tariffs for example, steel prices have increased in the U S steel manufacturers and vendors react to the new pricing structure space by <unk>.
Speaker Change: <unk>. This is of course to be expected, where any global commodities are concerned.
Speaker Change: Here again, our moves into Europe are proving to be extremely beneficial for us our European operation based in Serbia is not subject to U S. Tariffs when we bring components from there to the U S. This means that we are able to procure steel aluminum and other materials without being subject to any new pricing.
Speaker Change: Yeah.
Speaker Change: Well, except to the extent the global prices increase because of trade wars.
Speaker Change: I've mentioned before that we're able to produce our <unk> product in Serbia. It less expensively than we can in the United States. This will be even more true in the new tariff environment in which we all have to operate.
Speaker Change: Possibly.
Speaker Change: However, being global should have excellent protections in place to defend us from increasing costs as we leverage our Serbian operations in the coming months and quarters, we will be in a very special position of being able to continue to produce our products and sell them to customers in the largest markets in the world without being impacted by the tariffs to the same extent that we would have been had we not made these expansion into Europe.
Speaker Change: Serbia is on President Trump's tariff list for one of the highest higher percentage rates because as it happens Serbia sales marketing market space in the United States also Serbia. However, the absolute numbers are miniscule. So we believe that it's very likely that in the event that tariff rates are negotiated as has been suggested by the current administration <unk>.
Speaker Change: They will end up in the lowest bracket.
Speaker Change: Jared Kushner has real estate development plans in Belgrade, and President's son recently visited we view these as good signs that Serbia will receive a receptive audience for reduced or zero tariffs.
Speaker Change: That does end up being the case, we will continue to use our sharpie and operations to further reduce our cost of goods sold in the United States as well as for producing products for all the other new markets we are addressing.
Speaker Change: So just to summarize where we are as a result of the new administration. While it is true that we expect to see some reduction in federal orders in the coming months and quarters. We believe that our diversification moves are actually put us in an excellent position to continue to grow the company.
Speaker Change: We lost the opportunity to sell <unk> products to federal entities in the short term what we do.
Speaker Change: And billions of potential new customers and expanded geographic markets to whom we can sell all of the new products, which we've introduced in the last six months.
Speaker Change: And as I said, we believe that we have not lost the federal sales. They have simply moved right and will give us opportunities for further growth, perhaps with more urgency when they return.
Speaker Change: The transition to these new customers, new markets and new products will inevitably create a certain degree of lumpiness in our order cadence and revenues we can actually see this as we look at the second half of 2024, when we had a reduction in federal orders in the third and fourth quarters. Although we had impressive increases in enterprise sales they were not enough to offset the reduction in federal sales during <unk>.
Speaker Change: Those periods when compared to our historically high 2023 revenues.
Speaker Change: Q1 of 2025 as being similarly impacted though we have solid plans in place to mitigate these negative negative influences throughout the rest of this year.
Speaker Change: Our 2024 revenues of approximately $50 million, we're still more than double any full year in our history, except for 2023 I remember in 2023, we increased our revenues from 22 million prior year to just under $70 million.
Speaker Change: Our five year's revenue run rate now stands at 6 million 9 million 22 million $67 million and for 2020 for $50 million.
Speaker Change: That's a five year CAGR as I already said a 68%.
Speaker Change: 2023 was heavily impacted by the single largest order that we've ever received from the U S Army.
Speaker Change: $30 million purchase order had to be delivered quickly because the army needed charging infrastructure speed, which no one else in the industry can deliver.
Speaker Change: How do we push some of those revenues into 2024, we would not be talking about a decline in revenues today at all Similarly had we never received the order we wouldn't be talking about defining revenue today, because our five year revenues would it be $6 million 9 million $22 million $30 million and then $50 million.
Speaker Change: That might have major printer revenue growth chart paradoxically made us look like more of a growth engine than we do now but the simple truth is from a management point of view looking at our growth over five years and considering all the new opportunities, which we have to our new products and new geographies, we still feel strongly that <unk> global has only continued to enhance our growth potential.
Speaker Change: Looking at the composition of our revenues to be in the second half of 'twenty 'twenty four is also enlightening.
Speaker Change: Actually received more purchase orders in Q4 than we did in Q4 of 2023 and also more than in Q3 of 2024. When we first started seeing the impact of the potential from the election.
Speaker Change: Importantly, our enterprise orders increased by 49% during that time, it actually made up 64% of our Q4 orders.
Speaker Change: This is the first time in a couple of years the enterprise orders have been greater than government orders, which is a testament to our efforts to increase our sales to corporate entities.
Speaker Change: Our European operations also contributed meaningfully.
Speaker Change: Of our 2024 revenue came from our European operations.
Speaker Change: I've said it before and I continue to believe that being global will actually derive more revenues outside of the United States and in the future and I would say that and I say that still firmly believing that we will continue to see sustained growth when viewed across more than a few quarters.
Speaker Change: The lion's share of our revenues in 2024, we're still derived through the sale of <unk> with the majority of those in the United States. In 2025, we expect to see increases in contributions from our new product portfolio of products and from the new geographies into which we're selling to put it simply well we've historically been.
Speaker Change: A one country one product turn largely one customer company. We're now truly an international organization with a diverse portfolio of products all of which appear to.
Speaker Change: Uh huh.
Speaker Change: Have a great deal of appeal to a far more diverse set of.
Speaker Change: Prospective customers.
Speaker Change: So the really good news in 2020 for revenue numbers as they demonstrate that beam global can create meaningful revenues growing in new sectors, even without material contribution from U S government customers.
Speaker Change: Two trends are important to note here. The first is our five year CAGR, which as I already noted is just under 70%.
Speaker Change: Perhaps more important trend is that we've increased sales to non government customers in the U S and we've increased sales through our European entity.
Speaker Change: That's also true of the legacy businesses, which we acquired in Europe, even though our European operations concentrate heavily on setting up the factory facilities to make <unk> and also on training their people to sell those products.
Speaker Change: We're able to grow the legacy business of selling street lighting and other power steel industry structures and smart cities products, while they were asset.
Speaker Change: Another very important trying to make note of is our improving gross profitability.
Speaker Change: During the Q3 24 earnings call I reported that our unit level gross margins on <unk>, we're running into 40% to 50% range.
Speaker Change: That is to say every time, we sell <unk> arc.
Speaker Change: We retain almost half of the revenue to offset our overhead costs.
Speaker Change: This is a dramatic and continued improvement.
Speaker Change: Our full year GAAP gross profits of 15% show again, a significant improvement over prior year and remember we did higher volumes in the prior year, which means that our fixed overhead allocations were shared amongst the larger units number of units and yet we were still able to improve gross margins in 2024.
Speaker Change: Adjusted gross margins, removing noncash contributions and cost came in at about 21, 2% or over $10 million. This.
Speaker Change: This gross profit contribution is incredibly important to us because we are getting very close to producing enough of it to cover all of our overheads and generate positive cash flow.
Speaker Change: In fact, if we maintain the gross profitability trend of 2024 and do the same revenue in 2025 that we did in 2024 in other words no growth.
Speaker Change: We would generate sufficient gross profit to cover all of our overhead costs, let me say that again, maintaining our gross profitability to try and replicate in 2024 revenue gets us to cash flow.
Speaker Change: Of course, the entire BV team is working hard to generate growth in 2025, and we believe that we have the tools and opportunities to do that but it's still useful to know that we know of the business operating level, where even without growth we can achieve positive cash flow.
Speaker Change: It's possible that the impact of tariffs and other recessionary impacts on the economy could scuffle. These plans, but we're not ignoring that prospect and as I've already mentioned, we're taking advantage of our European expansion in operations in Serbia and in the Middle East and Africa to minimize the risk from those sorts of eventuality is taking place in the U S.
Speaker Change: I was wondering if going forward, we still have some legacy backlog of <unk>, which we did not deliver the new increased price.
Speaker Change: We also had not implemented all of our cost savings, which we are now taking advantage of.
Speaker Change: At the same time, we had several significant onetime uses of cash mostly related to the acquisitions of both <unk> and telecom.
Speaker Change: I was wondering if one five materially all of <unk> sales will be made at the new increased price our cogs will be reduced by the cost savings that we've implemented and we have no further cash outlays related to either of those acquisitions. So again, even without growth or any further improvement in our gross profit. We're on track to reach positive cash flow this year.
Speaker Change: Not surprisingly, we're not planning for no growth in revenues and we're certainly not planning to add no more improvement in our cost structure.
Speaker Change: Just another example of a vastly superior being global is today to where it was just a couple of years ago. Before we had all these excellent elements of our evolution, which both reduced risks and drastically improve our opportunities.
Speaker Change: The path to cash flow is being assisted by our continued disciplined spending is concerned.
Speaker Change: During 2024, we held our operating cost steady even with the acquisitions and all the other developments we've made.
Speaker Change: We've historically always operated you want to take cash budget, it's one of our speciality.
Speaker Change: We continue to have no debt and our credit facility is still intact on touch we have enough cash and other cash another contributor to working capital.
Speaker Change: Inventory of completed products, all of which we convert to cash in short periods of time, so that we have sufficient financial resources.
Speaker Change: To continue our operations to that period, where we believe that we can be cash flow positive.
Speaker Change: Of course at that time, we will have a whole new universe of opportunities open up to us as the business creates enough free cash to cover overhead and pay our bills.
Speaker Change: Our two main areas of focus to create growth in 2025 will be geographic expansion and winning sales for our legacy products, but especially for the new and exciting products that we brought to market in the fourth quarter of 2024.
Speaker Change: Those new products include beam spot beam by beam patrol beam, well and being scoop as well as our street lighting power electronics and energy storage product portfolios.
Speaker Change: We've already made the first sale of beams fall on our engineering teams are working to optimize that product for more general later this year.
Speaker Change: Our <unk> product is a combination of charging infrastructure and electric voice calls, which we deliver in a bundle. This product is an excellent fit for bike sharing programs across cities resorts and tourist destinations like rentals and large companies and even logistics requirements.
Speaker Change: Being patrols and other product bundle, which provides rapidly deploy charging infrastructure and for law enforcement liberate electric motorcycles from our new partner zero motorcycles.
Speaker Change: Recently, we were in Austin, Texas Speedway for Moto, GP, whereas zero motorcycles was offering test rides if their product directly from our beam patrol product. It was a fantastic event lots of dual marketing opportunities are tremendous exposure for both being on zero.
Speaker Change: Last week, we were abroad Broadway appearance on Eagle Ford <unk>, which is a law enforcement and military Tradeshow, where first responders and others, who served are exposed to new technologies, which can improve their missions here again, we had been patrol with zero motorcycles liberate for law enforcement.
Speaker Change: Lance has been absolutely fantastic and again, we've got lots of Joe marketing opportunities for us.
Speaker Change: Being well, it's our warm disastrous film product, which provides electricity freshwater in E mobility BMO.
Speaker Change: Meanwhile, as rapidly deployed anywhere there is a requirement for those essential services. The system is already on its way to the middle East and I'll be visiting Jordan at the end of April to present, a new product to a broad gathering of authorities in the region is utterly unique very timely and create tremendous value for the people that it starts and also I believe it will for being global II.
Speaker Change: We're thrilled to think of this life saving technology will be in Gaza soon if the Israelis permitted and we have reason to believe they will.
Speaker Change: We also have some interesting ideas and plans to promote beam scoop, which I'm looking forward to sharing with you through our normal marketing channels in the coming months since its launch.
Speaker Change: I was just thinking about being global prospects for 2025, you should be aware that the revenue generated from these new products is not the same as we have historically generated from <unk> alone.
Speaker Change: Let me give you the rundown.
Speaker Change: <unk> bike when sold as a bundle with a dozen electric bicycles will revenue from over $100000.
Speaker Change: Being patrol complete with four police liberate electric motorcycles will generate revenue of $170000 being well sales were around 130.
Speaker Change: Beam scoot when bundled before electric scooters will suffer a little over 100000.
What do you consider that our average selling price for <unk> has been around 70000, you kind of perhaps see why we're confident that with this new range of products, particularly with all the new geographies into which we are selling should put us in a position for significant revenue.
Speaker Change: Whether or not we do much U S federal government or <unk> business this year.
Speaker Change: We've been very busy busy with the new product development and with geographic expansion because we are still aggressively focused on creating significant growth opportunities for this company no matter what politics throws at us.
Speaker Change: But it's all about new products, we're continuing to aggressively sell the legacy products that we acquired through both acquisitions, we made in Serbia and we're improving upon them.
Speaker Change: Having been a well respected manufacturer streetlights for 30 years because of our excellent engineering capabilities. We're now able to begin the process of integrating sensors artificial intelligence machine learning a network effect so that in the future, we'll be able to offer existing and new customers options, where street lighting and other intelligent Street furniture is concerned.
Speaker Change: They can continue to buy straightforward hardware solutions from us or they can elect to buy more complex and intelligent solutions.
Speaker Change: Which deliver multiple layers of value to them and to their constituents.
Speaker Change: We intend to offer these product solutions, either as capital sales or through finance options and perhaps what I'm. Most excited about as a service, creating meaningful sources of recurring revenue for <unk> global.
Speaker Change: The event, which I've just spoken in Bucharest was largely focused on so called Smart City solutions and I was proud to note that being global's product portfolio solves for more challenges than any other company I saw while I was there.
Speaker Change: That's probably why we won the innovation award.
Speaker Change: And it's not just new products that we are able to offer our customers. We've also introduced new business models, most notably with the success of our driving on Sunshine sponsorship program with Vinci airports. This recurring revenue model is a further new opportunity for being global to create new sales a new recurring revenue stream without having to significantly invest in evolving our business.
Speaker Change: Earlier this year I'll spend a month on a sales toward on the AG and caution in Greece with our European sales team. It was an intense two or seven days, a week breakfast lunch and dinner meeting with prospective customers like mirrors airports local governments EV charging companies bike sharing companies and other entities, who can gain value through owning our products. The reaction was overwhelmed.
Speaker Change: With positive everywhere, we went we find customers with the same challenges as the same needs and we were able to demonstrate to them how our portfolio of products saw for both of you.
Speaker Change: We're actually seeing such a high ratio of positive reactions during a series of sales meetings.
Speaker Change: Bakken Europe, returning to the middle East to do it again.
Speaker Change: Convinced that these activities and the activities of our other sales team members will bear fruit.
Speaker Change: This combination of new and exciting products selling into new and expanded geographies, many of whom have even greater urgency than we find in the United States. It's why I remain confident that we now have greater opportunities for growth than we've ever had in our history.
Speaker Change: Our method of selling is changing to historically, we've made all of our sales with a small internal sales team in the second half of 2024, we evolved our selling strategy to include agents resellers and distributors.
Speaker Change: Of the meetings that I had during my last European and middle Eastern tourists were setup by our external selling teams and the same is true of this trip if I at this time I'd like to spend more time with external selling resources and with our internal teams.
Speaker Change: <unk> just on Romania were sold by outside sales resources.
Speaker Change: What this means is that we now have a far expanded sales team, but because of these external resources are only compensated when they sell products. We don't have similarly expanded operating costs.
Speaker Change: The evolution of our selling team goes hand in hand, with our growth priorities, our strategic and product portfolio expansion.
Speaker Change: It means that we can take our greatly expanded product portfolio and sell it into greatly expanded geographic opportunities, but without having to invest significantly or even at all and expanded operating costs.
Speaker Change: In the second half of 2024, we added a new vice president of sales in the United States. He comes to us with a career built upon expanding outside sales teams. He's an expert in the R&D is going to be focused on the majority of his efforts in 2025 on sales force multiplication through the addition of these types of resources.
Speaker Change: Similarly in Europe, we added ego love all the rich who is experiencing very similar Igor has also spent his professional career building reselling networks, except for him in Europe.
Speaker Change: We're also getting significantly increased exposure through the excellent new partnerships that we've signed as I just mentioned our partner in the electric motorcycle Arena zero motorcycles is already working with us to expand sales of their products with ours as we bundle their motorcycles onto our beam patrol product.
Speaker Change: In the last two weeks, we've seen just how much customer prospects love that bundle in both Texas and San Diego.
Speaker Change: And our Australian partner Benzene Zero, who has also has headquarters in Italy is working with us to expand our sales into the Australian market and two representation in Italy.
Speaker Change: Xena zeros are partner for Ruggedized <unk> for our <unk> product and also for electric bikes to be integrated onto our being byproduct for bike sharing programs resort tourist type of sales and anywhere where people want to operate electric bikes and are challenged by the infrastructure requirements like New York City for example.
Speaker Change: Our retail relationships have already resulted in sales of <unk> products in Romania, where it was earlier today in Spain, and the middle East and we're tracking opportunities in the Caribbean Central and South America and on the African continent.
Speaker Change: Ever in our history, we have so many opportunities to sell so many different types of products into so many new markets all of this without significant investment and while managing our operating costs in the United States.
Speaker Change: While all of this is going on our engineering and product development teams are continuing to improve our products and the methods. We used to make them. The results of this is that the products are better while costing less.
Speaker Change: Notably in Europe. We recently received CE certification. This is a huge benefit to us with the CE Mark our products are now able to be sold across the European Union.
Speaker Change: Mark also helps in the Middle East and Africa.
Speaker Change: In the United States, we're making excellent progress with our updated UL certifications. These UL certifications were most important to federal customers and as such they become less important to our sales because as I mentioned earlier, we believe that federal sales will be a less important part of our revenue generation this year.
Speaker Change: Nevertheless, the modifications that were making to the product as we go through the updated UL certification process is we believe going to result in further significant improvements to our products well, we continue to concentrate on cost reductions.
Speaker Change: So we're removing into the remaining three quarters of 2025 with improved existing products are vastly expanded product portfolio and even more vastly expanded geographic opportunities and with our direct operating costs firmly under control we.
Speaker Change: Never had more opportunity for growth and we remain debt free and have sufficient financial means to continue to execute on our plan.
Speaker Change: The public markets continued to be challenging for being global and in fact for everybody in our space and just about every other space at the moment.
Speaker Change: The New administration has created challenges to our sales opportunities, but we are actively and aggressively manage our business such that even in these extraordinary circumstances, we have defended ourselves from the possible downsides associated with these developments while at the same time, creating the greatest opportunity for growth in our history remember.
Speaker Change: Remember, we used to be one product one country and essentially one customer we now have a dozen products operating 18 nations and addressing countless others, where billions of people live and work.
Speaker Change: Can be positively impacted by our products.
Speaker Change: During the recent all hands on deck meeting I've said to our employees times are tough, but were tougher that's absolutely true we're not idle for one moment in 2024, and we won't be in 2025, we took all the steps necessary reasonably available to for us to continue the globals trajectory to becoming a highly profitable global player in the new energy and transportation industry.
Speaker Change: Which was inevitable as they are massive.
Speaker Change: Im confident that the <unk> team will continue this hard work and focus through 2025, which promises to be a seminal year in our history, a year in which we become truly global and in which we create positive cash flow and with at all the opportunities that milestone enables.
Speaker Change: As I said the markets are tough at the moment.
Speaker Change: None of us expected to see our share price, where it is none of us expected to see the external pressures that we've experienced in that everybody else's experience, but we're going to continue to do our job keep our noses to the grindstone and keep up with this excellent expansion.
Speaker Change: That concludes my comments for the moment and I will now hand, it back to the operator and I look forward to answering your questions.
Speaker Change: Roger.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys. If at anytime. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: Please standby as we poll for questions.
Speaker Change: And your first question today will come from Tate Sullivan with Maxim Group. Please go ahead.
Tate Sullivan: How are you hi, Hello, Hello, it doesn't.
Speaker Change: Update on.
Speaker Change: Can you repeat your product introduction timeline in terms of the new products.
Speaker Change: Have prototypes for many of the products, including the streetlight.
Speaker Change: Streetlight product.
Speaker Change: Are you expecting initial sales for many of these products. This.
Speaker Change: This year or could it stretch into 2006 as well.
Speaker Change: I'm certainly expecting settlement 2020, thanks, but no I've got to tell you I think what where the interest that we're seeing in bean bike.
Speaker Change: Particularly actually people love being bike everywhere I go people are being bought it and that was a product that we actually develop too.
Speaker Change: Save lives to allow people to charge their bicycles outdoors.
Speaker Change: Plugging them in their apartments, and Vernon themselves to death, when the virus catch on fire, which unfortunately, sometimes do but haven't seen a lot of interest in the U S and in Europe.
Speaker Change: Or being bike being patrol I think has got a lot of potential as well with law enforcement border patrol and others. Both in the U S and in Europe. These electric motorcycles are really getting traction with the with those law enforcement communities, but they just don't want to figure out what would be the charging infrastructure and core count so we solve that for them.
Speaker Change: <unk> already sold we are making some dramatic improvements to that that was not to be that surprising we did that with <unk> as well.
Speaker Change: And.
Speaker Change: At <unk> the last one that we haven't really sort of officially done the marketing launch on that but again very popular Oh, and then beam well, we've already sold that as long as with the middle East no. So.
Speaker Change: I think we can say we've sold <unk> sold <unk>.
Speaker Change: Big spot, rather and I believe we're going to get a lot of traction with with the bike motorcycle products as well.
Speaker Change: Hey, Kevin beam well.
Speaker Change: The desalination equipment.
Speaker Change: Do you work with an outside provider that you do not do that or how do you integrate that into your equipment.
Speaker Change: That's absolutely right, but just how long this had been around for a long time I had my first experience of it four years ago, when I went to see as a young engineer.
Speaker Change: On shifts we had to turn the call walking into fresh water of course was there wasn't any other source and so it's been around for a long time. So I was very comfortable with it and when this opportunity came up to create this life saving product for Ngos in Gaza.
Speaker Change: I immediately knew what we had to do and so yes, we've tried and tested technology, we don't have any risk where that's concerned our European team has done a fantastic job of integrating desalination plant onto the beam well product and also the four ruggedized electric scooters to give the E mobility to deliver the food and water to those people who badly needed medical <unk>.
Speaker Change: Lies as well by the way so it's all tried and tested technology.
Speaker Change: And it's based on our <unk> platform. So therefore covered by those patents.
Speaker Change: C rated so we're in a great spot, where that's concerned and as I say.
Speaker Change: The first is already on its way to the middle East now.
Speaker Change: And I'll be there too.
Speaker Change: Well.
Speaker Change: To welcome at frankly at the end of April and we already have.
Speaker Change: A significant array of.
Speaker Change: Very interesting parties, who will be who will be reviewing that and then we have one in particular, who we're working with to take you into Gaza.
Speaker Change: And last for me on recurring revenue I think I caught your comments on.
Speaker Change: The sponsorship revenue.
That most of it now but is there also a meager product maintenance recurring revenue or is that going forward on the some of the smart city products.
Speaker Change: We do have we do have some recurring revenue around maintenance, but are much more interested in these these new models. They certainly the sponsorship model as you know I've talked about that for a long time. It took me a long time to get that done and I didnt are being European team did it.
Speaker Change: Lesson.
Speaker Change: But I think where youre going to see US go to is we are going to increasingly as we add more and more intelligence to the smart series products.
Speaker Change: We already have great relationships. This Romania trips just been fantastic for me. This Congress of mirrors seeing their response to our smart cities products. They want this intelligence and some of them will want to make capital purchases for it but even when they do there's going to be a data a recurring revenue stream from data and then I sincerely believe that in the future we have.
Speaker Change: Offered this entire thing is hardware software and data as a as a service and so create some.
Speaker Change: Good recurring revenue by the way that's the perfect used for our line of credit.
Speaker Change: Fixed price on that.
Speaker Change: We know we know how much the money cost.
Speaker Change: That would be a perfect time to dip into that line of credit to deploy infrastructure, which we can then take a recurring revenue stream and of course there is.
Speaker Change: Simple arithmetic to figure out how to cover the cost of the ammonia and then and then make a profit on top of it.
Devin: Thank you Devin.
Devin: Thank you generally all the best.
Fluids: Fluids, our question and answer session I would like to turn the conference back over to Desmond Wheatley for any closing remarks.
Desmond Wheatley: Well that was not very many questions. Okay, great I must have covered everything.
Fluids: Listen.
Fluids: As I said earlier.
Fluids: The market the share price.
Fluids: Feel it very very deeply.
Speaker Change: I have my entire network not wrapped up in this company I am.
Fluids: Impacted just like everybody else is I could never have imagined that we would find ourselves in a position that we're in right now.
Speaker Change: Disciplined and so as the beam team.
Speaker Change: We're disciplined to keep on with our jobs and keep doing what we're doing and as you've heard in my comments is.
Speaker Change: The level of expansion in 2024 within a very very disciplined cost structure has been breathtaking I'm proud of what the team has done and I know, they're going to continue to do and I believe in the markets.
Speaker Change: Believes that.
Speaker Change: This is a cycle and I believe that as we keep doing what we're doing at the cash flow.
Speaker Change: <unk>.
Speaker Change: Profitability and keep developing great new products and unique new products and settlements are great customers and expanded geographies that we will have a fantastically successful.
Speaker Change: The market's eventually will reward us for that.
Speaker Change: I guess at what the administration of our politics is going to do over the next couple of years, but even though its a cycle.
Speaker Change: It will come to an end.
Speaker Change: In the meantime, we're going to keep our nose to the grind and you can count on us to work very very hard to maximize the value of this company in every way that's within our control.
Speaker Change: Thank you very much for your time and your attention.
Speaker Change: Please continue to support us.
Speaker Change: If you have any comments or do you want to talk to us directly get in touch with Luke Higgins, who is our internal IR resource he is ready and waiting for your calls and emails.
Speaker Change: And that goes to.
Speaker Change: Comments about how much information you're receiving from them I Hope you are all receiving a hell of a lot more information than you're used to from us.
Speaker Change: We intend to continue with that.
Speaker Change: If you don't want to really just don't open it but we're going to say, we're going to keep land what we're up to.
Speaker Change: Okay. Thank you everybody.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
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