Good day, and welcome to the Beam Global Third Quarter 2021 Financial Results and Corporate Update Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Kathy McDermott, CFO. Please go ahead.

Thank you, Jason. Good afternoon, and thank you for participating in Beam Global’s conference call for the third quarter of 2021. We appreciate you joining our call for today. Since EDGAR is down today for Veterans Day, the 10-Q will be available first thing tomorrow morning. Joining me is Desmond Wheatley, President, CEO and Chairman of Beam. Desmond will be providing an update on the 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, November 11, 2021. 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. Now we'd like to provide an overview of our financial results for Beam's third quarter ended September 30, 2021. For the third quarter of 2021, we reported revenues of $2,020,612, a 63% increase over $1,237,434 reported for the third quarter of 2020. Revenues for the first 9 months ended September 30, were $5,514,102, a 38% increase over $4,009,644 for the same period in the prior year. During the third quarter, we deployed an additional 23 of the 53 units ordered by the State of California to the state wide department of General Services contract. We also delivered our first unit on a state wide Florida shares…

Thank you, Kathy, and thank you to all of you who follow and support Beam for joining the call today. A special thanks to our employees, customers, shareholders, and all others who've served in the Armed Forces on this Veterans Day. We thank you for safeguarding our access to a life of freedom and security. I'm speaking to you today from San Jose, California, where we're taking part in the 2021 Fleet Forward Conference, which is a mobility event dedicated specifically for fleets. This year, it's heavily concentrating on electrification and charging infrastructure. Fleets, both government and enterprise form a very large part of our sales and revenues. So anytime we can put one of our EVR products into an environment where lots of prospective customers are gathering, we do it. I shouldn't say one of our EVR systems because as it happens, EV ARC that's here today belongs to the city of San Jose. We announced earlier this week that San Jose is the latest California city to start using EV ARC to power their fleet vehicles. And because EV ARC is transportable, San Jose may want their units available as a demonstration unit to help other fleets understand the benefits of an American made product, which provides rapidly deploying EV charging infrastructure without any construction or electrical work, which will never generate a utility bill and which will continue to provide EV charging and emergency power during grid failures or in locations where it's too expensive, too disruptive or simply impossible to extend the utility grid. It's always powerful for us to show off our products. But one of our customers demonstrates the benefits that they're getting with their own unit, the message is that much more powerful. Back to the quarter. The Beam team continues to execute…

Thanks. Yes, operator, could you please queue up the question?

Thank you. [Operator Instructions] Our first question comes from Tate Sullivan from Maxim Group. Please go ahead.

Hey, hi. Dozen thank you for taking my question.

Tate, hi.

Looking at -- hello. Looking at relative growth rates in the sector, I mean, as more of these on grid EV charging company in the [indiscernible] and are reporting year-over-year growth rates and you commented earlier that your total addressable market is at larger and larger than those companies. Did you expect to have similar growth rate [technical difficulty] those companies, or a lower rate of growth because your EV ARC is maybe more expensive on a per unit basis. How should I and how do you look at that?

I think that's going to be an evolution too. And again, this goes back to the comments I made about the fact that it's going to get more expensive, more complex and more risky to install grid tied infrastructure. As the grid type solutions have to be deployed further and further away from existing circuits. And as capacity is exhausted, on an on-site, or local or regional or even national level. But also there's something else going on here too. It's -- and I don't mean to sound unkind, but it's unimaginative to connect to the grid, right? That's a sort of normal thing that you would do. And so people who don't know much better do that. What we find is that when people see our product, understand our product, they quickly move away from thinking that connecting to the grid is the idea, and this is why we're spending so much money, so much more money on sales and marketing. Because the truth is that when people see and understand the product, they want it. I'm learning that with absolute bells on it today, here in San Jose, as all these fleet operators, for the first time are exposed to what we do, and their eyes are popping over their heads. So I think what you'll see here is in the early days, predictably and understandably, you see people connect into the grid, but for a whole host of reasons capacity, robustness, cost, risk, and everything else, you'll see that start to tip in the other direction. And so I'm very bullish about our future and actually expect that our growth rates, which maybe in the beginning while people learn about the product are lower than the typical grid type stuff will soon surpass because at the end of the day, speed is what's going to be required, robustness is going to be what's required, and lowest total cost of ownership. Just on that comment you made about our products, is that more expensive? Actually it isn't. When compared to any of the locations where we're deployed, we are less expensive than the avoided [ph] cost of construction day one. That's why our customers buy our product. And then when you add in total cost of ownership, utility bills don't come from blackouts and brownouts and all the other things like permitting and everything have to go through. We are very, very competitive. And that's today, obviously, as our volumes increasing as it gets more expensive to do the grid type stuff, that -- that's an ever improving picture for us. And it's going completely the opposite direction for the traditional installer.

Great point. Yes, yes, absolutely. Including those construction and electrical costs on other products, on grid products. So both those sales …

And the utility bill.

Just if I may squeeze another on the Volvo sales channel, where you can sell your -- where your EV ARCS are paired with the electric construction equipment. Is that a global sales channel? Or is that U.S [indiscernible] start and as part of that in your 75 million pipeline as well, please.

Yes, we have nothing in the pipeline from that opportunity. But it is a fantastic example of another thing which I mentioned in my comments about how our products are able to charge any type of electric transportation or almost any type of electric transportation product. And so here you see this product that we initially developed to charge sedans, no charging, construction equipment, Volvo construction equipment is putting our product in their catalogue. When you think about all this construction companies are increasingly being forced to give up their diesel powered vehicles because of pollution prohibitions, because of noise pollution prohibitions, because of the expense of storing diesel on site, and all these other things like this, they're having to move to electric construction equipment. That's an inevitable process. And of course, there's generally never any electricity on the sites where they're moving [indiscernible] because of the nature of the way construction projects advance. We give them an opportunity to charge those vehicles without risk, without liquid fuels, and with no unit cost of the energy. So we view that as a great opportunity. It's quite a new relationship. And it's a very new industry. It's newer than sedans. So as a result, we don't have anything in pipeline from that yet. But we view a great deal of upside potential from that industry. It's a multibillion dollar industry. And as of the moment, there really isn't a better solution than the products that we have to fuel it.

Thank you, Desmond.

Thank you, Tate.

The next question comes from Sunny [indiscernible], a Private Investor. Please go ahead.

Hello, Sunny.

Hi, Desmond. Just wondering if there's been any more developments on the sponsorship since the last earnings call?

Yes, there's an endless evolution of development on the sponsorship thing. I can't go into a lot of detail about that. But the answer, the simple answer to your question is yes. So let me answer it in a different way. Are we closer or further away from making that a success? Closer.

Okay, perfect. And regarding the EV standard, do you still see coming out within 2022? Or you still focused on improving the manufacturing costs on the EV ARC?

Yes, to both questions. We are still focused on improving -- reducing costs and improving the EV ARC because without a doubt the product that we're getting the most interesting. But at the same time, we recognize that EV standard is a very important product to our future, and indeed, to the future of industry. And so you will see us putting more emphasis on that. And the simple fact of matter is we are recruiting. We're in the process of seeking more engineering staff and the kinds of people who can help us with this, because we really don't want to be shooting off one of those targets. We want to be shooting at both of them and then frankly, right behind that the UAV ARC.

Okay, perfect. Just one last question. I'm not sure if you covered already. Regarding the production rate, how much is it right now? How many units you shipping out per week? Is it still four or has it improved?

Its improved. We are aiming to get a unit day out at this point. But as you know, we intend to go much farther than that as well. We actually now have six workstations in our final assembly facility. We do not have those populated with staff as yet, but we're scaling up there as well. And the definite goal is to get to the point where we can get a unit, a workstation a day, but that will take us some time. There'll be some investment to get to that point. But we have lots of opportunity to grow there. The really good news is that the demand is ramping up so quickly that that's something that we will do less aspirationally and more because we have to.

Okay, perfect. Thank you, Desmond.

Thanks, Sunny.

[Operator Instructions] Our next question comes from Vikram Bagri from Needham. Please go ahead.

Hi, Vikram.

Hey, Desmond. This is Tyler, I'm filling in for Vikram. [Indiscernible] jump off.

Hi, Tyler.

Thanks. Yes, thanks for taking the question. So once I just you've managed navigating the supply chain, you have lower costs, which is great. Just wondering if there's going to be any spillover into Q4 though, and wondering if you had any shipment delays from this quarter?

Shipment delays will not be caused by upstream supply chain problems, our inability to get our hands on the components. Although believe me that has become trickier. And we have seen cost increases particularly with steel and some other things, but as I said, we believe that those are -- they're more to do a supply and demand imbalance than any fundamental economic influences. And we believe that those things will be corrected in 2022. Transportation, frankly, is the biggest threat to us. As everyone's reading 80,000 short of truck drivers in the United States today and all these other things. So we're going to work hard. But as I said in my comments, we've actually improved our processes, we're much more efficient, we're going to have a much less at the mercy of third-party operators. But I can tell you we're keeping an eagle eye on that because we can produce products all day long. But if we can't get them to the customer site, that's not obviously going to do us our revenues any good. So none of this is easy. We're offering in a very challenging time at the moment, but we've improved over Q2 and we intend to continue that improvement as we move throughout the year.

Okay. Thank you. And one other one too, I just want to ask in reference to the pipeline. I think you mentioned you got up to -- from Q1 50 million to 75 million and this -- it sounds like this quarter, you're right around that 75 million mark. I’m just trying to back into that is, so we take the, I guess the 5 million in new orders, that -- was that additional or accretive to this quarter.

So to be clear, it was the Q2 to Q3 move was the move from 50 million to 75 million.

Okay.

The 5 million, of course, we know also have over 7 million in backlog. So this is a constant. The trains moving through the station all the time, right? Pipeline being converted, the backlog being converted to revenue. And so what you're seeing is an increase in pipeline, an increase in backlog and an increase in revenue over prior year, all happening at the same time. And the only way that can be happening is if we're adding even more sales and so that's what you saw.

Got it. Okay. That's helpful. And then one other question quickly. The Marine Corps win, obviously a big win for you. What's the opportunity there? I haven't seen many [indiscernible] type installations in military applications. But what do you guys see is that is there room for growth there? Obviously, it's a huge need and construction is one thing, the military is another just because you have the security and the off grid application. Just wonder if you could speak to that a little bit.

Yes, so resiliency [indiscernible] absolutely crucial to them, they cannot afford to lose their infrastructure and so that the centralized vulnerabilities that come along with grid connection is a concern for them. Let me put it like this. We did a future warfighting exercise at Camp Pendleton with the Marine Corps where we placed EV ARC in remote environments. This is important to understand, because at the moment, what they're doing with our product is for non-tactical vehicles. But I will say this to you, the General who run that, watch future warfighting exercise at the end of it, there were drones and robots and all kinds of toys there. And he said, and I'm paraphrasing here, he said, all your toys are great. But what I really need is a solution that prevents me from having to take liquid fuels to a forward operating environment. And of course, that is what we offer. And so just to -- almost amusingly tell you we had a good deal of discussion with certain people in the Marine Corps about having a non light EV ARC, [indiscernible] EV ARC or whatever. And so that gives you this idea that of a tactical solution. I must stress at the moment, we have no order for tactical, but clearly moving to electric vehicles is in their future, both tactical and non-tactical. And as I mentioned, all 645,000 vehicles in the federal fleet will be electrified. They are -- they will be the biggest buyer of electric vehicle charging infrastructure in the world. By far, we have a GSA contract in place. Our product is a Made in America, shovel ready, and also a disaster preparedness product. So call me crazy, but I think we're in a bloody good position to get a very good share of that business.

Appreciate it, Desmond. Thanks for taking the questions.

Thank you.

The next question comes from Amit Dayal from H.C. Wainwright. Please go ahead.

Hi, Amit.

Hi, Desmond. Congratulations on the execution so far. Prospects look pretty solid for you guys. With respect to the sponsorship side of the opportunity, you said you're closer to closing on a deal. At what stage are we at? How many people are we speaking to? Any granularity on that would really be helpful. Thank you.

We are speaking to quite a lot of people. And to be clear, we have engaged a consultant who does nothing, but sell sponsorship opportunities for stadiums, for transit systems. As you go through major cities in United States and you see a stadium with a name on the side of it, or a transit system with advertising on the side of it, these people -- this is all they do and they're the best at it. And they are speaking to lots of people, they are keeping me really busy because as they move people up through the pipeline of understanding, then I get engaged with them. I really cannot go into detail about where we are with whom. But I can tell you that we are busy with that. And again, I believe it's a -- certainly not an if, it's a when in my view and the kind of people I'm talking to, frankly, you could probably guess it, who many of them are. Many of them just a couple years ago, said the EV charging infrastructure would be nothing to do with them. And yet now we're seeing very increased interest in it. So I'm still confident. I know everyone is frustrated with that. No one is more frustrated than I am about it, but we will get it done. And one of the things you'll notice about Beam in general over the years is we quite often take -- perhaps take a little longer than some people would like to see, but we always do what we say we were going to do and I don't think this is going to be any different.

I appreciate that, Desmond. I don't think they’re frustrated. They're just looking for some additional visibility.

Well, I'm frustrated. I want everything to happen faster.

Maybe one way people are looking at this is, in our minds, we are thinking of hundreds of units being deployed in one sponsorship deal. Could it happen that maybe you do a smaller deal just to get people going and piloting at some, maybe 10 units, 5 units, whatever it is just to get everything started, but with multiple sponsors.

So you will not see us do any large markets in that way. I'm not going to say to you that if someone said, hey, there's a neighborhood around such and such a refinery in Texas or something and we'd like to do this and so that people view us differently, that we would say no to a smaller deployment like that. You will not see us doing at San Diego wide deployment or anything like that with a small number of units. Because it just -- it doesn't make sense to do that. It's worth being patient. It's worth hanging in there to get that big win. And you're right, I believe it could be hundreds of units.

Okay, thank you. That's all I’ve Desmond. Thank you so much.

Thank you, Amit.

There are no more questions in the queue. This concludes our question-and-answer session. I'd like to turn the conference back over to Desmond Wheatley, for any closing remarks.

Good. Well, thank you for your questions and thank you for your attention today, especially on what is for many people a holiday. Again, I feel really good about this company. We've been working on this for a long time. And I think what we're seeing now is many of the things that we predicted, many of the things that we hoped are starting to come into fruition. So it's nothing, but a bright future for us right now. We're busy like that. We're going to get a whole lot busier. So please stay tuned. Thank you.

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