The accompanying unaudited notes are an integral
part of these unaudited condensed financial statements
The accompanying unaudited notes are an integral
part of these unaudited condensed financial statements
The accompanying unaudited notes are an integral
part of these unaudited condensed financial statements
The accompanying unaudited notes are an integral
part of these unaudited condensed financial statements
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. |
NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Nature of Operations
Beam Global, a Nevada corporation
(hereinafter the “Company,” “us,” “we,” “our” or “Beam”), is a cleantech innovation
company based in San Diego, California. We develop, design, engineer, manufacture and sell high-quality, renewably energized infrastructure
products for electric vehicle (“EV”) charging, outdoor media, and energy security and disaster preparedness as well as safe
and compact, highly energy-dense battery solutions. Beam’s infrastructure products enable electric vehicle charging and reliable
electrical power in locations where it is either too expensive or too impactful to connect to the utility grid, or where the requirements
for electrical power are so important that grid failures, like blackouts, are intolerable. Beam’s energy storage products provide
high energy density in a safe and compact form-factor ideal for the rapidly increasing numbers of mobile and stationary equipment and
products which require electrical energy without being connected to the electrical grid.
On
March 4, 2022, the Company acquired substantially all the assets of All
Cell Technologies, LLC (“All Cell”), an energy storage solutions and technologies company based in Broadview, Illinois. Refer
to note 3, Business Combination for additional details.
Basis of Presentation
The interim unaudited condensed
financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States
(“GAAP”) for interim financial statements and are in the form prescribed by the Securities and Exchange Commission in instructions
to Form 10-Q and Rule 10-01 of Regulation S-X. In management’s opinion, all adjustments (consisting of normal recurring adjustments
and reclassifications) necessary to present fairly our results of operations and cash flows for the three and six months ended June 30,
2022 and 2021, and our financial position as of June 30, 2022, have been made. The results of operations for such interim periods are
not necessarily indicative of the operating results to be expected for the full year.
Certain information and disclosures
normally included in the notes to the annual financial statements have been condensed or omitted from these interim financial statements.
Accordingly, these interim unaudited condensed financial statements should be read in conjunction with the financial statements and notes
thereto for the year ended December 31, 2021. The December 31, 2021 balance sheet is derived from those statements.
Use of Estimates
The preparation of financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying
financial statements include the allowance for doubtful accounts receivable, valuation of inventory and standard cost allocations, depreciable
lives of property and equipment, valuation of intangible assets, estimates of loss contingencies, estimates of the valuation of lease
liabilities and the related right of use assets, valuation of share-based costs, and the valuation allowance on deferred tax assets.
Recent Accounting Pronouncements
In June 2016, the FASB issued
ASU 2016-13, Financial Instruments – Credit Losses (ASC Topic 326) requiring initial recognition of
credit losses, as well as any subsequent change in the estimate, when it is probable that a loss has been incurred. The standard eliminates
the threshold for initial recognition in current U.S. GAAP and it covers a broad range of financial instruments, including trade and other
receivables at each reporting date. The measurement of expected credit losses is based on historical experience, current conditions, and
reasonable and supportable forecasts that affect the collectability of the financial assets. The standard is effective for the Company
beginning January 1, 2023. The adoption of this guidance is not expected to have a material effect on our financial statements.
Concentrations
Credit Risk
Financial instruments that potentially subject
us to concentrations of credit risk consist of cash and accounts receivable.
The Company maintains its
cash in banks and financial institution deposits that at times may exceed federally insured limits. The Company has not experienced any
losses in such accounts from inception through June 30, 2022. As of June 30, 2022, approximately $13.9 million of the Company’s
cash deposits were greater than the federally insured limits.
Major Customers
The Company continually assesses
the financial strength of its customers. For the three months ended June 30, 2022, two customers accounted for 34% and 14% of total revenues
and for the six months ended June 30, 2022, two customers accounted for 23% and 12% of total revenues each. For the three months
ended June 30, 2021, revenues from four customers accounted for 22%, 18%, 16% and 10% of total revenues and for the six months ended June
30, 2021, revenues from three customers accounted for 13%, 13% and 11% of total revenues. At June 30, 2022, accounts receivable from two
customers accounted for 47% and 11% of total accounts receivable with no other single customer accounting for more than 10% of the accounts
receivable balance. At December 31, 2021, accounts receivable from four customers accounted for 30%, 22%, 13% and 10% of total accounts
receivable with no other single customer accounting for more than 10% of the accounts receivable balance. For the six months ended June
30, 2022 and 2021, the Company had a heavy concentration of sales to federal, state and local governments which represented 61% and 77%
of revenues, respectively.
Significant Accounting Policies
During the six months ended
June 30, 2022, there were no changes to our significant accounting policies as described in in our Annual Report on Form 10-K for the
year ended December 31, 2021. See below for our policy related to business combinations, goodwill and indefinite-lived intangible assets
and fair value measurements.
Business Combination
The purchase price of an acquisition
is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition
date. To the extent the purchase price exceeds the fair value of the net identifiable tangible and intangible assets assumed, such excess
is allocated to goodwill. The Company determines the estimated fair values after review and consideration of relevant information, including
discounted cash flows and estimates made by management. The Company records the net assets and results of operations of an acquired entity
from the acquisition date. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred.
Contingent consideration liability
is recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent consideration liability
are recognized in operating expenses in the statement of operations. Contingent consideration liability related to the acquisition consists
of commercial milestone payments and are valued using a Monte Carlo simulation. The fair value of commercial milestone payments reflects
management’s estimates of discount rates and probability of achieving certain milestones.
Goodwill and Indefinite-lived Intangible Assets
Upon acquisition, identifiable
intangible assets are recorded at fair value and are carried at cost less accumulated amortization. Identifiable intangible assets with
finite lives are amortized on a straight-line basis over their estimated useful lives except for customer relationships, for which the
amortization is recorded on an accelerated method over the estimate useful life. The carrying values of intangible assets with finite
lives are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.
Goodwill represents the excess
of the purchase prices of an acquired business over the fair value of the underlying net tangible and intangible assets. The Company is
required to assess goodwill and other indefinite-lived intangible assets for impairment annually, or more frequently if circumstances
indicate impairment may have occurred. The Company first assesses qualitative factors to determine whether it is necessary to perform
the quantitative goodwill impairment test, including macroeconomic conditions, industry and market considerations, and our overall financial
performance. If, after completing the qualitative assessment, it is determined it is more likely than not that the estimated fair value
is greater than the carrying value, the Company concludes no impairment exists. Alternatively, if the Company determines in the qualitative
assessment, it is more likely than not that the fair value is less than its carrying value, then the Company performs a quantitative goodwill
impairment test to identify both the existence of an impairment and the amount of impairment loss, by comparing the fair value of the
reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit is less than the carrying
value, then a goodwill impairment charge is recognized in the amount by which the carrying amount exceeds the fair value, limited to the
total amount of goodwill allocated to that reporting unit. The goodwill annual assessment test is performed in the fourth quarter of every
year or when an event occurs or circumstances change such that it is reasonably possible that an impairment may exist.
Fair Value Measurements
The fair value of assets and
liabilities are based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the
principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement
date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs.
We use a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable,
to measure fair value:
· Level
1 — Quoted prices in active markets for identical assets or liabilities.
· Level
2 — Inputs, other than Level 1, that are observable, either directly or indirectly, such as quoted prices for
similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be
corroborated by observable market data for substantially the full term of the assets or liabilities.
· Level
3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the
assets or liabilities.
The carrying amounts of financial
instruments such as cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate the related fair
values due to the short-term maturities of these instruments.
Net Loss Per Share
Basic net loss per share is
computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the periods presented. Diluted
net loss per common share is computed using the weighted average number of common stock outstanding for the period, and, if dilutive,
potential common stock outstanding during the period. Potential common stock consists of the incremental shares of common stock issuable
upon the exercise of stock options, stock warrants, convertible debt instruments or other common stock equivalents. Potentially dilutive
securities are excluded from the computation if their effect is anti-dilutive.
Options to purchase 284,433
shares of common stock and warrants to purchase 469,621
shares of common stock were outstanding at June 30, 2022. Options to purchase 333,980
shares of common stock and warrants to purchase 549,335
shares of common stock were outstanding at June 30, 2021. These options and warrants were not included in the computation of diluted
loss per share for the three and six months ended June 30, 2022 and 2021 because the effects would have been anti-dilutive. These
options and warrants may dilute future earnings per share.
Segments
The Company follows ASC 280-10
for “Disclosures about Segments of an Enterprise and Related Information.” Management assesses its segment reporting based
on how it internally manages and reports the results of its business to its chief operating decision maker. For periods through the date
of the All Cell acquisition, the Company had, and reported in, one reportable segment. Subsequent to the acquisition of All Cell, management
continues to review financial results, manage the business and allocate resources on an aggregate basis. Therefore, financial results
continue to be reported in a single operating segment.
The Company has a history
of net losses. For the six months ended June 30, 2022 and 2021, the Company had net losses of $5.1
million (which includes $0.7
million of non-cash expenses) and $2.9
million (which included $0.5
million of non-cash expenses), respectively, and net cash used in operating activities of $7.4
million and $3.8
million, respectively. During the first six months of 2022, the $7.4 million of operating cash usage included $3.6 million to
purchase inventory and to prepay vendors for inventory to reduce the risk of potential shortages of cells required for battery manufacturing,
and an increase of work in process inventory of EV ARC™ units. The increases in prepayments and inventory are not expected to be ongoing
quarterly cash requirements, but rather should reduce to lower levels over the next 12 months.
At June 30, 2022, we had
a cash balance of $13.8
million and working capital of $19.4 million.
Based on the Company’s current operating plan, the Company believes that it has sufficient cash to fund its operations and
meet contractual obligations for at least twelve months from June 30, 2022. The Company can also manage prepayment and inventory
levels as well as spending levels for sales and marketing resources to help manage our cash over time. The Company believes that our
business will become profitable in the next few years as our revenues continue to grow, we improve our gross margins and we leverage
our overhead costs, but we expect to continue to incur losses for a period of time. That may require the Company to raise additional
capital to finance its future operations. We have shown success in raising capital in public and private markets in the past. In
addition, we have an S-3 Shelf registration that will become available on May 23, 2023 or we could pursue debt financings. In
addition, the Company’s outstanding warrants have generated $0.3 million and $2.6 million of proceeds during the six months
ended June 30, 2022 and 2021, respectively. There is no guarantee that profitable operations will be achieved, the warrants will be
exercised or that additional capital or debt financing will be available.
On March 4, 2022, the Company completed its acquisition of substantially
all the assets of All Cell Technologies, LLC (“All Cell”), a leader in energy storage solutions. We believe this strategic
acquisition will increase and diversify our Company’s revenue, gross profitability, manufacturing capabilities, intellectual portfolio
and customer base. The Company purchased substantially all of the assets and business of All Cell for 1,055,000 shares of Beam
Common Stock (“Closing Consideration”) plus an additional $0.8 million in cash for the net working capital held by All Cell
at closing.
In addition, All Cell is eligible
to earn an additional number of shares of Beam Common Stock if Beam’s new energy storage business meets certain revenue milestones
(the “Earnout Consideration”). The Earnout Consideration is: (i) two times the amount of energy storage products revenue and
contracted backlog that is greater than $7.5 million for 2022, and (ii) two times the amount of energy storage products 2023 revenue only
which exceeds the greater of either $13.5 million or 135% of the 2022 cumulative revenue, capped at $20.0 million. Revenues exceeding
$20.0 million in 2023 will not be eligible for the Earnout Consideration. The maximum aggregate number of shares of Beam Common Stock
that the Company will issue to All Cell for the Closing Consideration and Earnout Consideration will not exceed 1.8 million shares. Revenue
from energy storage products used in Beam Global products will not be considered as contributing to the Earnout calculation.
The preliminary fair value
of consideration transferred consisted of the following (in thousands):
Schedule of Noncash or Part Noncash Acquisitions | |
| |
Common Stock | |
$ | 14,359 | |
Working Capital Cash Payment | |
| 811 | |
Earnout Consideration | |
| 1,251 | |
Total consideration transferred | |
$ | 16,421 | |
The following table summarizes
the preliminary fair values of assets acquired and liabilities assumed as of the acquisition date (in thousands):
Schedule of assets acquired and liabilities assumed | |
| |
Inventory | |
$ | 2,146 | |
Prepaid expenses | |
| 28 | |
Deposits | |
| 10 | |
Property, plant and equipment | |
| 397 | |
Intangible assets, including goodwill | |
| 15,059 | |
Total assets acquired | |
| 17,640 | |
| |
| | |
Customer deposits | |
| (1,219 | ) |
Total liabilities assumed | |
| (1,219 | ) |
| |
| | |
Total assets and liabilities assumed | |
$ | 16,421 | |
The estimated fair values
assigned to identifiable assets acquired and liabilities assumed are provisional pending the finalization of the working capital and purchase
price allocation and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired
and liabilities assumed. The Company believes that information provides a reasonable basis for estimating the fair values of assets acquired
and liabilities assumed, but the Company is waiting for additional information necessary to finalize those fair values. Therefore, the
provisional measurements of fair value reflected are subject to change and such changes could be significant. The Company expects to complete
the allocation of purchase price as soon as practicable, but no later than one year after the acquisition date. The Company incurred $0.1
million of transaction costs during the six months ended June 30, 2022, directly related to the acquisition that is reflected in operating
expenses in the statement of operations.
Goodwill represents the excess
of the total purchase price over the fair value of the underlying net assets, largely arising from synergies expected to be achieved by
the combined company and expanded market opportunities. The goodwill is expected to be fully deductible for tax purposes.
The valuation of the Earnout
Consideration was performed using a two-factor Monte Carlo simulation, which includes estimates and assumptions such as forecasted revenues
of All Cell, volatility, discount rates, share price and the milestone settlement value. As such valuation includes the use of unobservable
inputs, it is considered to be a Level 3 measurement. The fair value of the Earnout Consideration is reassessed on a quarterly basis
with the change recorded to operating expenses. Change in the fair value of the Earnout Consideration during the six months ended June
30, 2022 is as follows (in thousands):
Schedule of fair value earnout | |
| | |
Balance as of December 31, 2021 | |
$ | – | |
Acquisition of All Cell | |
| 1,251 | |
Change in estimated fair value | |
| (208 | ) |
Balance as of June 30, 2022 | |
$ | 1,043 | |
The preliminary fair values
assigned to identifiable intangible assets and goodwill acquired are as follows ($ in thousands):
Schedule of acquired intangible assets | |
| | |
| |
| |
Value | | |
Useful Life (yrs.) | |
Developed technology | |
$ | 8,074 | | |
| 11 | |
Trade name | |
| 1,756 | | |
| 10 | |
Customer relationships | |
| 444 | | |
| 13 | |
Backlog | |
| 185 | | |
| 1 | |
Goodwill | |
| 4,600 | | |
| N/A | |
| |
$ | 15,059 | | |
| | |
The fair values of the developed
technology, trade name, customer relationships and backlog were estimated using an income approach. Under the income approach, an intangible
asset’s fair value is equal to the present value of future economic benefits in the form of cash flows to be derived from ownership
of the asset. The estimated fair values were developed by discounting future net cash flows to their present value at market-based rates
of return. The useful lives of the intangible assets for amortization purposes were determined by considering the period of expected cash
flows used to measure the fair values of the intangible assets adjusted as appropriate for entity-specific factors including legal, competitive,
and other factors that may limit the useful life. The identifiable intangible assets are amortized on a straight-line basis over their
estimated useful lives except for customer deposits which uses accelerated depreciation.
Pro Forma Financial Information
The following pro forma financial
information summarizes the combined results of operations of Beam Global and All Cell as if the companies had been combined as of the
beginning of the six months ended June 30, 2021 (in thousands):
Schedule of Pro Forma Information | |
| | | |
| | | |
| | | |
| | |
| |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| |
2022 | | |
2021 | | |
2022 | | |
2021 | |
Revenues | |
$ | 3,718 | | |
$ | 3,869 | | |
$ | 7,734 | | |
$ | 7,016 | |
Net Loss | |
$ | (2,657 | ) | |
$ | (2,479 | ) | |
$ | (5,807 | ) | |
$ | (4,184 | ) |
The pro forma financial information
is presented for information purposes only and is not indicative of the results of operations that would have been achieved had the acquisition
been completed at the beginning of the six months ended June 30, 2021. In addition, the pro forma financial information is not a projection
of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings
associated with the acquisition. The pro forma financial information includes adjustments to reflect the incremental amortization expense
of the identifiable intangible assets and transaction costs, as well as removes the impact of the debt that was not acquired by the Company.
The statement of operations
for the three and six months ended June 30, 2022 includes revenues of $1.4 million and $1.8 million, and loss from operations of $1.0
million and $1.4 million, respectively, from the acquired All Cell assets.
Broadview Lease
As part of the acquisition,
the Company assumed a facility lease located in Broadview, Illinois, and recorded $0.2 million in right-of-use asset and lease liability.
The lease term ends on August 31, 2023 and contains clauses for annual rent escalation. Total minimum rental payments remaining as of
June 30, 2022 were $0.2 million, of which $0.1 million is due within 2022.
4. |
PREPAID EXPENSES AND OTHER CURRENT ASSETS |
Prepaid expenses and other
current assets are summarized as follows (in thousands):
Schedule of Other Current Assets | |
| | |
| |
| |
June 30, | | |
December 31, | |
| |
2022 | | |
2021 | |
Vendor prepayments | |
$ | 2,936 | | |
$ | 87 | |
Related party receivable | |
| 17 | | |
| 27 | |
Prepaid insurance | |
| 261 | | |
| 66 | |
Total prepaid expenses and other current assets | |
$ | 3,214 | | |
$ | 180 | |
Related party receivables
as of June 30, 2022 and December 31, 2021 consisted primarily of payroll related taxes due for employee stock vesting.
Inventory consists of the following (in thousands):
Schedule of Inventory | |
| | |
| |
| |
June 30, | | |
December 31, | |
| |
2022 | | |
2021 | |
Finished goods | |
$ | 77 | | |
$ | – | |
Work in process | |
| 2,042 | | |
| 425 | |
Raw materials | |
| 5,238 | | |
| 1,186 | |
Total inventory | |
$ | 7,357 | | |
$ | 1,611 | |
6. |
PROPERTY AND EQUIPMENT |
Property and equipment consist
of the following (in thousands):
Schedule of property and equipment | |
| | |
| |
| |
June 30, | | |
December 31, | |
| |
2022 | | |
2021 | |
Office furniture and equipment | |
$ | 132 | | |
$ | 132 | |
Computer equipment and software | |
| 98 | | |
| 74 | |
Leasehold improvements | |
| 187 | | |
| 28 | |
Autos | |
| 337 | | |
| 337 | |
Machinery and equipment | |
| 1,245 | | |
| 562 | |
Total property and equipment | |
| 1,999 | | |
| 1,133 | |
Less accumulated depreciation | |
| (596 | ) | |
| (483 | ) |
Property and Equipment, net | |
$ | 1,403 | | |
$ | 650 | |
The major components of accrued expenses
are summarized as follows (in thousands):
Schedule of accrued expense | |
| | |
| |
| |
June 30, | | |
December 31, | |
| |
2022 | | |
2021 | |
Accrued vacation | |
$ | 122 | | |
$ | 238 | |
Accrued salaries and bonus | |
| 495 | | |
| 353 | |
Vendor accruals | |
| 121 | | |
| 36 | |
Other accrued expense | |
| 136 | | |
| 100 | |
Total accrued expenses | |
$ | 874 | | |
$ | 727 | |
8. |
COMMITMENTS AND CONTINGENCIES |
Legal Matters:
From time to time, we may
be involved in litigation relating to claims arising out of our operations in the normal course of business. As of June 30, 2022, there
were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.
Other Commitments:
The Company enters into various
contracts or agreements in the normal course of business whereby such contracts or agreements may contain commitments. Since inception,
the Company entered into sales agent agreements whereby sales agents would receive a fee equal to a percentage of revenues generated by
the agent; agreements with vendors where the vendor may provide marketing, investor relations, public relations, technical consulting
or subcontractor services, vendor arrangements with non-binding minimum purchasing provisions, and financial advisory agreements where
the financial advisor would receive a fee and/or commission for raising capital for the Company.
There was no Federal income
tax expense for the six months ended June 30, 2022 or 2021 due to the Company’s net losses. Income tax expense represents minimum
state taxes due. As a result of the Company’s history of incurring operating losses, a full valuation allowance has been established
to offset all deferred tax assets as of June 30, 2022 and no benefit has been provided for the year-to-date loss. On a quarterly basis,
the company evaluates the positive and negative evidence to assess whether the more likely than not criteria have been satisfied in determining
whether there will be further adjustments to the valuation allowance.
Stock Issued For Acquisition
The Company issued 1,055,000
shares of its common stock upon acquiring certain assets of All Cell during the six months ended June 30, 2022. See further discussion
in note 3. Business Combination.
Awards Under Stock Incentive Plans
Stock Options
Option activity for the six months ended June
30, 2022 is as follows:
Schedule of option activity | |
| | |
| |
| |
| | |
Weighted | |
| |
| | |
Average | |
| |
Number of | | |
Exercise | |
| |
Options | | |
Price | |
Outstanding at December 31, 2021 | |
| 263,433 | | |
$ | 11.56 | |
Granted | |
| 21,000 | | |
| 16.72 | |
Exercised | |
| – | | |
| – | |
Forfeited | |
| – | | |
| – | |
Outstanding at June 30, 2022 | |
| 284,433 | | |
$ | 11.94 | |
The Company’s stock
option compensation expense was $0.1
million and $0.2
million for the three and six months ended June 30, 2022, respectively, and $0.1
million for each of the three and six months ended June, 30, 2021. There was $1.1
million of total unrecognized compensation costs related to outstanding stock options at June 30, 2022 which will be recognized
over 4.0
years. Number of stock options vested and unvested as of June 30, 2022 were 191,778 and 92,655, respectively.
Restricted Stock
A summary of activity of the restricted stock
awards for the six months ended June 30, 2022 is as follows:
Schedule of restricted stock award activity | |
| | |
| |
| |
| | |
Weighted- | |
| |
Nonvested | | |
Average Grant- | |
| |
Shares | | |
Date Fair Value | |
Nonvested at December 31, 2021 | |
| 13,669 | | |
$ | 20.45 | |
Granted | |
| 7,436 | | |
| 20.17 | |
Vested | |
| (10,382 | ) | |
| 20.53 | |
Nonvested at June 30, 2022 | |
| 10,723 | | |
$ | 20.19 | |
As of June 30, 2022, there
were unreleased shares of common stock representing $0.2 million of unrecognized restricted stock grant expense which will be recognized
over approximately 2.5 years.
Warrants
A summary of the number of shares of common stock
underlying warrants outstanding for the three months ended June 30, 2022 is as follows:
Schedule of warrant activity | |
| | |
| |
| |
Number of
Common Stock | | |
Weighted Average Exercise Price | |
Outstanding at December 31, 2021 | |
| 519,658 | | |
$ | 6.30 | |
Exercised | |
| (50,037 | ) | |
| 6.30 | |
Outstanding at June 30, 2022 | |
| 469,621 | | |
$ | 6.30 | |
For each of the identified
periods, revenues can be categorized into the following (in thousands):
Schedule of disaggregated revenues | |
| | | |
| | | |
| | | |
| | |
| |
Three Months Ended | | |
Six Months Ended | |
| |
June 30, | | |
June 30, | |
| |
2022 | | |
2021 | | |
2022 | | |
2021 | |
Product sales | |
$ | 3,192 | | |
$ | 1,976 | | |
$ | 6,754 | | |
$ | 3,241 | |
Maintenance fees | |
| 9 | | |
| 12 | | |
| 20 | | |
| 23 | |
Professional services | |
| 405 | | |
| 52 | | |
| 431 | | |
| 56 | |
Shipping and handling | |
| 114 | | |
| 86 | | |
| 296 | | |
| 185 | |
Discounts and allowances | |
| (2 | ) | |
| (5 | ) | |
| (13 | ) | |
| (12 | ) |
Total revenues | |
$ | 3,718 | | |
$ | 2,121 | | |
$ | 7,488 | | |
$ | 3,493 | |
During the three and six months
ended June 30, 2022 38% and 43% of revenues were derived from customers located in California, respectively. During the three and six
months ended June 30, 2021, 43% and 38% of revenues were derived from customers located in California, respectively. In addition, 2% of
revenues in the six months ended June 30, 2022 were international sales compared to none in the same period in the prior year.
At June 30, 2022 and December
31, 2021, deferred revenue was $1.8 million and $0.3 million, respectively. These amounts represented customer deposits in the amount
of $1.5 million and $0.1 million for June 30, 2022 and December 31, 2021, respectively and prepaid multi-year maintenance plans for previously
sold products which account for $0.2 million and $0.2 million for June 30, 2022 and December 31, 2021, respectively and pertain to services
to be provided through 2028.