| CORPORATE ORGANIZATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. CORPORATE ORGANIZATION, NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CORPORATE ORGANIZATION Beam Global (formerly Envision
Solar International, Inc.) was incorporated in June 2006 as a limited liability company (“LLC”). Through a series of transactions
and mergers, including a series of 2010 transactions where the then existing entity was acquired by an inactive publicly held company
in a transaction treated as a recapitalization of the company, the resulting entity became Envision Solar International, Inc., a Nevada
Corporation. On September 15, 2020, Envision Solar International, Inc. announced its rebranding and changed its corporate name to Beam
Global (hereinafter the “Company”, "us", "we", "our" or "Beam") and trading on Nasdaq:
BEEM and BEEMW. NATURE OF OPERATIONS 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 branding, and energy security and disaster preparedness.
Beam’s products enable vital and highly valuable energy production 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. When competing with utilities or typical solar companies, we rely on our products’ ease of deployment, reliability,
accessibility, and total cost of ownership, rather than producing the cheapest kilowatt hour with the help of subsidies. Beam’s products and
proprietary technology solutions target three markets that are experiencing significant growth with annual global spending in the billions
of dollars:
· electric vehicle (EV) charging infrastructure;
· energy security and disaster preparedness; and
· outdoor media advertising. RISKS AND UNCERTAINTIES On March 11, 2020, the World
Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic. The outbreak of COVID-19 has resulted in travel
restrictions, quarantines, “stay-at-home” and “shelter-in-place” orders as well as the shutdown of many businesses
around the world. To date, while we saw seen some delays and cancellations of opportunities in our pipeline in 2020 as a result of funding
issues, priority issues or temporary business closures, the pandemic has not had a material adverse effect on the Company’s financial
position or results of operations for the years ended December 31, 2020 and December 31, 2021. However, it is difficult to predict if
these governmental actions and the widespread economic disruption arising from the pandemic will impact our business in the future. The
Company will continue to monitor its progress and communicate changes in estimates and assumptions with shareholders, as necessary. USE OF ESTIMATES The preparation of financial
statements in conformity with accounting principles generally accepted in the United States of America 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. 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 December 31, 2021. As of December 31, 2021, approximately $ 22,070,000 Major Customers The Company continually assesses
the financial strength of its customers. For the year ended December 31, 2021, two customers accounted for 33 13 30 30 22 13 10 61 13 For
the years ended December 31, 2021 and 2020, the Company had a heavy concentration of sales to federal, state and local governments
which represented 86 53 CASH AND CASH EQUIVALENTS For the purposes of the statements
of cash flows, the Company considers all liquid investments with an original maturity of three months or less when purchased to be cash
equivalents. There were no FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial
instruments, including accounts receivable, accounts payable, accrued expenses, and short-term loans, are carried at historical cost basis.
At December 31, 2021, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these
instruments. ACCOUNTS RECEIVABLE Accounts receivable are customer
obligations due under normal trade terms. Management reviews accounts receivable on a periodic basis to determine if any receivables may
become uncollectible. Management’s evaluation includes several factors including the aging of the accounts receivable balances,
a review of significant past due accounts, dialogue with the customer, the financial profile of a customer, our historical write-off experience,
net of recoveries, and economic conditions. The Company includes any accounts receivable balances that are determined to be uncollectible
in its overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off
against the allowance. There were no INVENTORY Inventory is stated at
the lower of cost and net realizable value. Cost is determined using the first-in, first-out method of accounting. Inventory costs
primarily relate to purchased raw materials and components used in the manufacturing of our products, work in process for products
being manufactured, and finished goods. Included in these costs are direct labor and certain manufacturing overhead costs associated
with normal capacity in the manufacturing process. The Company regularly reviews inventory components and quantities on hand and
performs annual physical inventory counts. PROPERTY, EQUIPMENT AND DEPRECIATION Property and equipment is
recorded at cost. Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets of
3 to 7 years PATENTS The Company believes it will
achieve future economic value benefits for its patents. All administrative costs for obtaining patents are accumulated on the balance
sheet as a patent asset until such time as a patent is issued. The costs of these intangible assets are classified as a long-term asset
and amortized on a straight-line basis over the legal life of such asset, which is typically 20 years. In the event a patent is denied
or abandoned, all accumulated administrative costs will be expensed in the period in which the patent was denied or abandoned. Accumulated
amortization related to patents was $ 30,175 11,574 18,600 4,502 13,307 LEASES At the inception of a contract the Company assesses whether the contract is, or contains, a lease. The Company’s assessment is based
on: (1) whether the contract involves the use of a distinct identified asset, (2) whether we obtain the right to substantially all the
economic benefit from the use of the asset throughout the period, and (3) whether it has the right to direct the use of the asset. The
Company allocates the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease
payments. The Company has elected to not recognize right of use assets and lease liabilities for short term leases that have a term of
12 months or less. IMPAIRMENT OF LONG-LIVED ASSETS The Company accounts for long-lived
assets in accordance with the provisions of Accounting Standards Codification (“ASC”) 360-10-35-15 “Impairment or Disposal
of Long-Lived Assets.” This guidance requires that long-lived assets and certain identifiable intangibles be reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets
to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be
generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which
the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying
amount or fair value less costs to sell. REVENUE RECOGNITION Beam follows the revenue standards
of Financial Accounting Standards Board Update No. 2014-09: “Revenue from Contracts with Customers (Topic 606).” The core
principle of this Topic is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognized
in accordance with that core principle by applying the following five steps: 1) identify the contracts with a customer; 2) identify the
performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations;
and 5) recognize revenue when (or as) we satisfy a performance obligation. Revenues are primarily derived
from the direct sales of manufactured products. Revenues may also consist of maintenance fees for the maintenance of previously sold products
and revenues from sales of professional services. Revenues from inventoried
product are recognized upon the final delivery of such product to the customer or when legal transfer of ownership takes place. Revenue
values are fixed price arrangements determined at the time an order is placed or a contract is entered into. The customer is typically
obligated to make payment for such products within a 30-45 day period after delivery. Revenues from maintenance fees for services provided
by the Company are recognized equally over the period of the maintenance term. Revenue values are fixed price arrangements determined
at the time an order is placed or a contract is entered into. The customer is typically obligated to make payment for the service in advance
of the maintenance period. Extended maintenance or warranty
services, where the customer has the option to purchase this extension as a separate purchase option, are considered a separate performance
obligation. If the Company does not control the extended services, in terms of having the responsibility for fulfillment of the obligation
or the option to choose who will perform the services, the Company is acting as an agent and would report the revenues on a net basis. Revenues from professional
services are recognized when services are performed. Revenue values are based upon fixed fee arrangements or hourly fee-based arrangements
with agreed to hourly rates of service categories in line with expertise requirements. These services are billed to a customer as such
services are provided and the customer will be obligated to make payments for such services typically within a 30-45 day period. The Company has a policy of
recording sales incentives as a contra revenue. The Company includes shipping
and handling fees billed to customers as revenues. Any deposits received from
a customer prior to delivery of the purchased product or monies paid prior to the period for which a service is provided are accounted
for as deferred revenue on the balance sheet. Sales tax is recorded on a
net basis and excluded from revenue. The Company generally
provides a standard one-year warranty on its products for materials and workmanship but may provide multiple year warranties as
negotiated, and it will pass on the warranties from its vendors, if any, which generally covers this one-year period. The Company
accrues for product warranties when the loss is probable and can be reasonably estimated. At December 31, 2021, the Company has no COST OF REVENUES The Company records direct
material and component costs, direct labor and associated benefits, and manufacturing overhead costs such as supervision, manufacturing
equipment depreciation, rent, and utility costs, all of which are included in inventory prior to a sale, as costs of revenues. The Company
further includes shipping and handling costs as cost of revenues. RESEARCH AND DEVELOPMENT In accordance with ASC 730-10,
“Research and Development,” expenditures for research and development of the Company’s products are expensed when incurred
and are included in operating expenses. The Company recognized research and development costs of $ 360,586 261,611 ADVERTISING The Company conducts advertising
for the promotion of its products and services. In accordance with ASC 720-35, “Advertising Costs,” advertising costs are
charged to operations and included in operating expenses when incurred. Such amounts aggregated $ 138,072 122,840 STOCK-BASED COMPENSATION The Company follows ASC 718,
“Compensation – Stock Compensation.” ASC 718 requires companies to estimate and recognize the fair value of stock-based
awards to employees and directors. The fair value of the portion of an award that is ultimately expected to vest is recognized as an expense
over the shorter of the service periods or vesting periods using the straight-line attribution method. The Company estimates the
fair value of each stock option at the grant date by using the Black-Scholes option pricing model. Forfeitures are accounted for as incurred,
as a reversal of share-based compensation expense related to awards that will not vest. INCOME TAXES The Company accounts for income
taxes pursuant to the provisions of ASC Topic 740, “Income Taxes,” which requires, among other things, an asset and liability
approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities
for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.
A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that
the net deferred asset will not be realized. The Company follows the provisions
of ASC 740-10-25-5, “ .” The Company recognizes the
benefit of a tax position when it is effectively settled. ASC 740-10-25-10, “Basic Recognition Threshold” provides guidance
on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized
tax benefits. ASC 740-10-25-10 clarifies that a tax position can be effectively settled upon the completion of an examination by a taxing
authority. For tax positions considered effectively settled, the Company recognizes the full amount of the tax benefit. 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 263,433 519,658 341,808 965,584 CONTINGENCIES Certain conditions may exist
as of the date the financial statements are issued which may result in a loss to the Company, but which will only be resolved when one
or more future events occur or fail to occur. Company management and its legal counsel assess such contingent liabilities, and such assessment
inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the
Company or unasserted claims that may result in such proceedings, the Company's legal counsel evaluates the perceived merits of any legal
proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the
assessment of a contingency indicates that it is probable that a liability has been incurred and the amount of the liability can be reasonably
estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates that a potentially
material loss contingency is not probable but is reasonably possible, or is probable but cannot be reasonably estimated, then the nature
of the contingent liability, together with an estimate of the range of possible loss if determinable would be disclosed. The Company does
not include legal costs in its estimates of amounts to accrue. SEGMENTS The Company follows ASC 280-10
for “Disclosures about Segments of an Enterprise and Related Information.” During 2021 and 2020, the Company only operated
in one segment; therefore, segment information has not been presented. RECLASSIFICATIONS Where necessary, the prior
year’s information has been reclassified to conform to the current year 2021 statement presentation. On the Balance Sheets, $69,711
of deferred revenue was reclassified to deferred revenue, noncurrent. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In August 2020,
the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity The ASU is effective for smaller
reporting companies in fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, although early
adoption is permitted, as early as fiscal years beginning after December 15, 2020. As such, the Company adopted ASU 2020-06 effective
January 1, 2021, on a full retrospective basis, which will allow the Company to continue to classify the warrants as equity, and as a
result, had no effect on its financial statements and related disclosures. If the Company had recorded the warrants as a liability in
prior periods, with the full retrospective adoption on January 1, 2021, the liability would have been recast as equity and retained earnings
adjusted to reverse the effect of the liability entries and as a result, there would be no impact on the financial statements for any
periods presented. In June 2016, the FASB issued
ASU 2016-13, Financial Instruments – Credit Losses |
