Beam Global: Auditor Change, Officer Comp Details in 8-K

TL;DR

**Beam Global changed auditors and detailed officer pay, watch for financial transparency and executive incentives.**

AI Summary

Beam Global filed an 8-K on January 9, 2024, reporting several key changes effective January 2, 2024. The company announced a change in its certifying accountant and provided information regarding compensatory arrangements for certain officers. This matters to investors because changes in auditors can sometimes signal underlying financial issues or a desire for a fresh perspective, while officer compensation details offer insight into executive incentives and corporate governance.

Why It Matters

Changes in a company's auditor can impact investor confidence, as auditors are crucial for financial transparency. Details on officer compensation reveal how executives are incentivized, which can influence long-term company performance.

Risk Assessment

Risk Level: medium — Changing auditors can sometimes be a red flag, potentially indicating disagreements or issues with financial reporting, though it can also be routine.

Analyst Insight

Investors should investigate the reasons behind the auditor change and review the details of the new compensatory arrangements for officers once they become publicly available to assess potential impacts on governance and financial reporting integrity.

Key Players & Entities

• Beam Global (company) — the registrant filing the 8-K
• January 2, 2024 (date) — date of earliest event reported
• January 9, 2024 (date) — date the 8-K was filed

FAQ

Key Financial Figures

• $225 — sis. The Company will pay Ms. McDermott $225 per hour for her consulting services. T

Filing Documents

• beam_8k.htm (8-K) — 33KB
• beam_ex1601.htm (EX-16.1) — 4KB
• image_005.jpg (GRAPHIC) — 3KB
• image_006.jpg (GRAPHIC) — 7KB
• 0001683168-24-000135.txt ( ) — 261KB
• beem-20240102.xsd (EX-101.SCH) — 3KB
• beem-20240102_def.xml (EX-101.DEF) — 26KB
• beem-20240102_lab.xml (EX-101.LAB) — 36KB
• beem-20240102_pre.xml (EX-101.PRE) — 25KB
• beam_8k_htm.xml (XML) — 5KB

01

Item 4.01 Change in Registrant's Certifying Accountant. On January 3, 2024, Beam Global (the Company) dismissed RSM US LLP ("RSM") as the Company's independent registered public accounting firm. The Audit Committee of the Board of Directors of the Company approved the decision to dismiss RSM, and it has commenced a process to appoint a new independent registered public accounting firm for the Company. The Company has authorized RSM to respond fully to all inquiries of the successor auditors, including the material weaknesses described below. During the two fiscal years ended December 31, 2023 and through the date of this report on Form 8-K, there were: (1) no disagreements with RSM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with their opinion to the subject matter of the disagreement; and (ii) there were no "reportable events" listed in paragraphs (a)(1)(v) (A) through (D) of Item 304 of Regulation S-K, except that (A) for the fiscal years ended December 31, 2022 and December 31, 2021, a material weakness existed in the Company's internal control over financial reporting, as described in Item 9A to the Company's annual report on Form 10-K for the years ended December 31, 2022 and December 31, 2021, respectively, as a result of the Company not having sufficient controls in place for the tracking and recording of inventory, which material weakness was also reflected in Item 4 of each of the Company's quarterly reports on Form 10-Q filed by the Company since March 31, 2021, and (B) for the first quarter ended March 31, 2022, an additional material weakness existed in the Company's internal control over financial reporting, as described in Item 4 of the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2022 relating to the effectiveness of controls for the val

02

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. The Company and Kathy McDermott, the Company's former Chief Financial Officer, entered into a consulting agreement effective as of January 1, 2024, whereby Ms. McDermott will consult with the Company to assist and support the Company's current Chief Financial Officer on an as-needed basis. The Company will pay Ms. McDermott $225 per hour for her consulting services. The consulting agreement will terminate on March 31, 2024 and may be extended by mutual agreement of the Company and Ms. McDermott.

Financial Statements and Exhibits

Financial Statements and Exhibits Exhibit No. Description 16.1 Letter from RSM US LLP to the Securities and Exchange Commission. 104 Cover Page Interactive Data File (formatted in inline XBRL, and included in exhibit 101). 2

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BEAM GLOBAL Dated: January 8, 2024 By: /s/ Lisa A. Potok Name: Lisa A. Potok Title: Chief Financial Officer 3

View Full Filing

View this 8-K filing on SEC EDGAR