Company Overview - Polar Power (NASDAQ: POLA) is a global provider of prime, backup, solar hybrid power, and microgrid solutions, focusing on innovative DC advanced power and cooling systems across various industrial applications [2][6]. - The company's product portfolio includes solutions for telecom, military, renewable energy, marine, automotive, residential, commercial, oil field, and mining applications, emphasizing innovation, durability, and efficiency [6]. Event Participation - Polar Power will present at the 17th annual LD Micro Main Event on October 29th at 0430 PM PT, with CEO Arthur Sams representing the company [2]. - The event will feature around 150 companies presenting in half-hour increments and will include opportunities for private meetings with investors [5]. Industry Context - LD Micro, a subsidiary of Freedom US Markets, aims to serve as an independent resource in the micro-cap space, facilitating the discovery of emerging companies through its index and annual investor conferences [7].

Financial Performance - Net sales for the three months ended June 30, 2024, were $4,660,000, a decrease of 16.6% compared to $5,587,000 for the same period in 2023[6] - The company reported a net income of $501,000 for the three months ended June 30, 2024, compared to a net loss of $436,000 for the same period in 2023[6] - For the six months ended June 30, 2024, total net sales were $6,434, down 34.0% from $9,777 in the same period of 2023[23] - The net loss for the six months ended June 30, 2024, was $1,641, compared to a net loss of $1,549 for the same period in 2023[14] Gross Profit and Expenses - Gross profit for the three months ended June 30, 2024, was $1,832,000, representing a gross margin of 39.2%, compared to $1,475,000 and a gross margin of 26.4% for the same period in 2023[6] - Operating expenses for the three months ended June 30, 2024, were $1,372,000, a decrease from $1,785,000 for the same period in 2023[6] - The company recorded a depreciation and amortization expense of $121 for the three months ended June 30, 2024, compared to $226 in the same period of 2023[11] - Depreciation and amortization expense for the six months ended June 30, 2024, was $121, compared to $226 for the same period in 2023, indicating a decrease of approximately 46.5%[42] Assets and Liabilities - Total current assets decreased to $19,592,000 as of June 30, 2024, down from $21,989,000 as of December 31, 2023[5] - Total liabilities decreased to $10,632,000 as of June 30, 2024, compared to $12,070,000 as of December 31, 2023[5] - The company had cash and cash equivalents of $1,119,000 as of June 30, 2024, compared to $549,000 as of December 31, 2023[5] - As of June 30, 2024, total inventories decreased to $15,776 from $16,522 as of December 31, 2023, representing a decline of approximately 4.5%[27] - The total property and equipment net value decreased to $241 as of June 30, 2024, from $344 as of December 31, 2023, reflecting a decline of approximately 30%[41] Cash Flow and Working Capital - The company’s cash flows from operating activities provided $190 for the three months ended June 30, 2024, compared to cash used of $2,804 in the same period of 2023[11] - The company had a working capital of $10,153 as of June 30, 2024[15] - Cash and cash equivalents at the end of the period were $1,119, an increase from $292 at the end of June 30, 2023[15] Customer and Sales Information - For the three months ended June 30, 2024, sales to telecommunications customers accounted for 95% of total revenues, down from 97% in the same period of 2023[33] - The company's three largest customers generated 40%, 27%, and 22% of total revenues for the three months ended June 30, 2024, compared to 49% and 26% from the two largest customers in the same period of 2023[33] - International sales for the three months ended June 30, 2024, totaled $1,170, down from $1,641 in the same period of 2023[26] Concerns and Future Outlook - The company expressed substantial doubt about its ability to continue as a going concern due to ongoing net losses and reliance on revenue generation[14] - The company anticipates continued growth in demand for its products despite ongoing economic uncertainties[4] Credit and Loans - The outstanding balance under the line of credit increased to $4,683 as of June 30, 2024, from $4,238 at December 31, 2023, representing an increase of approximately 10.5%[47] - The company has a revolving credit facility with a limit of $7,500, with $643 available under the line of credit as of June 30, 2024[46] - The company’s Chief Executive Officer extended loans to the company totaling $260, with an outstanding balance of $258 as of June 30, 2024[43] Employee and Lease Information - The company recognized operating lease right-of-use assets and related liabilities of approximately $3,578 upon the commencement of new lease terms in 2023[53] - The total operating lease liabilities as of June 30, 2024, amounted to $2,453, compared to $2,244 as of June 30, 2023[55] - For the six months ended June 30, 2024, the operating lease cost was $597, compared to $499 for the same period in 2023, reflecting an increase of approximately 19.7%[54] - Rent expense for the six months ended June 30, 2024, was $799, compared to $649 for the same period in 2023, indicating an increase of approximately 23.1%[54] Employee Retention Credits - The company reported an increase in employee retention credit of $2,000 for the three months ended June 30, 2024[11] - The company qualified for approximately $2,000 of employee retention credits (ERC) during the year ended December 31, 2021, which was presented as ERC receivable in the balance sheets[57] - The company received $2,000 of the ERC receivable in May 2024[57] Stock Options and Warrants - As of June 30, 2024, the company had 140,000 outstanding stock options with an exercise price of $5.22, all of which are fully vested[50] - The company exchanged warrants for 12,062 shares of common stock on November 9, 2023, resulting in no outstanding warrants as of December 31, 2023[52] Lease Agreements - The company has two operating lease agreements with an aggregate commitment of $3,896, with monthly payments increasing from $89 in year one to $125 in year three[53] - The weighted average remaining lease term for operating leases is 1.9 years, with an average discount rate of 6.13%[54]

Financial Performance - Net sales for Q2 2024 were $4.6 million, a 163% increase from $1.8 million in Q1 2024, but a decrease from $5.6 million in Q2 2023[2] - Gross margin improved to 39.3% in Q2 2024, up from 26.4% in Q1 2024, attributed to higher international sales[2] - Net income for Q2 2024 was $501,000, or $0.03 per share, compared to a net loss of $(436,000) in Q2 2023[2] - The company expects continued improvement in sales growth and profitability throughout 2024 due to planned investments in sales and marketing[6] Working Capital and Backlog - Working capital as of June 30, 2024, was $10.1 million, including $15.8 million in inventory[2] - The backlog as of June 30, 2024, was $5.7 million, with $2.0 million in new bookings during Q2 2024[2] International Sales - International sales accounted for approximately 20% of Q2 2024 revenues, indicating geographic diversification[3] Operating Expenses - Operating expenses decreased to $1.4 million in Q2 2024 from $1.6 million in Q1 2024 and $1.8 million in Q2 2023[2] Tax and Credits - The company received approximately $3.0 million in tax refunds and Employee Retention Credits from prior years[2] - Employee retention credit contributed $2,000,000, which was not present in the previous year[9] Cash Flow and Investments - Net cash provided by operating activities was $190,000, a significant improvement from net cash used of $2,804,000 in the same period last year[9] - Cash and cash equivalents at the end of the period increased to $1,119,000, up from $292,000 in June 2023[9] - Cash used in investing activities was $18,000, down from $194,000 in June 2023[9] - Proceeds from advances from credit facility amounted to $445,000, compared to $3,044,000 in the same period last year[9] - Net cash provided by financing activities was $398,000, a decrease from $3,079,000 in June 2023[9] Accounts Receivable and Payable - Accounts receivable improved, with a reduction in cash used of $634,000 compared to $1,488,000 in the previous year[9] - The company experienced a decrease in accounts payable, with a cash outflow of $1,165,000 compared to an inflow of $1,199,000 in the previous year[9] Management Changes - The appointment of Mike Field as the new Director and Compensation Committee Chairman was announced[2] Net Loss - Net loss for June 2024 was $1,641,000, compared to a net loss of $1,549,000 in June 2023[9] Depreciation and Amortization - Depreciation and amortization expenses decreased to $121,000 from $226,000 year-over-year[9]

Core Insights - Polar Power, Inc. has appointed Michael Field as a new director and compensation committee chair, bringing four decades of experience in global manufacturing and equipment [1][2][4] - Field's background includes key roles at UTC Carrier Corporation, PRI Automation, and Brooks Automation, and he is currently the President and CEO of The Raymond Corporation [2][4] - The appointment fills a vacant board seat, increasing the number of independent directors to three [4] Company Overview - Polar Power is a global provider of prime, backup, and solar hybrid power solutions, focusing on innovative DC advanced power and cooling systems across various industrial applications [5] - The company's product portfolio includes solutions for telecom, military, renewable energy, marine, automotive, residential, commercial, oil field, and mining applications [5] - Polar Power's systems can operate on multiple energy sources, including photovoltaics, diesel, LPG, and renewable fuels [5] Technological Advancements - The company offers telecom power solutions that provide significant cost savings in installation, permitting, site leases, and operation [6] - Military solutions from Polar Power are designed to be compact, lightweight, fuel-efficient, and reliable for various applications, including robotics and drone communications [6] - The mobile rapid battery charging technology enables on-demand roadside charging for electric vehicles, while combined heat and power (CHP) residential systems optimize performance and costs [7] Market Positioning - Polar Power's micro/nano grid solutions aim to provide lower-cost energy in "bad-grid or no-grid" environments, enhancing energy accessibility [8] - The company's commitment to technological advancement includes hybrid propulsion systems for marine and specialty vehicles, focusing on efficiency, comfort, reliability, and cost savings [8]

Our telecom power solutions offer significant cost savings with installation, permitting, site leases, and operation. Our military solutions provide compact, lightweight, fuel efficient, reliable power solutions for robotics, drone, communications, hybrid propulsion, and other applications. GARDENA, CA, July 11, 2024 (GLOBE NEWSWIRE) -- Polar Power, Inc. ("Polar Power" or the "Company") (NASDAQ: POLA), a global provider of prime, backup, and solar hybrid power solutions, today announces that it expects to r ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) | Delaware | 33-0479 ...

Exhibit 99.1 Polar Power Reports First Quarter 2024 Financial Results ● Net sales of $1.8 million compared to $4.2 million in the same period in 2023 ● Operating expenses of $1.6 million compared to $1.7 million in the same period in 2023 ● Net loss was $2.1 million, or $(0.12) per basic and diluted share, compared to a net loss of $1.1 million, or $(0.09) per basic and diluted share in the same period in 2023 ● Working capital of $9.6 million as of March 31, 2024, with $16.2 million in inventory ● Backlog ...

2023 Financial Highlights Recent Operating Highlights Arthur Sams, CEO of Polar Power, commented, "While volatility and push-outs in orders from some of our top customers resulted in weaker comparisons in 2023 compared to 2022, our fourth quarter revenue of $3.6 million represents sequential growth of nearly 90% over the third quarter of 2023. Having recently announced bookings of over $5 million for the first quarter of 2024, we are off to a good start in 2024 and have reason to believe that we'll see orde ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) | Delaware | 33-0479020 | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) | Delaware | 33- ...