Exhibit 99.1




Polar Power Reports Third Quarter 2018 Financial Results


Management to Host Conference Call Today at 4:30 p.m. EDT


GARDENA, CA – November 13, 2018 – Polar Power, Inc. (NASDAQ: POLA), a global provider of prime, backup and solar hybrid DC power solutions, reported its financial results for the third quarter ended September 30, 2018.


Third Quarter 2018 and Subsequent Highlights:


Quarterly Highlights


oBacklog as of September 30, 2018 improved to $11.5 million, as compared to $5.8 million at the end of Q2 2018. A significant portion of the growth is a result of production orders from two Tier-1 telecom customers in the U.S. market. Backlog as of November 9, 2018 was $15.2 million.


oDuring Q3 2018, we experienced shortages in components and engines from our supply chain related to uncertainty over tariffs. This caused a disruption in our manufacturing and shipments and negatively impacted our revenue and profits in the quarter. The supply chain disruptions were short-term in nature and have since been resolved.


oNet sales increased 67% to $5.1 million in Q3 2018, as compared to $3.0 million during Q3 2017, and increased 51% to $15.7 million for the first nine months of 2018, as compared to $10.4 million for the first nine months of 2017.


oGross margin increased to 30% during Q3 2018 from 27% in Q3 2017 largely due to higher revenue and better fixed cost absorption. On sequential basis, Q3 2018 gross margin declined to 30% from 36% in Q2 2018. The decline was driven by two key factors: lower manufacturing efficiencies related to the start-up production of new generator models, and higher component costs due to short-term disruptions in our supply chain that required us to use alternate, higher price sources.


oNet loss was $(0.7) million in Q3 2018, or $(0.07) per basic and diluted share, as compared to net loss of $(0.4) million, or $(0.04) per basic and diluted share in Q3 2017. Increase in net loss was attributable to increases in production staff, machinery and new manufacturing facility, while revenue was lower due to supply chain disruption.


Management Commentary


“During the Q3 2018, we made significant progress towards our growth objectives. Our backlog as of November 9, 2018 has grown to $15.2 million, and we have remedied our supply chain issues that impacted shipments last quarter that prevented us from meeting our revenue goal. The tariffs put in place and the possible trade wars created an international and domestic stampede for engines, electronic parts, aluminum, and steel. This had a negative impact on our manufacturing efficiency and production schedules during the third quarter. This has since been resolved and we are back on track with our original suppliers. Although the tariffs impacted some parts of our supply chain during the quarter, I would note that Polar directly imports only a single item from China. Our raw materials and components come primarily from the USA, Japan, Korea, Canada, and Europe, which has been our policy since 1979,” said Polar Power’s CEO, Mr. Arthur Sams.




Mr. Sam’s continued, “Despite some supply chain disruptions during the quarter, we have made significant progress on our key strategic goals year-to-date. We continue to develop sales offices globally, achieve product certifications from major Tier-1 telecom providers in the U.S. and abroad and have expanded our aftermarket support and service infrastructure in the U.S. Our investments in these objectives are now delivering results with a more diversified customer base and record backlog. In anticipation of what we believe will be a solid demand cycle, we have also increased our manufacturing capacity to accommodate expected demand. We also continue our focus on key R&D and engineering objectives and continue to develop products integrating solar and lithium storage technologies with our DC generators, which are designed for emerging markets for use in areas hindered by unreliable electric grids”, concluded Mr. Sams.


Conference Call Details


Polar Power CEO Arthur Sams, COO Rajesh Masina and CFO Luis Zavala will host the conference call, followed by a question and answer period.


To access the call, please use the following information:


Date: Tuesday, November13, 2018
Time: 4:30 p.m. ET, 1:30 p.m. PT
Toll-free dial-in number: 1-888-394-8218
International dial-in number: 1-323-794-2591
Conference ID: 9931535


Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Integra Investor Relations at 1-415-233-7094.


The conference call will be broadcast live and available for replay http://public.viavid.com/index.php?id=132075 and via the investor relations section of the Company’s website at www.polarpower.com.


A replay of the conference call will be available after 7:30 p.m. Eastern Time through November 13, 2018.


Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 9931535


About Polar Power, Inc.

Gardena, California-based Polar Power, Inc. (NASDAQ: POLA), designs, manufactures and sells direct current, or DC, power systems, lithium battery powered hybrid solar systems for applications in the telecommunications market and, in other markets, including military, electric vehicle charging, cogeneration, distributed power and uninterruptable power supply. Within the telecommunications market, Polar’s systems provide reliable and low-cost energy for applications for off-grid and bad-grid applications with critical power needs that cannot be without power in the event of utility grid failure. For more information, please visit www.polarpower.com. or follow us on www.linkedin.com/company/polar-power-inc/






Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Forward-looking statements can be identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and similar expressions. Forward-looking statements are based on management’s current plans, estimates, assumptions and projections, and speak only as of the date they are made. With the exception of historical information, the matters discussed in this press release including, without limitation, Polar Power’s expectation of a solid demand cycle; and Polar Power’s expectation to continue its focus on R&D and engineering objectives and continue to develop products integrating solar and lithium storage technologies with its DC generators, which are designed for emerging markets for use in areas hindered by unreliable electric grids are forward-looking statements and considerations that involve a number of risks and uncertainties. The actual future results of Polar Power could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, adverse domestic and foreign economic and market conditions, including demand for DC power systems; trade tariffs on raw materials; changes in domestic and foreign governmental regulations and policies; and other events, factors and risks. We undertake no obligation to update any forward-looking statement in light of new information or future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and are generally beyond our control. Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in our reports filed with the Securities and Exchange Commission.


Media and Investor Relations:

Shawn Severson
Integra Investor Relations
Shawn M. Severson
+1 415-233-7094
@Integra IR


Company Contact:

Polar Power, Inc.

249 E. Gardena Blvd.

Gardena, CA 90248

Tel: 310-830-9153









   September 30,
   December 31,
Current assets          
Cash and cash equivalents (including restricted cash of $1,002,304 and $1,001,180 at September 30, 2018 and December 31, 2017, respectively)  $10,607,455   $14,201,163 
Accounts receivable   3,751,157    3,058,266 
Inventories, net   7,413,615    5,487,053 
Prepaid expenses   836,052    236,670 
Refundable income taxes   629,316    629,316 
Total current assets   23,237,595    23,612,468 
Other assets:          
Property and equipment, net   1,426,098    824,076 
Deposits   111,701    87,496 
Total assets  $24,775,394   $24,524,040 
Current liabilities          
Accounts payable  $789,548   $757,753 
Customer deposits   202,324    40,039 
Accrued expenses and other current liabilities   683,715    586,391 
Current portion of notes payable   196,323    110,237 
Total current liabilities   1,871,910    1,494,420 
Notes payable, net of current portion   621,113    126,818 
Total liabilities   2,493,023    1,621,238 
Commitments and Contingencies          
Stockholders’ Equity          
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no shares issued and outstanding        
Common stock, $0.0001 par value, 50,000,000 shares authorized, 10,143,158 shares issued and outstanding   1,014    1,014 
Additional paid-in capital   19,483,002    19,250,955 
Retained earnings   2,798,355    3,650,833 
Total stockholders’ equity   22,282,371    22,902,802 
Total liabilities and stockholders’ equity  $24,775,394   $24,524,040 









   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2018   2017   2018   2017 
Net Sales  $5,061,158   $3,030,026   $15,748,845   $10,438,761 
Cost of Sales   3,530,847    2,201,083    10,672,707    6,925,464 
Gross Profit   1,530,311    828,943    5,076,138    3,513,297 
Operating Expenses                    
Sales and Marketing   717,983    395,793    1,968,152    861,230 
Research and development   571,300    480,405    1,371,981    947,427 
General and administrative   996,087    633,776    2,562,577    1,988,831 
Depreciation and amortization   8,897    7,621    26,441    23,029 
Total operating expenses   2,294,267    1,517,595    5,929,151    3,820,517 
Loss from operations   (763,956)   (688,652)   (853,013)   (307,220)
Other (expenses) income                    
Interest expenses   (2,777)   (4,463)   (8,181)   (14,656)
Other income (expenses), net   9,616    18,531    8,716    42,605 
Total other (expenses) income, net   6,839    14,068    535    27,949 
Loss before income taxes   (757,117)   (674,584)   (852,478)   (279,271)
Income tax benefit       264,681        113,118 
Net Loss  $(757,117)  $(409,903)  $(852,478)  $(166,153)
Net Loss per share – basic and diluted  $(0.07)  $(0.04)  $(0.08)  $(0.02)
Weighted average shares outstanding, basic and diluted   10,143,158    10,143,158    10,143,158    10,143,158 







   Nine Months Ended
September 30,
   2018   2017 
Cash flows from operating activities:          
Net Loss  $(852,478)  $(166,153)
Adjustments to reconcile net loss to net cash used in operating activities:          
Fair value of vested stock options   232,047     
Depreciation and amortization   269,726    185,758 
Changes in operating assets and liabilities          
Accounts receivable   (692,891)   2,425,017 
Inventories   (1,926,562)   (436,735)
Prepaid expenses   (599,382)   (153,257)
Deposits   (24,205)   (10,500)
Refundable income taxes       (1,257,585)
Deferred tax assets       (52,641)
Accounts payable   31,795    (388,244)
Income taxes payable       (1,227,308)
Customer deposits   162,285    (1,843)
Accrued expenses and other current liabilities   97,324    (111,988)
Net cash used in in operating activities   (3,302,341)   (1,195,479)
Cash flows from investing activities:          
Acquisition of property and equipment   (208,998)   (182,397)
Net cash used in investing activities   (208,998)   (182,397)
Cash flows from financing activities:          
Repayment of notes   (82,369)   (85,254)
Net cash used in financing activities   (82,369)   (85,254)
Decrease in cash and cash equivalents   (3,593,708)   (1,463,130)
Cash and cash equivalents, beginning of period   14,201,163    16,242,158 
Cash and cash equivalents, end of period  $10,607,455   $14,779,028 
Supplemental Cash Flow Information:        
Taxes Paid  $   $2,424,417 
Interest Paid   8,181    10,193 
Supplemental non-cash investing and financing activities:          
Assets acquired through issuance of notes payable  $662,750   $