Polar Power, Inc. Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASES (Tables)

9 Months Ended

Sep. 30, 2022

The components of rent expense and supplemental cash flow information related to leases for the period are as follows:

	Nine Months Ended September 30, 2022			Nine Months Ended September 30, 2021
Operating lease cost (of which $147 is included in general and administration and $902 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2022, and for the same period in 2021, respectively)	$	525		$	525
Lease Cost
Operating lease cost (of which $147 is included in general and administration and $902 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2022, and for the same period in 2021, respectively)	$	525		$	525

Other Information
Weighted average remaining lease term – operating leases (in years)		0.7			1.7
Average discount rate – operating leases		3.75	%		3.75	%

The supplemental balance sheet information related to leases for the period is as follows:

	At September 30, 2022		At September 30, 2021
Operating leases
Long-term right-of-use assets, net of accumulated amortization of $2,406 and $1,749, respectively	$	411	$	1,079

Short-term operating lease liabilities	$	453	$	708
Long-term operating lease liabilities		—		454
Total operating lease liabilities	$	453	$	1,162

Maturities of the Company’s lease liabilities are as follows (in thousands):

Year Ending	Operating Leases
2022 (remaining 3 months)		189
2023		280
Total lease payments		469
Less: Imputed interest/present value discount		(16	)
Present value of lease liabilities	$	453