Polar Power, Inc. Annual report pursuant to Section 13 and 15(d)

OPERATING LEASES (Tables)

12 Months Ended

Dec. 31, 2022

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

	Years Ended December 31,
	2022			2021
Lease Cost (in thousands)
Operating lease cost	$	699		$	699
Operating lease cost (of which $98 is included in general and administration and $601 is included in cost of sales in the Company’s statement of operations as of December 31, 2022, and $98 is included in general and administration and $601 is included in cost of sales in the Company’s statement of operations as of December 31, 2021)	$	699		$	699

Other Information
Weighted average remaining lease term – operating leases (in years)		0.4			1.4
Average discount rate – operating leases		3.75	%		3.75	%

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

	At December 31, 2022		At December 31, 2021
Operating leases (in thousands)
Long-term right-of-use assets, net of accumulated amortization of $2,577 and $1,903, respectively	$	240	$	914

Current portion of operating lease liabilities	$	268	$	721
Noncurrent portion of operating lease liabilities		—		268
Total operating lease liabilities	$	268	$	989

Maturities of the Company’s lease liabilities are as follows:

Year Ending (in thousands)	Operating Leases
2023	$	280
Total lease payments		280
Less: Imputed interest/present value discount		(12	)
Present value of lease liabilities	$	268