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

OPERATING LEASES (Tables)

3 Months Ended

Mar. 31, 2023

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

	Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
Lease Cost
Operating lease cost	$	212		$	175
Operating lease cost (of which $28 is included in general and administration and $184 is included in cost of sales in the Company’s statement of operations for the three months ended March 31, 2023, and $25 and $150 for the same period in 2022, respectively)	$	212		$	175

Other Information
Weighted average remaining lease term – operating leases (in years)		1.7			2.2
Average discount rate – operating leases		6.13	%		3.75	%

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

	At March 31, 2023		At December 31, 2022
Operating leases
Long-term right-of-use assets, net of accumulated amortization of $2,340 and $2,577, respectively	$	2,436	$	240

Current portion of operating lease liabilities	$	738	$	268
Noncurrent portion of operating lease liabilities		1,729		—
Total operating lease liabilities	$	2,467	$	268

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

Year Ending	Operating Leases
2023 (remaining 9 months)		651
2024		858
2025		990
2026		168
Total lease payments		2,667
Less: Imputed interest/present value discount		(200	)
Present value of lease liabilities	$	2,467