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

OPERATING LEASES (Tables)

9 Months Ended

Sep. 30, 2023

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

	Nine Months Ended September 30, 2023			Nine Months Ended September 30, 2022
Lease Cost
Operating lease cost	$	1,013		$	726
Operating lease cost (of which $327 is included in general and administration and $686 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2023, and $275 and $451 for the same period in 2022, respectively)	$	1,013		$	726

Other Information
Weighted average remaining lease term – operating leases (in years)		2.7			0.7
Average discount rate – operating leases		5.13	%		3.75	%

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

	At September 30, 2023		At September 30, 2022
Operating leases
Long-term operating right-of-use assets, net of accumulated amortization of $409 and $2,406, respectively	$	3,103	$	411

Short-term operating lease liabilities	$	1,045	$	453
Long-term operating lease liabilities		2,162		—
Total operating lease liabilities	$	3,207	$	453

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

Year Ending	Operating Leases
2023 (remaining 3 months)	$	267
2024		1,250
2025		1,446
2026		496
Total lease payments		3,459
Less: Imputed interest/present value discount		(252	)
Present value of lease liabilities	$	3,207