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

OPERATING LEASES (Tables)

6 Months Ended

Jun. 30, 2024

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

	Six Months Ended June 30, 2024			Six Months Ended June 30, 2023
Lease Cost
Operating lease cost	$	597		$	499

Operating lease cost (of which $78 is included in general and administration and $519 is included in cost of sales in the Company’s statement of operations for the six months ended June 30, 2024, and $64 and $435 for the same period in 2023, respectively)	$	597		$	499

Other Information
Weighted average remaining lease term – operating leases (in years)		1.9			1.4
Average discount rate – operating leases		6.13	%		6.13	%

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

	At June 30, 2024		At June 30, 2023
Operating leases
Long-term operating right-of-use assets, net of accumulated amortization of $1,338 and $2,510, respectively	$	2,239	$	2,178

Short-term operating lease liabilities	$	1,260	$	717
Long-term operating lease liabilities		1,193		1,527
Total operating lease liabilities	$	2,453	$	2,244

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

Year Ending	Operating Leases
2024 (remaining 6 months)		653
2025		1,446
2026		496
Total lease payments		2,595
Less: Imputed interest/present value discount		(142	)
Present value of lease liabilities	$	2,453