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

OPERATING LEASES (Tables)

9 Months Ended

Sep. 30, 2024

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

	Nine months Ended September 30, 2024			Nine months Ended September 30, 2023
Lease Cost
Operating lease cost	$	747		$	1,013

Operating lease cost (of which $120 is included in general and administration and $797 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2024, and $327 and $686 for the same period in 2023, respectively)	$	747		$	1,013

Other Information
Weighted average remaining lease term – operating leases (in years)		1.7			2.7
Average discount rate – operating leases		6.13	%		5.13	%

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

	At September 30, 2024		At September 30, 2023
Operating leases
Long-term operating right-of-use assets, net of accumulated amortization of $1,632 and $409, respectively	$	1,944	$	3,103

Short-term operating lease liabilities	$	1,322	$	1,045
Long-term operating lease liabilities		840		2,162
Total operating lease liabilities	$	2,162	$	3,207

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

Year Ending	Operating Leases
2024 (remaining 3 months)		332
2025		1,446
2026		496
Total lease payments		2,274
Less: Imputed interest/present value discount		(112	)
Present value of lease liabilities	$	2,162