Polar Power, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

OPERATING LEASES (Tables)

12 Months Ended

Dec. 31, 2024

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

	Years Ended December 31,
	2024			2023
Lease Cost (in thousands)
Operating lease cost	$	1,250		$	1,123

Operating lease cost (of which $124 is included in general and administration and $1,126 is included in cost of sales in the Company’s statement of operations for the year ended December 31, 2024, and $145 is included in general and administration and $978 is included in cost of sales in the Company’s statement of operations for the year ended December 31, 2023)	$	1,250		$	1,123

Other Information
Weighted average remaining lease term – operating leases (in years)		1.4			2.4
Average discount rate – operating leases		6.13	%		5.13	%

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

	At December 31, 2024		At December 31, 2023
Operating leases (in thousands)

Long-term right-of-use assets, net of accumulated amortization of $1,931 and $760, respectively	$	1,645	$	2,818

Current portion of operating lease liabilities	$	1,382	$	1,124
Noncurrent portion of operating lease liabilities		474		1,856
Total operating lease liabilities	$	1,856	$	2,980

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

Year Ending (in thousands)	Operating Leases
2025	$	1,446
2026		496
Total lease payments		1,942
Less: Imputed interest/present value discount		(86	)
Present value of lease liabilities	$	1,856