Polar Power, Inc. Quarterly report [Sections 13 or 15(d)]

OPERATING LEASES (Tables)

3 Months Ended

Mar. 31, 2025

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

	Three Months Ended March 31, 2025			Three Months Ended March 31, 2024
Lease Cost (in thousands)	(Unaudited)			(Unaudited)
Operating lease cost	$	325			282
Operating lease cost (of which $43 is included in general and administration and $281 is included in cost of sales in the Company’s statement of operations for the three months ended March 31, 2025, and $37 and $245 for the same period in 2024, respectively)	$	325		$	282

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

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

	At March 31, 2025		At December 31, 2024
Operating leases (in thousands)	(Unaudited)
Long-term right-of-use assets, net of accumulated amortization of $2,233 and $1,931, respectively	$	1,343	$	1,645

Current portion of operating lease liabilities	$	1,339	$	1,382
Noncurrent portion of operating lease liabilities		197		474
Total operating lease liabilities	$	1,536	$	1,856

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

Year Ending	Operating Leases
2025 (remaining 9 months)		1,104
2026		496
Total lease payments		1,600
Less: Imputed interest/present value discount		(64	)
Present value of lease liabilities	$	1,536