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

OPERATING LEASES (Tables)

6 Months Ended

Jun. 30, 2025

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

	Six Months Ended June 30, 2025			Six Months Ended June 30, 2024
Lease Cost

Operating lease cost	$	704		$	597
Operating lease cost (of which $92 is included in general and administration and $612 is included in cost of sales in the Company’s statement of operations for the six months ended June 30, 2025, and $78 and $519 for the same period in 2024, respectively)	$	704		$	597

Other Information
Weighted average remaining lease term – operating leases (in years)		0.9			1.9
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, 2025		At June 30, 2024
Operating leases
Long-term operating right-of-use assets, net of accumulated amortization of $2,540 and $1,338, respectively	$	1,037	$	2,239

Short-term operating lease liabilities	$	1,116	$	1,260
Long-term operating lease liabilities		76		1,193
Total operating lease liabilities	$	1,192	$	2,453

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

Year Ending	Operating Leases
2025 (remaining 6 months)		742
2026		496
Total lease payments		1,238
Less: Imputed interest/present value discount		(46	)
Present value of lease liabilities	$	1,192