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

OPERATING LEASES (Tables)

9 Months Ended

Sep. 30, 2025

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

	Nine Months Ended September 30, 2025			Nine Months Ended September 30, 2024
Lease Cost

Operating lease cost	$	974		$	747
Operating lease cost (of which $130 is included in general and administration and $844 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2025, and $120 and $797 for the same period in 2024, respectively)	$	974		$	747

Other Information
Weighted average remaining lease term – operating leases (in years)		0.7			1.7
Average discount rate – operating leases		6.13	%		6,13	%

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

	At September 30, 2025			At September 30, 2024
Operating leases
Long-term operating right-of-use assets, net of accumulated amortization of $2,850 and $1,632, respectively	$	726		$	1,944
Impairment charge		(346	)		—
Net right-of-use asset		380			1,944

Short-term operating lease liabilities	$	840		$	1,322
Long-term operating lease liabilities		—			840
Total operating lease liabilities	$	840		$	2,162

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

Year Ending	Operating Leases
2025 (remaining 3 months)		375
2026		496
Total lease payments		871
Less: Imputed interest/present value discount		(31	)
Present value of lease liabilities	$	840