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

OPERATING LEASES (Tables)

12 Months Ended

Dec. 31, 2025

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

	Years Ended December 31,
	2025			2024
Lease Cost (in thousands)

Operating lease cost (of which $173 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, 2025, and $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)	$	1,299		$	1,250
Operating lease cost	$	1,299		$	1,250

Other Information
Weighted average remaining lease term – operating leases (in years)		0.4			1.4
Average discount rate – operating leases		6.13	%		6.13	%

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

	At December 31, 2025			At December 31, 2024
Operating leases (in thousands)

Long-term right-of-use assets, net of accumulated amortization of $2,953 and $1,931, respectively	$	624		$	1,645
Impairment charge		(346	)		—
Net right-of-use asset		278			1,645

Current portion of operating lease liabilities	$	475		$	1,382
Noncurrent portion of operating lease liabilities		—			474
Total operating lease liabilities	$	475		$	1,856