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

OPERATING LEASES (Tables)

3 Months Ended

Mar. 31, 2026

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

	Three Months Ended March 31, 2026			Three Months Ended March 31, 2025
Lease Cost (in thousands)	(Unaudited)			(Unaudited)

Operating lease cost (of which $81 is included in general and administration and ($30) is included in cost of sales in the Company’s statement of operations for the three months ended March 31, 2026, and $43 and $282 for the same period in 2025, respectively)	$	51		$	325

Other Information
Weighted average remaining lease term – operating leases (in years)		0.2			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, 2026		At December 31, 2025
Operating leases (in thousands)	(Unaudited)
Long-term right-of-use assets, net of accumulated amortization of $977 and $2,953, respectively	$	172	$	624
Impairment charge		—		(346	)

Net right-of-use asset	$	172	$	278

Current portion of operating lease liabilities	$	197	$	475