Polar Power, Inc. Quarterly report pursuant to Section 13 or 15(d)

OPERATING LEASES (Tables)

9 Months Ended

Sep. 30, 2021

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

	Nine months Ended September 30, 2021			Nine months Ended September 30, 2020
Lease Cost
Operating lease cost (of which $74 is included in general and administration and $451 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2021, and for the same period in 2020, respectively)	$	525		$	525
Operating lease cost (of which $74 is included in general and administration and $451 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2021, and for the same period in 2020, respectively)	$	525		$	525

Other Information
Weighted average remaining lease term – operating leases (in years)		1.7			2.7
Average discount rate – operating leases		3.75	%		3.75	%

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

	At September 30, 2021		At December 31, 2020
Operating leases
Long-term right-of-use assets, net of accumulated amortization of $1,749 and $1,265, respectively	$	1,079	$	1,563

Short-term operating lease liabilities	$	708	$	670
Long-term operating lease liabilities		454		990
Total operating lease liabilities	$	1,162	$	1,660

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

Year Ending	Operating Leases
2021 (remaining 3 months)		182
2022		747
2023		280
Total lease payments		1,209
Less: Imputed interest/present value discount		(47	)
Present value of lease liabilities	$	1,162