Polar Power, Inc. Annual report pursuant to Section 13 and 15(d)

OPERATING LEASES (Tables)

12 Months Ended

Dec. 31, 2023

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

	Years Ended December 31,
	2023			2022
Lease Cost (in thousands)

Operating lease cost	$	1,123		$	699
Operating lease cost (of which $145 is included in general and administration and $978 is included in cost of sales in the Company’s statement of operations for the year ended December 31, 2023, and $98 is included in general and administration and $601 is included in cost of sales in the Company’s statement of operations for the year ended December 31, 2022)	$	1,123		$	699

Other Information
Weighted average remaining lease term – operating leases (in years)		2.4			0.4
Average discount rate – operating leases		5.13	%		3.75	%

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


	At December 31, 2023		At December 31, 2022
Operating leases (in thousands)
Long-term right-of-use assets	$	2,818	$	240
Long-term right-of-use assets, net of accumulated amortization of $760 and $2,577, respectively	$	2,818	$	240

Current portion of operating lease liabilities	$	1,124	$	268
Noncurrent portion of operating lease liabilities		1,856		—
Total operating lease liabilities	$	2,980	$	268

Maturities of the Company’s lease liabilities are as follows:


Year Ending (in thousands)	Operating Leases
2024	$	1,250
2025		1,446
2026		496
Total lease payments		3,192
Less: Imputed interest/present value discount		(212	)
Present value of lease liabilities	$	2,980