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

OPERATING LEASES (Tables)

6 Months Ended

Jun. 30, 2023

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

	Six Months Ended June 30, 2023			Six Months Ended June 30, 2022
Lease Cost
Operating lease cost	$	499		$	350
Operating lease cost (of which $64 is included in general and administration and $435 is included in cost of sales in the Company’s statement of operations for the six months ended June 30, 2023, and $49 and $301 for the same period in 2022, respectively)	$	499		$	350

Other Information
Weighted average remaining lease term – operating leases (in years)		1.4			0.9
Average discount rate – operating leases		6.13	%		3.75	%

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

		At June 30, 2023		At June 30, 2022
Operating leases
Long-term operating right-of-use assets, net of accumulated amortization of $2,510 and $2,237, respectively	$	2,178	$	580

Short-term operating lease liabilities	$	717	$	588
Long-term operating lease liabilities		1,527		47
Total operating lease liabilities	$	2,244	$	635

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

Year Ending	Operating Leases
2023 (remaining 6 months)		400
2024		858
2025		990
2026		168
Total lease payments		2,416
Less: Imputed interest/present value discount		(172	)
Present value of lease liabilities	$	2,244