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

OPERATING LEASES (Tables)

6 Months Ended

Jun. 30, 2021

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

	Six Months Ended June 30, 2021			Six Months Ended June 30, 2020
Lease Cost
Operating lease cost (of which $49 is included in general and administration and $301 is included in cost of sales in the Company’s statement of operations for the six months ended June 30, 2021, and for the same period in 2020, respectively)	$	350		$	350

Other Information
Weighted average remaining lease term – operating leases (in years)		1.9			2.9
Average discount rate – operating leases		3.75	%		3.75	%

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

	2021		2020
	At June 30, 2021		At December 31, 2020
Operating leases
Long-term right-of-use assets, net of amortization of $1,586 and $1,265, respectively	$	1,242	$	1,563

Short-term operating lease liabilities	$	695	$	670
Long-term operating lease liabilities		635		990
Total operating lease liabilities	$	1,330	$	1,660

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

	2021
Year Ending	Operating Leases
2021 (remaining 6 months)		363
2022		747
2023		280
Total lease payments		1,390
Less: Imputed interest/present value discount		(60	)
Present value of lease liabilities	$	1,330