Polar Power, Inc. (“Polar Power” or the “Company”) (NASDAQ: POLA),
a global provider of prime, backup, and solar hybrid DC power
solutions, reports its financial results for the three months and
full year ended December 31, 2023.
2023 Financial Highlights
- Net sales in 2023 were $15.3
million compared to $16.1 million in 2022
- Gross profit for 2023 was $0.7
million compared to $2.1 million in 2022
- Operating expenses for 2023 were
$6.7 million compared to $7.7 million in 2022
- Net loss was $6.5 million in 2023,
or $(0.49) per basic and diluted share, compared to a net loss of
$5.6 million, or $(0.43) per basic and diluted share in 2022
- Working capital of $11.8 million as
of December 31, 2023 consisted of approximately $550,000 in cash
and cash equivalents and $16.5 million in inventory; Working
capital of $17.4 million as of December 31, 2022 consisted of
approximately $211,000 in cash and cash equivalents and inventory
of approximately $15.5 million
- Total liquidity of $1.0 million
consisting of cash and availability under the line of credit at
December 31, 2023
- Backlog at December 31, 2023 was
$3.9 million
Recent Operating Highlights
- Announced $5.1 million in new
bookings in the first quarter of 2024; current backlog is $7.7
million (April 1, 2024)
- Achieved progress in
diversification objectives, with our top two customers decreasing
in percentage of total sales from 89% to 68% and international
sales representing over 20% of our total for the second consecutive
year
- Closed on public offering of
4,600,000 common shares for gross proceeds of $1,840,000 in
December 2023
Arthur Sams, CEO of Polar Power, commented,
“While volatility and push-outs in orders from some of our top
customers resulted in weaker comparisons in 2023 compared to 2022,
our fourth quarter revenue of $3.6 million represents sequential
growth of nearly 90% over the third quarter of 2023. Having
recently announced bookings of over $5 million for the first
quarter of 2024, we are off to a good start in 2024 and have reason
to believe that we’ll see orders continue to materialize from our
tier-1 telco customers and from other international telecom
providers. Our capital-efficient power generation technology
platform is applicable in a wide variety of end-markets where there
is a dire need for sources of reliable, fuel-efficient power, in
both prime and backup applications, and we’re vigorously pursuing
such opportunities.
“We are pleased with the progress made to
diversify our customer base and penetrate new international
markets. In 2023 we completed delivery on a significant number of
units to a customer in Southeast Asia under a contract signed
during 2022, and we’ve also seen repeat orders from the largest
telecom provider in Puerto Rico, with deliveries there ongoing
throughout 2024. On the military side, we also saw a healthy
increase in sales in 2023 compared to the prior year.
“Planned investment in our sales and marketing
organization to accelerate our sales growth, and a commitment to
managing our operating expenses should enable both top- and
bottom-line improvements throughout 2024,” concluded Sams.
About Polar Power, Inc.Polar
Power (NASDAQ: POLA), Polar Power is pioneering technological
changes that radically change the production, consumption, and
environmental impact of power generation and is a leading provider
of DC advanced power and cooling systems, pioneering innovations
across diverse industrial applications. Its product portfolio,
known for innovation, durability, and efficiency, presently
includes standard products for telecom, military, renewable energy,
marine, automotive, residential, commercial, oil field and mining
applications. Polar Power’s systems can be configured to operate on
any energy source including photovoltaics, diesel, LPG (propane and
butane), and renewable fuels.
Polar Power’s telecom power solutions offer
significant cost savings with installation, permitting, site
leases, and operation. Its military solutions provide compact,
lightweight, fuel efficient, reliable power solutions for robotics,
drone, communications, hybrid propulsion, and other applications.
Its mobile rapid battery charging technology enables on-demand
roadside charging for electric vehicles. Its combined heat and
power (CHP) residential systems offer innovative vehicle charging
and integrated home power systems via natural gas or propane
feedstocks, optimizing performance and system costs. Polar Power’s
micro / nano grid solutions provide lower cost energy in “bad-grid
or no-grid” environments. Its commitment to technological
advancement extends to hybrid propulsion systems for marine and
specialty vehicles, ensuring efficiency, comfort, reliability, and
cost savings.
For more information, please visit
www.polarpower.com. or follow us on
www.linkedin.com/company/polar-power-inc/.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995This news release
contains certain statements of a forward-looking nature relating to
future events or future business performance. Forward-looking
statements can be identified by the words “expects,” “anticipates,”
“believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and
similar expressions. Forward-looking statements are based on
management’s current plans, estimates, assumptions and projections,
and speak only as of the date they are made. With the exception of
historical information, the matters discussed in this press release
including, without limitation, Polar Power’s belief that orders
from its telecom customers will continue to materialize; Polar
Power’s expectations that its planned investment in sales and
marketing will accelerate sales growth, and managing operating
expenses should enable both top- and bottom-line improvements
throughout 2024 are forward-looking statements and considerations
that involve a number of risks and uncertainties. The actual future
results of Polar Power could differ from those statements. Factors
that could cause or contribute to such differences include, but are
not limited to, adverse domestic and foreign economic and market
conditions, including demand for its Summit Series, 27 kW DC
generator product line; trade tariffs on raw materials; changes in
domestic and foreign governmental regulations and policies; the
impact of inflation and changing prices on raw materials; supply
chain constraints causing significant delays in sourcing raw
materials; labor shortages as a result of the pandemic, low
unemployment rates, or other factors limiting the availability of
qualified workers; and other events, factors and risks. It
undertakes no obligation to update any forward-looking statement in
light of new information or future events, except as otherwise
required by law. Forward-looking statements involve inherent risks
and uncertainties, most of which are difficult to predict and are
generally beyond Polar Power’s control. Actual results or outcomes
may differ materially from those implied by the forward-looking
statements as a result of the impact of a number of factors, many
of which are discussed in more detail in Polar Power’s reports
filed with the Securities and Exchange Commission.
Media and Investor
Relations:CoreIRPeter Seltzberg, SVP Investor Relations
and Corporate Advisory+1
212-655-0924ir@polarpowerinc.comwww.CoreIR.com
Company Contact:Polar Power,
Inc.249 E. Gardena Blvd.Gardena, CA 90248Tel:
310-830-9153ir@polarpowerinc.comwww.polarpower.com
POLAR POWER,
INC.BALANCE SHEETS(in thousands, except
share and per share data)
|
|
December 31,2023 |
|
|
December 31,2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
549 |
|
|
$ |
211 |
|
Accounts receivable |
|
|
1,676 |
|
|
|
2,230 |
|
Inventories |
|
|
16,522 |
|
|
|
15,460 |
|
Prepaid expenses |
|
|
455 |
|
|
|
2,629 |
|
Employee retention credit receivable |
|
|
2,000 |
|
|
|
2,000 |
|
Income taxes receivable |
|
|
787 |
|
|
|
787 |
|
Total current assets |
|
|
21,989 |
|
|
|
23,317 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Operating lease right-of-use
assets, net |
|
|
2,818 |
|
|
|
240 |
|
Property and equipment,
net |
|
|
344 |
|
|
|
538 |
|
Deposits |
|
|
108 |
|
|
|
93 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
25,259 |
|
|
$ |
24,188 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,762 |
|
|
$ |
230 |
|
Customer deposits |
|
|
1,618 |
|
|
|
2,126 |
|
Accrued liabilities and other current liabilities |
|
|
1,151 |
|
|
|
1,231 |
|
Line of credit |
|
|
4,238 |
|
|
|
1,884 |
|
Notes payable-related party |
|
|
257 |
|
|
|
— |
|
Notes payable, current portion |
|
|
64 |
|
|
|
211 |
|
Current portion of operating lease liabilities |
|
|
1,124 |
|
|
|
268 |
|
Total current liabilities |
|
|
10,214 |
|
|
|
5,950 |
|
|
|
|
|
|
|
|
|
|
Notes payable, net of current
portion |
|
|
— |
|
|
|
57 |
|
Operating lease liabilities,
net of current portion |
|
|
1,856 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
12,070 |
|
|
|
6,007 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no
shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value, 50,000,000 shares authorized,
17,579,089 shares issued and 17,561,612 shares outstanding on
December 31, 2023, and 12,967,027 shares issued and 12,949,550
shares outstanding on December 31, 2022 |
|
|
2 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
38,886 |
|
|
|
37,331 |
|
Accumulated deficit |
|
|
(25,659 |
) |
|
|
(19,111 |
) |
Treasury Stock, at cost (17,477 shares) |
|
|
(40 |
) |
|
|
(40 |
) |
Total stockholders’
equity |
|
|
13,189 |
|
|
|
18,181 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
|
$ |
25,259 |
|
|
$ |
24,188 |
|
POLAR POWER,
INC.CONDENSED STATEMENTS OF OPERATIONS(in
thousands, except share and per share data)
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
December 31, |
|
|
2023 |
|
|
2022 |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
3,605 |
|
|
$ |
6,366 |
|
$ |
15,293 |
|
|
$ |
16,056 |
|
Cost of Sales
(includes inventory write-downs of $450 and $nil,
respectively) |
|
|
5,032 |
|
|
|
5,960 |
|
|
14,598 |
|
|
|
13,931 |
|
Gross profit
(loss) |
|
|
(1,427 |
) |
|
|
406 |
|
|
695 |
|
|
|
2,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
255 |
|
|
|
338 |
|
|
1,172 |
|
|
|
1,471 |
|
Research and development |
|
|
239 |
|
|
|
315 |
|
|
1,222 |
|
|
|
1,460 |
|
General and administrative |
|
|
1,051 |
|
|
|
1,078 |
|
|
4,291 |
|
|
|
4,727 |
|
Total operating
expenses |
|
|
1,545 |
|
|
|
1,731 |
|
|
6,685 |
|
|
|
7,658 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(2,972 |
) |
|
|
(1,325 |
) |
|
(5,990 |
) |
|
|
(5,533 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and finance costs |
|
|
(184 |
) |
|
|
(19 |
) |
|
(559 |
) |
|
|
(58 |
) |
Other income (expenses), net |
|
|
1 |
|
|
|
— |
|
|
1 |
|
|
|
7 |
|
Total other income
(expenses), net |
|
|
(183 |
) |
|
|
(19 |
) |
|
(558 |
) |
|
|
(51 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(3,155 |
) |
|
$ |
(1,344 |
) |
$ |
(6,548 |
) |
|
$ |
(5,584 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
|
$ |
(0.24 |
) |
|
$ |
(0.10 |
) |
$ |
(0.49 |
) |
|
$ |
(0.43 |
) |
Weighted average shares
outstanding, basic and diluted |
|
|
13,291,575 |
|
|
|
12,878,350 |
|
|
13,291,575 |
|
|
|
12,878,350 |
|
POLAR POWER,
INC.STATEMENTS OF CASH FLOWS(in
thousands)
|
|
Years EndedDecember 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(6,548 |
) |
|
$ |
(5,584 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
387 |
|
|
|
507 |
|
Stock-based compensation |
|
|
— |
|
|
|
515 |
|
Inventory write-down |
|
|
450 |
|
|
|
— |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
554 |
|
|
|
2,013 |
|
Inventories |
|
|
(1,512 |
) |
|
|
(6,443 |
) |
Prepaid expenses |
|
|
2,174 |
|
|
|
1,377 |
|
Decrease in right-of-use asset |
|
|
1,000 |
|
|
|
674 |
|
Deposits |
|
|
(15 |
) |
|
|
— |
|
Accounts payable |
|
|
1,532 |
|
|
|
(98 |
) |
Customer deposits |
|
|
(508 |
) |
|
|
1,229 |
|
Accrued expenses and other current liabilities |
|
|
(80 |
) |
|
|
25 |
|
Operating lease liability |
|
|
(864 |
) |
|
|
(722 |
) |
Net cash used in operating
activities |
|
|
(3,430 |
) |
|
|
(6,507 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Acquisition of property and
equipment |
|
|
(194 |
) |
|
|
(25 |
) |
Net cash used in investing
activities |
|
|
(194 |
) |
|
|
(25 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Net proceeds from sale of
common stock |
|
|
1,556 |
|
|
|
— |
|
Proceeds from notes
payable-related party |
|
|
257 |
|
|
|
— |
|
Repayment of notes
payable |
|
|
(205 |
) |
|
|
(242 |
) |
Proceeds from line of
credit |
|
|
2,354 |
|
|
|
1,884 |
|
Net cash provided by financing
activities |
|
|
3,962 |
|
|
|
1,642 |
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash
and cash equivalents |
|
|
338 |
|
|
|
(4,890 |
) |
Cash and cash equivalents,
beginning of period |
|
|
211 |
|
|
|
5,101 |
|
Cash and cash
equivalents, end of period |
|
$ |
549 |
|
|
$ |
211 |
|
|
|
|
|
|
|
|
|
|
Noncash investing and
financing activities: |
|
|
|
|
|
|
|
|
Initial recognition of
right-of-use asset and lease liabilities |
|
$ |
3,578 |
|
|
|
— |
|
Grafico Azioni Polar Power (NASDAQ:POLA)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Polar Power (NASDAQ:POLA)
Storico
Da Feb 2024 a Feb 2025