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 ofDecember 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 ofDecember 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 atDecember 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 inDecember 2023
“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
“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’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 1995
This 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
Media and Investor Relations:
CoreIR
+1 212-655-0924
ir@polarpowerinc.com
www.CoreIR.com
Company Contact:
Tel: 310-830-9153
ir@polarpowerinc.com
www.polarpower.com
POLAR POWER, INC.
BALANCE SHEETS
(in thousands, except share and per share data)
2023 | 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, | — | — | ||||||
Common stock, | 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 |
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Three Months Ended | Twelve Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net sales | $ | 3,605 | $ | 6,366 | $ | 15,293 | $ | 16,056 | |||||||
Cost of Sales (includes inventory write-downs of | 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 |
STATEMENTS OF CASH FLOWS
(in thousands)
Years Ended | ||||||||
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 | — |
Source:
2024 GlobeNewswire, Inc., source