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Polar Power(POLA) - 2021 Q2 - Quarterly Report
2021-08-16 17:36
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) | Delaware | 33-0479020 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification Number) | | 249 E. Gardena Bl ...
Polar Power(POLA) - 2021 Q1 - Quarterly Report
2021-05-17 21:17
PART I – FINANCIAL INFORMATION [Condensed Financial Statements](index=5&type=section&id=ITEM%201.%20Condensed%20Financial%20Statements) For Q1 2021, Polar Power, Inc. reported net sales of $3.29 million, a 15% increase year-over-year, but a net loss of $1.9 million, while cash and equity significantly increased due to a $12.5 million equity offering Condensed Statements of Operations (in thousands) | Financial Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net Sales | $3,290 | $2,860 | | Gross loss | $(58) | $(160) | | Loss from operations | $(1,898) | $(2,320) | | Net loss | $(1,903) | $(201) | | Net loss per share | $(0.15) | $(0.02) | Condensed Balance Sheets (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $11,358 | $1,646 | | Total current assets | $25,755 | $14,645 | | Total assets | $28,598 | $17,799 | | Total current liabilities | $4,500 | $4,522 | | Total liabilities | $5,837 | $6,308 | | Total stockholders' equity | $22,761 | $11,491 | Condensed Statements of Cash Flow (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(3,381) | $(1,867) | | Net cash provided by investing activities | $0 | $8 | | Net cash provided by (used in) financing activities | $13,093 | $(82) | | Increase (decrease) in cash | $9,712 | $(1,941) | - In February 2021, the company completed an underwritten public offering of 750,000 shares of common stock, receiving net proceeds of approximately **$12.5 million**[70](index=70&type=chunk) - For Q1 2021, sales to the telecommunications sector accounted for **93% of total net sales**. The company's three largest customers generated **59%**, **15%**, and **11% of revenues**, respectively[34](index=34&type=chunk)[50](index=50&type=chunk) [Management's Discussion And Analysis Of Financial Condition And Results Of Operations](index=21&type=section&id=ITEM%202.%20Management's%20Discussion%20And%20Analysis%20Of%20Financial%20Condition%20And%20Results%20Of%20Operations) Management attributes Q1 2021 revenue growth to telecom demand, despite a gross loss, with liquidity significantly enhanced by a $12.5 million equity offering and increased backlog [Overview and COVID-19 Impact](index=21&type=section&id=Overview%20and%20COVID-19%20Impact) The company, primarily serving the telecommunications market, experienced adverse impacts from COVID-19, leading to cost reductions and progress in international sales and military backlog diversification - The company designs and manufactures DC power systems, primarily for the telecommunications market, which accounted for **93% of net sales** in Q1 2021[86](index=86&type=chunk)[89](index=89&type=chunk) - The COVID-19 pandemic has had a material adverse impact, causing decreased sales and delays in sourcing raw materials, leading management to implement a cost reduction program[94](index=94&type=chunk)[97](index=97&type=chunk) - International sales grew to **26% of total net sales** for Q1 2021, up from 6% in Q1 2020, indicating progress in market diversification[90](index=90&type=chunk) - Backlog orders from military customers represented **19% of the total backlog** as of March 31, 2021, highlighting growth in customer diversification[91](index=91&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Net sales increased by 15% due to higher telecom demand, gross loss improved despite under-utilized facilities, and operating expenses decreased due to cost reduction efforts Comparison of Operations for Three Months Ended March 31 (in thousands) | Line Item | 2021 | 2020 | $ Variance | % Variance | | :--- | :--- | :--- | :--- | :--- | | Net sales | $3,290 | $2,860 | $430 | 15% | | Gross loss | $(58) | $(160) | $102 | 64% | | Total operating expenses | $1,840 | $2,160 | $320 | 15% | | Loss from operations | $(1,898) | $(2,320) | $422 | 18% | | Net loss | $(1,903) | $(201) | $(1,702) | (847)% | - The **15% increase in net sales** was primarily driven by higher sales of DC power systems to Tier-1 telecommunications customers[120](index=120&type=chunk) - Gross loss improved due to increased shipments and better labor efficiencies, though manufacturing facilities remain under-utilized, negatively affecting margins[123](index=123&type=chunk) - Operating expenses decreased primarily due to a **32% reduction in sales and marketing expenses** from COVID-19 travel restrictions and a **16% decrease in G&A expenses** from staff reductions[124](index=124&type=chunk)[126](index=126&type=chunk) [Liquidity, Capital Resources, and Backlog](index=29&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Backlog) Working capital significantly increased to $21.3 million due to a $12.5 million public stock offering, with a $5.6 million sales backlog primarily from telecom and military customers - Working capital increased to **$21.3 million** at March 31, 2021, from **$10.1 million** at year-end 2020, mainly due to net proceeds of approximately **$12.5 million** from a public stock offering in February 2021[130](index=130&type=chunk)[132](index=132&type=chunk) - The company has a revolving credit facility of up to **$4.0 million**, with **$2.5 million available** as of March 31, 2021, and no outstanding balance[133](index=133&type=chunk)[135](index=135&type=chunk) - The company holds a **$1.7 million PPP loan** from May 2020 and expects the full amount to be forgiven[137](index=137&type=chunk)[139](index=139&type=chunk) - As of March 31, 2021, the company had a sales backlog of **$5.6 million**, comprised of **71% from telecommunications customers** and **19% from military contractors**[145](index=145&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable to the company as a smaller reporting company - Not applicable[146](index=146&type=chunk) [Controls and Procedures](index=31&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting - Based on an evaluation as of the end of the period, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[147](index=147&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[148](index=148&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - The company is not currently involved in any material legal proceedings[150](index=150&type=chunk) [Risk Factors](index=32&type=section&id=ITEM%201A.%20Risk%20Factors) Key risks include the ongoing negative impact of COVID-19, heavy dependence on a few large telecom customers, inventory risk, reliance on key engine suppliers, and potential stock price volatility [Business and Industry Risks](index=32&type=section&id=Business%20and%20Industry%20Risks) The company faces significant risks from the COVID-19 pandemic, high customer concentration in U.S. telecommunications, substantial inventory risk, and dependence on key engine suppliers without long-term contracts - The COVID-19 pandemic has had, and is expected to continue to have, a significant negative impact on sales, operations, and the supply chain[153](index=153&type=chunk) - The company is highly dependent on three main customers in the U.S. telecommunications market (AT&T, T-Mobile, Verizon), and the loss or reduction of business from them could adversely affect results[160](index=160&type=chunk) - The company faces significant inventory risk, having recorded a **$3.4 million inventory write-down** in 2020 due to lower-than-expected demand[168](index=168&type=chunk) - There is a substantial dependence on key engine suppliers, primarily Yanmar and Toyota, without long-term supply contracts[180](index=180&type=chunk) [Intellectual Property Risks](index=42&type=section&id=Intellectual%20Property%20Risks) The company's success relies on protecting proprietary technology primarily through trade secrets and confidentiality agreements, which offer limited protection compared to patents - The company's success depends on protecting its proprietary technology, primarily through trade secret laws and confidentiality agreements rather than patents, which offers limited protection[199](index=199&type=chunk)[200](index=200&type=chunk) [Common Stock Risks](index=43&type=section&id=Common%20Stock%20Risks) Risks include the significant influence of the CEO due to his 44% ownership, reduced reporting requirements as an "emerging growth company," and the absence of cash dividends - The company's Chairman, President, and CEO, Arthur D. Sams, beneficially owns approximately **44% of the outstanding common stock**, giving him significant influence over corporate matters[211](index=211&type=chunk) - The company is an "emerging growth company" under the JOBS Act, which allows for reduced public company reporting requirements that may make its stock less attractive to some investors[226](index=226&type=chunk) - The company does not anticipate paying cash dividends, so stockholders must rely on stock appreciation for any return on investment[216](index=216&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[239](index=239&type=chunk) [Defaults Upon Senior Securities](index=51&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) This section is not applicable - Not applicable[240](index=240&type=chunk) [Mine Safety Disclosure](index=51&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosure) This section is not applicable - Not applicable[241](index=241&type=chunk) [Other Information](index=51&type=section&id=ITEM%205.%20Other%20Information) The company reported no other information for the period - None[242](index=242&type=chunk) [Exhibits](index=51&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, which include officer certifications required by the Sarbanes-Oxley Act and interactive data files - The exhibits filed with this report include CEO/CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, as well as XBRL Instance Documents[246](index=246&type=chunk)
Polar Power(POLA) - 2020 Q4 - Annual Report
2021-03-31 20:39
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) | Delaware | 33-047902 ...
Polar Power(POLA) - 2020 Q3 - Quarterly Report
2020-11-16 22:01
Washington, D.C. 20549 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) | Delaware | ...
Polar Power(POLA) - 2020 Q2 - Quarterly Report
2020-08-14 20:53
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) | Delaware | 33-0 ...
Polar Power(POLA) - 2020 Q1 - Quarterly Report
2020-06-29 14:29
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) Delaware 33-0479020 ...
Polar Power(POLA) - 2019 Q4 - Annual Report
2020-05-14 18:56
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) | Delaware | 33-0479020 | ...
Polar Power(POLA) - 2019 Q3 - Quarterly Report
2019-11-14 21:55
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from _____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 33-0479 ...
Polar Power(POLA) - 2019 Q3 - Earnings Call Transcript
2019-11-13 02:51
Financial Data and Key Metrics Changes - Revenues for Q3 2019 were $6.9 million, a 30% increase from $5.0 million in the same quarter last year [41] - Gross profit for the quarter was $2.2 million, a 46% increase compared to $1.5 million in Q3 2018 [43] - Net income for Q3 2019 totaled $48,000, compared to a net loss of $0.7 million in Q3 2018 [45] - Current assets grew to $24.3 million as of September 30, 2019, compared to $23 million at the end of 2018 [46] Business Line Data and Key Metrics Changes - Backlog at the end of Q3 2019 was $3 million, down from $11.5 million at the end of the same quarter last year, primarily due to reduced lead times and lower sales to Tier-1 telecom customers [41][42] - Operating expenses decreased to $2.2 million in Q3 2019 from $2.3 million in Q3 2018 [44] Market Data and Key Metrics Changes - The domestic telecom market is seen as a compelling growth area, despite experiencing short-term volatility due to budget shifts towards 5G rollouts [14][42] - The company is expanding its U.S. distribution network and targeting last mile carriers to diversify its customer base [15][17] Company Strategy and Development Direction - The company is focusing on optimizing resources to pursue growth opportunities and diversifying its business plan [9] - Plans to introduce new products, including propane and natural gas generators powered by Toyota engines, are underway [15][16] - The company aims to expand into markets outside of telecom, with significant interest in solar hybrid LPG systems for various applications [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of their products despite short-term volatility in the telecom sector [42] - The company is optimistic about the future demand for backup power solutions due to increasing power outages and the need for reliable energy sources [22][34] - Management highlighted the importance of diversifying the customer base to mitigate risks associated with reliance on Tier-1 telecom customers [90][92] Other Important Information - The company has completed emissions testing required by the EPA and is awaiting certification to market its environmentally friendly product line [16][145] - The company is actively recruiting and training personnel to improve manufacturing efficiencies and support sales efforts [29] Q&A Session Summary Question: Can you walk us through the inventory increase and its implications? - Management indicated that inventory levels are increasing to secure timely delivery and that a significant portion consists of engines and components [53][56] Question: What products do you have for the 5G rollout? - The company is working directly with manufacturers of 5G equipment and is adapting its offerings to meet the evolving power needs of wireless carriers [61][62] Question: What is the status of the military market opportunities? - The military market presents long-term opportunities, with the potential for follow-on orders and R&D funding, although it requires custom solutions [72][74] Question: What are the challenges in the international market? - Management acknowledged difficulties in predicting contract timelines and emphasized the need for better support for field sales efforts [76][77] Question: Can you provide details on the new residential product pricing? - The company expects its residential products to be priced between $18,000 and $35,000, emphasizing their efficiency and multi-functional capabilities [110][112]
Polar Power(POLA) - 2019 Q2 - Quarterly Report
2019-08-14 20:57
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission file number: 001-37960 POLAR POWER, INC. (Exact name of registrant as specified in its charter) Delaware 33-0479020 ( ...