Polar Power(POLA) - 2024 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 2024 were $4.6 million, a 163% increase from $1.8 million in Q1 2024, but a decrease from $5.6 million in Q2 2023[2] - Gross margin improved to 39.3% in Q2 2024, up from 26.4% in Q1 2024, attributed to higher international sales[2] - Net income for Q2 2024 was $501,000, or $0.03 per share, compared to a net loss of $(436,000) in Q2 2023[2] - The company expects continued improvement in sales growth and profitability throughout 2024 due to planned investments in sales and marketing[6] Working Capital and Backlog - Working capital as of June 30, 2024, was $10.1 million, including $15.8 million in inventory[2] - The backlog as of June 30, 2024, was $5.7 million, with $2.0 million in new bookings during Q2 2024[2] International Sales - International sales accounted for approximately 20% of Q2 2024 revenues, indicating geographic diversification[3] Operating Expenses - Operating expenses decreased to $1.4 million in Q2 2024 from $1.6 million in Q1 2024 and $1.8 million in Q2 2023[2] Tax and Credits - The company received approximately $3.0 million in tax refunds and Employee Retention Credits from prior years[2] - Employee retention credit contributed $2,000,000, which was not present in the previous year[9] Cash Flow and Investments - Net cash provided by operating activities was $190,000, a significant improvement from net cash used of $2,804,000 in the same period last year[9] - Cash and cash equivalents at the end of the period increased to $1,119,000, up from $292,000 in June 2023[9] - Cash used in investing activities was $18,000, down from $194,000 in June 2023[9] - Proceeds from advances from credit facility amounted to $445,000, compared to $3,044,000 in the same period last year[9] - Net cash provided by financing activities was $398,000, a decrease from $3,079,000 in June 2023[9] Accounts Receivable and Payable - Accounts receivable improved, with a reduction in cash used of $634,000 compared to $1,488,000 in the previous year[9] - The company experienced a decrease in accounts payable, with a cash outflow of $1,165,000 compared to an inflow of $1,199,000 in the previous year[9] Management Changes - The appointment of Mike Field as the new Director and Compensation Committee Chairman was announced[2] Net Loss - Net loss for June 2024 was $1,641,000, compared to a net loss of $1,549,000 in June 2023[9] Depreciation and Amortization - Depreciation and amortization expenses decreased to $121,000 from $226,000 year-over-year[9]