Polar Power(POLA) - 2024 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2024 were $4.9 million, a 157% year-over-year increase[2] - Gross profit for Q3 2024 was $1.4 million, representing 29% of sales, a significant improvement from a gross loss of $108,000 in the same period last year[2] - Net income for Q3 2024 was $13,000, a $1.9 million improvement from a net loss of $1,844,000 in Q3 2023[2] - Net loss for the nine months ended September 30, 2024, was $1.6 million, an improvement from a net loss of $3.4 million in the same period in 2023[14] - Net loss decreased to $1.628 million in September 2024 from $3.393 million in September 2023, showing a significant improvement[15] Working Capital and Inventory - Working capital as of September 30, 2024, was $10.1 million, including $15.0 million in inventory[2] - Inventories increased by $1.492 million in September 2024, compared to a decrease of $3.695 million in September 2023[15] Sales and Backlog - Backlog as of September 30, 2024, was $3.1 million[2] - Military sales increased in Q3 2024, positively impacting margins[3] - The company is focusing on converting its sales pipeline into purchase orders, with opportunities from large overseas deals[4] Cash Flow and Financing - Net cash used in operating activities improved to $400 thousand in September 2024 from $3.084 million in September 2023[15] - Net cash used in investing activities decreased to $18 thousand in September 2024 from $194 thousand in September 2023[15] - Net cash provided by financing activities was $367 thousand in September 2024, down from $3.363 million in September 2023[15] - Cash and cash equivalents decreased by $51 thousand in September 2024, compared to an increase of $85 thousand in September 2023[15] - Cash and cash equivalents at the end of the period were $498 thousand in September 2024, up from $296 thousand in September 2023[15] Depreciation and Amortization - Depreciation and amortization expenses reduced to $146 thousand in September 2024 from $309 thousand in September 2023[15] Accounts Receivable - Accounts receivable decreased by $1.273 million in September 2024 compared to an increase of $648 thousand in September 2023[15] Employee Retention Credit - Employee retention credit contributed $2 million in September 2024, which was not present in September 2023[15] Total Assets - Total assets as of September 30, 2024, were $20.9 million, down from $25.3 million at the end of 2023[11] Nasdaq Compliance - Polar Power is taking steps to regain Nasdaq compliance, including a planned reverse stock split[5]