Polar Power(POLA) - 2025 Q3 - Quarterly Results

Financial Performance - Polar Power reported net sales of $1.3 million for Q3 2025, a 74% decline from $4.9 million in Q3 2024[3][11] - The company experienced a gross loss of $2.26 million in Q3 2025, a decrease of 259% compared to a gross profit of $1.42 million in Q3 2024[15] - The company recorded a net loss of $4.08 million, or $(1.63) per share, for Q3 2025, compared to a net profit of $0.01 million in Q3 2024[21] - Net sales for the three months ended September 30, 2025, were $1,273 million, a decrease from $4,914 million in the same period of 2024, representing a decline of approximately 74%[28] - Gross profit for the three months ended September 30, 2025, was a loss of $2,260 million compared to a profit of $1,424 million in 2024, indicating a significant deterioration in profitability[28] - The net loss for the three months ended September 30, 2025, was $4,085 million, compared to a net income of $13 million in the same period of 2024[28] - Total other income (expenses), net for the three months ended September 30, 2025, was $(208) million, compared to $(27) million in 2024, reflecting a decline in other income sources[28] Operating Expenses - Operating expenses decreased by $0.22 million, but were offset by a $0.45 million impairment of right-to-use assets[3] - Total operating expenses for the three months ended September 30, 2025, were $1,617 million, an increase from $1,384 million in 2024, reflecting a rise of about 17%[28] - Interest expense and finance costs for the nine months ended September 30, 2025, totaled $543 million, compared to $496 million in 2024, indicating an increase of approximately 9%[30] Sales and Customer Concentration - Sales to the largest U.S. telecommunications customer accounted for 63% of total net sales in Q3 2025, compared to 46% in Q3 2024[12] - Polar Power's international sales represented 0% of total net sales in Q3 2025, down from 10% in Q3 2024[13] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, resulted in a net cash used of $589 million, compared to $400 million in the same period of 2024[30] - Cash and cash equivalents at the end of the period were $4 million, a significant decrease from $498 million at the beginning of the period[30] Inventory and R&D - The company recorded an inventory write-down of $1,967 million for the nine months ended September 30, 2025, which was not present in the same period of 2024[30] - Research and development expenses decreased by 9% to $157,000 in Q3 2025, with plans to recruit additional engineers in 2026[17] Fundraising - The company raised $0.74 million in October 2025 by selling shares to fund operations[8] Backlog - The company's backlog increased to $5.3 million as of September 30, 2025, up from $1.2 million on June 30, 2025[7]