Core Viewpoint - Polar Power, Inc. reported its financial results for Q1 2025, highlighting improvements in operational efficiency, increased sales in aftermarket parts and services, and a focus on expanding its customer base [1][3]. Financial Performance - Net sales for Q1 2025 were $1.7 million, consistent with the same period last year [6]. - Gross profit increased to $320,000, representing 18.6% of sales, an improvement of 180% from a gross loss of $402,000 in Q1 2024 [6]. - Operating expenses declined by 10% to $1.4 million compared to $1.5 million in Q1 2024 [6]. - Net loss decreased to $1.2 million, or $(0.50) per share, a 41% improvement from a net loss of $2.1 million, or $(0.85) per share in the same period last year [6]. - Cash used in operating activities was $584,000, down from $989,000 in Q1 2024 [6]. Sales and Market Segments - Sales to telecom customers represented 82% of total net sales in Q1 2025, up from 71% in Q1 2024 [3]. - Sales to international markets increased to 18% of total net sales in Q1 2025, compared to 6% in the same period last year [3]. - Sales to military customers accounted for 17% of total net sales in Q1 2025, down from 26% in Q1 2024 [3]. Operational Developments - The company has seen a steady decline in excess inventory at its largest customer, leading to higher bookings towards the end of Q1 2025 [3]. - Implementation of a companywide ERP system has streamlined manufacturing operations, improving labor efficiencies and manufacturing lead times [3]. - Approximately $13 million of raw materials in inventory is expected to help reduce cash burn for the remainder of the year [3]. - The company has enhanced its manufacturing capacity, with the potential to generate over $50 million in revenue annually, assuming sufficient bookings [3]. Product and Service Innovations - Polar Power provides advanced DC power solutions across various sectors, including telecom, military, renewable energy, and more [4]. - The company is focusing on aftermarket parts and services, which accounted for 28% of total net sales in Q1 2025 [3]. - Joint efforts with telecom customers to implement remote monitoring systems on legacy units are expected to enhance product uptime and generate additional revenue [3].