Financial Performance - Polar Power reported sales of $14 million for 2024, representing a 6.7% decline from 2023 [6] - Gross profit increased by 89% to $1.3 million, or 9.4% of sales, compared to $695,000, or 4.5% of sales in 2023 [6] - Operating expenses decreased by $1 million to $5.7 million compared to $6.7 million in the prior year [6] - The net loss for 2024 was $4.6 million, a reduction of $1.9 million from a net loss of $6.5 million in 2023 [6] Operational Highlights - The company achieved profitability in two quarters of 2024, primarily through the production of standard DC generators for backup and prime power applications [3] - Polar Power successfully reduced customer concentration in the telecom sector, with military/government revenues nearly doubling to approximately $1.5 million for the year [3] - The company implemented internal changes to broaden product penetration in traditional and new markets, including mobile electric vehicle chargers [3] Strategic Developments - Polar Power has established a new reference account with the United Nations High Commissioner for Refugees (UNHCR), showcasing significant fuel savings of up to 70% in diesel costs through their hybrid solution [3] - The hybrid system provided to UNHCR in Lagos, Nigeria, has exceeded performance expectations, leading to potential follow-on orders from this and other government agencies globally [3] Inventory and Cash Flow - Inventories decreased by $3.5 million, primarily due to the utilization of existing inventory rather than new acquisitions [6] - Cash used in operating activities was $536,000 in 2024, a significant improvement from $3.4 million in 2023 [6] Balance Sheet Overview - As of December 31, 2024, total assets were $17.5 million, down from $25.3 million in 2023 [10][11] - Total liabilities decreased to $9.0 million from $12.1 million in the previous year [11] - Total stockholders' equity was $8.5 million, down from $13.2 million in 2023 [11]