April 1, 2025 – Gardena, CA – Polar Power, Inc. (NASDAQ: POLA), a leading provider of prime, backup, and solar hybrid DC power solutions, has announced its financial results for the fourth quarter and the full year ended December 31, 2024. Despite facing a decline in sales, the company has made significant strides in reducing losses and improving operational efficiency.

1. 2024 Financial Highlights

Polar Power reported total sales of $14 million for the year, marking a 6.7% decrease from the previous year. However, the company showcased an impressive 89% increase in gross profit, reaching $1.3 million, which accounts for 9.4% of sales—up from 4.5% in 2023. This notable improvement in gross margin reflects the company’s efforts to optimize its cost structure and inventory management.

Key Financial Metrics

Net Loss: The net loss for 2024 was $4.6 million, a significant improvement compared to $6.5 million in 2023. This equates to a loss of $(1.86) per basic and diluted share, down from $(3.45) in the previous year.

Operating Expenses: Operating expenses decreased by $1 million, totaling $5.7 million, compared to $6.7 million in 2023. This reduction is indicative of Polar Power's commitment to cost management.

Cash Flow: The company reported cash used in operating activities of $536,000, significantly lower than $3.4 million in 2023, showing improved cash conservation efforts.

Inventories: Total inventories declined by $3.5 million, primarily due to the utilization of existing inventory rather than new acquisitions, alongside a $900,000 accounting adjustment for slow-moving inventory.

2. Strategic Developments

Chairman and CEO Arthur Sams commented on the company's strategy and market positioning, stating, “We continue to spend time and resources educating the market on the unique benefits of our power platform to deliver solutions that reduce cost and harmful emissions while providing a source of reliable and virtually maintenance-free power.”

New Partnerships and Product Innovations

Polar Power has recently secured a significant new reference account with the United Nations High Commissioner for Refugees (UNHCR). The partnership, particularly a hybrid solution provided in Lagos, Nigeria, has exceeded expectations, yielding substantial fuel savings of up to 70% in diesel costs. This high-efficiency hybrid system has also been praised for its ability to shield application loads from grid power fluctuations, positioning Polar Power as a leader in innovative energy solutions.

Sams further highlighted the company’s success in diversifying its revenue streams, reporting a doubling of military/government revenues to nearly $1.5 million for the year. This shift away from heavy reliance on the telecom sector is a strategic move to broaden market penetration.

3. Looking Ahead

Polar Power is set to introduce innovative products, including a mobile electric vehicle charger, which was successfully tested in 2024. The company aims to launch this new product line within the current year, further expanding its reach into emerging markets.

Sams concluded, “We expect to see follow-on orders from our key customers, including the UNHCR, and look forward to broadening our footprint in both traditional and new markets.”

4. Financial Position

As of December 31, 2024, Polar Power reported total net debt of $5.0 million and total liquidity of $1.1 million, which includes cash and availability under the line of credit. The company's balance sheet reflects its ongoing efforts to maintain financial stability amid fluctuating market conditions.

Conclusion

Polar Power's 2024 financial results reflect both challenges and progress. While sales have declined, the company has successfully reduced losses and improved operational efficiencies, positioning itself for potential growth opportunities in 2025 and beyond. As it continues to innovate and expand its market presence, stakeholders will be keenly watching Polar Power's next steps in the evolving power solutions landscape.

Original press release