Polar Power, Inc. (“Polar Power” or the “Company”) (NASDAQ: POLA),
a global provider of prime, backup and solar hybrid DC power
solutions, today reported its financial results for the quarter
ended March 31, 2023.
Key Q1 2023 Results and
Highlights:
Financial Results for the Three Months
Ended March 31, 2023
● |
Net sales for Q1 2023 increased to $4.1 million, representing a 13%
increase, compared to $3.7 million during the same period last
year. |
|
|
● |
We had a gross profit of $755,000 at the end of Q1 2023, as
compared to a gross profit of $905,000 during the same period last
year. |
|
|
● |
Operating expenses decreased to $1.7 million in Q1 2023, as
compared to $2.0 million in the same period last year. |
|
|
● |
Net loss for Q1 2023 totaled $1.1 million, or $(0.09) per basic and
dilutive share, compared to a net loss of $1.1 million, or $(0.10)
per basic and dilutive share in Q1 2022. |
|
|
● |
Cash and cash equivalents at March 31, 2023 were $119,000, as
compared to $211,000 at December 31, 2022. We had $16.8 million in
inventory at March 31, 2023, as compared to $15.4 million at
December 31, 2022. Working capital was $15.8 million at March 31,
2023, as compared to $17.3 million at December 31, 2022. |
|
|
● |
Backlog as of the end of Q1 2023 was $8.9 million, of which 68% is
from orders of the Company’s DC power generators from
telecommunications customers in the U.S., 29% from
telecommunications customers in international markets, 1% from
customers in marine market, and 2% from customers in other
markets. |
Management Commentary
The Company’s net sales increased 13% in Q1 2023
as compared to Q1 2022 despite ongoing headwinds from supply chain
constraints and labor shortages. The Company’s gross profit during
Q1 2023 decreased $150 when compared to Q1 2022 due to an increase
in labor and material costs related to a wider product mix that
required more labor and materials. Delays sourcing certain raw
materials and labor shortages also affected gross margins in Q1
2023. Operating expenses during Q1 2023 decreased 11% as compared
to Q1 2022 primarily due to a decrease in staff supporting sales,
engineering, and administration.
Sales of the Company’s DC Generators to
telecommunications customers continues to drive sales growth.
During the three months ended March 31, 2023, 68% of the Company’s
net sales were derived from telecommunications customers in the
U.S. primarily to support their 5G infrastructure. During the same
period, 27% of the Company’s net sales were derived from
telecommunications customer in international markets primarily for
off-grid applications to supply rural areas new broadband services.
The Company sees an increase in demand to export DC power systems
for programs bringing broadband to rural communities.
The Company believes our manufacturing
facilities are under-utilized as a result of significant
investments in manufacturing equipment and facilities in the years
right before the start of the pandemic in the U.S. The Company
expects to see improvements in the Company’s gross margins as it
makes headway with parts shortages and sourcing qualified
labor.
Following a 2.5-year delay, the Company launched
the Toyota 1KS series, reaching a key milestone in the Company’s
evolution. The Company just started shipments of the Toyota-based
generators and expects production volumes will continue to build as
production learning curves lead to efficiencies.
The Company believes the Toyota prime power
engines, when configured into generators, will provide strong
opportunities for growth and diversification in line with the
Company’s long-term plan. This engine platform is expected to
easily facilitate the shift from diesel to natural gas and LPG
(liquid petroleum gas, aka propane or butane). LPG and natural gas
fuel reduce carbon emissions between 16% to 27% and, when combined
with the increased fuel efficiency of DC generators and solar
technologies, emissions become very minimal. The Toyota 1KS prime
power engines have much lower maintenance requirements when
compared to diesel engines and the current LPG and natural gas
backup generators from the major brands. The Toyota 1KS engine will
be focused on applications in telecommunications, microgrids,
electric vehicle (“EV”) charging, and CHP (combined heat and
power).
The delay in the launch was caused by several
factors, including a challenging hiring market for specialized
engineers, and problems with combustion control and lubricating oil
temperature regulation (note that the Toyota engine itself
presented no problems), which have been resolved, field-tested, and
implemented into engineering and production. Lastly, disruptions
attributable to long lead times for components and availability
also negatively impacted the development schedule.
Despite the delay, the Company did not stop its
marketing efforts and is now transitioning from sales contacts to
sales, which includes the production of sales literature and field
demonstrations. The launch was originally planned for 2 years ago,
and in anticipation the Company has purchased a large number of
engines, requiring significant working capital, but is well
positioned to meet anticipated demand. This inventory is expected
to convert back to cash as product sales accelerate. As a hedge
against the world supply chain problems Polar Power has maintained
large inventory levels on critical items.
The Company increased prices on the Company’s DC
generators in September 2022. Shipment of orders received with the
Company’s new pricing were delayed due to supply chain constraints
and labor shortages and were included in the Company’s sales
backlog as of March 31, 2023. The Company expects to see a positive
impact to the Company’s net sales and gross margins in the upcoming
quarters as we start shipping these orders and see improvements
with the supply chain and labor issues.
Early this month, the Company announced plans to
expand the Company’s mobile offerings by upgrading the Company’s
mobile CHAdeMO EV chargers to the universal combined charging
system standard to reach the mobile EV charging market. The Company
is taking orders for the Company’s new line of EV chargers and
expects to have them available before the end of the first quarter
of 2024. Mobile EV chargers are used for emergency roadside
service, providing a fast-charging solution for EVs that have run
out of charge before reaching a stationary charging facility.
The Company also continues to work on the
Company’s solar hybrid power systems, which integrate solar energy
storage with natural gas/LPG powered generators, that are ideal for
off-grid (i.e., areas where wireless towers are not connected to an
electrical grid) and bad-grid (i.e., areas where wireless towers
are connected to an electrical grid that loses power more than
eight hours) applications.
About Polar Power, Inc.
Gardena, California-based Polar Power, Inc.
(NASDAQ: POLA), designs, manufactures and sells direct current, or
DC, power systems, lithium battery powered hybrid solar systems for
applications in the telecommunications market and, in other
markets, including military, EV charging, cogeneration, distributed
power and uninterruptable power supply. Within the
telecommunications market, Polar Power’s systems provide reliable
and low-cost energy for applications for off-grid and bad-grid
applications with critical power needs that cannot be without power
in the event of utility grid failure. For more information, please
visit www.polarpower.com. or follow us on
www.linkedin.com/company/polar-power-inc/.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995
This news release contains certain statements of
a forward-looking nature relating to future events or future
business performance. Forward-looking statements can be identified
by the words “expects,” “anticipates,” “believes,” “intends,”
“estimates,” “plans,” “will,” “outlook” and similar expressions.
Forward-looking statements are based on management’s current plans,
estimates, assumptions and projections, and speak only as of the
date they are made. With the exception of historical information,
the matters discussed in this press release including, without
limitation, Polar Power’s expectation to see improvements in gross
margins as headways are made with parts shortages and sourcing
qualified labor; Polar Power’s expectation that production volumes
will continue to build as production learning curves lead to
efficiencies; Polar Power’s expectation that its new line of EV
chargers will be available in the year 2024 are forward-looking
statements and considerations that involve a number of risks and
uncertainties. The actual future results of Polar Power could
differ from those statements. Factors that could cause or
contribute to such differences include, but are not limited to,
adverse domestic and foreign economic and market conditions,
including demand for mobile EV chargers; trade tariffs on raw
materials; changes in domestic and foreign governmental regulations
and policies; the impact of inflation and changing prices on raw
materials; supply chain constraints causing significant delays in
sourcing raw materials; labor shortages as a result of the
pandemic, low unemployment rates, or other factors limiting the
availability of qualified workers; and other events, factors and
risks. It undertakes no obligation to update any forward-looking
statement in light of new information or future events, except as
otherwise required by law. Forward-looking statements involve
inherent risks and uncertainties, most of which are difficult to
predict and are generally beyond Polar Power’s control. Actual
results or outcomes may differ materially from those implied by the
forward-looking statements as a result of the impact of a number of
factors, many of which are discussed in more detail in Polar
Power’s reports filed with the Securities and Exchange
Commission.
Media and Investor
Relations:Shawn M. SeversonTel: 312-420-9191
Company Contact:Polar Power,
Inc.249 E. Gardena Blvd.Gardena, CA 90248Tel:
310-830-9153ir@polarpowerinc.comwww.polarpower.com
POLAR POWER,
INC.CONDENSED BALANCE
SHEETS(in
thousands, except share and per share data)
|
|
March 31, 2023 |
|
|
December 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
119 |
|
|
$ |
211 |
|
Accounts receivable |
|
|
3,216 |
|
|
|
2,230 |
|
Inventories, net |
|
|
16,875 |
|
|
|
15,460 |
|
Prepaid expenses |
|
|
1,852 |
|
|
|
2,629 |
|
Employee retention credit receivable |
|
|
2,000 |
|
|
|
2,000 |
|
Income taxes receivable |
|
|
787 |
|
|
|
787 |
|
Total current assets |
|
|
24,849 |
|
|
|
23,317 |
|
|
|
|
|
|
|
|
|
|
Other assets: |
|
|
|
|
|
|
|
|
Operating lease right-of-use
assets, net |
|
|
2,436 |
|
|
|
240 |
|
Property and equipment,
net |
|
|
421 |
|
|
|
538 |
|
Deposits |
|
|
93 |
|
|
|
93 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
27,799 |
|
|
$ |
24,188 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,024 |
|
|
$ |
230 |
|
Customer deposits |
|
|
2,769 |
|
|
|
2,126 |
|
Accrued liabilities and other current liabilities |
|
|
1,256 |
|
|
|
1,231 |
|
Current portion of operating lease liabilities |
|
|
738 |
|
|
|
268 |
|
Current portion of notes payable |
|
|
172 |
|
|
|
211 |
|
Line of credit |
|
|
3,010 |
|
|
|
1,884 |
|
Total current liabilities |
|
|
8,969 |
|
|
|
5,950 |
|
|
|
|
|
|
|
|
|
|
Notes payable, net of current
portion |
|
|
33 |
|
|
|
57 |
|
Operating lease liabilities,
net of current portion |
|
|
1,729 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
10,731 |
|
|
|
6,007 |
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, no
shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par value, 50,000,000 shares authorized,
12,967,027 shares issued and 12,949,550 shares outstanding on March
31, 2023, and 12,967,027 shares issued and 12,949,550 shares
outstanding on December 31, 2022 |
|
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
|
37,331 |
|
|
|
37,331 |
|
Accumulated deficit |
|
|
(20,224 |
) |
|
|
(19,111 |
) |
Treasury Stock, at cost (17,477 shares) |
|
|
(40 |
) |
|
|
(40 |
) |
Total stockholders’
equity |
|
|
17,068 |
|
|
|
18,181 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity |
|
$ |
27,799 |
|
|
$ |
24,188 |
|
POLAR POWER,
INC.UNAUDITED CONDENSED STATEMENTS OF
OPERATIONS(in
thousands, except share and per share data)
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Net
Sales |
|
$ |
4,190 |
|
|
$ |
3,709 |
|
Cost of
Sales |
|
|
3,435 |
|
|
|
2,804 |
|
Gross
profit |
|
|
755 |
|
|
|
905 |
|
|
|
|
|
|
|
|
|
|
Operating
Expenses |
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
333 |
|
|
|
405 |
|
Research and development |
|
|
346 |
|
|
|
476 |
|
General and
administrative |
|
|
1,111 |
|
|
|
1,131 |
|
Total operating
expenses |
|
|
1,790 |
|
|
|
2,012 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(1,035 |
) |
|
|
(1,107 |
) |
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
|
|
|
|
|
|
|
Interest expense and finance costs |
|
|
(78 |
) |
|
|
(13 |
) |
Other income (expense), net |
|
|
— |
|
|
|
— |
|
Total other income
(expenses), net |
|
|
(78 |
) |
|
|
(13 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,113 |
) |
|
$ |
(1,120 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share – basic and
diluted |
|
$ |
(0.09 |
) |
|
$ |
(0.10 |
) |
Weighted average shares
outstanding, basic and diluted |
|
|
12,949,550 |
|
|
|
12,788,203 |
|
POLAR POWER,
INC.UNAUDITED CONDENSED STATEMENTS OF CASH
FLOW(in
thousands)
|
|
Three Months Ended March 31, |
|
|
|
2023 |
|
|
2022 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,113 |
) |
|
$ |
(1,120 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
116 |
|
|
|
135 |
|
Changes in operating assets
and liabilities |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(986 |
) |
|
|
626 |
|
Inventories |
|
|
(1,415 |
) |
|
|
(1,468 |
) |
Prepaid expenses |
|
|
777 |
|
|
|
742 |
|
Operating lease right-of-use asset |
|
|
196 |
|
|
|
166 |
|
Accounts payable |
|
|
794 |
|
|
|
216 |
|
Customer deposits |
|
|
643 |
|
|
|
26 |
|
Accrued expenses and other current liabilities |
|
|
25 |
|
|
|
5 |
|
Operating lease liabilities |
|
|
(193 |
) |
|
|
(175 |
) |
Net cash used in operating
activities |
|
|
(1,156 |
) |
|
|
(847 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Acquisition of property and
equipment |
|
|
— |
|
|
|
(8 |
) |
Net cash used in investing
activities |
|
|
— |
|
|
|
(8 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Proceeds from advances from
credit facility |
|
|
1,127 |
|
|
|
— |
|
Repayment of notes
payable |
|
|
(63 |
) |
|
|
(60 |
) |
Net cash provided by (used in)
financing activities |
|
|
1,064 |
|
|
|
(60 |
) |
|
|
|
|
|
|
|
|
|
Decrease in cash and cash
equivalents |
|
|
(92 |
) |
|
|
(915 |
) |
Cash and cash equivalents,
beginning of period |
|
|
211 |
|
|
|
5,101 |
|
Cash and cash
equivalents, end of period |
|
$ |
119 |
|
|
$ |
4,186 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL NON-CASH
INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Initial recognition of
operating lease right-of-use assets and operating lease
liabilities |
|
$ |
2,392 |
|
|
$ |
— |
|
Polar Power (NASDAQ:POLA)
過去 株価チャート
から 4 2024 まで 5 2024
Polar Power (NASDAQ:POLA)
過去 株価チャート
から 5 2023 まで 5 2024