Polar Power Enters African Telecom Market With Energy Efficient Solar Hybrid Power Systems

New Regional Sales and Service Hub Establishes Local Presence in Cape Town, South Africa with Appointment of Industry Veteran Andre Herbst to Lead Operations in the Region

GARDENA, CA--(Marketwired - March 21, 2017) - Polar Power, Inc. (NASDAQ: POLA), a global provider of prime and backup DC power solutions, has entered the African prime power system market and established a regional presence in Cape Town, South Africa with the new appointment of Andre Herbst to Director of Telecom Sales and Business Development Africa. In conjunction with Herbst's appointment, the Company plans to expand operations in Africa and establish regional sales and service hubs in the region utilizing Polar Power's DC solar hybrid power systems to address the expanding and under-penetrated telecommunications market.

The African telecom market has been rapidly expanding as subscribers increase throughout the continent due to telecom infrastructure improvements and declining prices in mobile phones. African countries dominate the ranking of the 25 poorest countries in the world, according to an analysis by Global Finance Magazine in 2016. According to the 2016 GSMA Mobile Economy Africa Report, the global subscriber penetration rate now stands at 63%, with regional penetration rates ranging from 43% in Sub-Saharan Africa to 85% in Europe. Sub-Saharan Africa, the world's most under-penetrated region saw an annual subscriber growth from 2010-2015 of more than 13% versus 3% in North America over the same period. Regional variations in data usage are significant, with the majority of data usage coming from North America and Europe, where subscribers on average today consume 4.4 GB and 1.8 GB per month respectively, compared to around 0.5 GB per subscriber across Africa. Mobile internet adoption in Africa continues to grow rapidly; the number of mobile internet subscribers tripled in the last five years to 300 million by the end of 2015, with an additional 250 million expected by 2020.

The mobile telecom tower market in Africa faces infrastructure and operational challenges due to the lack of a stable grid in urban and rural areas, resulting in reliance on expensive diesel used to power network infrastructures. According to 2016 GSMA analysis there currently are 240,000 telecom towers providing mobile coverage to the continent with expected growth to 325,000 by 2020. A majority of these towers are located in rural and suburban areas challenged by unreliable or lack of electrical grid.

Polar Power plans to expand its business throughout the African continent, initially focusing on countries like South Africa, Tanzania, Kenya, Ghana, Malawi and Nigeria.

"We believe the current challenges of a limited power grid and availability of year-long solar resources present a unique opportunity for our DC solar hybrid products to power expanding telecommunications tower infrastructure," said Polar Power CEO, Arthur Sams. "The higher efficiency of our DC products combined with our proprietary integration of solar and lithium ion batteries can reduce operating costs, a key cost driver in operations of telecom towers in off-grid and bad-grid applications."

"To support our strategic initiatives we are pleased to have Mr. Herbst lead the effort, who has over 20 years' experience in the African region managing telecommunications infrastructure. Mr. Herbst has held senior management positions for leading telecom companies including: MTN Iran, Eltek Valere Dubai, Huawei Nigeria, Millicom Pakistan, Ericsson Cameroon and most recently focusing on hybrid power systems at Camusat," continued Sams.

"Polar Power is meeting the industry needs with higher energy efficiency and lower emissions power generating equipment. We are pleased to welcome Andre to our team, who shares our values and our focus on expanding sales of our products through innovation and emphasis on customer service. Andre has a proven track record in developing new markets through the introduction of energy efficient disruptive technologies and we look forward to leveraging his expertise in the African region," concluded Sams.

Polar’s New Raincap.

Dear Customers,

After March 30, 2017.  Polar will start to include, as standard equipment, our new stainless steel rain cap.

We feel our device is novel enough to have filed a Patent for it.

This new rain cap keeps water out of the exhaust without any moving parts even during high winds and rain storms.

There is some exhaust noise reduction as a side benefit; although we have yet to measure the dba reduction, it is noticeable to the observer.

 

Polar Power Reports 2016 Financial Results

GARDENA, CA--(Marketwired - March 06, 2017) - Polar Power, Inc. (NASDAQ: POLA), a global provider of prime and backup DC power solutions, reported financial results for the twelve months ended December 31, 2016.

Key 2016 Financial & Operational Highlights:

  • Completed initial public offering on December 7, 2016 with $17 million in net proceeds
  • Net sales increased 233% to $22.8 million, as compared to $6.8 million in 2015
  • Gross margin increased to 45%, as compared to 33% in 2015
  • Operating income increased 2,315% to $7.3 million, as compared to $0.3 million in 2015
  • Net income increased to $4.4 million, or $0.58 per basic and diluted share, as compared to a net loss of $0.03 million, or ($0.01) per basic and diluted share, in 2015

Financial Results for the Twelve Months Ended December 31, 2016 Compared to 2015

Net sales totaled $22.8 million, an increase of 233%, as compared to $6.8 million in 2015, with order backlog of $3.1 million at December 31, 2016. The increase in sales was a result of the company's expansion of sales of DC power systems into other regions within the U.S. telecommunications sector.

Gross margin, as a percentage of net sales, improved to 45%, as compared to 33% in 2015. This improvement in gross margin was attributable to lower material costs and improved overhead absorption resulting from increased sales.

Operating expenses increased to $2.7 million from $1.9 million in 2015, representing 12% of net sales as compared to 29% of net sales in 2015. The increase in operating expenses was primarily due to the addition of sales and administrative personnel and an increase in consulting and accounting fees related to the initial public offering.

Operating income was up 2,315% to $7.4 million, as compared to $0.3 million in 2015. This improvement is largely attributable to higher sales and gross margins.

Net income increased to $4.4 million, or $0.58 per basic and diluted share, compared to a net loss of $0.03 million, or ($0.01) per basic and diluted share, in 2015.

Cash at December 31, 2016 totaled $16.2 million, as compared to $0.3 million at December 31, 2015. The increase in cash is primarily due to the successful completion of a $19.3 million initial public offering in December of 2016, resulting in net cash proceeds of $17 million.

Management Commentary

"We believe our strong sales growth in 2016 reflects the acceleration of telecom infrastructure investment nationwide," said Polar Power CEO, Arthur Sams. "Newer telecom sites are often outdoor sites requiring higher power generation while occupying less space. Our DC power systems, with a small footprint and weight, is meeting growing industry needs for higher efficiency and lower emissions power generating equipment."

"Today's reported financial results reflect a strong close to a productive high growth year for Polar Power. Our net sales for the year grew by over 233% while our gross margin increased from 33% to 45% as compared to 2015. These results reaffirm our strategy of investing in plant and equipment during 2015 to ramp up production capacity while expanding sales infrastructure. In addition, during 2016 we successfully completed our initial public offering to provide us with the necessary working capital to continue our expansion globally," continued Sams.

"Already in 2017, the global outlook for the telecommunications industry that we serve remains optimistic led by strong expansion in cellular tower infrastructure in Asia and Africa. The domestic market continues its growth through increased investments in telecom infrastructure by top tier telecom providers. We expect the market for DC generators, along with solar hybrid power generation equipment, will remain strong during 2017, supported by the growth of telecommunications infrastructure in rural and remote areas in developing nations. The work to expand our sales infrastructure has already begun, with us adding new sales personnel in both domestic and international markets, while we continue our investment in plant and equipment to further increase production capacity and reduce manufacturing costs."

"We look forward to sharing more on our developing story at the upcoming 29th Annual ROTH Conference on March 14, 2017 in Dana Point, California," concluded Sams.

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, electric vehicle charging, cogeneration, distributed power and uninterruptable power supply. Within the telecommunications market, Polar'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.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, the matters discussed in this press release including, without limitation, the ability of Polar Power to meet industry needs with higher energy efficiency and lower emissions power generating equipment; Polar Power's expectation that the market for DC generators, along with solar hybrid power generation equipment, will remain strong during 2017, and the ability of Polar Power to add key telecom personnel throughout 2017 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 economic and market conditions, including demand for DC power systems; raw material and manufacturing costs; changes in governmental regulations and policies; and other events, factors and risks previously and from time to time disclosed in Polar Power's filings with the Securities and Exchange Commission including, specifically, those factors set forth in the "Risk Factors" section contained in Polar Power's Form S-1 filed with the Securities and Exchange Commission on November 30, 2016.

POLAR POWER INC.
Balance Sheets
December 31,
2016
December 31,
2015
ASSETS
Current assets
Cash and cash equivalents $ 16,242,158 $ 263,418
Accounts receivable 4,403,946 1,496,654
Inventories, net 4,839,591 2,093,099
Prepaid expenses 178,569 93,125
Total current assets 25,664,264 3,946,296
Other assets: Property and equipment, net 737,586 542,892
Deposits 66,796 88,944
Deferred tax assets 160,637 205,000
Total assets $ 26,629,283 $ 4,783,132
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 659,355 $ 182,884
Customer deposits 71,954 229,602
Income taxes payable 1,227,308 295,778
Accrued liabilities and other current liabilities 669,889 268,636
Current portion of notes payable 111,368 327,693
Line of credit -- 965,150
Payable for acquired technology -- 131,215
Total current liabilities 2,739,874 2,400,958
Notes payable, net of current portion 237,431 127,840
Total liabilities 2,977,305 2,528,798
Commitments and Contingencies
Shareholders' 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, 10,143,158 and, 7,365,614, shares issued and outstanding, respectively 1,014 736
Additional paid-in capital 19,242,715 2,248,159
Retained earnings 4,408,249 5,439
Total shareholders' equity 23,651,978 2,254,334
Total liabilities and shareholders' equity $ 26,629,283 $ 4,783,132
POLAR POWER INC.
Statements of Operations
Years Ended
December 31,
2016 2015
Net sales $ 22,801,494 $ 6,846,759
Cost of sales 12,619,837 4,558,725
Gross profit 10,181,657 2,288,034
Operating Expenses
General and administrative 2,112,336 1,454,563
Research and development 213,931 116,297
Sales and Marketing 424,579 392,306
Depreciation and amortization 26,888 18,342
Total operating expenses 2,777,734 1,981,508
Income from operations 7,403,923 306,526
Other expenses
 Interest expense (112,550 ) (50,971 )
 Other expenses (27,516 ) (15,325 )
Total other expenses (140,066 ) (66,296 )
Income before income taxes 7,263,857 240,230
Income tax provision (2,861,047 ) (273,569 )
Net Income (loss) $ 4,402,810 $ (33,339 )
Net Income (loss) per share -- basic and diluted $ 0.58 $ (0.01 )
Weighted average shares outstanding, basic and diluted 7,564,629 6,832,329
POLAR POWER INC.
Statements of Cash Flows
Years Ended
December 31,
2016 2015
Cash flows from operating activities:
Net Income (loss) $ 4,402,810 $ (33,339 )
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Common shares issued for services 37,500 --
Additional costs of shares issues to related party -- 581,895
Depreciation and amortization 207,857 143,573
Changes in operating assets and liabilities
Accounts receivable (2,907,292 ) (868,416 )
Inventories (2,746,492 ) (1,192,827 )
Prepaid expenses (85,444 ) 15,177
Deposits 22,148 13,755
Deferred tax assets 44,363 (15,000 )
Accounts payable 476,471 104,823
Income taxes payable 931,530 257,373
Customer deposits (157,648 ) 173,244
Accrued expenses and other current liabilities 401,253 199,015
Net cash provided by (used in) operating activities 627,056 (620,727 )
Cash flows from investing activities:
Acquisition of property and equipment (165,088) (223,423 )
Payable for acquired technology (131,215 ) (180,000 )
Net cash used in investing activities (296,303 ) (403,423 )
Cash flows from financing activities:
Advances (repayment) of credit line net (965,150) 965,150
Repayment of notes (344,197 ) (731,074 )
Proceeds from issuance of common stock 16,957,334 500,000
Net cash provided by financing activities 15,647,987 734,076
Increase (decrease) in cash and cash equivalents 15,978,740 (290,074 )
Cash and cash equivalents, beginning of period 263,418 553,492
Cash and cash equivalents, end of period $ 16,242,158 $ 263,418
Supplemental Cash Flow Information:
Interest paid $ 112,550 $ 50,971
Taxes Paid 1,885,337 31,197
Supplemental non-cash investing and financing activities:
Assets acquired under notes payable $ 237,463 $ 28,046
Transfer of customer deposit to notes payable -- 183,989

Polar Power to Present at the 29th Annual ROTH Conference on March 14, 2017

GARDENA, CA--(Marketwired - March 03, 2017) - Polar Power, Inc. (NASDAQ: POLA), a global provider of prime and backup DC power solutions, has been invited to present at the 29th Annual ROTH Conference being held on March 12-15, 2017 at The Ritz-Carlton in Dana Point, California.

Polar Power CEO Arthur Sams and Vice President of Operations Raj Masina are scheduled to present on Tuesday, March 14 at 4:30 p.m. Pacific time, and will hold one-on-one meetings with institutional investors throughout the conference. Management will discuss the company's performance and outlook for 2017.

For additional information or to schedule a one-on-one meeting with Polar Power management, please contact your ROTH representative at 1-800-933-6830 or via email at conference@roth.com. You may also email your request to ir@polarpowerinc.com or call Chris Tyson at (949) 491-8235.

Polar Power Appoints Christopher Sabo as Regional Director of Telecom Business Development.

Sabo Brings Over 25 Years Sales Experience in DC Power Systems to Polar Power's Salesforce

GARDENA, CA--(Marketwired - January 17, 2017) - Polar Power, Inc. (NASDAQ: POLA), a global provider of prime and backup DC power solutions, has appointed Christopher Sabo to the new position of East Coast Regional Director of Telecom Business Development.

Mr. Sabo brings 25 years of business development and sales experience in the telecommunications industry and will be responsible for managing and expanding sales to wireless carriers and tower operators on the East Coast region of the United States. Chris will join Polar's sales team led by Adam Szczepanek, Vice President Business Development.

"We believe our strong sales growth in 2016 reflects the acceleration of telecom technology requiring more DC power while occupying less space with longer reserve capacity," said Polar Power CEO, Arthur Sams. "Polar is meeting the industry needs with higher energy efficiency and lower emissions power generating equipment. We are pleased to welcome Chris to our team, who shares our values and our focus on expanding sales of our products through innovation and emphasis on customer service. Chris has a proven track record in developing new markets through the introduction of energy efficient disruptive technologies."

Sabo commented: "I am excited to join an organization like Polar Power, which has decades of experience and is well-positioned to address a growing market for low cost reliable DC power. I have always admired the innovation and impact of Polar Power's products on fuel efficiency and the environment and hope to leverage my career experiences to contribute towards exceeding our revenue growth and profitability objectives."

Concluded Sams, "Since completing our IPO in December 2016, we now have the necessary capital to penetrate new markets and accelerate our footprint with other Tier-1 and Tier-2 U.S. wireless carriers. Chris' appointment represents our commitment to customer diversification and we plan to add key telecom personnel throughout 2017."

Prior to joining Polar Power, Mr. Sabo was Director of Strategic Accounts at Ontegrity, Inc. (previously Battery Corporation), a provider of telecom tower monitoring services along with site maintenance and DC battery backup solutions. At Ontegrity, Mr. Sabo successfully increased sales to the largest Tier-1 wireless carriers. Prior to Ontegrity, Mr. Sabo served as Vice President of Sales at Monosite, Inc. and as Account Manager at Andrew Corporation.