As of September 30, 2024, Polar Power, Inc. reported a net income of $13,000 for the third quarter, a significant improvement from a net loss of $1,844,000 in the same period of 2023. This positive shift was driven by a 157% increase in net sales, which reached $4,914,000 compared to $1,911,000 in Q3 2023. The company's gross profit for the quarter was $1,424,000, a substantial recovery from a gross loss of $108,000 in the prior year, resulting in a gross margin of 29.0%, up from -5.7%.

For the nine months ended September 30, 2024, total net sales were $11,348,000, a slight decrease from $11,688,000 in the same period in 2023. However, gross profit increased to $2,854,000, up 34% from $2,122,000 in 2023, with gross margins improving to 25.1% from 18.2%. The net loss for the nine months was $1,628,000, a notable improvement from a loss of $3,393,000 in the previous year.

The increase in sales was primarily attributed to a rise in sales of DC generators to telecommunications customers, which accounted for 91% of total revenues in Q3 2024, down from 96% in Q3 2023. Notably, sales to military customers represented 8% of total net sales for the quarter, compared to zero in the same period last year. International sales also saw growth, accounting for 10% of total revenues in Q3 2024, up from 1% in 2023.

Total current assets decreased to $18,647,000 as of September 30, 2024, from $21,989,000 at the end of 2023, while total assets fell to $20,916,000 from $25,259,000. Total liabilities decreased to $9,355,000 from $12,070,000, leading to a reduction in total stockholders’ equity to $11,561,000 from $13,189,000.

The company also reported a decrease in net cash used in operating activities, which was $(400,000) for the nine months ended September 30, 2024, compared to $(3,084,000) in the same period in 2023. Cash and cash equivalents at the end of the period were $498,000, down from $549,000 at the end of 2023.

Strategically, Polar Power plans to enhance its product offerings, including upgrades to mobile EV chargers and new configurations of DC power systems, while also anticipating growth in military and marine sales. The company expressed substantial doubt about its ability to continue as a going concern, citing the need to generate sufficient revenues to offset expenses amid challenging market conditions.