Polar Energy Reviews First Quarter 2022 Monetary Outcomes

GARDENA, CA, Might 16, 2022 (GLOBE NEWSWIRE) — Polar Energy, Inc. (“Polar Energy”) (NASDAQ: POLA), a world supplier of prime, backup and photo voltaic hybrid DC energy options, in the present day reported its monetary outcomes for the quarter ended March 31, 2022.

Key Q1 2022 Outcomes and Highlights:

Monetary Outcomes for the Three Months Ended March 31, 2022

• Web gross sales for Q1 2022 elevated to $3.7 million, a 13% enhance, in comparison with $3.Three million throughout the identical interval final 12 months.

• We had a gross revenue of $905 thousand on the finish of Q1 2022, as in comparison with a gross lack of $58 thousand throughout the identical interval final 12 months.

• Working bills elevated to $2.Zero million in Q1 2022, as in comparison with $1.Eight million in the identical interval final 12 months.

• Web loss for Q1 2022 totaled $1.1 million, or $(0.10) per primary and dilutive share, in comparison with a web lack of $1.9 million, or $(0.15) per primary and dilutive share in Q1 2021.

• Money and money equivalents at March 31, 2022 had been $4.1 million, as in comparison with $5.1 million at December 31, 2021. We had $10.5 million in stock at March 31, 2022, as in comparison with $9.Zero million at December 31, 2021. Working capital was $20.7 million at March 31, 2022, as in comparison with $21.7 million at December 31, 2021.

• Backlog as of the tip of Q1 2022 was $9.Zero million. Backlog as of April 16, 2022 is $13.Zero million, of which 66% is from orders of our DC energy turbines from telecommunications clients within the U.S., 31% from telecommunications clients in worldwide markets, 1% from clients in marine market, and a couple of% from clients in different markets.

Administration Commentary

We proceed to see development in demand for our DC energy techniques. Our web gross sales elevated 13% in Q1 2022 as in comparison with Q1 2021 regardless of labor and provide chain points hampering gross sales and shipments.

The elevated geopolitical components are producing rising curiosity in DC energy techniques for robotics and drones. As well as, the business / residential markets are pushed to hunt better power independence by means of elevated effectivity and renewable power.

Our home enhance in gross sales is pushed by our telecommunications clients buying our DC Turbines to assist their 5G infrastructure. We additionally see a rise in demand to export DC energy techniques for packages bringing broadband to rural communities.

For the three-month interval ending March 31, 2022, our gross revenue elevated to $905 thousand, which is an enchancment of 1,660%, as in comparison with a gross lack of $58 thousand in the identical interval in 2021. Our gross margins improved to 24.4% for the quarter ended March 31, 2022, as in comparison with (1.8)% for a similar interval in 2021. We imagine we are going to proceed to see enhancements in our gross margins as our quarterly shipments proceed to extend and we acquire from labor efficiencies in manufacturing. We imagine our manufacturing services are under-utilized on account of vital investments in manufacturing gear and services within the years proper earlier than the beginning of the pandemic.within the U.S.

Polar Energy administration is targeted on managing the disruptions with our provide chain shortages, prolonged lead occasions, rising costs, and labor shortages which is slowing down new product developments and advertising. We’re additionally experiencing challenges sourcing certified staff so as to add to our manufacturing and engineering groups.

Abroad gross sales to telecommunications clients are exhibiting development after lengthy advertising investments. In April 2022, we obtained a PO from a telecommunications buyer within the South Pacific Islands within the quantity of $4.Zero million for our DC turbines for grid backup and off-grid functions to provide rural areas with broadband companies. This order is a part of a rising program to develop the telecommunications infrastructure on this area. We plan to start deliveries mid-year 2022 and fulfil the order by the tip of this 12 months.

We additionally proceed to work on diversifying our buyer base and are promoting into non-telecommunication markets and functions at an rising fee. In March 2022, we obtained EPA certification on our 4Y Toyota engine undertaking aimed toward increasing the ability vary to 35 kW on pure fuel and LPG. Polar Energy’s EPA certification of 1KS and 4Y Toyota engines brings to the market (non-diesel) engines with very low upkeep and excessive gasoline effectivity. Along with assembly the telecommunications want for bigger and extra compact turbines our bigger fashions have excessive curiosity from micro-grids, peak energy shaving, and EV charging.

Our photo voltaic hybrid energy techniques, which combine photo voltaic power storage with pure fuel/LPG (propane) powered turbines, are perfect for off-grid (i.e., areas the place wi-fi towers aren’t linked to {an electrical} grid) and bad-grid (i.e., areas the place wi-fi towers are linked to {an electrical} grid that loses energy greater than eight hours) functions.

Mr. Sams concluded, “We meet the challenges of provide chain shortages by means of our manufacturing and engineering functionality of adaptation and sourcing internationally. Labor scarcity is managed by delaying a few of our product growth packages and plenty of of our staff placing within the further effort. Our total efforts have resulted in a rise in gross sales and income.

I imagine we’re on the precise facet of expertise and manufacturing. The world electrical grids is not going to meet the rising want for energy demand due to rising wants in air-conditioning, information companies (server rooms), rising populations, and most significantly the massive shift in power used for transportation. Shifting from diesel and gasoline to EV charging is an unprecedented quantity of power shift from one supply to a different. If cities like Los Angeles and New York have had brown / black outs in the summertime as a result of air-conditioning masses for over a half century, how will they deal with tens of millions of EVs coming to cost on the grid. It will enhance the necessity for energy technology utilizing wind, photo voltaic, and clear burning fuels distributed by means of micro / nano grids. For power safety, houses and enterprise should depend on a number of sources of power together with Photo voltaic, pure fuel/LPG, and the grid. It’ll take many many years earlier than the grid can develop in capability the place pure fuel is now not wanted. The provision chain shortages demonstrated how essential home manufacturing is. Polar Energy was capable of overcome many provide points as a result of its vertical manufacturing functionality.

We imagine Covid-19 can be a difficult issue for a few years to return and labor together with provide chains are progressively studying to take care of it. The factories that had been closed for lengthy durations of time are filling their backlogs thereby lowering supply occasions on new orders.
Polar Energy’s merchandise are aimed toward addressing current and future wants for power whereas lowering environmental impression and air pollution.”

About Polar Energy, Inc.

Gardena, California-based Polar Energy, Inc. (NASDAQ: POLA), designs, manufactures and sells direct present, or DC, energy techniques, lithium battery powered hybrid photo voltaic techniques for functions within the telecommunications market and, in different markets, together with army, electrical automobile (EV) charging, cogeneration, distributed energy and uninterruptable energy provide. Throughout the telecommunications market, Polar Energy’s techniques present dependable and low-cost power for functions for off-grid and bad-grid functions with vital energy wants that can’t be with out energy within the occasion of utility grid failure. For extra info, please go to www.polarpower.com. or comply with us on www.linkedin.com/firm/polar-power-inc/

Protected Harbor Statement Below the Personal Securities Litigation Reform Act of 1995

This information launch accommodates sure statements of a forward-looking nature referring to future occasions or future enterprise efficiency. Ahead-looking statements might be recognized by the phrases “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and related expressions. Ahead-looking statements are primarily based on administration’s present plans, estimates, assumptions and projections, and converse solely as of the date they’re made. Except historic info, the issues mentioned on this press launch together with, with out limitation, Polar Energy’s expectation that gross sales from its U.S. Tier-1 telecommunications clients will proceed to develop on account of 5G community expansions; Polar Energy’s expectation that it’ll see rising gross sales of DC energy techniques for packages bringing broadband to rural communities; Polar Energy’s expectation that its gross margins will enhance as quarterly shipments enhance or it improves labor efficiencies; Polar Energy’s expectation that its diversification technique will result in rising gross sales into non-telecommunications markets, together with micro-grids, peak energy shaving, and EV charging; Polar Energy’s perception that elevated geopolitical components will result in rising gross sales of its DC energy techniques; Polar Energy’s perception that the home telecom market is a compelling development marketplace for Polar Energy; Polar Energy’s perception that its new merchandise, together with propane and pure fuel turbines powered by Toyota engines, offers it business main expertise; and Polar Energy’s perception that it’ll efficiently handle provide chain and labor shortages to keep away from disruptions to its enterprise operations are forward-looking statements and concerns that contain numerous dangers and uncertainties. The precise future outcomes of Polar Energy may differ from these statements. Elements that would trigger or contribute to such variations embrace, however aren’t restricted to, opposed home and overseas financial and market situations, together with demand for DC energy techniques; commerce tariffs on uncooked supplies; adjustments in home and overseas governmental rules and insurance policies; and different occasions, components and dangers. We undertake no obligation to replace any forward-looking assertion in mild of recent info or future occasions, besides as in any other case required by regulation. Ahead-looking statements contain inherent dangers and uncertainties, most of that are troublesome to foretell and are usually past our management. Precise outcomes or outcomes could differ materially from these implied by the forward-looking statements on account of the impression of numerous components, a lot of that are mentioned in additional element in our reviews filed with the Securities and Alternate Fee.

Media and Investor Relations:
Integra Investor Relations
Shawn M. Severson
+1 415-233-7094
data@integra-ir.com
@Integra IR
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Firm Contact:
Polar Energy, Inc.
249 E. Gardena Blvd.
Gardena, CA 90248
Tel: 310-830-9153
ir@polarpowerinc.com
www.polarpower.com

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