Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 15, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-37960 | |
Entity Registrant Name | POLAR POWER, INC. | |
Entity Central Index Key | 0001622345 | |
Entity Tax Identification Number | 33-0479020 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 249 E. Gardena Blvd. | |
Entity Address, City or Town | Gardena | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90248 | |
City Area Code | (310) | |
Local Phone Number | 830-9153 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | POLA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,788,203 | |
Entity Information, Former Legal or Registered Name | Not Applicable |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 7,706 | $ 1,646 |
Accounts receivable | 3,520 | 1,190 |
Inventories, net | 8,598 | 9,094 |
Prepaid expenses | 4,116 | 358 |
Income tax receivable | 787 | 2,357 |
Total current assets | 24,727 | 14,645 |
Other assets: | ||
Operating lease right-of-use assets, net | 1,079 | 1,563 |
Property and equipment, net | 1,091 | 1,497 |
Deposits | 94 | 94 |
Total assets | 26,991 | 17,799 |
Current liabilities | ||
Accounts payable | 209 | 311 |
Customer deposits | 962 | 703 |
Accrued expenses and other current liabilities | 1,252 | 1,142 |
Current portion of operating lease liabilities | 708 | 670 |
Current portion of notes payable | 240 | 267 |
Current portion of PPP loan payable | 1,429 | |
Total current liabilities | 3,371 | 4,522 |
Notes payable, net of current portion | 329 | 510 |
Operating lease liabilities, net of current portion | 454 | 990 |
PPP loan payable, net of current portion | 286 | |
Total liabilities | 4,154 | 6,308 |
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, 12,805,680 shares issued and 12,788,203 shares outstanding on September 30, 2021 and 11,768,158 shares issued and 11,750,681 shares outstanding on December 31, 2020 | 1 | 1 |
Additional paid-in capital | 36,816 | 23,643 |
Accumulated deficit | (13,940) | (12,113) |
Treasury Stock, at cost (17,477 shares) | (40) | (40) |
Total stockholders’ equity | 22,837 | 11,491 |
Total liabilities and stockholders’ equity | $ 26,991 | $ 17,799 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,805,680 | 11,768,158 |
Common stock, shares outstanding | 12,788,203 | 11,750,681 |
Treasury stock, shares | 17,477 | 17,477 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net Sales | $ 4,136 | $ 2,501 | $ 12,273 | $ 6,488 |
Cost of Sales (includes inventory write-downs of $2,400 and $2,400 during the three and nine months ended September 30, 2020, respectively) | 3,170 | 5,200 | 10,398 | 10,058 |
Gross profit (loss) | 966 | (2,699) | 1,875 | (3,570) |
Operating Expenses | ||||
Sales and marketing | 372 | 445 | 1,119 | 1,296 |
Research and development | 533 | 489 | 1,485 | 1,309 |
General and administrative | 823 | 1,080 | 2,796 | 3,154 |
Total operating expenses | 1,728 | 2,014 | 5,400 | 5,759 |
Loss from operations | (762) | (4,713) | (3,525) | (9,329) |
Other income (expenses) | ||||
Interest expense and finance costs | (14) | (11) | (46) | (46) |
Gain on forgiveness of PPP loan payable | 1,715 | 1,715 | ||
Other income (expense), net | 3 | 1 | 29 | 14 |
Total other income (expenses), net | 1,704 | (10) | 1,698 | (32) |
Income (loss) before income taxes | 942 | (4,723) | (1,827) | (9,361) |
Income tax benefit | ||||
Current | (1,484) | |||
Deferred | (655) | |||
Total income tax benefit | (2,139) | |||
Net income (loss) | $ 942 | $ (4,723) | $ (1,827) | $ (7,222) |
Net income (loss) per share – basic | $ 0.07 | $ (0.42) | $ (0.14) | $ (0.68) |
Net income (loss) per share – dilutive | $ 0.07 | $ (0.42) | $ (0.14) | $ (0.68) |
Weighted average shares outstanding, basic | 12,788,203 | 11,315,984 | 12,697,683 | 10,659,308 |
Weighted average shares outstanding, dilutive | 12,807,361 | 11,315,984 | 12,697,683 | 10,659,308 |
Condensed Statements of Opera_2
Condensed Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||
Inventory write down | $ 2,400 | $ 2,400 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 1 | $ 19,657 | $ (1,242) | $ (40) | $ 18,376 |
Beginning balance, shares at Dec. 31, 2019 | 10,143,158 | ||||
Shares of common stock issued with warrants for cash | 2,812 | 2,812 | |||
Shares of common stock issued with warrants for cash, shares | 1,250,000 | ||||
Shares of common stock issued upon exercise of warrants | 861 | 861 | |||
Shares of common stock issued upon exercise of warrants, shares | 275,000 | ||||
Net income (loss) | (7,222) | (7,222) | |||
Ending balance, value at Sep. 30, 2020 | $ 1 | 23,330 | (8,464) | (40) | 14,827 |
Ending balance, shares at Sep. 30, 2020 | 11,668,158 | ||||
Beginning balance, value at Jun. 30, 2020 | $ 1 | 19,657 | (3,741) | (40) | 15,877 |
Beginning balance, shares at Jun. 30, 2020 | 10,143,158 | ||||
Shares of common stock issued with warrants for cash | 2,812 | 2,812 | |||
Shares of common stock issued with warrants for cash, shares | 1,250,000 | ||||
Shares of common stock issued upon exercise of warrants | 861 | 861 | |||
Shares of common stock issued upon exercise of warrants, shares | 275,000 | ||||
Net income (loss) | (4,723) | (4,723) | |||
Ending balance, value at Sep. 30, 2020 | $ 1 | 23,330 | (8,464) | (40) | 14,827 |
Ending balance, shares at Sep. 30, 2020 | 11,668,158 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 1 | 23,643 | (12,113) | (40) | 11,491 |
Beginning balance, shares at Dec. 31, 2020 | 11,768,158 | ||||
Issuance of common stock for cash, net of offering costs | 12,466 | 12,466 | |||
Issuance of common stock for cash, net of offering costs, shares | 750,000 | ||||
Common stock issued upon exercise of warrants | 707 | 707 | |||
Common stock issued upon exercise of warrants, shares | 287,522 | ||||
Net income (loss) | (1,827) | (1,827) | |||
Ending balance, value at Sep. 30, 2021 | $ 1 | 36,816 | (13,940) | (40) | 22,837 |
Ending balance, shares at Sep. 30, 2021 | 12,805,680 | ||||
Beginning balance, value at Jun. 30, 2021 | $ 1 | 36,816 | (14,882) | (40) | 21,895 |
Beginning balance, shares at Jun. 30, 2021 | 12,805,680 | ||||
Net income (loss) | 942 | 942 | |||
Ending balance, value at Sep. 30, 2021 | $ 1 | $ 36,816 | $ (13,940) | $ (40) | $ 22,837 |
Ending balance, shares at Sep. 30, 2021 | 12,805,680 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flow (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (1,827) | $ (7,222) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 420 | 469 |
Inventory write-down | 2,400 | |
Amortization of operating lease right-of-use asset | 484 | 466 |
Gain from forgiveness of PPP loan payable | (1,715) | |
Deferred tax assets | (655) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,330) | (842) |
Inventories | 496 | 132 |
Prepaid expenses | (3,758) | 930 |
Deposits | (4) | |
Income tax receivable | 1,570 | (1,484) |
Accounts payable | (102) | (255) |
Customer deposits | 260 | 491 |
Accrued expenses and other current liabilities | 110 | (120) |
Decrease in lease liability | (498) | (458) |
Net cash used in operating activities | (6,890) | (6,152) |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (14) | |
Proceeds from sales of property and equipment, including insurance proceeds | (3) | |
Net cash used in investing activities | (14) | (3) |
Cash flows from financing activities: | ||
Proceeds from sale of common stock, net of offering costs | 12,466 | |
Proceeds from sale of common stock and warrants | 2,812 | |
Proceeds from exercise of warrants | 707 | 861 |
Advance from line of credit | 245 | |
Proceeds from PPP Loan | 1,715 | |
Repayment of notes payable | (209) | (247) |
Net cash provided by financing activities | 12,964 | 5,386 |
Increase (decrease) in cash and cash equivalents | 6,060 | (769) |
Cash and cash equivalents, beginning of period | 1,646 | 2,840 |
Cash and cash equivalents, end of period | $ 7,706 | $ 2,071 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Polar Power, Inc. was incorporated in the State of Washington as Polar Products, Inc. and in 1991 reincorporated in the State of California under the name Polar Power, Inc. In December 2016, Polar Power, Inc. reincorporated in the State of Delaware (the “Company”). The Company designs, manufactures and sells direct current, or DC, power systems to supply reliable and low-cost energy to off-grid, bad-grid and backup power, electric vehicle (EV) charging, and nano-grid applications. The Company’s products integrate DC generator, proprietary electronic control systems, lithium batteries and solar photovoltaic (PV) technologies to provide low operating cost and emissions for telecommunications, defense, automotive, nano-grid, EV charging and industrial markets. Impact of COVID-19 The Company continues to monitor the evolving COVID-19 pandemic and related guidance from international and domestic authorities, including federal, state and local public health authorities and it may need to make changes to its business based on their recommendations. COVID-19 has had, and is likely to continue to have, a material and substantial adverse impact on the Company’s results of operations including, among others, a decrease in the Company’s sales and delays in sourcing of raw materials from suppliers. The Company’s business is directly dependent upon, and correlates closely with, the marketing levels and ongoing business activities of its existing customers and suppliers. In the event of a continued widespread economic downturn caused by COVID-19, the Company could experience a further reduction in current projects, longer sales and collection cycles, deferral or delay of purchase commitments for its DC power systems, a reduction in its manufacturing functionality, higher than normal inventory levels, a reduction in the availability of qualified labor, and increased price competition, all of which could substantially adversely affect its net revenues and its ability to remain a going concern. The extent of the impact of COVID-19 on its operational and financial performance will depend on certain developments, including the duration and potential resurgence of the outbreak, the impact on its customers and sales cycles, the impact on its customer, employee or industry events, and the effect on its vendors, all of which are uncertain and cannot be predicted. At this point, the Company is uncertain of the full magnitude that the COVID-19 pandemic may have on our financial condition, liquidity and future results of operations. Basis of Presentation of Unaudited Financial Information The unaudited condensed financial statements of the Company for the three and nine months ended September 30, 2021 and 2020 have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K for scaled disclosures for smaller reporting companies. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2020 was derived from the audited financial statements included in the Company’s financial statements as of and for the years ended December 31, 2020 and 2019 contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, or the SEC, on March 31, 2021. These financial statements should be read in conjunction with that report. Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Material estimates relate to the assumptions made in determining reserves for uncollectible receivables, inventory reserves and returns, impairment analysis of long-term assets, valuation allowance on deferred tax assets, income tax accruals, accruals for potential liabilities and warrant reserves and assumptions made in valuing equity instruments issued for services. Actual results may differ from those estimates. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which includes (1) identifying the contract(s) or agreement(s) with a customer, (2) identifying the Company’s performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. Substantially all of the Company’s revenue is derived from product sales. Product revenue is recognized when performance obligations under the terms of a contract are satisfied, which occurs for the Company upon shipment or delivery of products or services to its customers based on written sales terms, which is also when control is transferred. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products or services to a customer. The Company determines whether delivery has occurred based on when title transfers and the risks and rewards of ownership have transferred to the customer, which usually occurs when the Company places the product with the customer’s carrier or delivers the product to a customer’s location. The Company regularly reviews its customers’ financial positions to ensure that collectability is reasonably assured. The Company also recognizes revenues from engineering services, technical support, and sale of accessories that support the Company’s direct current, or DC, power systems. Revenue is recognized when transfer of control to the customer has been made and the Company’s performance obligation has been fulfilled. The Company’s revenue from engineering services, technical support services, and product accessories are clearly defined in each transaction with its customers and have not been significant to date. The Company also recognizes revenues from the rental of equipment. The Company’s rental revenues have not been significant to date and have accounted for less than one percent of total revenues for the three- and nine-month periods ended September 30, 2021 and 2020. The Company’s rental contracts are fixed price contracts for fixed durations of time and include freight and delivery charges and are recognized on a straight-line basis over the rental period. Disaggregation of Net Sales The following table shows the Company’s disaggregated net sales by product type: SCHEDULE OF DISAGGREGATED NET SALES 2021 (Unaudited) 2020 (Unaudited) Three months ended 2021 (Unaudited) 2020 (Unaudited) DC power systems $ 4,023 $ 2,414 Engineering & Tech Support Services 52 — Accessories 61 87 Total net sales $ 4,136 $ 2,501 2021 (Unaudited) 2020 (Unaudited) Nine months ended 2021 (Unaudited) 2020 (Unaudited) DC power systems $ 11,884 $ 6,200 Engineering & Tech Support Services 222 — Accessories 167 288 Total net sales $ 12,273 $ 6,488 The following table shows the Company’s disaggregated net sales by customer type: 2021 (Unaudited) 2020 (Unaudited) Three months ended 2021 (Unaudited) 2020 (Unaudited) Telecommunications $ 3,524 $ 2,491 Government/Military 373 2 Marine 30 1 Other (backup DC power to various industries) 209 7 Total net sales $ 4,136 $ 2,501 2021 (Unaudited) 2020 (Unaudited) Nine months ended 2021 (Unaudited) 2020 (Unaudited) Telecommunications $ 11,017 $ 6,294 Government/Military 538 9 Marine 44 5 Other (backup DC power to various industries) 674 180 Total net sales $ 12,273 $ 6,488 Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (“FIFO”) basis. The Company records adjustments to its inventory based on an estimated forecast of the inventory demand, taking into consideration, among others, inventory turnover, inventory quantities on hand, unfilled customer order quantities, forecasted demand, current prices, competitive pricing, and trends and performance of similar products. If the estimated net realizable value is determined to be less than the recorded cost of the inventory, the difference is recognized as a loss in the period in which it occurs. Once inventory has been written down, it creates a new cost basis for inventory that may not be subsequently written up. For the three- and nine-month period ended September 30, 2021, there were no 2,400 As of September 30, 2021, and December 31, 2020, inventories consisted of the following: SCHEDULE OF COMPONENTS OF INVENTORIES September 30, 2021 December 31, 2020 (unaudited) Raw materials $ 5,494 $ 5,527 Finished goods 3,104 3,567 Total Inventories, net $ 8,598 $ 9,094 Product Warranties The Company provides limited warranties for parts and labor at no cost to its customers within a specified time period after the sale. The Company’s standard warranty on new products is two years from the date of delivery to the customer. The Company offers a limited extended warranty of up to five years on its certified DC power systems based on application and usage. The Company’s warranties are of an assurance-type and come standard with all Company products to cover repair or replacement should product not perform as expected. Provisions for estimated expenses related to product warranties are made at the time products are sold. These estimates are established using historical information about the nature, frequency and average cost of warranty claim settlements as well as product manufacturing and recovery from suppliers. Management actively studies trends of warranty claims and takes action to improve product quality and minimize warranty costs. The Company estimates the actual historical warranty claims coupled with an analysis of unfulfilled claims to record a liability for specific warranty purposes, which are included in accrued expenses and other current liabilities in the accompanying balance sheets. Management believes that the warranty accrual is appropriate; however, actual claims incurred could differ from original estimates, requiring adjustments to the accrual. The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to the Company’s warranty coverage: SCHEDULE OF RECONCILIATION OF THE PRODUCT WARRANTY LIABILITY Changes in estimates for warranties September 30, 2021 December 31, 2020 (unaudited) Balance at beginning of the period $ 600 $ 375 Payments (496 ) (634 ) Provision for warranties 496 859 Balance at end of the period $ 600 $ 600 Stock-Based Compensation The Company periodically issues stock-based compensation to officers, directors, and consultants for services rendered. Such issuances vest and expire according to terms established at the issuance date. Stock-based payments to employees, directors, and for acquiring goods and services from nonemployees, which include grants of employee stock options, are recognized in the financial statements based on their grant date fair values in accordance with ASC 718, Compensation-Stock Compensation Financial Assets and Liabilities Measured at Fair Value The Company uses various inputs in determining the fair value of its financial assets and liabilities. Financial assets recorded at fair value in the balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. Authoritative guidance provided by the Financial Accounting Standards Board (“FASB”) defines the following levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs, other than the quoted prices in active markets, that is observable either directly or indirectly. Level 3 Unobservable inputs based on the Company’s assumptions. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. The carrying values of notes and loans payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates. Segments The Company operates in one Concentrations Cash Cash denominated in Australian Dollars with a U.S. Dollar equivalent of $ 12 10 20 28 Revenues. 62 41 27 23 85 99 7 23 For the nine months ended September 30, 2021, sales to the Company’s largest customer, a Tier-1 telecommunications wireless carrier in the U.S., accounted for 67 57 13 12 11 90 96 10 13 Accounts receivable 73 10 87 Accounts payable 13 10 8 10 9 8 Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed by dividing the net income applicable to common stockholders by the weighted average number of shares of common stock outstanding plus the number of additional shares of common stock that would have been outstanding if all dilutive potential shares of common stock had been issued using the treasury stock method. Potential shares of common stock are excluded from the computation when their effect is antidilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share if the exercise prices were lower than the average fair market value of shares of common stock during the reporting period. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive: SCHEDULE OF DILUTED EARNINGS PER SHARE September 30, 2021 September 30, 2020 (Unaudited) (Unaudited) Options 140,000 140,000 Warrants 24,122 465,000 Total 164,122 605,000 Recent Accounting Pronouncements In September 2016, the FASB issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments (“ASC 326”). The standard significantly changes how entities will measure credit losses for most financial assets, including accounts and notes receivables. The standard will replace today’s “incurred loss” approach with an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for interim and annual reporting periods beginning after December 15, 2022. The adoption of ASU 2016-13 is not expected to have a material impact on the Company’s financial position, results of operations, and cash flows. In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40).” ASU 2020-06 reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion and beneficial conversion models. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the effective interest rate of convertible debt instruments will be closer to the coupon interest rate. Further, the diluted net income per share calculation for convertible instruments will require the Company to use the if-converted method. For contracts in an entity’s own equity, the type of contracts primarily affected by this update are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement conditions of the derivative scope exception. This update simplifies the related settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective January 1, 2024, for the Company and the provisions of this update can be adopted using either the modified retrospective method or a fully retrospective method. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. Effective January 1, 2021, the Company early adopted ASU 2020-06 and that adoption did not have an impact on its financial statements and the related disclosures. The Company’s management does not believe that there are other recently issued but not yet effective authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 2 – PROPERTY AND EQUIPMENT Property and equipment consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT September 30, 2021 December 31, 2020 (Unaudited) Production tooling, jigs, fixtures $ 71 $ 71 Shop equipment and machinery 3,293 3,286 Vehicles 180 180 Leasehold improvements 390 390 Office equipment 181 177 Software 106 103 Total property and equipment, cost 4,221 4,207 Less: accumulated depreciation and amortization (3,130 ) (2,710 ) Property and equipment, net $ 1,091 $ 1,497 Depreciation and amortization expense on property and equipment for the three months ended September 30, 2021 and 2020 was $ 134 156 129 148 Depreciation and amortization expense on property and equipment for the nine months ended September 30, 2021 and 2020 was $ 420 469 402 450 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 3 – NOTES PAYABLE Notes payable consist of the following: SCHEDULE OF NOTES PAYABLE September 30, 2021 December 31, 2020 (Unaudited) Total Equipment Notes Payable $ 569 $ 777 Less Current Portion 240 267 Notes Payable, long term $ 329 $ 510 The Company has entered into several financing agreements for the purchase of equipment in prior years. The terms of these financing arrangements are for a term of 2 5 1.9 6.9 mature between September 2023 and December 2023 22 Future principal payments through the maturity dates of the notes payable as of September 30, 2021, consist of the following: SCHEDULE OF MINIMUM FUTURE PRINCIPAL PAYMENTS Year Ending Notes Payable 2021 (remaining 3 months) 59 2022 242 2023 203 2024 65 Principal payments of the notes payable $ 569 |
LINE OF CREDIT
LINE OF CREDIT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | NOTE 4 – LINE OF CREDIT Effective September 30, 2020, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Pinnacle Bank (“Pinnacle”). During the nine months ended September 30, 2021, the Company did not take any advances from the revolving credit facility. At September 30, 2021, there was no 2,612 The Loan Agreement provides for a revolving credit facility under which Pinnacle may make advances to the Company, subject to certain limitations and adjustments, of up to (a) 85% of the aggregate net face amount of the Company’s accounts receivable and other contract rights and receivables, plus (b) the lesser of (i) 35% of the lower of cost or wholesale market value of certain inventory of the Company 4,000 Interest accrues on the daily balance at a rate of 1.25 3.75 2.25 4.75 The Loan Agreement’s initial term ends on September 30, 2022, and is renewed thereafter for additional one-year terms. In addition, Pinnacle may terminate the Loan Agreement at any time upon sixty days prior written notice and immediately upon the occurrence of an event of default. Under the Loan Agreement, the Company granted Pinnacle a security interest in all presently existing and thereafter acquired or arising assets of the Company. The Loan Agreement also contains a financial covenant requiring the Company to attain an effective tangible net worth, as defined. The Loan Agreement obligates the Company to pay Pinnacle a yearly facility fee in an amount equal to 1.125 |
PPP LOAN PAYABLE
PPP LOAN PAYABLE | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
PPP LOAN PAYABLE | NOTE 5- PPP LOAN PAYABLE On May 4, 2020, the Company entered into a loan (the “PPP Loan”) with Citibank, N.A. in an aggregate principal amount of $ 1,715 The PPP Loan is evidenced by a promissory note dated May 4, 2020. The PPP Loan matures two years from the disbursement date and bears interest at a rate of 1 Debt Under the terms of the CARES Act, recipients of PPP loans can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. The Company filed its application for a full loan forgiveness to Citibank in July 2021. On September 28, 2021, the Company received noticed from Citibank indicating that the SBA rendered final decision approving forgiveness of the PPP loan payable in the amount of $ 1,714 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 6 – STOCKHOLDERS’ EQUITY Underwritten Public Offering of Common Stock On February 10, 2021, and the Company issued and sold 750,000 12.5 Issuance of common stock upon exercise of warrants During the nine months ended September 30, 2021, warrants to purchase an aggregate of 225,878 707 120,000 61,644 |
STOCK OPTIONS
STOCK OPTIONS | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OPTIONS | NOTE 7 – STOCK OPTIONS The following table summarizes stock option activity: SCHEDULE OF STOCK OPTION ACTIVITY Number of Weighted Options Price Outstanding, December 31, 2020 140,000 $ 5.22 Granted — — Exercised — — Outstanding, September 30, 2021 (unaudited) 140,000 $ 5.22 Exercisable, September 30, 2021 (unaudited) 140,000 $ 5.22 Effective July 8, 2016 the Company’s board of directors approved the Polar Power 2016 Omnibus Incentive Plan (the “2016 Plan”), authorizing the issuance of up to 1,754,385 350,877 At September 30, 2021, the Company had total outstanding options of 140,000 4.84 5.60 30,000 110,000 The intrinsic value of the outstanding options at September 30, 2021 was approximately $ 45 |
STOCK WARRANTS
STOCK WARRANTS | 9 Months Ended |
Sep. 30, 2021 | |
Stock Warrants | |
STOCK WARRANTS | NOTE 8 – STOCK WARRANTS At September 30, 2021, warrant shares outstanding were as follows: SCHEDULE OF WARRANTS OUTSTANDING Number of Weighted Outstanding December 31, 2020 370,000 $ 8.75 Issued — — Exercised (345,878 ) (4.07 ) Outstanding, September 30, 2021 (unaudited) 24,122 $ 3.13 Exercisable, September 30, 2021 (unaudited) 24,122 $ 3.13 At December 31, 2020, the Company had outstanding warrants exercisable into 370,000 250,000 120,000 During the nine months ended September 30, 2021, warrants to purchase 225,878 3.13 707 120,000 61,644 The intrinsic value of the outstanding and exercisable warrants at September 30, 2021 was $ 58 |
DISTRIBUTION AGREEMENT WITH A R
DISTRIBUTION AGREEMENT WITH A RELATED ENTITY | 9 Months Ended |
Sep. 30, 2021 | |
Distribution Agreement With Related Entity | |
DISTRIBUTION AGREEMENT WITH A RELATED ENTITY | NOTE 9 – DISTRIBUTION AGREEMENT WITH A RELATED ENTITY On March 1, 2014, the Company entered into a subcontractor installer agreement with Smartgen Solutions, Inc. (“Smartgen”), a related entity that is engaged in business of equipment rental and provider of maintenance, repair and installation services to mobile telecommunications towers in California. Under the terms of the agreement, Smartgen has been appointed as a non-exclusive, authorized service provider for the installation, repair and service of the Company’s products in Southern California. The agreement has an initial term of three years from the date of execution and automatically renews for additional one-year periods if not terminated. During the three months ended September 30, 2021 and 2020, Smartgen performed $ 15 33 66 193 Smartgen had $ 1 nil |
OPERATING LEASES
OPERATING LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Operating Leases | |
OPERATING LEASES | NOTE 10 – OPERATING LEASES The Company has two operating lease agreements for its warehouse and office spaces both with remaining lease terms at September 30, 2021, of 1.7 Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical collateralized borrowing rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives. The components of rent expense and supplemental cash flow information related to leases for the period are as follows: SCHEDULE OF RENT EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION Nine months September 30, 2021 Nine months September 30, 2020 Lease Cost Operating lease cost (of which $74 is included in general and administration and $451 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2021, and for the same period in 2020, respectively) $ 525 $ 525 Operating lease cost (of which $ 74 451 $ 525 $ 525 Other Information Weighted average remaining lease term – operating leases (in years) 1.7 2.7 Average discount rate – operating leases 3.75 % 3.75 % The supplemental balance sheet information related to leases for the period is as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION At At Operating leases Long-term right-of-use assets, net of accumulated amortization of $ 1,749 1,265 $ 1,079 $ 1,563 Short-term operating lease liabilities $ 708 $ 670 Long-term operating lease liabilities 454 990 Total operating lease liabilities $ 1,162 $ 1,660 Maturities of the Company’s lease liabilities are as follows (in thousands): SCHEDULE OF MATUR ITIES OF LEASE LIABILITIES Year Ending Operating Leases 2021 (remaining 3 months) 182 2022 747 2023 280 Total lease payments 1,209 Less: Imputed interest/present value discount (47 ) Present value of lease liabilities $ 1,162 Rent expense for the nine months ended September 30, 2021 and 2020 was $ 678 678 |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company Polar Power, Inc. was incorporated in the State of Washington as Polar Products, Inc. and in 1991 reincorporated in the State of California under the name Polar Power, Inc. In December 2016, Polar Power, Inc. reincorporated in the State of Delaware (the “Company”). The Company designs, manufactures and sells direct current, or DC, power systems to supply reliable and low-cost energy to off-grid, bad-grid and backup power, electric vehicle (EV) charging, and nano-grid applications. The Company’s products integrate DC generator, proprietary electronic control systems, lithium batteries and solar photovoltaic (PV) technologies to provide low operating cost and emissions for telecommunications, defense, automotive, nano-grid, EV charging and industrial markets. |
Impact of COVID-19 | Impact of COVID-19 The Company continues to monitor the evolving COVID-19 pandemic and related guidance from international and domestic authorities, including federal, state and local public health authorities and it may need to make changes to its business based on their recommendations. COVID-19 has had, and is likely to continue to have, a material and substantial adverse impact on the Company’s results of operations including, among others, a decrease in the Company’s sales and delays in sourcing of raw materials from suppliers. The Company’s business is directly dependent upon, and correlates closely with, the marketing levels and ongoing business activities of its existing customers and suppliers. In the event of a continued widespread economic downturn caused by COVID-19, the Company could experience a further reduction in current projects, longer sales and collection cycles, deferral or delay of purchase commitments for its DC power systems, a reduction in its manufacturing functionality, higher than normal inventory levels, a reduction in the availability of qualified labor, and increased price competition, all of which could substantially adversely affect its net revenues and its ability to remain a going concern. The extent of the impact of COVID-19 on its operational and financial performance will depend on certain developments, including the duration and potential resurgence of the outbreak, the impact on its customers and sales cycles, the impact on its customer, employee or industry events, and the effect on its vendors, all of which are uncertain and cannot be predicted. At this point, the Company is uncertain of the full magnitude that the COVID-19 pandemic may have on our financial condition, liquidity and future results of operations. |
Basis of Presentation of Unaudited Financial Information | Basis of Presentation of Unaudited Financial Information The unaudited condensed financial statements of the Company for the three and nine months ended September 30, 2021 and 2020 have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-K for scaled disclosures for smaller reporting companies. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the Company’s financial position and results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2020 was derived from the audited financial statements included in the Company’s financial statements as of and for the years ended December 31, 2020 and 2019 contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, or the SEC, on March 31, 2021. These financial statements should be read in conjunction with that report. |
Estimates | Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Material estimates relate to the assumptions made in determining reserves for uncollectible receivables, inventory reserves and returns, impairment analysis of long-term assets, valuation allowance on deferred tax assets, income tax accruals, accruals for potential liabilities and warrant reserves and assumptions made in valuing equity instruments issued for services. Actual results may differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which includes (1) identifying the contract(s) or agreement(s) with a customer, (2) identifying the Company’s performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. Substantially all of the Company’s revenue is derived from product sales. Product revenue is recognized when performance obligations under the terms of a contract are satisfied, which occurs for the Company upon shipment or delivery of products or services to its customers based on written sales terms, which is also when control is transferred. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring the products or services to a customer. The Company determines whether delivery has occurred based on when title transfers and the risks and rewards of ownership have transferred to the customer, which usually occurs when the Company places the product with the customer’s carrier or delivers the product to a customer’s location. The Company regularly reviews its customers’ financial positions to ensure that collectability is reasonably assured. The Company also recognizes revenues from engineering services, technical support, and sale of accessories that support the Company’s direct current, or DC, power systems. Revenue is recognized when transfer of control to the customer has been made and the Company’s performance obligation has been fulfilled. The Company’s revenue from engineering services, technical support services, and product accessories are clearly defined in each transaction with its customers and have not been significant to date. The Company also recognizes revenues from the rental of equipment. The Company’s rental revenues have not been significant to date and have accounted for less than one percent of total revenues for the three- and nine-month periods ended September 30, 2021 and 2020. The Company’s rental contracts are fixed price contracts for fixed durations of time and include freight and delivery charges and are recognized on a straight-line basis over the rental period. Disaggregation of Net Sales The following table shows the Company’s disaggregated net sales by product type: SCHEDULE OF DISAGGREGATED NET SALES 2021 (Unaudited) 2020 (Unaudited) Three months ended 2021 (Unaudited) 2020 (Unaudited) DC power systems $ 4,023 $ 2,414 Engineering & Tech Support Services 52 — Accessories 61 87 Total net sales $ 4,136 $ 2,501 2021 (Unaudited) 2020 (Unaudited) Nine months ended 2021 (Unaudited) 2020 (Unaudited) DC power systems $ 11,884 $ 6,200 Engineering & Tech Support Services 222 — Accessories 167 288 Total net sales $ 12,273 $ 6,488 The following table shows the Company’s disaggregated net sales by customer type: 2021 (Unaudited) 2020 (Unaudited) Three months ended 2021 (Unaudited) 2020 (Unaudited) Telecommunications $ 3,524 $ 2,491 Government/Military 373 2 Marine 30 1 Other (backup DC power to various industries) 209 7 Total net sales $ 4,136 $ 2,501 2021 (Unaudited) 2020 (Unaudited) Nine months ended 2021 (Unaudited) 2020 (Unaudited) Telecommunications $ 11,017 $ 6,294 Government/Military 538 9 Marine 44 5 Other (backup DC power to various industries) 674 180 Total net sales $ 12,273 $ 6,488 |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (“FIFO”) basis. The Company records adjustments to its inventory based on an estimated forecast of the inventory demand, taking into consideration, among others, inventory turnover, inventory quantities on hand, unfilled customer order quantities, forecasted demand, current prices, competitive pricing, and trends and performance of similar products. If the estimated net realizable value is determined to be less than the recorded cost of the inventory, the difference is recognized as a loss in the period in which it occurs. Once inventory has been written down, it creates a new cost basis for inventory that may not be subsequently written up. For the three- and nine-month period ended September 30, 2021, there were no 2,400 As of September 30, 2021, and December 31, 2020, inventories consisted of the following: SCHEDULE OF COMPONENTS OF INVENTORIES September 30, 2021 December 31, 2020 (unaudited) Raw materials $ 5,494 $ 5,527 Finished goods 3,104 3,567 Total Inventories, net $ 8,598 $ 9,094 |
Product Warranties | Product Warranties The Company provides limited warranties for parts and labor at no cost to its customers within a specified time period after the sale. The Company’s standard warranty on new products is two years from the date of delivery to the customer. The Company offers a limited extended warranty of up to five years on its certified DC power systems based on application and usage. The Company’s warranties are of an assurance-type and come standard with all Company products to cover repair or replacement should product not perform as expected. Provisions for estimated expenses related to product warranties are made at the time products are sold. These estimates are established using historical information about the nature, frequency and average cost of warranty claim settlements as well as product manufacturing and recovery from suppliers. Management actively studies trends of warranty claims and takes action to improve product quality and minimize warranty costs. The Company estimates the actual historical warranty claims coupled with an analysis of unfulfilled claims to record a liability for specific warranty purposes, which are included in accrued expenses and other current liabilities in the accompanying balance sheets. Management believes that the warranty accrual is appropriate; however, actual claims incurred could differ from original estimates, requiring adjustments to the accrual. The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to the Company’s warranty coverage: SCHEDULE OF RECONCILIATION OF THE PRODUCT WARRANTY LIABILITY Changes in estimates for warranties September 30, 2021 December 31, 2020 (unaudited) Balance at beginning of the period $ 600 $ 375 Payments (496 ) (634 ) Provision for warranties 496 859 Balance at end of the period $ 600 $ 600 |
Stock-Based Compensation | Stock-Based Compensation The Company periodically issues stock-based compensation to officers, directors, and consultants for services rendered. Such issuances vest and expire according to terms established at the issuance date. Stock-based payments to employees, directors, and for acquiring goods and services from nonemployees, which include grants of employee stock options, are recognized in the financial statements based on their grant date fair values in accordance with ASC 718, Compensation-Stock Compensation |
Financial Assets and Liabilities Measured at Fair Value | Financial Assets and Liabilities Measured at Fair Value The Company uses various inputs in determining the fair value of its financial assets and liabilities. Financial assets recorded at fair value in the balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. Authoritative guidance provided by the Financial Accounting Standards Board (“FASB”) defines the following levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs, other than the quoted prices in active markets, that is observable either directly or indirectly. Level 3 Unobservable inputs based on the Company’s assumptions. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. The carrying values of notes and loans payable approximate their fair values due to the fact that the interest rates on these obligations are based on prevailing market interest rates. |
Segments | Segments The Company operates in one |
Concentrations | Concentrations Cash Cash denominated in Australian Dollars with a U.S. Dollar equivalent of $ 12 10 20 28 Revenues. 62 41 27 23 85 99 7 23 For the nine months ended September 30, 2021, sales to the Company’s largest customer, a Tier-1 telecommunications wireless carrier in the U.S., accounted for 67 57 13 12 11 90 96 10 13 Accounts receivable 73 10 87 Accounts payable 13 10 8 10 9 8 |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed by dividing the net income applicable to common stockholders by the weighted average number of shares of common stock outstanding plus the number of additional shares of common stock that would have been outstanding if all dilutive potential shares of common stock had been issued using the treasury stock method. Potential shares of common stock are excluded from the computation when their effect is antidilutive. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share if the exercise prices were lower than the average fair market value of shares of common stock during the reporting period. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive: SCHEDULE OF DILUTED EARNINGS PER SHARE September 30, 2021 September 30, 2020 (Unaudited) (Unaudited) Options 140,000 140,000 Warrants 24,122 465,000 Total 164,122 605,000 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In September 2016, the FASB issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments (“ASC 326”). The standard significantly changes how entities will measure credit losses for most financial assets, including accounts and notes receivables. The standard will replace today’s “incurred loss” approach with an “expected loss” model, under which companies will recognize allowances based on expected rather than incurred losses. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for interim and annual reporting periods beginning after December 15, 2022. The adoption of ASU 2016-13 is not expected to have a material impact on the Company’s financial position, results of operations, and cash flows. In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40).” ASU 2020-06 reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion and beneficial conversion models. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the effective interest rate of convertible debt instruments will be closer to the coupon interest rate. Further, the diluted net income per share calculation for convertible instruments will require the Company to use the if-converted method. For contracts in an entity’s own equity, the type of contracts primarily affected by this update are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement conditions of the derivative scope exception. This update simplifies the related settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective January 1, 2024, for the Company and the provisions of this update can be adopted using either the modified retrospective method or a fully retrospective method. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. Effective January 1, 2021, the Company early adopted ASU 2020-06 and that adoption did not have an impact on its financial statements and the related disclosures. The Company’s management does not believe that there are other recently issued but not yet effective authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SCHEDULE OF DISAGGREGATED NET SALES | The following table shows the Company’s disaggregated net sales by product type: SCHEDULE OF DISAGGREGATED NET SALES 2021 (Unaudited) 2020 (Unaudited) Three months ended 2021 (Unaudited) 2020 (Unaudited) DC power systems $ 4,023 $ 2,414 Engineering & Tech Support Services 52 — Accessories 61 87 Total net sales $ 4,136 $ 2,501 2021 (Unaudited) 2020 (Unaudited) Nine months ended 2021 (Unaudited) 2020 (Unaudited) DC power systems $ 11,884 $ 6,200 Engineering & Tech Support Services 222 — Accessories 167 288 Total net sales $ 12,273 $ 6,488 The following table shows the Company’s disaggregated net sales by customer type: 2021 (Unaudited) 2020 (Unaudited) Three months ended 2021 (Unaudited) 2020 (Unaudited) Telecommunications $ 3,524 $ 2,491 Government/Military 373 2 Marine 30 1 Other (backup DC power to various industries) 209 7 Total net sales $ 4,136 $ 2,501 2021 (Unaudited) 2020 (Unaudited) Nine months ended 2021 (Unaudited) 2020 (Unaudited) Telecommunications $ 11,017 $ 6,294 Government/Military 538 9 Marine 44 5 Other (backup DC power to various industries) 674 180 Total net sales $ 12,273 $ 6,488 |
SCHEDULE OF COMPONENTS OF INVENTORIES | As of September 30, 2021, and December 31, 2020, inventories consisted of the following: SCHEDULE OF COMPONENTS OF INVENTORIES September 30, 2021 December 31, 2020 (unaudited) Raw materials $ 5,494 $ 5,527 Finished goods 3,104 3,567 Total Inventories, net $ 8,598 $ 9,094 |
SCHEDULE OF RECONCILIATION OF THE PRODUCT WARRANTY LIABILITY | The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to the Company’s warranty coverage: SCHEDULE OF RECONCILIATION OF THE PRODUCT WARRANTY LIABILITY Changes in estimates for warranties September 30, 2021 December 31, 2020 (unaudited) Balance at beginning of the period $ 600 $ 375 Payments (496 ) (634 ) Provision for warranties 496 859 Balance at end of the period $ 600 $ 600 |
SCHEDULE OF DILUTED EARNINGS PER SHARE | The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive: SCHEDULE OF DILUTED EARNINGS PER SHARE September 30, 2021 September 30, 2020 (Unaudited) (Unaudited) Options 140,000 140,000 Warrants 24,122 465,000 Total 164,122 605,000 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consist of the following: SCHEDULE OF PROPERTY AND EQUIPMENT September 30, 2021 December 31, 2020 (Unaudited) Production tooling, jigs, fixtures $ 71 $ 71 Shop equipment and machinery 3,293 3,286 Vehicles 180 180 Leasehold improvements 390 390 Office equipment 181 177 Software 106 103 Total property and equipment, cost 4,221 4,207 Less: accumulated depreciation and amortization (3,130 ) (2,710 ) Property and equipment, net $ 1,091 $ 1,497 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF NOTES PAYABLE | Notes payable consist of the following: SCHEDULE OF NOTES PAYABLE September 30, 2021 December 31, 2020 (Unaudited) Total Equipment Notes Payable $ 569 $ 777 Less Current Portion 240 267 Notes Payable, long term $ 329 $ 510 |
SCHEDULE OF MINIMUM FUTURE PRINCIPAL PAYMENTS | Future principal payments through the maturity dates of the notes payable as of September 30, 2021, consist of the following: SCHEDULE OF MINIMUM FUTURE PRINCIPAL PAYMENTS Year Ending Notes Payable 2021 (remaining 3 months) 59 2022 242 2023 203 2024 65 Principal payments of the notes payable $ 569 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITY | The following table summarizes stock option activity: SCHEDULE OF STOCK OPTION ACTIVITY Number of Weighted Options Price Outstanding, December 31, 2020 140,000 $ 5.22 Granted — — Exercised — — Outstanding, September 30, 2021 (unaudited) 140,000 $ 5.22 Exercisable, September 30, 2021 (unaudited) 140,000 $ 5.22 |
STOCK WARRANTS (Tables)
STOCK WARRANTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stock Warrants | |
SCHEDULE OF WARRANTS OUTSTANDING | At September 30, 2021, warrant shares outstanding were as follows: SCHEDULE OF WARRANTS OUTSTANDING Number of Weighted Outstanding December 31, 2020 370,000 $ 8.75 Issued — — Exercised (345,878 ) (4.07 ) Outstanding, September 30, 2021 (unaudited) 24,122 $ 3.13 Exercisable, September 30, 2021 (unaudited) 24,122 $ 3.13 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Operating Leases | |
SCHEDULE OF RENT EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION | The components of rent expense and supplemental cash flow information related to leases for the period are as follows: SCHEDULE OF RENT EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION Nine months September 30, 2021 Nine months September 30, 2020 Lease Cost Operating lease cost (of which $74 is included in general and administration and $451 is included in cost of sales in the Company’s statement of operations for the nine months ended September 30, 2021, and for the same period in 2020, respectively) $ 525 $ 525 Operating lease cost (of which $ 74 451 $ 525 $ 525 Other Information Weighted average remaining lease term – operating leases (in years) 1.7 2.7 Average discount rate – operating leases 3.75 % 3.75 % |
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION | The supplemental balance sheet information related to leases for the period is as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION At At Operating leases Long-term right-of-use assets, net of accumulated amortization of $ 1,749 1,265 $ 1,079 $ 1,563 Short-term operating lease liabilities $ 708 $ 670 Long-term operating lease liabilities 454 990 Total operating lease liabilities $ 1,162 $ 1,660 |
SCHEDULE OF MATUR ITIES OF LEASE LIABILITIES | Maturities of the Company’s lease liabilities are as follows (in thousands): SCHEDULE OF MATUR ITIES OF LEASE LIABILITIES Year Ending Operating Leases 2021 (remaining 3 months) 182 2022 747 2023 280 Total lease payments 1,209 Less: Imputed interest/present value discount (47 ) Present value of lease liabilities $ 1,162 |
SCHEDULE OF DISAGGREGATED NET S
SCHEDULE OF DISAGGREGATED NET SALES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total net sales | $ 4,136 | $ 2,501 | $ 12,273 | $ 6,488 |
Telecommunications [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total net sales | 3,524 | 2,491 | 11,017 | 6,294 |
Government And Military [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total net sales | 373 | 2 | 538 | 9 |
Marine [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total net sales | 30 | 1 | 44 | 5 |
Other [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total net sales | 209 | 7 | 674 | 180 |
DC Power Systems [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total net sales | 4,023 | 2,414 | 11,884 | 6,200 |
Engineering And Tech Support Services [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total net sales | 52 | 222 | ||
Accessories [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Total net sales | $ 61 | $ 87 | $ 167 | $ 288 |
SCHEDULE OF COMPONENTS OF INVEN
SCHEDULE OF COMPONENTS OF INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 5,494 | $ 5,527 |
Finished goods | 3,104 | 3,567 |
Total Inventories, net | $ 8,598 | $ 9,094 |
SCHEDULE OF RECONCILIATION OF T
SCHEDULE OF RECONCILIATION OF THE PRODUCT WARRANTY LIABILITY (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Balance at beginning of the period | $ 600 | $ 375 |
Payments | (496) | (634) |
Provision for warranties | 496 | 859 |
Balance at end of the period | $ 600 | $ 600 |
SCHEDULE OF DILUTED EARNINGS PE
SCHEDULE OF DILUTED EARNINGS PER SHARE (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 164,122 | 605,000 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 140,000 | 140,000 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 24,122 | 465,000 |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Product Information [Line Items] | |||||
Cumulative inventory write-downs | $ 0 | $ 2,400 | $ 0 | $ 2,400 | |
Number of operating segment | Segment | 1 | ||||
Revenue Benchmark [Member] | Sales to Telecommunications Customers [Member] | Revenue from Rights Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 85.00% | 99.00% | 90.00% | 96.00% | |
Revenue Benchmark [Member] | Sales to Telecommunications Customers [Member] | Largest Customer One [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 62.00% | 41.00% | 67.00% | 57.00% | |
Revenue Benchmark [Member] | Sales to Telecommunications Customers [Member] | Largest Customer Two [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 27.00% | 13.00% | |||
Revenue Benchmark [Member] | Sales to Telecommunications Customers [Member] | Largest Customer Three [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 23.00% | 12.00% | |||
Revenue Benchmark [Member] | Sales to Telecommunications Customers [Member] | Largest Customer Four [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 11.00% | ||||
Accounts Receivable [Member] | Largest Customer One [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 73.00% | 87.00% | |||
Accounts Receivable [Member] | Largest Customer Two [Member] | Customer Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 10.00% | ||||
Accounts Payable [Member] | Largest Vendors One [Member] | Supplier Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 13.00% | ||||
Accounts Payable [Member] | Largest Vendors Two [Member] | Supplier Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 10.00% | 9.00% | |||
Accounts Payable [Member] | Largest Vendors Three [Member] | Supplier Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 8.00% | 8.00% | |||
Accounts Payable [Member] | Largest Vendors One [Member] | Supplier Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 10.00% | ||||
AUSTRALIA | |||||
Product Information [Line Items] | |||||
Cash | $ 12 | $ 12 | $ 10 | ||
RON [Member] | |||||
Product Information [Line Items] | |||||
Cash | $ 20 | $ 20 | $ 28 | ||
Non-US [Member] | Revenue Benchmark [Member] | Sales to Telecommunications Customers [Member] | Revenue from Rights Concentration Risk [Member] | |||||
Product Information [Line Items] | |||||
Concentration risk | 7.00% | 23.00% | 10.00% | 13.00% |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | $ 4,221 | $ 4,207 |
Less: accumulated depreciation and amortization | (3,130) | (2,710) |
Property and equipment, net | 1,091 | 1,497 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | 71 | 71 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | 3,293 | 3,286 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | 180 | 180 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | 390 | 390 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | 181 | 177 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, cost | $ 106 | $ 103 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation, Depletion and Amortization | $ 134 | $ 156 | $ 420 | $ 469 |
Depreciation expense | $ 129 | $ 148 | $ 402 | $ 450 |
SCHEDULE OF NOTES PAYABLE (Deta
SCHEDULE OF NOTES PAYABLE (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Total Equipment Notes Payable | $ 569 | $ 777 |
Less Current Portion | 240 | 267 |
Notes Payable, long term | $ 329 | $ 510 |
SCHEDULE OF MINIMUM FUTURE PRIN
SCHEDULE OF MINIMUM FUTURE PRINCIPAL PAYMENTS (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 (remaining 3 months) | $ 59 |
2022 | 242 |
2023 | 203 |
2024 | 65 |
Principal payments of the notes payable | $ 569 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - Several Financing Agreements [Member] - Equipment [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Debt Instrument [Line Items] | |
Debt maturity date description | mature between September 2023 and December 2023 |
Monthly payments | $ 22 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt term | 2 years |
Interest rate | 1.90% |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt term | 5 years |
Interest rate | 6.90% |
LINE OF CREDIT (Details Narrati
LINE OF CREDIT (Details Narrative) - Loan and Security Agreement [Member] - Pinnacle Bank [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Debt Instrument [Line Items] | |
Proceeds from advanced on revolving credit facility | $ 0 |
Line of credit remaining borrowing capacity | $ 2,612 |
Line of credit facility, description | The Loan Agreement provides for a revolving credit facility under which Pinnacle may make advances to the Company, subject to certain limitations and adjustments, of up to (a) 85% of the aggregate net face amount of the Company’s accounts receivable and other contract rights and receivables, plus (b) the lesser of (i) 35% of the lower of cost or wholesale market value of certain inventory of the Company |
Line of credit facility, maximum borrowing capacity | $ 4,000 |
Line of credit facility, interest rate description | Interest accrues on the daily balance at a rate of 1.25% above the prime rate, but in no event less than 3.75% per annum |
Line of credit facility, fee percentage | 1.125% |
Standard Interest Rate [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, interest rate during period | 1.25% |
Standard Interest Rate [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, interest rate during period | 3.75% |
Inventory Interest Rate [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, interest rate during period | 2.25% |
Inventory Interest Rate [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, interest rate during period | 4.75% |
PPP LOAN PAYABLE (Details Narra
PPP LOAN PAYABLE (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2021 | May 04, 2020 |
Line of Credit Facility [Line Items] | ||
Final forgiveness amount of PPP loan | $ 1,714 | |
Citibank, N.A [Member] | PPP Loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Face Amount | $ 1,715 | |
Interest rate | 1.00% |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | Feb. 10, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Proceeds from exercise of warrants | $ 707,000 | $ 861,000 | |
Common Stock [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Warrant to purchase shares of common stock | 225,878 | ||
Proceeds from exercise of warrants | $ 707,000 | ||
Stock issued during the period | 61,644 | ||
Common Stock [Member] | Underwritten Public Offering [Member]. | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Sale of common stock | 750,000 | ||
Net proceeds from issuance of common stock | $ 12,500,000 | ||
Common Stock [Member] | Cashless Transaction [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Warrant to purchase shares of common stock | 120,000 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Payment Arrangement [Abstract] | |
Number of Options, Outstanding, Beginning balance | shares | 140,000 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 5.22 |
Number of Options, Granted | shares | |
Weighted Average Exercise Price, Granted | $ / shares | |
Number of Options, Exercised | shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Number of Options, Outstanding, Ending balance | shares | 140,000 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | $ 5.22 |
Number of Options, Exercisable, Ending balance | shares | 140,000 |
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares | $ 5.22 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Jul. 08, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total outstanding options fully vested | 140,000 | |
Outstanding intrinsic value | $ 45 | |
December 2027 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option share to be expire | 30,000 | |
April 2028 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option share to be expire | 110,000 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options exercise price | $ 4.84 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options exercise price | $ 5.60 | |
Polar Power 2016 Omnibus Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 1,754,385 | |
Maximum number of shares available for issuance | 350,877 |
SCHEDULE OF WARRANTS OUTSTANDIN
SCHEDULE OF WARRANTS OUTSTANDING (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Stock Warrants | |
Number of Warrants, Outstanding, Beginning balance | shares | 370,000 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 8.75 |
Number of Warrants, Issued | shares | |
Weighted Average Exercise Price, Issued | $ / shares | |
Number of Warrants, Exercised | shares | (345,878) |
Weighted Average Exercise Price, Exercised | $ / shares | $ (4.07) |
Number of Warrants, Outstanding, Ending balance | shares | 24,122 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | $ 3.13 |
Number of Warrants, Exercisable, Ending balance | shares | 24,122 |
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares | $ 3.13 |
STOCK WARRANTS (Details Narrati
STOCK WARRANTS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2016 | |
Number of issued warrants exercisable | ||||
Issuance of common stock upon exercise of warrants | 345,878 | |||
Net proceeds from warrants exercise | $ 707 | $ 861 | ||
Warrants intrinsic value | $ 58 | |||
Common Stock [Member] | ||||
Warrant to purchase shares of common stock | 225,878 | |||
Issuance of common stock upon exercise of warrants | 225,878 | |||
Warrants exercise price | $ 3.13 | |||
Net proceeds from warrants exercise | $ 707 | |||
Stock issued during the period | 61,644 | |||
Private Placement [Member] | Warrant [Member] | ||||
Number of issued warrants exercisable | 370,000 | |||
July 2020 Private Placement [Member] | Warrant [Member] | ||||
Number of issued warrants exercisable | 250,000 | |||
Underwritten Public Offering [Member]. | Maximum [Member] | ||||
Warrant to purchase shares of common stock | 120,000 | |||
Cashless Transaction [Member] | Common Stock [Member] | ||||
Warrant to purchase shares of common stock | 120,000 |
DISTRIBUTION AGREEMENT WITH A_2
DISTRIBUTION AGREEMENT WITH A RELATED ENTITY (Details Narrative) - Smartgen Solutions, Inc. [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Amount of performed field services | $ 15 | $ 33 | $ 66 | $ 193 |
Purchases from the company | $ 1 | $ 0 | $ 1 | $ 0 |
SCHEDULE OF RENT EXPENSE AND SU
SCHEDULE OF RENT EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating Leases | ||
Operating lease cost (of which $25 is included in general and administration and $150 is included in cost of sales in the Company's statement of operations for the three months ended March 31, 2021, and $25 and $150 for the same period in 2020, respectiv | $ 525 | $ 525 |
Weighted average remaining lease term - operating leases (in years) | 1 year 8 months 12 days | 2 years 8 months 12 days |
Average discount rate - operating leases | 3.75% | 3.75% |
SCHEDULE OF RENT EXPENSE AND _2
SCHEDULE OF RENT EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Details) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating lease cost | $ 525 | $ 525 |
General and Administrative Expense [Member] | ||
Operating lease cost | 74 | 74 |
Cost of Sales [Member] | ||
Operating lease cost | $ 451 | $ 451 |
SCHEDULE OF SUPPLEMENTAL BALANC
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Long-term right-of-use assets, net of accumulated amortization of $1,749 and $1,265, respectively | $ 1,079 | $ 1,563 |
Short-term operating lease liabilities | 708 | 670 |
Long-term operating lease liabilities | 454 | 990 |
Total operating lease liabilities | $ 1,162 | $ 1,660 |
SCHEDULE OF SUPPLEMENTAL BALA_2
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Accumulated amortization of right-of-use assets | $ 1,749 | $ 1,265 |
SCHEDULE OF MATUR ITIES OF LEAS
SCHEDULE OF MATUR ITIES OF LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 (remaining 3 months) | $ 182 | |
2022 | 747 | |
2023 | 280 | |
Total lease payments | 1,209 | |
Less: Imputed interest/present value discount | (47) | |
Present value of lease liabilities | $ 1,162 | $ 1,660 |
OPERATING LEASES (Details Narra
OPERATING LEASES (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Rent expense | $ 678 | $ 678 |
Warehouse Operating Lease Agreements [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Lease term | 1 year 8 months 12 days | |
Office Space Operating Lease Agreements [Member]. | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Lease term | 1 year 8 months 12 days |