Polar Power cuts $1M in annual costs in first restructuring phase

Polar Power, Inc. (NASDAQ: POLA) announced the completion of Phase 1 of a strategic restructuring initiative, resulting in approximately $1.03 million in annualized cost reductions, according to a company statement.

The cost reductions include approximately $727,000 in annualized personnel-related savings and approximately $300,000 in annualized facility savings. The Gardena, Calif.-based company said management is evaluating additional cost reduction measures.

"Phase 1 was about taking immediate action to strengthen the business," said Chris Mayer, Co-Chief Executive Officer of Polar Power. "We have removed more than $1 million from our annualized cost structure, but reducing expenses is only the beginning."

The company reported a current sales backlog of approximately $4.5 million, subject to final order-level reconciliation, representing firm orders not yet delivered. Management said it is focused on converting that backlog into shipments and cash flow.

Recent commercial activity cited in the statement includes a 50-unit trial order from a telecommunications operator in Southeast Asia, as well as continued activity in defense, drone and robotics applications.

Polar Power designs and manufactures direct-current power generators and integrated power solutions for telecommunications, defense, data center infrastructure and distributed energy markets.

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