Polar Power Stock

Polar Power, Inc. designs, manufactures, and sells DC power generators, renewable energy and cooling systems for applications primarily in the telecommunications market and, to a lesser extent, in other markets, including military, electric vehicle, marine and industrial.

Within the various markets the company services, its DC (direct current) power systems provide reliable and low-cost DC power to service applications that do not have access to the utility grid (i.e., prime power and mobile applications) or have critical power needs and cannot be without power in the event of utility grid failure (i.e., back-up power applications).

Serving these various markets, the company offers the following configurations of its DC power systems, with output power ranging from 5 kW to 50 kW:

Base Power Systems. These stationary systems integrate a DC generator and automated controls with remote monitoring, which are typically contained within an environmentally regulated enclosure.

Hybrid Power Systems. These systems incorporate lithium-ion batteries (or other advanced battery chemistries) with the company's proprietary battery management system (BMS) into its standard DC power systems.

DC Solar Hybrid Power Systems. These stationary systems incorporate photovoltaic and other sources of renewable energy into the company's DC hybrid power systems.

Mobile Power Systems. These are very light weight and compact power systems used for electric vehicle (EV) charging, robotics, communications, security.

The company's DC power systems are available in diesel, natural gas, LPG / propane and renewable fuel formats, with diesel, natural gas and propane gas being the predominant formats.

Markets

The company primarily operates within the telecommunications market and, to a lesser extent, in other markets, including military, electric vehicle charging, marine and industrial. The company is continuously diversifying its customer base and is selling its products into non-telecommunication markets and applications at an increasing rate.

Telecommunications

The company provides power generation equipment for the telecommunications markets. Its equipment provides backup power to grid connected mobile tower sites during power outages resulting from severe weather like hurricanes, wildfires, and floods. Most telecommunications towers are equipped with battery backup for short term power outages. The company's DC power generators are installed to address longer-term disruptions in power. It also delivers products that provide prime power for off-grid telecommunications tower sites installed in remote and rural areas where reliability of the power grid is suspect. Since 2012, the telecommunications market is the company's largest market segment and has contributed over 87% of its annual revenues.

Military

The company engages in developing and marketing products to the U.S. military and large defense contractors in the U.S. and international markets. The company is in the process of development of next-generation higher output power DC power system. After conclusion of the testing of this higher power DC power system, the company plans to introduce a configuration of this product to the residential and commercial microgrid market in emerging markets.

Electric Vehicle Charging

The company's electric vehicle chargers, being independent of the grid, are designed to automatically fast charge connected electric vehicles at home on a daily basis while providing backup power during power outages. In addition, the heat generated while charging is captured and delivered to heat the home, heat water for laundry, or heat the pool.

The company is improving this product by replacing the diesel engine with a heavy duty 60,000-hour plus lifetime Toyota natural gas or propane engine. This product targets residential customers that own or are expected to own electric vehicles.

Residential and Commercial Power - Mini-Grid

The company envisions a hybrid system with natural gas or LPG integrated with a solar and battery system to generate power during peaks and valleys of demand that would be reliable than the systems in place. These 'Mini-Grid' hybrid systems would generate between 5kW - 25kW of power on 24/7 basis and provide electricity for a small housing unit, commercial facility or a school building.

The company's Mini-Grid system uses natural gas or LPG as primary fuel source, the same fuel as cooking fuel in rural and remote regions worldwide.

Business Strategy

The key elements of the company's business strategy are to further develop the U.S. mobile telecommunications market; expand global sales to bad-grid or off-grid markets; further develop its new LPG and natural gas DC power systems; and expand renewable solar energy product offerings.

Products and Services

DC Base Power Systems

The company's DC base power systems are designed for use in prime power and backup power applications. All of its DC power systems are designed to last 20 years or more in backup applications and meet all UL2200 standards. To maximize operational life, the company incorporates all aluminum, powder coated, enclosure with stainless hardware, which is lightweight and corrosion resistant; 105 C rated signal wire, tinned copper strands; stainless steel braided covering hoses for fuel and coolant lines; Class 220 C magnet wire for alternator windings; watertight connectors in place of terminal strips and other non-sealed connectors; and its proprietary Supra Controller modules that are environmentally sealed.

DC Hybrid Power Systems

The company's Supra Controller automatically cycles the generator off when the loads are small and cycles it on again when the load increases or the battery charge is depleted. This cycling reduces engine maintenance and saves significant quantities of fuel.

In 2011, the company completed the design and testing of a hybrid power system, where its DC power system was integrated with lithium-ion batteries to provide a longer life and higher fuel efficiency for cyclic DC power applications, such as telecommunications towers. In 2019, the company implemented its next generation BMS for its lithium battery storage system. This next generation BMS enhances battery charging accuracy, integrates with engine controls and provides additional protection for the lithium batteries.

The company's DC hybrid power systems can monitor the charge/discharge cycle of various battery chemistries, including lithium-ion and lead acid batteries. Its Supra Controller system incorporates a CAN bus communications capability that provides communication and control between the battery and the DC hybrid power system. Each cell in the battery pack is individually monitored for voltage and temperature, ensuring the safety and longevity of the battery bank. These power systems include enclosures, a lithium-ion battery pack, the company's proprietary BMS and its proprietary Supra Controller system that controls engine output, battery charging algorithms, cooling system and power control circuits that optimize DC load outputs.

DC Solar Hybrid Power Systems

The company's DC solar hybrid power system combines its DC hybrid power system with solar photovoltaic modules and a custom engineered multi power point tracking charge controller. In most off-grid or bad-grid outdoor applications, such as telecommunications towers in rural or suburban areas, the fuel costs of operating a generator can account for more than half of the total operating costs. The company's DC solar hybrid power systems incorporate the following features:

Hybrid Power Panel: The company produces distribution panel assemblies that make use of punched and plated buss bars to make the heavy current connections between appliances. The industry standard is using labor intensive hand crimped wires and lugs which are accomplished in the field.

Photovoltaic Arrays: The company's telecommunications customers request photovoltaic array structures to withstand winds of 150 mph and 200 mph exceeding the industry standard of 120 mph.

Shelter: The company provides an all-weather light-weight aluminum walk-in shelter that is easy to transport by truck or helicopter.

Lightning Protection: The company provides the highest degree of lightning protection through the use of air-coil type inductors designed by it.

Air-Conditioning: The company provides DC air-conditioning if required in very hot weather environments. It also provides cooling systems using ambient air.

During 2019, the company developed an environmentally friendly solar hybrid power system based on a combination of solar with LPG and propane power sources. These new generators have been specifically designed to run in residential applications and will provide power outputs between 5 kW to 22 kW and which incorporate a 30,000- to 90,000-hour life engine with the company's proprietary control system. The company's natural gas generators when integrated with battery storage and solar are ideal microgrids for off-grid and bad grid residential and commercial applications.

Service and Support

Global Network Management Tools

The company offers global network management services through its telematics tool, which consists of its Supra Controller technology integrated with monitoring software. This hardware is integrated into each DC power system and collects critical data from the equipment and transmits this data back to the customer and the company's service department. This capability allows the company and its customers to monitor system performance remotely and to remotely update the equipment with new revision software in the field.

The company's telematics capabilities and services include automated and continuous remote monitoring with auto alerts and notifications that can be transmitted via email or text messaging; maintenance management, which provides ability to schedule preventative maintenance based on actual equipment usage; and real-time, bi-directional communication capability for remote upgrades, testing and troubleshooting.

The company's telematics tools also provide information to its customers on specific equipment utilization that provides the abilities to determine the functional status of the equipment and proactively schedule maintenance. In addition, the company plans to use these tools to monitor and provide accurate billing for its rental equipment deployed at customer facilities.

Aftermarket and Service Parts

The company offers extensive aftermarket and service parts programs. It maintains an extensive inventory of aftermarket parts and sell parts directly to customers or through its qualified network of service providers. In addition, the company requires its regional service providers to maintain sufficient quantities of aftermarket parts in their inventory to ensure minimum downtime upon product failure.

The company maintains accurate records of bill of materials for each serial number shipped and service its products well beyond their recommended lives. In the marketplace, the company's products are known for their long life and durability.

Product and Warranty Support

The company utilizes a nationwide network of dealers and service providers to perform installation and warranty services for its customers. Through its dealers the company offers product commissioning as an added service to all its customers and require the purchase of such services as a condition for acceptance of any warranty claims in the future. the company offers installation of the equipment, preliminary testing, integration of equipment with other assets located at the site and introductory maintenance and safety training. The company offers various levels of fee-based services to support its products in the field. In addition, the company has trained product and application engineers that deliver high quality, responsive lifetime technical support to all its customers worldwide.

The company further supports its customers by using qualified regional independent service providers to perform warranty and aftermarket service and repair on its products.

Sales and Marketing

The company's sales strategy focuses on using its direct sales force to market its DC backup power products to telecommunications providers in the U.S. the company uses local regional sales managers in the U.S. market to demonstrate its products to Tier-1 telecommunications providers. The company's products are purchased by regional centers operated by its telecommunications customers, thereby expanding its overall market into regions it may not have covered previously.

The company has established a sales and service infrastructure in international markets. It established regional sales offices in Australia, the U.A.E., Poland and Dominican Republic and established sales and aftermarket service locations in Australia and Romania to manage the South East Asia and EMEA regions, respectively.

The company also markets its products through its web site and by exhibiting its products at industry trade shows globally. The company's primary sales are generated through product demonstrations and short-term rentals to demonstrate the capabilities of its products and value proposition to large mobile network providers worldwide. This strategy of demonstrating the company's products and technologies to prospective customers expedites the sales process for its DC power systems.

Distribution and Service

The company services its products through various service partners that provide initial product installation and maintenance services. The promotion of the company's natural gas powered Mini-Grid product, targeting off-grid and bad grid rural areas, will be undertaken by certified independent dealers. Expansion of the company's dealer network will also provide additional opportunities for its DC power systems in the U.S. and other countries.

The company utilizes a combination of factory trained technicians and independent service providers to provide installation, maintenance, service and training at customer locations throughout the U.S.

In the international markets, the company utilizes local service partners to perform installation and service on its equipment.

Intellectual Property

The company relies on common law rights to protect its 'Polar Power, Inc.' trade name.

Research and Development

In 2022, the company's research and development expenses were $1,460.

Certifications

The company's DC generator systems comply with UL2200 safety standards. Its products also comply with applicable regulatory emission standards of the Environmental Protection Agency, and the California Air Quality Management District.

Competition

The company's primary competitors are:

DC Power: 3Tech Corporate Limited, Ascot Industrial srl, Ausonia srl, and Controllis.

AC Power: Generac Power Systems, Inc.; Kohler Co.; Onan; FG Wilson; and many other companies.

History

The company was founded in 1979. It was incorporated in the state of Washington as Polar Products, Inc. in 1979. In 1991, the company was reincorporated in the state of California and changed its name to Polar Power, Inc. In 2016, the company was reincorporated in the state of Delaware.