Polar Power Corporate Presentation · All photos in this document are from actual sites /...

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1 Investor Presentation All photos in this document are from actual sites / applications with Polar Power, Inc. products installed. Polar does not provide the platforms, radios, antennas or towers. © 2017 Polar Power, Inc. All Rights Reserved. Providing Low Cost Reliable Power For Telecommunications May 2017 NASDAQ: POLA

Transcript of Polar Power Corporate Presentation · All photos in this document are from actual sites /...

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Investor Presentation

All photos in this document are from actual sites / applications with Polar Power, Inc. products installed. Polar does not providethe platforms, radios, antennas or towers. © 2017 Polar Power, Inc. All Rights Reserved.

Providing Low Cost Reliable Power For Telecommunications

May 2017NASDAQ: POLA

2

The following discussion, in addition to the other information contained in this presentation, should be considered carefully inevaluating our prospects. This presentation (including without limitation the following factors that may affect operating results)contains forward-looking statements regarding us and our business, financial condition, results of operations and prospects. Wordssuch as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of suchwords are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-lookingstatements in this presentation. Additionally, statements concerning future matters such as revenue projections, projectedprofitability, growth strategies, and other statements regarding matters that are not historical are forward-looking statements.

Forward-looking statements in this presentation reflect the good faith judgment of our management and the statements are basedon facts and factors as we currently know them. Forward-looking statements are subject to risks and uncertainties and actualresults and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factorsthat could cause or contribute to such differences in results and outcomes include, but are not limited to, those discussed in thispresentation. Readers are urged not to place undue reliance on these forward-looking statements which speak only as of the dateof this presentation. We undertake no obligation to revise or update any forward-looking statements in order to reflect any eventor circumstance that may arise after the date of this presentation.

This presentation shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy anysecurities of the Company nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale wouldbe unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

© 2017 Polar Power, Inc. All Rights Reserved.

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SAFE HARBOR

3

Corporate Overview

Founded in 1979, we design, manufacture and sell direct current, or DC, power systems for applications in:

• Telecommunications• Military• Electric vehicle charging

Our core technologies include: • Energy conversion• Digital control systems• Cooling systems

Within the telecommunications market, our DC power systems provide reliable and low-cost DC power to service applications in:

• Prime power applications - do not have access to the utility grid

• Back-up power applications - have critical power needs and cannot be without power in the event of utility grid failure

Customers can rely on Polar to deliver a turn-key solution as opposed to ‘reinventing the wheel’ using their internal engineers or consultants

• Cogeneration• Distributed power• Uninterruptable power supply (UPS)

• System integration• Manufacturing

4

Investment HighlightsBroad Market Opportunities In Telecommunications, Distributed Power, Cogeneration, Military,

Electric Vehicle Charging & Uninterruptible Power Supply (UPS)

We are not a Commodity Product Provider

• Multi-billion dollar opportunity with multiple applications within multiple markets

• Top-tier customer base including Verizon, AT&T, T-Mobile, Telstra, and more

• Direct sales / relationships with customers

Strong Technology History & Brand Recognition With Proprietary DC Power System Technologies

Always Staying Ahead of the Competition

• Leadership in energy conversion, power generation, energy storage and digital controls

• Our DC power systems are smaller, lighter, and more efficient than many AC power systems

• Integrated controls with remote monitoring and control

• Manufacturing expertise enables us to provide a turnkey, fully integrated system

Track Record of Growth and Profitability

• Funded a decade of growth with free cash flow generated by operations

• Proceeds from recent public offering will support greater penetration of existing customers and broader outreach to new customers and end markets

5

Leroy SommerAC Model 42.2Power: 16kWWeight: 246 LBSLength: 18 IN

Polar Power Alternator

DC Model 8220Power: 22 kW

Weight: 49 LBSLength: 5.5 IN

SIMPLICITY = RELIABILITY

AC Versus DC

3X Larger

6

Market Opportunity

.Telecom

Military

Automotive

Industrial

Marine and RV

Remote and Distributed Power

P O L A RP O W E R

S O L U T I O N S

Oil Field and Mining

UPS + Prime PowerData CentersBattery Systems

UPS + Prime PowerBattery SystemsCogenerationSeries Hybrid Electric Drives

UPS + Prime PowerData CentersBattery SystemsCogenerationSeries Hybrid Electric Drives

Electric Car ChargingAnti-Idling Restrictions

Prime Power for off Dock / Dry CampingBattery SystemsSeries Hybrid Electric Drives

Prime Power

UPS + Prime Power

7

Customers

Telecom Military Others

8

9Growth StrategyFurther Develop U.S. Mobile Telecommunications Market

• During the last three years, we achieved significant success in selling our DC power systems to large wireless companies

• Achieved product approval from the big 3 wireless carriers in the USA

• Further expand our sales, manufacturing and service infrastructure through strategic allocation of capital in operations and plant and equipment

Expand DC Power Systems Sales Into New Geographic Markets

• Currently, our sales of DC power systems are mostly to U.S. customers, which represents only 4.7% of the total global telecommunications market

• A significant opportunity exists for sales of our DC power systems to customers located in developing nations

Expand Renewable Solar Energy Product Offerings

• Increased environmental regulations and reduction in cost of solar and advanced storage batteries has accelerated tower operators’ focus on solar hybrid systems in off-grid and bad-grid regions

• In 2013, we developed our proprietary Lithium Battery Management System and Solar Control System

Offer OPEX model (Energy Rental for Telecoms)

• Trend of wireless carriers divesting tower assets to tower operators and tower operators further divesting power infrastructure to energy companies

• Introduced pilot rental program in Southern California in 2014 to evaluate business model

Develop Products For Telecom Data Centers

• Industry transitioning towards distributed data centers favoring our DC power systems

• In process of developing higher power DC systems for applications in data centers

Expand our Global Sales and Increase Product Line Offerings

Build OPEX Program

Increase our Commissioning and

Maintenance Service Areas

Increase the Battery Systems Polar Offers

Expand Into the Telco Data Centers

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2017 Operational Milestones

Reduce Customer Concentration

• Achieved vendor approval from AT&T and T-Mobile during first quarter of 2017

• Actively demonstrate product portfolio in second quarter to regional centers

• Deploy and install overseas sales and support personnel

Introduced Lower Cost Product

• Economy model enables us to be competitive in domestic and international markets

Introduce New Technologies in Lithium Ion Battery Management

• Providing lower cost CAPEX and OPEX solutions

• Allows the customers to escape the problems of lead acid batteries

Hired & Appointed Strategic Personnel

• Chris Sabo (USA)

• Andre Herbst (Africa)

• Michael Mullen (Middle East)

• In the process of hiring for Asia Pacific region

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2017 Operational Milestones

Develop 200kW DC Generator

• Currently setting up engineering and marketing teams

• First prototypes target to be ready by end of third quarter

Establishing Network Operation Center (NOC) in Romania

• Hired staff of four (initial deployment)

• Maximize maintenance revenue by leveraging Romanian office for rest of world contracts

Vendor Approval for 20 of Top 50 Global Wireless Carriers

• Enables Polar Power to participate in their RFP process

Marketing

• Exhibit actively at tradeshows: TowerXchange, Communicasia, etc.

• Truck demo

• Building sales support staff

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Mobile Classroom For DC Power Solutions

• Exhibiting at conventions is losing its effectiveness• Engineers and technicians are not attending shows

• Most efficient means to accelerate our footprint is to demonstrate our product to the customer

• Reduces duration in sales cycle

• Within the USA we have over 100 viable targets to demonstrate this year:

Visiting regions / operations of the 5 major carriers

Visiting the ‘last mile’ carriers, approx. 300 independent companies

Training our service networks

Rolling Demonstration To Commence In May 2017

13

2017 Operational Milestones - Conclusion

OPEX Model

• Procured customers’ requirements and interest levels in first quarter

• Proposing new financial models in second quarter

Research & Development

• Filed our first patent in Q1 and expect to file at least two more in 2017

• Expanding our engineering team with new hires

Reduce Lead Times

• Build to stock

• Quick to react to field trial requests with immediate deployments

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Polar’s Global Presence

Headquarters

Overseas office

Network Operations

Current activity

15

$2,500

$3,500

$4,500

$5,500

Q1 2016 Q1 2017

Net Sales $3,388 $4,967

42.5% 38.9%

$1,000

$1,200

$1,400

$1,600

Q1 2016 Q1 2017

Gross Profit $1,438 $1,438

28.1% of Net Sales

19.5% of Net Sales

$0

$200

$400

$600

$800

$1,000

$1,200

Q1 2016 Q1 2017

OP Inc. $952 $966

Net

Sal

es $

,00

0G

ross

Pro

fit

$ ,0

00

Op

erat

ing

Inco

me

$ ,0

00

Financial HighlightsNet Sales

Operating Income

Gross Profit

May 2017NASDAQ: POLA

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar

Net

Sal

es $

,00

0 47% Growth rate (Q1 2017 compared to Q1 2016)233% Growth rate (2015 – 2016)

Monthly Net Sales 2015-2017

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Gross margin was 38.6% in Q1 2017, a drop of 390 basis points from Q1 2016 margin of 42.5%

Downward price adjustments

Increase in direct labor absorbed in cost of sales

Operating income remained unchanged at $1.0 million in Q1 2017 versus Q1 2016. As a percentage of net sales, Q1 2017 was 19.5% versus 29.1% in Q1 2016

Cash at March 31,2017 totaled $16.8 million

Successful completion of $19.3 million initial public offering in December 2016

.

Financial Metrics

UnauditedMarch 31,

2017 March 31,

2016

Gross Margin % of revenue 38.6% 42.5%

Operating Expenses % of revenue 19% 14%

Income from Operations % of revenue 19.5% 28%

Net Income of % revenue 12% 17%

Sales Growth % compared to Q prior year

47% 229%

Income from Operations Growth % compared to Q prior year

2% 502%

Return on Assets % 2.2% 10.5%

Earnings Per Share $0.06 $0.08

Activity Ratios

Current Ratio 7.40 2.18

Quick Ratio 5.73 0.80

Inventory Turnover 0.59 0.93

Fixed Asset Turnover ratio 6.76 4.68

Average Collection Period (days) 58 60

Average Payment Period 29 41

Return on Equity (ROE) % 2.45% 18.0%

Return on Capital Invested % 4% 32%

17

Financial Review | Q1 2017 Versus Q1 2016

Sales growth of 47% in Q1 2017 versus Q1 2016

Increase in number of DC power systems sold within the U.S. telecommunications market

Net income remained unchanged at $0.6 million, or $0.06 per basic and diluted share, in Q1 2017, versus $0.6 million, or $.08 per basic and diluted share, in Q1 2016

Operating expenses totaled 19.1% of net sales in Q1 2017 versus 14.3% of net sales in Q1 2016

Addition of sales and administrative personnel

Increase in consulting and accounting fees

Income Statement

(in thousands, except per share data)Quarter Ended

March 31,

Unaudited 2017 2016

Net Sales $4,967 $3,388

Cost of Sales 3,050 1,950

Gross Profit 1,917 1,438

Total operating expenses 950 486

Income from operations 966 952

Total other (expense) (2) (23)

Income before income taxes 964 929

Income tax provision (371) (353)

Net Income $593 $576

Net Income per share – basic and diluted

$0.06 $0.08

May 2017NASDAQ: POLA

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Balance Sheet

$25,664

$26,935

$738

$734

$227

$290

$25,000

$25,500

$26,000

$26,500

$27,000

$27,500

$28,000

$28,500

Dec. 2016 Mar. 2017Current Assets PP&E Other Assets

$2,740 $3,505

$19,244 $19,244

$4,408 $5,001

$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Dec. 2016 Mar. 2017

Cur Liabilities LT Liability

Stock Ret. Earnings

Assets Dec 2016-Q1 2017

Liabilities and Equity Dec 2016-Q1 2017

March 31,2017

(unaudited)

December 31,2016

ASSETSTotal current assets 26,934,901 25,664,264

Property and equipment, net 734,370 737,586Other Assets 290,089 227,433Total assets $27,959,360 $26,629,283

LIABILITIES AND SHAREHOLDERS EQUITYTotal current liabilities 3,505,250 2,739,874

Notes payable, net of current portion 209,253 237,431

Total liabilities 3,714,502 2,977,305Common stock, 10,143,158 issuedand additional paid in capital

19,243,729 19,243,729

Retained earnings 5,001,129 4,408,249Total shareholders’ equity 24,244,858 23,651,978

Total liabilities and shareholders’ equity $27,959,360 $26,629,283

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Capitalization Table

Class Number Percentage

Common Shares - Directors and Executive Officers*

6,197,476 61%

Common Shares - Others 1,185,682 12%

Warrants 115,000 0%

Options 0 0%

Common Stock Issued in IPO 2,760,000 27%

Total 10,143,158 100%

Fully Diluted Common Shares Out. 10,258,158

* 5,578,176 shares (55%) held by Arthur D. Sams

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Key Management

ARTHUR D. SAMS LUIS ZAVALA RAJ MASINA

CEO and President CFO VP Operations

• Since 1991, has served as our President, Chief Executive Officer and Chairman of our board of directors.

• In his career, has worked as a consultant to numerous Fortune 500 companies, the U.S. Department of Defense and U.S. Department of Energy

• 45 years experience in engineering, machinery, sales, marketing, project manager & CTO and President roles

• 2016 – Chief Financial Officer of Polar Power

• 2009 – 2016 - Vice President of Finance – Polar Power

• 2006 – 2009 - President of Sky Limited Enterprises (General Contractor)

• 2001 – 2006 - Director of Finance for Legacy Long Distance International

• 20 years experience in managing accounting and finance departments

• 2009 – Present – Vice President of Operations of Polar Power

• 2008 – 2009 – Supply chain consultant to International Game Technology

• 2006 – 2008 – Assistant manager for Applied Photonics Worldwide

• 15 years experience in engineering, business analytics, supply chain management and strategic planning

21

Contact Us

www.polarpower.com249 E. Gardena Blvd.Gardena, CA 90248

Investor RelationsChris Tyson

Managing Director MZ North America

Main: [email protected]

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Other Projects Reflecting Market Opportunities and Polar Capabilities

Appendix

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Specialty Hybrid Vehicles

This Kalmar hybrid tow tractor incorporates a Polar Power 26 kW DC generator. Hybrid tow tractors can cost less to manufacture than conventional technology.

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Mobile Solar Hybrid SUSS Trailer

Small Unit Sustainment System, or SUSS, provides temporary power for shelters, communications, oil and mining work camps, and military expeditions.

Enables emergency service teams and first responders to quickly set up a command center or emergency shelter in time-critical situations.

This SUSS is powered by Polar 10kW diesel generator with solar array assembled and presented to the military by HDT Global.

Currently under US Army field trails in Hawaii. For more info see: https://www.army.mil/article/179906.

25

Raytheon Specialty Hybrid Vehicle

In this application Polar Power Inc. is supplying DC generators to Raytheon for its Hy-DRA vehicle. Installed on this vehicle is the Polar 8340P-40415 generator with output power of 20 kW at 320 VDC nominal. Crew have the option of operating all electric in stealth mode then switching over to the Polar DC generator for long range cruising.

26

Oshkosh Firefighting Vehicle

A Polar DC 5.5 kW DC auxiliary power unit (APU) provides military grade DC power to operate communications, air-conditioning, a backup means to start the vehicle engine and other equipment.

APU’s are extensively used in all types of military vehicles.

27

Marine Hybrid Electric

Saving energy while making recreation safer and more pleasurable

• Series hybrid electric propulsion

• Powering air-conditioning, communications, water-makers, autopilots and other electrical appliances

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Chrysler Mobile Car Charger

• Polar has provided systems to Ford, Bosh, Volkswagen and Mazda.

• Polar projects that the need for Mobile chargers for “AAA” type road service is 3 -4 years into the future.

• Also stationary rapid chargers for home / office vehicle charging fueled by natural gas will help launch micro-cogeneration in the USA.

Two Chrysler / Fiat electric vehicles being charged at the same time during road testing

29

Why the Change to DC?

Solid state electronics need DC power, not AC power

AC was popular at cell sites because air conditioning units needed large amounts of AC power. Over years, the electronics became more immune to temperature extremes and no longer require air conditioning

This advance in electronics broadened the market for DC generators and power systems

Polar has successfully overcome 100 years of AC power legacy. Our sales are growing rapidly as engineers and managers experience the advantages of our DC power technologies

May 2017NASDAQ: POLA

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Why Choose Polar Power?

• Optimized core product technology over 20 years from both a cost and performance perspective and now deliver a turnkey system

• Provide technical support for our customers including their: architecture and engineering (A&E), installers, commissioning, maintenance, local, regional, and national project managers. Support goes beyond just that of the DC power system

• Rapidly change the product to keep up with the constantly evolving telecommunications infrastructure and power requirements

• Manufacturing the product in volume with 8-week delivery schedules

31Polar Power Engineered Backup & Prime Power Solutions Specifically for Telecommunications Applications

History shows that reliability, low maintenance, and fuel efficiency are necessary when it comes to an

actual emergency. To help solve for these issues, Polar engineered a fuel efficient generator with the

following features:

1. Eliminated the Starting Battery. This is the number 1 reason why generators fail to start. Polar uses a

Supercapacitor to start its telecom generators. Providing the highest amount of cranking amps during

the coldest weather. Providing 15 to 20 years of reliable service in the hottest and coldest weather

extremes.

2. IP65 Sealed and Electronics. To ensure reliability during storms or flooding, all electrical connections

and components are sealed and water tight.

3. No Transfer Switches. Polar’s DC generators connect directly to the battery (through fuses or circuit

breakers).

4. NEMA 4 Storm Resistant Enclosures. Designed to minimize the intrusion of rain and snow.

5. Corrosion Resistant. The all aluminum frame is a unitized, welded and powder coated enclosure with

stainless hardware for corrosion resistance and durability.

6. Remote Monitoring and Control. Real time access to operational status, fuel level, fault diagnosis

and maintenance schedule of our products is critical to reliability and makes more efficient use of

assets and vital human resources. Offers the capability of off loading management of power

producing assets to out of state personnel or Polar Power.

During an extended storm or disaster the mission of a backup generator changes to prime power

32Polar Power Engineered Backup & Prime Power Solutions Specifically for Telecommunications Applications

“All fixed and portable gensets require constant refueling, usually once a

day, which presents important logistics issues.”

“Taking the genset to a site is usually complicated, because roads may be

damaged or filled with debris and bridges may have been washed away.”

-Katrina NSF report UILU-ENG-2006-2511

Detailed reports on the problems with AC Generators during the Katrina hurricane are available on the internet and include: CEME-TR-06-05 and CRPT-109srpt322

Think of the disruption of communication as one AC generator goes down and the time it takes to get another one to site along with the logistics to make it happen. And where do all these additional generators come from during the disaster? What is the cost to maintain a larger reserve of portable generators or the cost to get on the spot market during a disaster?

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NO MAINTENANCE, HIGH RELIABILITY• No bearings• No exciters• No rotating diodes, electrical components, wire and

laminations

LONG LIFE WITH NO PARTS TO WEAR• 100,000+Hours

VERY COMPACT• Reduces footprint of generator

MAGNETS INCREASE EFFICIENTCY• Reduces fuel consumption• Reduces the amount of fuel stored on site

LIGHT WEIGHT• Reduces cost to replace generator on site• Less reinforcing of roof installations• Very easy to service generator set

POLAR DC ALTERNATOR

34Why Telecoms & Commercial Companies Need Backup Power or Uninterruptible Power Supply (UPS)

• Mission-critical businesses can’t afford to be without power, even for less than a second

‒ Data centers‒ Financial institutions‒ Hospitals

• Results are lost revenue, customers and human safety

• Telecoms – FCC requirement for all cell towers to have some form of backup power following Hurricane Sandy

• More businesses are questioning the reliability of today’s public power grid

• Natural disasters – earthquakes, floods & tornados

• Blackouts and rolling brownouts due strain on public grid during peak demand

• Onsite power generation and storage provides backup power to enable telecoms/businesses to function without interruption

35Our Market Focus is in Telecommunications

1980s

LAUNCH

1990s

FIELD TRAILS

2010s

ACCEPTANCE

Polar began providing backup power systems / UPS

Polar starts providing solar PV charge controllers for microwave communications

Polar starts manufacturing its DC power systems, debugging its prime power and backup power systems in field trails and supplying systems to most major telecoms

2000s

MOVING AWAY FROM AIR CONDITIONING

Radios’ ability to operate at higher temperatures eliminates the air conditioning at site, creating significant energy savings and opening the market for DC generators

36

Why a Telecommunications Focus?

Presently 4.7 billion unique mobile subscribers and 5.7 billion projected by 2020 (1)

Telecommunications companies worldwide will invest over $1.4 trillion in the construction of new cell towers and equipment upgrades by 2020 (2)

Reducing energy cost presents a major opportunity to increase profit or lower subscriber fees

It is estimated there are more than 1,000 small and medium telecom companies in the U.S. alone

Currently, it is estimated that there are more than 300,000 cell sites in the U.S. (3)

New 5G rollout requires large tower and power expansion

(1) Source - GSMA 2016 Report(2) Source – Mobile Economy 2015 – GSMA report(3) Source – CTIA.org

37

Trends

FCC regulatory change and wireless carriers revenue goals demand longer backup capacity at all cell sites triggered by Hurricane Katrina & Sandy

Cell phones are displacing land lines as primary means of communications. Now the same level of reliability is being demanded of cell phones

Enhanced pressure from the EPA to reduce greenhouse gases

Necessity of independent towers and cell sites for first responders

Strict mandates to provide rural connectivity to broadband service in the U.S. and developing nations

Many wireless carriers are divesting their tower assets and in turn renting the space from the “new” owners; now referred to as Tower Operators.

Tower Operators have a narrow business interest of providing space and electrical energy; with new owners cell sites are now focused on reducing energy costs to increase their profits.

Key Drivers to Growth of Reliable Power Systems

1

2

3

5

4

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Vertical DC Power System Open Frame DC Power System Horizontal DC Power SystemPrimarily used for backup power systems Primarily used for prime power systems

including solar hybridPrimarily used for prime power systems

including solar hybrid

• Very small footprint.• Diesel models include fuel

tank.• Propane and natural gas

units have compartment space that can be used to house batteries or super capacitors.

• Natural gas can operate off of very low line pressure without the use of booster pumps.

• Provides very quiet operation.• All aluminum cabinet with stainless hardware,

corrosion resistant.• Engineered to provide 20 to 30 year service life

with low maintenance.• Will operate in all weather conditions.• Maximum electrical output is 15 kW at 54 VDC.

• Designed for installations inside shelters. Locating the generator inside a walk in shelter facilitates maintenance at sites with weather extremes, especially very cold climates.

• Available in all fuels: propane, natural gas, and diesel.

• Can operate up to 6 - 12 months without maintenance or inspection.

• Engineered to provide 15 to 25 year service life with low maintenance.

• Designed for weather extremes, especially hurricanes.

• All aluminum cabinet with stainless hardware, corrosion resistant.

• Available in all fuels: propane, natural gas, and diesel.

• Can operate up to 6 - 12 months without maintenance or inspection.

• Engineered to provide 15 to 25 year service life with low maintenance.

• Very quiet operation.

DC Configuration

39

Backup Power

Systems

On-GridSites

Advantages of DC Power Systems

• With air conditioning no longer required, during a power outage there is now the opportunity for smaller and more efficient DC power systems to provide backup power.

• Space is at a very high premium on the cell site. Polar’s DC power systems are smaller than many AC power systems.

• Polar’s DC power systems are lighter than many AC power systems, reducing roof reinforcing requirements.

• Polar’s unique fuel carburation system allows our power systems to function off line pressure without expensive booster pumps, typical of AC power systems.

• Isolation from the grid, no problems with the power system accidentally connecting to the grid• Quiet operation• Small amounts of fuel on site

40

Prime Power

Systems

Off-Grid Sites

• Fuel saving has been the most important reason for choosing Polar DC power systems. We can reduce fuel savings significantly over typical AC installations.

• Our DC hybrid systems reduce field maintenance and refueling from 1 to 4 times a month for traditional technologies to as long as 12 months.

• The CAPEX for an installed Polar DC hybrid system is typically lower than AC based systems.

• Our products are specifically engineered for low maintenance and long life in prime power applications; thereby reducing OPEX costs. Typically 20 kW AC power systems and smaller are engineered for a low cost applications, and not prime power; increasing the OPEX cost.

• Ease of transportation to remote sites.

• Remote monitoring and control.

• Built in battery charging algorithms.

Advantages of DC Power Systems

41

0

50

100

150

200

250

300

350

400

450

1 2 3 4

GA

LLO

NS

PER

WEE

K

Average Fuel Consumption a Week

Red – Solar hybrid site using a LPG AC genset with a large solar array and 10 days of autonomy from lead acid battery bank. The AC generator ran for an average of 103.7 hours a week, consuming 4 gal/hr. of propane, requiring a total of 414.8 gallons per week.

Blue – Same site with a LPG DC generator with 1 day of autonomy from Li-Ion battery. With this upgrade the DC generator ran for 25.6 hrs./week, using 1.4 gal/hr., averaging 35.9 gal/week.

Example of an upgraded site in New Mexico, Polar replaced the AC generator and lead acid batteries with a DC generator and lithium-Ion batteries.

DC Solar Hybrid Power Systems

42

• Remote monitoring and control of sites from anywhere in the world

• Reduces maintenance costs

• Improves reliability

• Foundation for Rental / Micro-Utility / OPEX

• Designed to support 99.9% network up-time

• Polar’s Hybrid system reduces fuel costs

• Combines a low CAPEX fuel energy source with a low OPEX renewable energy for low cost sustainable power

Polar Remote Control and Monitoring Improves Reliability

Lowers Maintenance Cost

Global Network

Polar Supra Control System

Polar DC Generator High Efficiency

Low Capital Cost

Polar Li-Ion Battery Energy

Storage

Solar and Wind Power Renewable Energy Low Operating Cost

Cell Tower

DC Microgrid Low Cost Sustainable Power Over 3.3 Million

Cell Sites Worldwide (1)

Diagram of a Polar Power System

May 2017NASDAQ: POLA

(1) Source – CTIA.org