Polar Power Meets Nasdaq’s $2.5 Million Equity Requirement

Polar Power Inc. (NASDAQ: POLA) said Wednesday that Nasdaq staff determined on Nov. 3 that it met the exchange’s $2.5 million stockholders’ equity minimum for continued listing, though it must demonstrate compliance again in its next periodic report.

The requirement applies to companies listed on the Nasdaq Capital Market under Listing Rule 5550(b)(1). Nasdaq will continue monitoring Polar Power’s compliance. The company said it could face delisting proceedings if its next periodic report does not show it still meets the threshold.

Polar Power said Nasdaq based its determination on an Oct. 23 Form 8-K that put preliminary pro forma stockholders’ equity at about $2.9 million as of the report date. The estimate was unaudited and subject to revision. The filing attributed the increase to financing transactions that included preferred-stock issuances, note conversions and sales under an equity line.

The company received a Nasdaq deficiency notice on May 1. Nasdaq granted an extension on June 29, requiring Polar Power to file a public report demonstrating compliance by Oct. 28. The company filed its report on Oct. 23, five days before the deadline.

Polar Power also said the first phase of its restructuring produced about $1.03 million in annualized cost reductions. Management is targeting about $2 million in total annualized savings, including the Phase 1 reductions. Reaching that target depends on further actions.

“Receiving Nasdaq’s written confirmation is an important milestone for Polar Power and our shareholders,” said Chris Mayer, the company’s co-chief executive officer.