Polar Power Inc (POLA)

[southacresdave]

Very interesting updates in investor presentation:

They gave a presentation at the LD Micro Conference in Dec. I didn't attend and they never put up the slide show on their webpage until just now (I look occasionally). Perhaps no one at conference fully understood what the company was discussing, but for a shareholder of POLA, the info is very interesting & absolutely needed to be read through:

https://s21.q4cdn.com/772584186/files/doc_presentations/2018/12/Polar-Power-Investor-Presentation-Dec-2018.pdf

#1 highlight....They are in 2 of the 4 Army SMET vehicles! Slide 15 shows pictures of the RS2-H1 system from Howe & Howe Technologies (the one with the tank tracks) and the HDT Global Hunter WOLF. They also mention on slide 22 they are in multiple Army Robotic Mule Program (i.e Army SMET).

What this means.....that gives them a 50/50 chance at a MONSTER of a contract. Potentially 5000 of these vehicles will be made going forward. That's saying there is a 50% chance they get a $50M contract spread out over 4-5 years. The winner will be announced in 2020 with production starting soon after and ramping up. Jan 2019 discussion on contract & vehicles: https://www.defensenews.com/land/2019/01/11/here-are-the-four-prizes-textron-systems-is-watching-in-2019/

imo, two best vehicles in the test are POLA's partners and the Howe & Howe Technologies tank track and the HDT Global Wolf (bullet proof solid/flexible wheels)vs the 8 wheel pneumatic tire vehicle from General Dynamics or golf cart design from Polaris. What is also interesting is that Howe & Howe was just bought out by Defense giant Textron just this month. Here is a comment from the CEO on her feeling secure the army smet contract going forward: https://www.govconwire.com/2019/01/textron-completes-howe-lisa-atherton-quoted/

#2 Highlight: There is no doubt they are going to make a push into the natural gas/propane market for residential, microgrid, commercial, car recharging, etc. They mention on slide 5, 11-13 the whole plan. It involves teaming up with LPG distributors. They go into detail on their new engine that is being designed. As shareholders we need to be aware that this will become a major push forward for the company.

#3 Highlight: The toss in more comments throughout the slides about the international market and how they expect it to ramp up in 2019.

#4 Highlight: On slide 22 they mention a $800K contract with defense contractor for a DC Power Auxillary Power System. Not sure if this is something new or if it's connected to their contract with Oshkosh and their firefighting truck.

#5 Highlight: On slide 5 they have a timeline. For 2019 they discuss international sales & natural gas expansion. They mention the possible need for more capital for receivables if things ramp up. What is interesting is that they mention 2020 comments of starting to build a nearly fully automated plant OUTSIDE of Calif to deal with sales.

Overall: This big one,imo, is their chance of the Army SMET contract just went from 25% to 50% (and maybe even better since they are in two strong partner vehicles).