Polar Power Inc (POLA)

[southacresdave]

ebase...more:

Q1 2018:

"Sources of Liquidity
.............On March 31, 2018 and December 31, 2017, our trade receivables totaled $4,803,925 and $3,058,266, respectively, of which $3,661,057 (76%) and $21,825 (0.6%), respectively, represented customer account balances of our new largest Tier-1 wireless telecommunications carrier customer, AT&T, with 60-day payment terms.

If it really is 60 days net, than that means all of the $5.2M from receivable/cash exchange is from Q2.

However:

in the 8-K they use 90 days. Yet, it doesn't necessarily say it is 90 days, just that they use it as an example, e.g., in calculating it for the reader. I

https://www.sec.gov/Archives/edgar/data/1622345/000121390019010225/f8k060419_polarpower.htm

Without clarification from the company, I'd say it's 90 days vs 60 days. However, I agree with you that there isn't necessarily a reason they would need to sell all of the accounts receivables from March 1 to June 1. The question is why did they do $5.2M of it already unless business bumped up nicely already.

There is no doubt Q2 will be stronger than Q1. If the plant is running at 65-70% in April (according to COO in cc call) and goes up from there in May and June PLUS they are selling everything they are producing, then they are on target for a nice bump up in revenue. Imo, it'd be why you'd do a non-deal roadshow last week too.

The real question is how much stronger?

Also, they may be close to signing the big international contracts and are lining up inventory from overseas to deal with it (i.e. buying $2M in magnets before a risk of tariffs or rare earth issus so the market doesn't worry about the company having an issue)