Polar Power CEO Arthur Sams Converts $614,700 of Debt Into Preferred Equity, Strengthening Balance Sheet

The agreement addresses a shareholders’ equity compliance issue while adding a warrant to purchase common shares.

Rhea-AI Summary

Polar Power (POLA) announced on September 24, 2026, that CEO Arthur Sams agreed to convert $614,700 of company debt into preferred equity. The agreement calls for 683 Series A Convertible Preferred shares. Polar Power is also issuing Sams a warrant to buy 382,276 common shares at $1.34 per share.

Converting the debt would remove $614,700 from the balance sheet and increase shareholders’ equity. Polar Power has a shareholders’ equity compliance issue and is working to regain and maintain compliance with Nasdaq continued listing requirements.

Positive

• $614,700 of CEO debt agreed for conversion into preferred equity

Negative

• Nasdaq shareholders’ equity compliance issue remains unresolved

Key Figures

Debt converted: $614,700 Preferred shares issued: 683 shares Warrant terms: 382,276 shares at $1.34 per share

Debt converted

$614,700

CEO debt converted into preferred equity

Preferred shares issued

683 shares

Series A Convertible Preferred shares

Warrant terms

382,276 shares at $1.34 per share

Warrant to purchase common stock

Key Terms

debt-to-equity conversion, convertible preferred, warrant, continued listing requirements

4 terms

debt-to-equity conversion financial

"This debt-to-equity conversion was approved by Polar’s Audit Committee"

A debt-to-equity conversion is when a company swaps outstanding loans or bonds for ownership shares, effectively turning an IOU into an ownership stake. Investors should care because it reduces the company’s debt burden and interest costs but also dilutes existing shareholders’ ownership and can change control and risk profiles—like trading a loan payment for a piece of the company, which can improve solvency while altering potential upside and voting power.

convertible preferred financial

"into 683 Series A Convertible Preferred shares of Polar Power"

A convertible preferred is a type of company stock that pays fixed dividends and can be exchanged later for a set number of common shares. It acts like a hybrid between a safe, income-bearing instrument and an option for upside: investors get priority for payments and claims if things go wrong, yet can convert to common shares to participate in stock price gains, which matters for potential returns and for dilution of existing owners.

warrant financial

"issuing to Mr. Sams a warrant to purchase 382,276 shares"

A warrant is a time-limited financial contract that gives its holder the right to buy a company's shares at a set price before a specified date, like a coupon that lets you purchase stock at a fixed discount for a limited time. It matters to investors because warrants offer leveraged exposure to a stock’s upside and can dilute existing shareholders if exercised, so they affect potential gains and the company’s outstanding share count.

continued listing requirements regulatory

"applicable Nasdaq continued listing requirements"

Rules a stock exchange sets that a publicly traded company must keep meeting to stay listed and tradable on that exchange, such as minimum share price, market value, timely financial reports, and basic governance practices. Like a club’s membership rules, they matter because falling short can lead to warnings, penalties or removal from the exchange, which can cut liquidity, hurt share value and increase the risk for investors.

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GARDENA, Calif., Sept. 24, 2026 (GLOBE NEWSWIRE) -- Polar Power, Inc. (NASDAQ: POLA) today announced that Arthur D. Sams, the Company’s Founder, President and Chief Executive Officer, has agreed to convert $614,700 of debt owed to him by the Company into 683 Series A Convertible Preferred shares of Polar Power.

The conversion eliminates $614,700 of debt from the Company’s balance sheet, increases shareholders’ equity, and represents an important step toward addressing the Company’s shareholders’ equity compliance issue.

“Converting this debt into equity reflects my confidence in Polar Power’s future and my commitment to the Company’s long-term success,” said Arthur Sams, Founder, President and Chief Executive Officer. “I believe the opportunities ahead of us across telecommunications, data center power, defense and distributed energy markets position Polar Power for meaningful growth.”

In addition to the preferred shares, Polar is also issuing to Mr. Sams a warrant to purchase 382,276 shares of the Company’s common stock at $1.34 per share.

The Company believes the debt-to-equity conversion strengthens its capital structure and supports its efforts to regain and maintain compliance with applicable Nasdaq continued listing requirements. This debt-to-equity conversion was approved by Polar’s Audit Committee, consisting entirely of independent board members.

About Polar Power, Inc.

Polar Power, Inc. (NASDAQ: POLA) designs, manufactures and sells direct-current power generators, renewable energy systems and other power solutions for applications including telecommunications, drone defense, robotics, EV charging, micro-grids military and commercial markets. The Company is headquartered in Gardena, California.

For more information, please visit www.polarpower.com. or follow Polar Power on www.linkedin.com/company/polar-power-inc/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable federal securities laws. These statements include, among others, statements regarding the Company’s expectation for future growth opportunities and its efforts to regain and maintain compliance with Nasdaq's continued listing requirements. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks and uncertainties include those described in Polar Power’s filings with the U.S. Securities and Exchange Commission. Polar Power undertakes no obligation to update any forward-looking statement except as required by law.

Media and Investor Relations
Polar Power, Inc.
249 E. Gardena Blvd.
Gardena, CA 90248
Tel: 310-830-9153
Email: ir@polarpowerinc.com
www.polarpower.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much debt did Polar Power CEO Arthur Sams agree to convert?

Arthur Sams agreed to convert $614,700 of debt owed to him by Polar Power into 683 Series A Convertible Preferred shares.

Who approved Polar Power’s debt conversion agreement with Arthur Sams?

Polar Power’s Audit Committee, which consists entirely of independent board members, approved the debt-to-equity conversion.