POLA · Polar Power, Inc.

Polar Power, Inc. has secured a revolving credit facility of up to $2.5 million from Stone Brothers Capital under a Loan Agreement dated May 13, 2026, at 12% interest, maturing one year after closing. This financing supports general corporate needs, notably funding a potential Qualified Public Equity Offering raising up to $6 million, signaling preparation for capital market activity amid liquidity requirements. Critically, closing hinges on significant governance shifts: resignations of independent directors Keith Albrecht and Katherine Koster effective May 19, 2026, and appointment of three Lender Board Nominees—David Piedra, Steven Brown, and Angel Liriano—granting the lender substantial board influence. This lender-driven board overhaul could steer strategic decisions toward debt repayment and equity issuance priorities, potentially diluting existing shareholders if the offering proceeds. The discretionary loan advances underscore lender control over funding, heightening execution risk. Investors should review Exhibit 10.1 for full covenants, events of default, and change of control provisions, which exclude qualified equity offerings from triggering adverse events.