Polar Power, Inc. Issues Convertible Notes; Adds Independent Director

What Happened Polar Power, Inc. announced on August 28, 2026 that it issued two convertible promissory notes with an aggregate principal of $165,000 to LU2 Holdings LLC and CL Investment Group LLC for $150,000 in cash. Each Note carries 1% monthly interest and matures on November 26, 2026; if not repaid in cash by then, the Notes will convert into common stock at the lower of (a) 80% of the five‑day VWAP ending on the maturity date or (b) $1.00 per share. The company also notes a July 27, 2026 Common Stock Purchase Agreement with Roth Principal Investments, LLC and will use net proceeds from any stock sales under that agreement to repay amounts due under the Notes until they are fully paid.

Key Details

• Aggregate principal: $165,000; cash proceeds received: $150,000 (issued August 28, 2026).
• Interest: 1% per month; maturity date: November 26, 2026.
• Conversion: converts in full at maturity (if unpaid) at the lower of 80% of the five‑day VWAP ending on the maturity date or $1.00 per share.
• Board change: on August 24, 2026 the Board expanded to six members and elected Lewis Wilks as an independent director (Senior Managing Partner, Bright Peaks Venture Capital).

Why It Matters These Notes provide short‑term liquidity but carry two investor implications: (1) the company received $150k now while obligating itself to repay $165k plus interest or issue stock at a potentially low conversion price, which could dilute existing shareholders if conversion occurs; and (2) the company has committed to use net proceeds from its equity facility with Roth Principal Investments to repay the Notes, indicating a repayment priority tied to future share issuances. The appointment of an independent director, Lewis Wilks, expands the Board and may affect governance and oversight going forward.