The approximately $3.033 million reduction from the September 30, 2025 balance represents roughly 65% of the previously reported amount and marks meaningful progress in strengthening the Company’s balance sheet and reducing leverage.

Separately, since June 30, 2026, the Company has reduced the Pinnacle Bank balance by approximately $1.0 million, from approximately $2.7 million to approximately $1.7 million currently. Based on its current expectations and available resources, Polar Power expects to repay the remaining Pinnacle Bank balance by the end of September 2026.