Core Insights - Dragonfly Energy Holdings Corp. has appointed AdvisIRy Partners as its new investor relations firm to enhance its communication and investor relations strategies [1][2] - The company specializes in innovative lithium-ion battery solutions for various sectors including RV, trucking, and industrial applications, and is advancing next-generation battery cell manufacturing with proprietary dry electrode technology [2][3] - Dragonfly Energy is recognized for its Battle Born Batteries brand and has established a strong presence in the lithium battery industry with a focus on domestic cell production and the development of nonflammable, all-solid-state battery cells [3] Company Overview - Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) is a comprehensive lithium battery technology company engaged in cell manufacturing, battery pack assembly, and full system integration [3] - The company has deployed hundreds of thousands of reliable battery packs through top-tier OEMs and a diverse retail customer base, positioning itself as a frontrunner in the lithium battery industry [3] - Dragonfly Energy's patented dry electrode manufacturing process allows for chemistry-agnostic power solutions applicable in energy storage systems, electric vehicles, and consumer electronics [3] AdvisIRy Partners Overview - AdvisIRy Partners is an investor relations and corporate communications firm based in New York City, designed to deliver tangible results for corporate clients [5] - The firm combines sell-side, buy-side, and investor relations experience to provide senior-level advisory work and customized programs for a diverse client base [5]

Core Insights - Dragonfly Energy Holdings Corp. has appointed AdvisIRy Partners as its new investor relations firm to enhance its communication and investor relations strategy [1][2] - The company specializes in innovative lithium-ion battery solutions for various sectors, including RV, trucking, and industrial applications, and is advancing next-generation battery cell manufacturing with proprietary dry electrode technology [2][3] - Dragonfly Energy is recognized for its Battle Born Batteries® brand and has established a strong presence in the lithium battery industry with a significant number of battery packs deployed through top-tier OEMs [3] Company Overview - Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) focuses on lithium battery technology, encompassing cell manufacturing, battery pack assembly, and full system integration [3] - The company aims to lead in domestic lithium battery cell production and offers chemistry-agnostic power solutions for energy storage systems, electric vehicles, and consumer electronics [3] - Dragonfly Energy's mission includes the future deployment of proprietary, nonflammable, all-solid-state battery cells [3] AdvisIRy Partners Overview - AdvisIRy Partners is an investor relations and corporate communications firm based in New York City, designed to deliver measurable results for corporate clients [5] - The firm combines sell-side, buy-side, and investor relations expertise to provide senior-level advisory services and customized programs for a diverse client base [5]

Core Viewpoint - Dragonfly Energy Holdings Corp. has secured a significant purchase order from Stevens Transport for its Battle Born® All-Electric APUs, marking a key partnership aimed at advancing sustainable transportation solutions in the trucking industry [1][2]. Group 1: Partnership and Commitment - Stevens Transport has committed to transitioning its entire fleet of 2,500 trucks to Dragonfly Energy's lithium power solutions, starting with 100 trucks in Q1 2025 [2]. - This partnership emphasizes the importance of hybrid electrification as a practical step towards fleet sustainability, combining combustion engines with lithium iron phosphate batteries [3][4]. Group 2: Technological Advancements - Dragonfly Energy's All-Electric APU system is designed to provide reduced emissions, cost efficiencies, and enhanced driver comfort, supporting Stevens Transport's sustainability goals [4][5]. - The advanced battery solutions from Dragonfly Energy have exceeded performance and reliability expectations during testing, setting a new standard for operational efficiency in transportation [5]. Group 3: Industry Context - The collaboration between Dragonfly Energy and Stevens Transport highlights a shift in the transportation industry towards hybrid solutions, contrasting with the focus on full electrification by many companies [3]. - This partnership serves as a precedent for sustainable innovation in the logistics sector, as more companies recognize the benefits of hybridization [4].

Core Insights - Dragonfly Energy Holdings Corp. has secured a significant purchase order for its Battle Born All-Electric APUs from Stevens Transport, a leading temperature-controlled freight carrier in North America, marking a milestone in sustainable transportation solutions [1][2] - Stevens Transport plans to transition its entire fleet of 2,500 trucks to Dragonfly Energy's lithium power solutions, starting with 100 trucks in Q1 2025, emphasizing a commitment to reducing carbon emissions and enhancing fuel efficiency [1][2] - The partnership highlights a shift towards hybrid electrification in the trucking industry, combining combustion engines with lithium iron phosphate batteries for cost-effective and sustainable fleet performance [1][2] Company Overview - Dragonfly Energy is a leader in energy storage and battery technology, specializing in lithium battery manufacturing and system integration, with a mission to advance clean energy solutions [1][2] - The company’s Battle Born Batteries brand has established a strong presence in the lithium battery market, with a focus on innovative technologies and a patented dry electrode manufacturing process [2] - Stevens Transport, based in Dallas, Texas, has over 40 years of experience in the transportation industry, specializing in temperature-controlled logistics and committed to integrating high-performance technologies [3]

Core Viewpoint - Dragonfly Energy Holdings Corp. has published its inaugural Environmental, Social, and Governance (ESG) report, highlighting its commitment to sustainability, diversity, and positive community impact [1][2]. Group 1: ESG Report Highlights - The company’s dry electrode manufacturing process reduces energy consumption by 71% and carbon footprint by 9% compared to conventional methods, while eliminating toxic solvents and producing PFAS-free electrodes [2]. - Dragonfly Energy's lithium iron phosphate (LiFePO4) battery packs are designed with non-toxic, cobalt-free materials, ensuring safety and sustainability with exceptional cycle life [2]. - The workforce comprises 40% racial and ethnic minorities, with a promotion rate exceeding 25%, reflecting the company's commitment to diversity and employee development [2]. - The company engages with local and national initiatives, partnering with educational institutions and non-profits to foster community impact [2]. - Dragonfly Energy adheres to high ethical standards under a diverse Board of Directors, ensuring transparency and accountability in its business practices [2]. Group 2: Company Overview - Dragonfly Energy specializes in lithium battery technology, including cell manufacturing and battery pack assembly, and is recognized for its Battle Born Batteries® brand [4]. - The company is at the forefront of domestic lithium battery cell production, utilizing a patented dry electrode manufacturing process for various applications, including energy storage systems and electric vehicles [4]. - The overarching mission of the company is to deploy proprietary, nonflammable, all-solid-state battery cells in the future [4].

Core Viewpoint - Dragonfly Energy Holdings Corp. announced a 1-for-9 reverse stock split of its common stock, effective November 22, 2024, to reduce the number of outstanding shares and potentially enhance the stock's marketability [1][4]. Summary by Sections Reverse Stock Split Details - The reverse stock split will convert every nine pre-split shares into one share, maintaining the par value at $0.0001 per share [2]. - The total number of shares will decrease from approximately 63.2 million to about 7.0 million [3]. - The reverse stock split will not change the authorized number of shares and will apply uniformly to all stockholders, with adjustments made for any fractional shares [2][4]. Approval and Implementation - The reverse stock split was approved by a majority of votes at the Annual Meeting of Stockholders on November 12, 2024, with the Board deciding on a 1-for-9 ratio [4]. - Equinity Trust Company, LLC will act as the exchange and transfer agent for the reverse stock split, and stockholders need not take any action if their shares are held in book-entry form or brokerage accounts [5]. Company Overview - Dragonfly Energy is a leader in lithium battery technology, specializing in cell manufacturing and battery pack assembly, with a focus on energy storage solutions [6]. - The company is known for its Battle Born Batteries® brand and has a significant presence in various applications, including energy storage systems and electric vehicles [6].

Financial Data and Key Metrics Changes - Dragonfly Energy generated net sales of $12.7 million in Q3 2024, down from $15.9 million in Q3 2023, attributed to weakness in direct-to-consumer battery sales [31] - Gross profit in Q3 2024 was approximately $2.9 million compared to $4.6 million in Q3 2023, with gross margin decreasing from 28.9% to 22.5% [32] - Net loss in Q3 2024 was $6.8 million or $0.11 loss per share, compared to a net loss of $10 million or $0.17 loss per share in Q3 2023 [34] - EBITDA in Q3 2024 was negative $0.8 million compared to negative $5.7 million in Q3 2023 [35] - Cash at the end of Q3 2024 was approximately $8.0 million, up from $4.7 million at the end of Q2 2024 [36] Business Line Data and Key Metrics Changes - OEM sales increased from $5.6 million in Q2 2024 to $7.4 million in Q3 2024, representing a 10% increase, attributed to a recovering RV market and the introduction of smart battery products [20][22] - Direct-to-consumer segment generated net sales of $5.2 million in Q3 2024, down from $10.3 million in Q3 2023 [31] - The company recognized its first meaningful trucking revenue in Q3 2024, with expectations for continued growth in this segment [9] Market Data and Key Metrics Changes - The RV Industry Association forecasts continued recovery in the RV market, with unit production reaching the mid 300,000 per year range [22] - The heavy-duty trucking market is expected to see increased revenue due to the introduction of Dragonfly Intelligent technology, which offers real-time insights into energy systems [24] Company Strategy and Development Direction - The company is focusing on diversifying revenue streams and enhancing technology, particularly in the trucking and oil and gas sectors [6][7] - Dragonfly Energy aims to leverage its experience in transitioning from lead-acid to lithium solutions, with a strategic emphasis on partnerships and research and development [7][8] - The company is exploring North American expansion and establishing a Canadian subsidiary for cell manufacturing [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds impacting consumer discretionary spending but expressed confidence in the company's adaptability [6] - The company expects Q4 2024 to be its strongest quarter of the year, with revenues projected between $13.5 million and $14.0 million [37] - Management anticipates notable growth in trucking revenue and a return to growth in direct-to-consumer markets with the release of new products [37] Other Important Information - The company has made strides in partnerships, particularly with Stryten Energy, to enhance its battery technology and expand market reach [12][13] - Dragonfly Energy is committed to vertical integration through a lithium sourcing agreement with Ioneer, which received federal approval for its lithium mine [16][17] Q&A Session Summary Question: Thoughts on dry electrode battery technologies - Management discussed their long-term work on dry electrode technology, emphasizing its potential for cost reduction and scalability compared to competitors [41][44] Question: Details on non-dilutive capital for production - Management is in advanced negotiations for financing through a Canadian subsidiary to support half-gigawatt-hour production [46] Question: Revenue potential from auxiliary power and market recovery - Management indicated that revenue growth will depend on market acceptance, fleet trials, and overall transportation market recovery [50] Question: Update on methane reduction pilot and market potential - Positive feedback was received from pilot programs, with ongoing negotiations indicating strong market interest regardless of potential regulatory changes [51]

Quarterly Earnings Update | Q3 2024 November 14, 2024 Nasdaq: DFLI Legal Disclaimer This corporate presentation (this "Presentation") has been prepared for use by Dragonfly Energy Holdings Corp. ("Dragonfly Energy" or the "Company"). This Presentation is for information purposes only and may not be reproduced or redistributed, in whole or in part, without the prior written consent of Dragonfly Energy. Dragonfly Energy does not make any representation or warranty as to the accuracy or completeness of the inf ...

Dragonfly Energy Holdings Corp. (DFLI) came out with a quarterly loss of $0.17 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to loss of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.56%. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.22, delivering a surprise of -37.50%. Over the last four quarters, the co ...

Sales Performance - Company sold 10,283 batteries in Q3 2024, a decrease from 14,886 in Q3 2023, with net sales of $12.7 million compared to $15.9 million in the same period last year[173] - For the nine months ended September 30, 2024, the company sold 32,907 batteries, down from 56,183 in the same period in 2023, with net sales of $38.4 million compared to $54.0 million[173] - Net sales decreased by $3.2 million (19.9%) to $12.7 million for Q3 2024 compared to Q3 2023, driven by lower DTC battery sales offset by higher OEM battery and accessory sales[229] - Net sales decreased by $15.5 million (28.8%) to $38.4 million for the nine months ended September 30, 2024, compared to $54.0 million in the same period in 2023, primarily due to lower DTC and OEM sales[242] - DTC revenue decreased by $5.1 million to $5.2 million in Q3 2024 due to decreased customer demand, rising interest rates, and inflation[229] - DTC revenue decreased by $13.4 million to $16.9 million, representing 44.0% of net sales, down from 56.2% in 2023, driven by decreased customer demand due to rising interest rates and inflation[241][242] - OEM revenue increased by $1.8 million to $7.4 million in Q3 2024, attributed to a recovering RV market and penetration into the heavy-duty trucking market[229] - OEM revenue decreased by $2.3 million to $21.4 million, representing 55.6% of net sales, primarily due to a change in product offering by the largest RV customer, though RV OEM sales excluding this customer increased by 33% year-over-year[241][242] Financial Performance - As of September 30, 2024, the company had $8.0 million in cash, with a net loss of $6.8 million for the quarter, compared to a net loss of $10.0 million in Q3 2023[181] - Gross profit decreased by $1.7 million (37.6%) to $2.9 million in Q3 2024, with gross margin declining from 28.9% to 22.5% due to higher OEM sales and lower DTC sales[231] - Gross profit decreased by $4.1 million (31.1%) to $9.1 million, with gross margin declining to 23.6% from 24.4% in 2023, primarily due to lower unit sales volume[244] - Net loss improved to $6.8 million in Q3 2024 from $10.0 million in Q3 2023, driven by lower sales partially offset by reduced operating expenses and a positive change in warrant liability[238] - Net loss increased to $30.8 million, compared to a net loss of $17.1 million in 2023, driven by higher other expenses (primarily from changes in the fair market value of warrants) and lower sales[251] - Adjusted EBITDA for Q3 2024 was $(5.456) million, compared to $(4.613) million in Q3 2023, and for the nine months ended September 30, 2024, it was $(16.900) million, compared to $(15.412) million in the same period of 2023[267] - Net loss for Q3 2024 was $(6.779) million, compared to $(10.007) million in Q3 2023, and for the nine months ended September 30, 2024, it was $(30.773) million, compared to $(17.131) million in the same period of 2023[267] - Cash balance as of September 30, 2024, was $8.0 million[270] - Inventory balance decreased by $14.8 million to $24.0 million as of September 30, 2024, compared to $38.8 million at December 31, 2023[272] - The company generated a net loss of $6.8 million and had a negative cash flow from operations for the quarter ended September 30, 2024[290] - As of September 30, 2024, the company had approximately $8.0 million in cash and cash equivalents and a working capital deficit of $9.6 million[290] - Net cash used in operating activities was $4.7 million for the nine months ended September 30, 2024, primarily due to a net loss of $30.8 million[295] - Net cash used in investing activities was $1.7 million for the nine months ended September 30, 2024, compared to $6.5 million for the same period in 2023[297] - Net cash provided by financing activities was $1.7 million for the nine months ended September 30, 2024, compared to $18.7 million for the same period in 2023[298] Product Development and Innovation - The company achieved full certification for energy storage products for oil & gas operations in North America in May 2024, with first systems expected to be deployed in Q4 2024[176] - Company announced successful dry deposition of anode and cathode electrodes at scale in October 2023, with sample cells being produced for prospective customers and scaling production expected to begin in 2025[179] - Company's solid-state technology in development eliminates the need for liquid electrolytes, addressing safety concerns related to flammability, with a focus on scalability and cost reduction[179] - The company introduced Dragonfly IntelLigence®, a patent-pending smart battery technology, to the heavy-duty trucking market in October 2024[201] - The company is focused on scaling the dry-electrode process for low-cost domestic manufacturing of solid-state lithium-ion batteries, which is expected to require significant additional R&D expenses[218] - The company expects to spend over $50 million on solid-state battery development and cell manufacturing technologies over the next two to three years[272] Partnerships and Agreements - Company entered into a License Agreement with Stryten on July 29, 2024, receiving an initial licensing fee of $5 million and mid-single digit royalty payments based on net sales[182] - The company received an Initial Licensing Fee of $5.0 million in August 2024 from Stryten[271] - The company partnered with Highway Transport to transition over 500 trucks to Battle Born all-electric APUs, marking a significant milestone in the commercial trucking sector[198] - The company entered into a partnership with Keystone Automotive for the distribution of Battle Born Batteries products, leveraging their extensive network[202] Market Expansion and Customer Base - Company's RV OEM customers include Keystone, THOR, Airstream, and REV, with ongoing discussions to increase product adoption and design integration[174] - The company's RV OEM sales have been impacted by weaker demand, leading to a material limiting effect on revenue in 2023[205] - The company is expanding into new end markets, including medium and heavy-duty trucking, solar integration, and industrial applications, with plans to leverage LFP and solid-state batteries[209] - The company expects its deployment of products for oil and gas operations in North America to begin contributing to net sales in Q4 2024[242] Operational Expenses and Cost Management - Research and development expenses increased by $0.2 million (17.8%) to $1.6 million in Q3 2024, driven by higher wage and lease expenses[232] - Research and development expenses increased by $1.2 million (34.9%) to $4.5 million, driven by higher wage expenses and increased lease costs for a new building in Fernley[245] - General and administrative expenses decreased by $1.6 million (27.4%) to $4.4 million in Q3 2024, primarily due to lower employee-related costs and professional services expenses[233] - General and administrative expenses decreased by $8.2 million (35.6%) to $14.9 million, primarily due to lower employee-related costs and reduced stock-based compensation[247] - Selling and marketing expenses decreased by $0.2 million (5.8%) to $2.9 million in Q3 2024, mainly due to lower shipping costs[235] - Selling and marketing expenses decreased by $2.8 million (24.8%) to $8.3 million, mainly due to lower wage-related expenses and reduced shipping costs[248] - Cost of goods sold decreased by $11.4 million (28.0%) to $29.3 million, primarily due to lower unit volume, but is expected to increase in line with anticipated revenue growth over the next twelve months[243] Funding and Capital Structure - The company's ChEF Equity Facility, amended on May 20, 2024, provides up to $150 million in funding, intended to support business growth and maintain minimum cash balances[184] - The company raised approximately $20.7 million in net proceeds from the June 2023 Offering, including the partial over-allotment option[188] - The company issued penny warrants totaling 1,286,671 shares at $0.01 per share in December 2023 to waive compliance with certain financial tests[190] - The company issued penny warrants totaling 2,550,000 shares at $0.01 per share in May 2024 to waive compliance with certain financial tests[191] - The company issued penny warrants totaling 2,100,000 shares at $0.01 per share in June 2024 to waive compliance with certain financial tests[192] - The company issued penny warrants totaling 3,000,000 shares at $0.01 per share in September 2024 to waive compliance with certain financial tests[195] - The company issued $45 million of fixed rate senior notes on November 24, 2021, and entered into a $75 million Term Loan facility as part of the Business Combination[275] - The Term Loan will mature on October 7, 2026, with quarterly amortization of 5% per annum beginning 24 months after issuance[278] - The company issued Penny Warrants to purchase up to 2,100,000 shares of common stock on June 28, 2024, and up to 3,000,000 shares on September 30, 2024[275] - The company may need to raise additional funds through equity, debt securities, or credit facilities to support ongoing costs and strategic initiatives[273] - The company issued and sold approximately 2,245,391 shares under the ChEF Equity Facility, resulting in net cash proceeds of $1,705,193 for the nine months ended September 30, 2024[283] - The company completed the June 2023 Offering, providing net proceeds of approximately $20.7 million[288] Operational Updates and Future Plans - The company expects to begin operations in the new 390,240 square foot Reno Warehouse in Q4 2024, with consolidation of operations expected in Q2 2025[215] - The company identified an underpayment of tariffs to U.S. Customs and Border Protection in the amount of approximately $1.66 million[289] - The company has $2.9 million in short-term operating lease liabilities and $23.3 million in long-term operating lease liabilities as of September 30, 2024[299] - The principal amount outstanding under the Term Loan was $69.7 million as of September 30, 2024[299] Supply Chain and Manufacturing - Company sources lithium iron phosphate (LFP) cells from a limited number of suppliers, ensuring quality and long-term relationships[175]