Dragonfly Energy Reports Fourth Quarter and Full Year 2024 Results
Fourth Quarter Revenue Growth of 17% Led by Significant OEM Growth
Debt Restructuring and Concurrent Capital Raise Enhance Financial Position and Liquidity
Initiates Corporate Optimization Program
Guides to First Quarter 2025 Net Sales of Approximately $13.3 Million
Targets Positive Adjusted EBITDA in Fourth Quarter 2025
RENO, Nev., March 24, 2025 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. ("Dragonfly Energy" or the "Company") (Nasdaq: DFLI), an industry leader in energy storage and battery technology, today reported its financial and operational results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter and Full Year 2024 Financial Highlights
-- Net sales of $12.2 million and $50.6 million -- OEM net sales of $6.2 million and $27.6 million -- Gross Margin of 20.8% and 23.0% -- Net Loss of $(9.8) million and $(40.6) million -- Adjusted EBITDA of $(2.0) million and $(18.5) million
"After quarter end, we were very pleased to have successfully negotiated a significant debt restructuring with our lenders, allowing for covenant relief while pushing off the maturity date. With this action, our debt will be classified as long-term debt on our balance sheet. Concurrent with the debt restructuring, we also secured additional capital through a strategic investor," commented Dr. Denis Phares, Chief Executive Officer. "We believe these actions greatly strengthen our near-term financial position, allowing us to focus on executing on our key strategic initiatives for 2025, including achieving positive anticipated Adjusted EBITDA in the fourth quarter."
"In addition, we have launched a corporate optimization program to establish a more efficient cost structure, aligning our operations with near-term revenue growth opportunities, which we believe will provide us with a path to profitability. As part of this initiative, we have promoted Dr. Vick Singh to Chief Operating Officer, where he will oversee the program while also driving operational efficiencies across the company.
"Despite ongoing challenges in the RV market, our fourth-quarter net sales grew approximately 17%, marking a return to year-over-year growth, driven by increased adoption among OEM customers," continued Dr. Phares. "Throughout the year, we have made significant strides in expanding our customer base beyond the RV sector, leveraging strategic partnerships in trucking and industrial markets. We believe the strong order activity from our recently announced partnerships reinforces this strategy, and we anticipate meaningful revenue contributions in 2025 and beyond."
Fourth Quarter 2024 Financial and Operating Results
(All financial result comparisons made are against the prior-year period unless otherwise noted)
Net Sales by Customer Type
(in millions)
Fiscal Quarter Ended
------------------------------------
December 31, 2024 December 31, 2023 Change (YoY)
DTC $5,726 $6,561 -13%
OEM $6,236 $3,877 61%
Licensing $250 $0 N/A
Net Sales $12,212 $10,438 17%
Net Sales increased 17.0% to $12.2 million. OEM net sales grew 61% to $6.2 million, driven by increased adoption of existing products and new customer acquisitions. DTC net sales were $5.7 million compared to $6.6 million, reflecting ongoing macroeconomic pressures.
Gross Profit increased 12.5% to $2.6 million. Gross Margin was 20.8%, compared to 21.6%, due to higher material costs and a shift in mix to OEM sales. Operating Expenses were $(6.3) million, compared to $(5.4) million. The increase was primarily due to one-time expenses related to patent litigation and the reverse stock split. We also incurred expenses associated with moving into our new 400,000 square foot facility. This strategic relocation is expected to drive long-term operational efficiencies as we centralize operations previously spread across multiple locations.
The Company reported a Net Loss of $(9.8) million, or $(1.39) per diluted share, compared to Net Income of $3.3 million or $0.50 per diluted share. Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of our warrants, and other one-time expenses, was negative $(2.3) million, compared to negative $(1.8) million.
Full Year 2024 Financial and Operating Results
(All financial result comparisons made are against the prior-year period unless otherwise noted)
Net Sales by Customer Type
(in millions)
Fiscal Year Ended
------------------------------------
December 31, 2024 December 31, 2023 Change (YoY)
----------------- -----------------
DTC $22,616 $36,875 -39%
OEM $27,612 $27,517 0%
Licensing $417 $0 N/A
Net Sales $50,645 $64,392 -21%
Net Sales were $50.6 million, compared to $64.4 million. OEM net sales of $27.6 million were flat year-over-year, as increased adoption of existing products and new customer acquisitions were offset by the impact of our largest customer transitioning our product from a standard offering to an option. DTC net sales declined to $22.6 million, from $36.9 million, reflecting continued softness in the RV market due to continued macroeconomic pressures.
Gross Profit was $11.6 million, with a gross margin of 23.0%, compared to gross profit of $15.4 million, with a gross margin of 24.0%. The year-over-year declines were primarily attributable to lower sales volume. Operating Expenses were $(34.0) million, compared to $(42.9) million, led by lower employee-related costs and lower stock-based compensation, partially offset by higher R&D costs.
The Company reported a Net Loss of $(40.6) million, or $(5.91) per diluted share, compared to a Net Loss of $(13.8) million or $(2.36) per diluted share. Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of our warrants, and other one-time expenses, was negative $(18.5) million, compared to negative $(17.1) million.
Form 10-K Filing
The independent registered public accounting firm's audit report with respect to the Company's fiscal year-end financial statements will not be issued until the Company files its annual report on Form 10-K. Accordingly, the financial results reported in this earnings release are pending completion of the audit.
Summary and Outlook
"Dragonfly Energy is advancing energy storage with innovative lithium battery technology, delivering safe, reliable, and efficient power solutions for industries that demand superior performance," commented Dr. Denis Phares. "As we look ahead to 2025, our focus remains on driving shareholder value through growth, diversification across end markets, and continued product innovation. We anticipate continued year-over-year growth in the first quarter with revenue of approximately $13.3 million. And with the resumption of revenue growth alongside our corporate optimization program, we expect to achieve positive Adjusted EBITDA by the fourth quarter of this year."
1Q25 Guidance
-- Net Sales of approximately $13.3 million -- Adjusted EBITDA of approximately $(3.8) million
Webcast Information
The Dragonfly Energy management team will host a conference call to discuss its fourth quarter and full year 2024 financial and operational results this afternoon, March 24, 2025. The call can be accessed live via webcast by clicking here, or through the Events and Presentations page within the Investor Relations section of Dragonfly Energy's website at https://investors.dragonflyenergy.com/events-and-presentations/default.aspx. The call can also be accessed live via telephone by dialing (646) 564-2877, toll-free in North America (800) 549-8228, or for international callers +1 (289) 819-1520, and referencing conference ID: 85219. Please log in to the webcast or dial in to the call at least 10 minutes prior to the start of the event.
An archive of the webcast will be available for a period of time shortly after the call on the Events and Presentations page on the Investor Relations section of Dragonfly Energy's website, along with the earnings press release.
About Dragonfly Energy
Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) is a comprehensive lithium battery technology company, specializing in cell manufacturing, battery pack assembly, and full system integration. Through its renowned Battle Born Batteries$(R)$ brand, Dragonfly Energy has established itself as a frontrunner in the lithium battery industry, with hundreds of thousands of reliable battery packs deployed in the field through top-tier OEMs and a diverse retail customer base. At the forefront of domestic lithium battery cell production, Dragonfly Energy's patented dry electrode manufacturing process can deliver chemistry-agnostic power solutions for a broad spectrum of applications, including energy storage systems, electric vehicles, and consumer electronics. The Company's overarching mission is the future deployment of its proprietary, nonflammable, all-solid-state battery cells.
To learn more about Dragonfly Energy and its commitment to clean energy advancements, visit https://investors.dragonflyenergy.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company's intent, belief or expectations, including, but not limited to, statements regarding the Company's guidance for 2025, results of operations and financial position, planned products and services, business strategy and plans, market size and growth opportunities, competitive position and technological and market trends. Some of these forward-looking statements can be identified by the use of forward-looking words, including "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "plan," "targets, " "projects," "could," "would," "continue," "forecast" or the negatives of these terms or variations of them or similar expressions.
These forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the Company's control) which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may impact such forward-looking statements include, but are not limited to: improved recovery in the Company's core markets, including the RV market; the Company's ability to successfully increase market penetration into target markets; the Company's ability to penetrate the heavy-duty trucking and other new markets; the growth of the addressable markets that the Company intends to target; the Company's ability to retain members of its senior management team and other key personnel; the Company's ability to maintain relationships with key suppliers including suppliers in China; the Company's ability to maintain relationships with key customers; the Company's ability to access capital as and when needed under its $150 million ChEF Equity Facility; the Company's ability to protect its patents and other intellectual property; the Company's ability to successfully utilize its patented dry electrode battery manufacturing process and optimize solid state cells as well as to produce commercially viable solid state cells in a timely manner or at all, and to scale to mass production; the Company's ability to timely achieve the anticipated benefits of its licensing arrangement with Stryten Energy LLC; the Company's ability to achieve the anticipated benefits of its customer arrangements with THOR Industries and THOR Industries' affiliated brands (including Keystone RV Company); the Company's ability to maintain the listing of its common stock and public warrants on the Nasdaq Capital Market; the Russian/Ukrainian conflict; the Company's ability to generate revenue from future product sales and its ability to achieve and maintain profitability; and the Company's ability to compete with other manufacturers in the industry and its ability to engage target customers and successfully convert these customers into meaningful orders in the future. These and other risks and uncertainties are described more fully in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 to be filed with the SEC and in the Company's subsequent filings with the SEC available at www.sec.gov.
If any of these risks materialize or any of the Company's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Financial Tables
Dragonfly Energy Holdings Corp.
Unaudited Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands, except share and per share
data)
As of
December 31, 2024 December 31, 2023
------------------- ---------------------
Current Assets
Cash and cash
equivalents $ 4,849 $ 12,713
Accounts receivable,
net of allowance for
credit losses 2,416 1,639
Inventory 21,716 38,778
Prepaid expenses 806 772
Prepaid inventory 1,362 1,381
Prepaid income tax 307 519
Assets held of sale 644 -
Other current assets 825 118
Total Current Assets 32,925 55,920
-------------- --------------
Property and Equipment
Property and
Equipment, Net 22,107 15,969
Operating lease right
of use asset 19,737 3,315
Other assets 445 -
Total Assets $ 75,214 $ 75,204
============== ==============
Current Liabilities
Accounts payable $ 10,716 $ 10,258
Accrued payroll and
other liabilities 4,129 7,107
Accrued tariffs 1,915 1,713
Accrued settlement,
current portion 750 -
Customer deposits 317 201
Deferred revenue,
current portion 1,000 -
Uncertain tax position
liability 55 91
Notes payable, current
portion, net of debt
issuance costs - 19,683
Operating lease
liability, current
portion 2,926 1,288
Financing lease
liability, current
portion 47 36
-------------- --------------
Total Current
Liabilities 21,855 40,377
-------------- --------------
Long-Term Liabilities
Deferred revenue, net
of current portion 3,583 -
Warrant liabilities 5,133 4,463
Accrued expenses,
long-term - 152
Accrued settlement,
net of current
portion 1,750 -
Notes payable, non
current portion, net
of debt issuance
costs 29,646 -
Operating lease
liability, net of
current portion 22,588 2,234
Financing lease
liability, net of
current portion 63 66
Total Long-Term
Liabilities 62,763 6,915
-------------- --------------
Total Liabilities 84,618 47,292
-------------- --------------
Equity
Preferred stock,
5,000,000 shares at
$0.0001 par value,
authorized, no shares
issued and outstanding
as of of December 31,
2024 and December 31,
2023, respectively - -
Common stock,
250,000,000 shares at
$0.0001 par value,
authorized, 7,232,650
and 6,695,587 shares
issued and
outstanding as of
December 31, 2024 and
December 31, 2023,
respectively 1 6
Additional paid in
capital 72,749 69,445
Accumulated deficit (82,154) (41,539)
-------------- --------------
Total Stockholders'
(Deficit) Equity (9,404) 27,912
-------------- --------------
Total Liabilities and
Stockholders'
(Deficit) Equity $ 75,214 $ 75,204
============== ==============
Dragonfly Energy Holdings Corp.
Unaudited Condensed Interim Consolidated Statement
of Operations
(U.S. Dollar in Thousands, except share and per share
data)
Three Months Ended Year Ended
------------------------ --------------------------
December December December
31, 31, 31, December 31,
2024 2023 2024 2023
----------- ----------- ----------- -------------
Net Sales $ 12,212 $ 10,438 $ 50,645 $ 64,392
--------- --------- --------- ---------
Cost of Goods
Sold 9,674 8,181 39,019 48,946
Gross Profit 2,538 2,257 11,626 15,446
Operating
Expenses
Research and
development 956 531 5,451 3,863
General and
administrative 3,658 3,275 18,536 26,389
Selling and
marketing 1,696 1,548 10,025 12,623
--------- --------- --------- ---------
Total Operating
Expenses 6,310 5,354 34,012 42,875
--------- --------- --------- ---------
Loss From
Operations (3,772) (3,097) (22,386) (27,429)
Other Income
(Expense)
Interest expense (6,251) (4,034) (21,504) (16,015)
Other (Expense)
Income - 19 (36) 19
Loss on
settlement (2,500) - (2,500) -
Loss on
impairment of
assets (873) - (873) -
Change in fair
market value of
warrant
liability 3,554 10,400 6,684 29,582
Total Other
(Expense)
Income (6,070) 6,385 (18,229) 13,586
--------- --------- --------- ---------
Net (Loss) Income
Before Taxes (9,842) 3,288 (40,615) (13,843)
--------- --------- --------- ---------
Income Tax
(Benefit)
Expense - (26) - -
--------- --------- --------- ---------
Net (Loss) Income $ (9,842) $ 3,314 $ (40,615) $ (13,843)
========= ========= ========= =========
Net (Loss) Gain
Per Share- Basic
& Diluted $ (1.39) $ 0.50 $ (5.91) $ (2.36)
========= ========= ========= =========
Weighted Average
Number of
Shares- Basic &
Diluted 7,085,956 6,621,115 6,866,826 5,865,165
========= ========= ========= =========
Dragonfly Energy Holdings Corp.
Unaudited Condensed Consolidated Statement of Cash
Flows
Years Ended December 31, 2024 and 2023
(U.S. in thousands)
2024 2023
--------- -----------
Cash flows from Operating Activities
Net Loss $(40,615) $(13,817)
------- -------
Adjustments to Reconcile Net Loss to Net
Cash
Used in Operating Activities
Stock based compensation 1,020 6,710
Amortization of debt discount 7,241 1,470
Change in fair market value of warrant
liability (6,684) (29,582)
Non-cash interest expense (paid-in-kind) 10,058 4,938
Provision for credit losses 3 114
Depreciation and amortization 1,372 1,237
Amortization of right of use assets 2,231 1,179
Loss on disposal of property and
equipment - 116
Loss on impairment of assets 873 -
Write-off of prepaid inventory 69 596
Changes in Assets and Liabilities
Accounts receivable (780) (309)
Inventories 17,062 11,411
Prepaid expenses (42) 852
Prepaid inventory (50) 25
Other current assets (707) 149
Other assets (445) 1,198
Income taxes payable 212 6
Accounts payable and accrued expenses (5,365) (3,527)
Accrued tariffs 202 781
Accrued settlement 2,500 -
Deferred revenue 4,583 -
Uncertain tax position liability (36) (37)
Customer deposits 116 (37)
------- -------
Total Adjustments 33,433 (2,710)
------- -------
Net Cash Used in Operating Activities (7,182) (16,527)
------- -------
Cash Flows From Investing Activities
Proceeds from disposal of property and
equipment 8 -
Purchase of property and equipment (2,737) (6,885)
------- -------
Net Cash Used in Investing Activities (2,729) (6,885)
------- -------
(Continued)
Cash Flows From Financing Activities
Proceeds from public offering - 24,177
Payment of public offering costs - (1,258)
Proceeds from public offering $(ATM.UK)$, net 2,043 0
Proceeds from note payable, related party 2,700 1,000
Repayment of note payable, related party (2,700) (1,000)
Repayment of note payable - (5,275)
Proceeds from exercise of public warrants - 747
Proceeds from exercise of options 4 586
Proceeds from exercise of Investor
Warrants - 546
------- -------
Net Cash Provided by Financing Activities 2,047 19,523
------- -------
Net Decrease in Cash and cash equivalents (7,864) (3,889)
Cash and cash equivalents - beginning of
period 12,713 17,781
------- -------
Cash and cash equivalents - end of period $ 4,849 $ 13,892
======= =======
Supplemental Disclosures of Cash Flow
Information:
Cash paid for income taxes - 238
Cash paid for interest $ 6,288 $ 9,102
======= =======
Supplemental Non-Cash Items
Purchases of property and equipment, not
yet paid $ 1,703 $ 96
======= =======
Recognition of right of use asset
obtained in exchange for operating lease
liability $ 18,653 $ -
======= =======
Recognition of leasehold improvements
obtained in exchange for operating lease
liability $ 4,683 $ -
======= =======
Recognition of warrant liability - Penny
Warrants $ 7,354 $ 698
======= =======
Recognition of warrant liability -
Investor Warrants $ - $ 13,762
======= =======
Settlement of accrued liability for
employee liability for employee stock
purchase plan $ 250 $ -
======= =======
Reclassification of assets held for sale $ 644 $ -
======= =======
Non-cash impact of cash exercise of
liability classified warrants $ - $ 617
======= =======
Cashless exercise of liability classified
warrants $ - $ 12,629
------- -------
Dragonfly Energy Holdings Corp.
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
(U.S. Dollars in Thousands)
Three Months Ended Year Ended
------------------- ----------------------
December December December December
31, 31, 31, 31,
2024 2023 2024 2023
-------- --------- --------- -----------
EBITDA
Calculation
Net (Loss)
Income Before
Taxes $(9,842) $ 3,314 $(40,615) $(13,817)
Interest
Expense 6,251 4,034 21,504 16,015
Taxes - (26) - (26)
Depreciation
and
Amortization 381 328 1,372 1,237
------ ------- ------- -------
EBITDA $(3,210) $ 7,650 $(17,739) $ 3,409
Adjustments to
EBITDA
Stock Based
Compensation 261 323 1,020 6,710
Secondary
offering
costs - - - 720
Separation
Agreement - - - 904
Tariff
Investigation - - 463 -
Patent
Litigation 624 - 624 -
Reverse Stock
Split 90 - 90 -
Stryten
Agreement - - 284 -
Loss on
Settlement 2,500 - 2,500 -
Loss on
Impairment of
Assets 873 - 873 -
Write off of
Prepaid
Inventory 69 596 69 712
Change in fair
market value
of warrant
liability (3,554) (10,400) (6,684) (29,582)
------ ------- ------- -------
Adjusted EBITDA $(2,347) $ (1,831) $(18,500) $(17,127)
Dragonfly Energy Holdings Corp.
Adjusted earnings before interest, taxes, depreciation
and amortization (adjusted EBITDA)
Three Months Ended March 31, 2025
(U.S. Dollars in Thousands)
Non-GAAP Financial
Guidance
Operating Loss(1) $ (4,843)
Taxes -
Depreciation and
Amortization 297
-------
EBITDA $ (4,546)
Adjustments to EBITDA
Stock Based Compensation 219
ATW Deal expenses 150
Patent Litigation
expenses 368
-------
Adjusted EBITDA $ (3,809)
(1) Although net loss is the most directly comparable
GAAP measure, this table reconciles adjusted EBITDA
to operating loss because we are not able to calculate
forward-looking net loss without unreasonable efforts
due to significant uncertainties with respect to the
impact of accounting for our change in fair market
value of the Company's warrant liability.
Investor Relations:
Eric Prouty
Szymon Serowiecki
AdvisIRy Partners
DragonflyIR@advisiry.com
(END) Dow Jones Newswires
March 24, 2025 16:05 ET (20:05 GMT)
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