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 millionOEM net sales of $6.2 million and $27.6 millionGross Margin of 20.8% and 23.0%Net Loss of $(9.8) million and $(40.6) millionAdjusted 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/ANet 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/ANet 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."

1Q25Guidance

Net Sales of approximately $13.3 millionAdjusted 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® 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, 2023Current 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 31, December 31, December 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 FlowsYears Ended December 31, 2024 and 2023(U.S. in thousands) 2024 2023Cash 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), 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 31, December 31, December 31, December 31, 2024 2023 2024 2023EBITDA 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
[email protected]