Dragonfly Energy Unveils Plans for Public Offering of Common Stock and Pre-Funded Warrants

Management Insights: Dragonfly Energy reported a 26% year-over-year revenue growth to $16 million in Q3 2025, with significant improvements in gross margin and a successful debt restructuring that enhanced liquidity and financial stability.

OEM Partnerships and Growth: The company expanded its OEM partnerships in the RV and heavy-duty trucking markets, with notable collaborations that position its products as standard solutions, indicating strong momentum in these sectors.

Financial Performance and Outlook: Despite a net loss of $11.1 million, the company anticipates approximately $13 million in net sales for Q4 2025, while acknowledging macroeconomic challenges and a cautious outlook for the near term.

Risks and Strategic Focus: Management highlighted risks from macroeconomic uncertainties and government shutdown impacts, while emphasizing a strategic focus on OEM expansion and leveraging a strengthened balance sheet to drive growth initiatives.

Compliance with Nasdaq Requirements: Dragonfly Energy Holdings Corp. has regained compliance with Nasdaq's minimum bid price and market value requirements, ensuring its continued listing on the Nasdaq Capital Market.

Mandatory Panel Monitor: The company will remain under a Mandatory Panel Monitor for one year, which could lead to a Delist Determination Letter if compliance is not maintained.

Company Overview: Dragonfly Energy specializes in lithium battery technology, focusing on cell manufacturing and battery pack assembly, with a mission to advance clean energy through innovative battery solutions.

Forward-Looking Statements: The press release includes forward-looking statements regarding the company's future compliance and business expectations, cautioning investors about potential risks and uncertainties.

Public Offering Announcement: Dragonfly Energy Holdings Corp. has initiated an underwritten public offering of its common stock and pre-funded warrants, with a potential additional 15% of securities available for purchase by the underwriter.

Use of Proceeds: The company plans to utilize the net proceeds for working capital, restructuring $45 million of debt, and investing in next-generation battery technologies, including solid-state batteries.

Preliminary Financial Results: Dragonfly Energy Holdings Corp. reported preliminary third quarter 2025 net sales of $16.0 million, exceeding guidance and representing a 26% year-over-year growth, while Adjusted EBITDA loss improved to $(2.2) million.

Management Commentary: CEO Dr. Denis Phares highlighted the company's focus on revenue growth and strategic actions, including a recent equity raise, aimed at enhancing financial flexibility and positioning for sustained growth and profitability.

Collaboration and Whitepaper Release: Dragonfly Energy Holdings Corp. has partnered with PACCAR Inc. to publish a whitepaper titled "Reducing Idle Time & Fuel Costs: Lithium Powered Solutions for Commercial Fleets," which evaluates lithium-powered idle-reduction technologies compared to traditional diesel and AGM systems.

Key Findings and Benefits: The whitepaper highlights significant fuel and cost savings, improved driver comfort and safety, enhanced fleet reliability, and proven performance through rigorous testing, emphasizing the advantages of lithium-powered solutions for commercial fleets.

Funding Announcement: Dragonfly Energy has been selected for first-round funding by Nevada Tech Hub, aimed at enhancing lithium battery manufacturing and workforce development, with a contract nearing finalization.

Project Goals: The funding, approximately $300,000, will support modernization of production systems and workforce training initiatives, potentially leading to significant cost savings and job creation in Nevada's battery industry.