RENO, Nev., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. ("Dragonfly Energy” or the "Company”) (Nasdaq: DFLI), maker of Battle Born Batteries® and an industry leader in energy storage, today reported its financial and operational results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights
- Net Sales were $12.7 million, compared to $15.9 million in Q3 2023
- Gross Profit was $2.9 million, compared to $4.6 million in Q3 2023
- Operating Expenses were $(8.9) million, compared to $(10.5) million in Q3 2023
- Net Loss of $(6.8) million, compared to Net Loss of $(10.0) million in Q3 2023
- Diluted Net Loss per share was $(0.11), compared to Net Loss of $(0.17) per share in Q3 2023
- EBITDA was $(0.8) million, compared to $(5.7) million in Q3 2023
- Adjusted EBITDA was $(5.5) million, compared to $(4.6) million in Q3 2023
- Completed a pilot demonstration of methane reduction power solutions for the oil & gas industry.
- Launched Dragonfly IntelLigence smart battery technology for the heavy-duty trucking industry, providing real-time system monitoring and app-based connectivity for fleets and drivers.
- Dragonfly Energy's Battle Born Batteries are now available through Keystone Automotive Operations, a leading distributor in the automotive, RV, and marine sectors.
Third Quarter 2024 Financial and Operating Results
Third quarter 2024 Net Sales were $12.7 million, compared to $15.9 million in the third quarter of 2023. This decrease was primarily due to lower direct-to-consumers ("DTC”) battery sales offset by higher original equipment manufacturers ("OEM”) battery and accessory, sales and licensing revenue. For the third quarter 2024, DTC Net Sales decreased by $5.2 million, compared to $10.3 million in the third quarter of 2023 due to decreased customer demand for Dragonfly Energy's products due to rising interest rates and inflation. OEM Revenue increased by $1.8 million, compared to $5.6 million in the third quarter of 2023. The Company believes this increase may be attributable to a recovering RV market, the implementation of the Company's smart battery technology product line, and Dragonfly Energy beginning to penetrate the heavy-duty trucking market.
Third quarter 2024 Gross Profit was $2.9 million, compared to $4.6 million in the third quarter of 2023.
General and Administrative Expenses in the third quarter of 2024 were $(8.9) million, compared to $(10.5) million in the third quarter of 2023. The decrease was primarily driven by reduced headcount, lower shipping costs, lower legal costs, and lower overall stock-based compensation costs.
Total Other Expense in the third quarter of 2024 was $(0.8) million, compared to Total Other Expense of $(4.1) million in the third quarter of 2023. Other Expense of $(0.8) million in the quarter ended September 30, 2024 is comprised primarily of interest expense of $5.6 million related to our debt securities offset by a positive change in the fair market value of warrant liability in the amount of $4.9 million.
The Company had a Net Loss of $(6.8) million, or $(0.11) per diluted share in the third quarter of 2024, compared to Net Loss of $(10.0) million or $(0.17) per diluted share in the third quarter of 2023. This result was driven by lower sales partially offset by lower cost of goods sold, and lower operating expenses, and a decrease in other income (due to the change in fair market value of the Company's warrant liability).
EBITDA in the third quarter of 2024 was $(0.8) million, compared to $(5.7) million in the third quarter of 2023.
In the third quarter of 2024, Adjusted EBITDA excluding stock-based compensation, changes in the fair market value of the Company's warrant liability, and other one-time expenses, was a $(5.5) million, compared to a $(4.6) million for the third quarter of 2023.
The Company ended the third quarter of 2024 with $8.0 million in cash, up from $4.7 million that was available as of the quarter ended June 30, 2024.
The Company's $150 million equity line of credit remains effectively unutilized. The Company believes that it controls appropriate levers to manage its liquidity position and enable it to execute on plans to enter new markets, take advantage of new opportunities, and continue research and development efforts.
Q4 2024 Outlook
The Company believes that the RV market continues to recover, though at a slower pace than previously anticipated. The Company believes its entry into the heavy-duty trucking market has been successful, and the Company has seen growth in the customer base, though conversion into purchase orders has lagged timeline expectations.
Q4 2024 Guidance
- Net Sales are expected to range between $13.5 - $14.0 million
- Gross Margin is expected to be in the range of 22.0% - 25.0%
- Operating Expenses are expected to be in a range of $(5.5) - $(6.5) million
The Dragonfly Energy management team will host a conference call to discuss its third quarter 2024 financial and operational results this afternoon, Thursday, November 14, 2024, at 5:00 pm E.T. 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: 64729. 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 www.dragonflyenergy.com/investors.
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 2024, 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, 2023 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.
Investor Relations:
Caldwell Bailey, ICR, Inc.
Dragonfly Energy Holdings Corp. | |||||||
| Unaudited Condensed Consolidated Balance Sheets | |||||||
| (in thousands, except share and per share data) | |||||||
| As of | |||||||
| September 30, 2024 Unaudited | December 31, 2023 | ||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 8,019 | $ | 12,713 | |||
| Accounts receivable, net of allowance for credit losses | 3,727 | 1,639 | |||||
| Inventory | 24,013 | 38,778 | |||||
| Prepaid expenses | 734 | 772 | |||||
| Prepaid inventory | 1,746 | 1,381 | |||||
| Prepaid income tax | 345 | 519 | |||||
| Other current assets | 753 | 118 | |||||
| Total Current Assets | 39,337 | 55,920 | |||||
| Property and Equipment | |||||||
| Property and Equipment, Net | 23,716 | 15,969 | |||||
| Operating lease right of use asset | 20,383 | 3,315 | |||||
| Other assets | 445 | - | |||||
| Total Assets | $ | 83,881 | $ | 75,204 | |||
| Current Liabilities | |||||||
| Accounts payable | $ | 10,128 | $ | 10,258 | |||
| Accrued payroll and other liabilities | 8,672 | 7,107 | |||||
| Accrued tariffs | 1,881 | 1,713 | |||||
| Customer deposits | 189 | 201 | |||||
| Deferred revenue, current portion | 1,000 | - | |||||
| Uncertain tax position liability | 91 | 91 | |||||
| Notes payable, current portion, net of debt issuance costs | 24,398 | 19,683 | |||||
| Operating lease liability, current portion | 2,867 | 1,288 | |||||
| Financing lease liability, current portion | 38 | 36 | |||||
| Total Current Liabilities | 49,264 | 40,377 | |||||
| Long-Term Liabilities | |||||||
| Deferred revenue, net of current portion | 3,833 | - | |||||
| Warrant liabilities | 7,714 | 4,463 | |||||
| Accrued expenses, long-term | - | 152 | |||||
| Operating lease liability, net of current portion | 23,330 | 2,234 | |||||
| Financing lease liability, net of current portion | 37 | 66 | |||||
| Total Long-Term Liabilities | 34,914 | 6,915 | |||||
| Total Liabilities | 84,178 | 47,292 | |||||
| Stockholders' (Deficit) Equity | |||||||
| Preferred stock, 5,000,000 shares at $0.0001 par value, authorized, no shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | - | - | |||||
| Common stock, 250,000,000 shares at $0.0001 par value, authorized, 62,767,982 and 60,260,282 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 6 | 6 | |||||
| Additional paid in capital | 72,009 | 69,145 | |||||
| Accumulated deficit | (72,312 | ) | (41,539 | ) | |||
| Total Stockholders' (Deficit) Equity | (297 | ) | 27,912 | ||||
| Total Liabilities and Stockholders' (Deficit) Equity | $ | 83,881 | $ | 75,204 | |||
| Dragonfly Energy Holdings Corp. | |||||||
| Unaudited Condensed Interim Consolidated Statement of Operations | |||||||
| For the Three Months Ended September 30, | |||||||
| (in thousands, except share and per share data) | |||||||
| 2024 | 2023 | ||||||
| Net Sales | $ | 12,720 | $ | 15,889 | |||
| Cost of Goods Sold | 9,850 | 11,291 | |||||
| Gross Profit | 2,870 | 4,598 | |||||
| Operating Expenses | |||||||
| Research and development | 1,631 | 1,385 | |||||
| General and administrative | 4,361 | 6,005 | |||||
| Selling and marketing | 2,904 | 3,083 | |||||
| Total Operating Expenses | 8,896 | 10,473 | |||||
| Loss From Operations | (6,026 | ) | (5,875 | ) | |||
| Other (Expense) | |||||||
| Interest expense, net | (5,615 | ) | (3,987 | ) | |||
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