• Dragonfly Energy Files Annual Report on Form 10-K and Updates Operating Results for the Fourth Quarter and Year ended December 31, 2022

    Источник: Nasdaq GlobeNewswire / 17 апр 2023 15:58:42   America/Chicago

    RENO, Nev., April 17, 2023 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. (“Dragonfly” or the “Company”) (Nasdaq: DFLI), an industry leader in energy storage and producer of deep cycle lithium-ion storage batteries, today filed its Annual Report on Form 10-K and updated its financial results for the fourth quarter and audited full year ended December 31, 2022.

    On March 29, 2023, the Company announced its unaudited financial results for the year ended December 31, 2022 and provided the press release under Items 2.02 and 9.01 of Form 8-K on that day. In connection with the completion of the 2022 audit, $19.8 million in deal-related expenses from the Company’s October 7, 2022 Business Combination, which were initially recognized within equity, were classified as general and administrative expenses. These expenses were unique to the Business Combination and are not expected to recur in future quarters. This press release updates and supersedes the press release issued on March 29, 2023 to reflect adjustments to the Company’s financial results. For additional information on these changes, including the Company’s audited financial statements for the year ending December 31, 2022, please see the Company’s Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) earlier today.

    Dragonfly’s Net Sales and Gross Profit remain unchanged. Below, please find a summary of the of the adjustments to operations from preliminary to final results.

    Adjustments from preliminary to final results:

                     
      Fourth quarter 2022 Full Year 2022
    ($ thousands) Preliminary Change Final Preliminary Change Final
    Operating Expenses  ($12,481)  ($20,460) ($32,941)  ($37,541)  ($20,460) ($58,001)
    Net (Loss) Income  ($11,655)  ($20,460) ($32,115)  ($19,111)  ($20,460) ($39,571)
    EBITDA  ($7,843)  ($19,750) ($27,593)  ($12,645)  ($19,799) ($32,444)
    Adj. EBITDA  ($4,833)  $458  ($4,375)  ($7,951)  $411  ($7,540)
                     

     

    About Dragonfly

    Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) headquartered in Reno, Nevada, is a leading supplier of deep cycle lithium-ion batteries. Dragonfly’s research and development initiatives are revolutionizing the energy storage industry through innovative technologies and manufacturing processes. Today, Dragonfly’s non-toxic deep cycle lithium-ion batteries are displacing lead-acid batteries across a wide range of end-markets, including RVs, marine vessels, off-grid installations, and other storage applications. Dragonfly is also focused on delivering an energy storage solution to enable a more sustainable and reliable smart grid through the future deployment of the Company’s proprietary and patented solid-state cell technology. To learn more, 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 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: the Company’s ability to recognize the anticipated benefits of the of the Company’s recent business combination with Chardan NexTech Acquisition 2 Corp. and related transactions; the Company’s ability to successfully increase market penetration into target markets; the growth of the addressable markets that the Company intends to target; 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; and the Company’s ability to generate revenue from future product sales and its ability to achieve and maintain profitability. 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, 2022 filed with the SEC on April 17, 2023 and in the Company’s other filings with the SEC.

    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
    Sioban Hickie, ICR, Inc.
    DragonflyIR@icrinc.com



    Dragonfly Energy Holdings Corp.
    Balance Sheet
    Years Ended December 31, 2022 and 2021
    (in thousands)
           
         2022   2021
    Current Assets    
     Cash $17,781  $25,586
     Restricted cash  -   3,044
     Accounts receivable, net of allowance for doubtful accounts  1,444   783
     Inventory  49,846   27,127
     Prepaid expenses  1,624   293
     Prepaid inventory  2,002   7,461
     Prepaid income tax  525   -
     Other current assets  267   1,787
      Total Current Assets  73,489   66,081
    Property and Equipment    
      Property and Equipment, Net  10,760   4,461
     Operating lease right of use asset  4,513   5,709
     Total Assets $88,762  $76,251
           
    Current Liabilities    
     Accounts payable $13,475  $11,360
     Accrued payroll and other liabilities  6,295   2,608
     Customer deposits  238   434
     Uncertain tax position liability  128   -
     Income tax payable  -   631
     Notes payable, current portion, net of debt issuance costs  19,242   1,875
     Operating lease liability, current portion  1,188   1,082
      Total Current Liabilities  40,566   17,990
    Long‑Term Liabilities    
     Notes payable‑non current, net of debt discount  -   37,053
     Warrant liabilities  32,831   -
     Deferred tax liabilities  -   453
     Accrued expenses‑long term  492   -
     Operating lease liability, net of current portion  3,541   4,694
     Total Long‑Term Liabilities  36,864   42,200
    Total Liabilities  77,430   60,190
           
    Equity     
     Common stock, 170,000,000 shares at $0.0001 par value, authorized, 43,272,728 and 36,496,998 shares issued and outstanding as of December 31, 2022 and 2021, respectively    
       4   4
     Preferred stock, 5,000,000 shares at $0.0001 par value, authorized, no shares issued    
      and outstanding as of December 31, 2022 and 2021, respectively  -   -
    Additional paid in capital  38,461   3,619
    Retained (deficit) earnings  (27,133)  12,438
    Total Equity  11,332   16,061
    Total Liabilities and Shareholders' Equity $88,762  $76,251
           



    Dragonfly Energy Holdings Corp.
    Statement of Operations
    Years Ended December 31, 2022 and 2021
    (in thousands, except share and per share data)

      2022  2021 
           
    Net Sales $86,251  $78,000 
             
    Cost of Goods Sold  62,247   48,375 
             
    Gross Profit  24,004   29,625 
             
    Operating Expenses        
    Research and development  2,764   2,689 
    General and administrative  41,566   10,621 
    Selling and marketing  13,671   9,848 
             
    Total Operating Expenses  58,001   23,158 
             
    (Loss) Income From Operations  (33,997)  6,467 
             
    Other Income (Expense)        
    Other Income  40   1 
    Interest expense  (6,945)  (519)
    Change in fair market value of warrant liability  5,446   - 
    Debt extinguishment  (4,824)  - 
    Total Other Expense  (6,283)  (518)
             
    (Loss) Income Before Taxes  (40,280)  5,949 
             
    Income Tax (Benefit) Expense  (709)  1,611 
             
    Net (Loss) Income $(39,571) $4,338 
             
    (Loss) Earnings Per Share- Basic $(1.03) $0.12 
    (Loss) Earnings Per Share- Diluted $(1.03) $0.11 
    Weighted Average Number of Shares- Basic  38,565,307   35,579,137 
    Weighted Average Number of Shares- Diluted  38,565,307   37,742,337 



             
      Dragonfly Energy Holdings Corp.
      Statement of Cash Flows
      Years Ended December 31, 2022 and 2021
      (in thousands)
             
           2022   2021 
      Cash flows from Operating Activities    
      Net (Loss) Income $(39,571) $4,338 
      Adjustments to Reconcile Net (Loss) Income to Net Cash    
      Used in Operating Activities    
       Stock based compensation  2,467   734 
       Debt extinguishment  4,824   - 
       Amortization of debt discount  1,822   206 
       Change in fair market value of warrant liability  (5,446)  - 
       Deferred tax liability  (453)  122 
       Non‑cash interest expense (paid‑in kind)  1,192   - 
       Provision for doubtful accounts  108   50 
       Depreciation and amortization  891   617 
       Loss on disposal of property and equipment  56   124 
       Assumption of Warrant Liability  1,990   - 
      Changes in Assets and Liabilities    
       Accounts receivable  (769)  1,007 
       Inventories  (22,719)  (21,179)
       Prepaid expenses  (1,467)  58 
       Prepaid inventory  5,459   (6,353)
       Other current assets  1,520   (1,214)
       Other assets  1,196   1,029 
       Income taxes payable  (1,156)  (651)
       Accounts payable and accrued expenses  4,428   8,903 
       Uncertain tax position liability  128   (19)
       Customer deposits  (196)  (1,345)
      Total Adjustments  (6,125)  (17,911)
      Net Cash Used in Operating Activities  (45,696)  (13,573)
             
      Cash Flows From Investing Activities    
       Proceeds from disposal of property and equipment  35   61 
       Purchase of property and equipment  (6,862)  (2,970)
       Net Cash Used in Investing Activities  (6,827)  (2,909)
             
      Cash Flows From Financing Activities    
       Proceeds from term loan  75,000   - 
       Proceeds from note payable  -   45,000 
       Repayment from note payable  (45,000)  - 
       Payments of debt issuance costs  (4,032)  (6,278)
       Proceeds from exercise of options  706   184 
       Proceeds from stock purchase agreement  15,000   - 
       Proceeds from revolving note agreement  -   5,000 
       Repayments of revolving note agreement  -   (5,000)
       Net Cash Provided by Financing Activities  41,674   38,906 
             
      Net (Decrease) / Increase in Cash and Restricted Cash  (10,849)  22,424 
      Beginning cash and restricted cash  28,630   6,206 
      Ending cash and restricted cash $17,781  $28,630 
             
      Supplemental Disclosures of Cash Flow Information:    
       Cash paid for income taxes $773  $2,390 
       Cash paid for interest $2,252  $313 
      Supplemental Non‑Cash Items    
       Receivable of options exercised $-  $250 
       Purchases of property and equipment, not yet paid $419  $255 
       Recognition of right of use asset obtained in exchange for operating lease liability $-  $5,745 
       Cashless exercise of liability classified warrants $16,669  $- 
             


    Dragonfly Energy Holdings Corp.
    Statement of Operations
    Quarters Ended December 31, 2022 and 2021
    (in thousands, except share and per share data)

      Unaudited    
      2022  2021 
           
    Net Sales $20,209  $20,179 
             
    Cost of Goods Sold  15,766   14,061 
             
    Gross Profit  4,443   6,118 
             
    Operating Expenses        
    Research and development  813   790 
    General and administrative  27,788   2,191 
    Selling and marketing  4,340   3,194 
             
    Total Operating Expenses  32,941   6,175 
             
    (Loss) Income From Operations  (28,498)  (57)
             
    Other Income (Expense)        
    Other Income  40   1 
    Interest expense  (3,288)  (395)
    Change in fair market value of warrant liability  5,446   - 
    Debt extinguishment  (4,824)  - 
    Total Other Expense  (2,626)  (394)
             
    (Loss) Income Before Taxes  (31,124)  (451)
             
    Income Tax (Benefit) Expense  991   (371)
             
    Net (Loss) Income $(32,115) $(80)
             
    (Loss) Earnings Per Share- Basic $(0.75) $(0.00)
    (Loss) Earnings Per Share- Diluted $(0.75) $(0.00)
    Weighted Average Number of Shares- Basic  42,948,026   36,102,440 
    Weighted Average Number of Shares- Diluted  42,948,026   36,102,440 

    Use of Non-GAAP Financial Measures

    The Company provides non-GAAP financial measures including EBITDA and Adjusted EBITDA as a supplement to GAAP financial information to enhance the overall understanding of the Company’s financial performance and to assist investors in evaluating the Company’s results of operations, period over period. Adjusted non-GAAP measures exclude significant unusual items. Investors should consider these non-GAAP measures as a supplement to, and not a substitute for financial information prepared on a GAAP basis.

    Adjusted EBITDA
    Adjusted EBITDA is considered a non-GAAP financial measure under the rules of the SEC because it excludes certain amounts included in net loss calculated in accordance with GAAP. Specifically, the Company calculates Adjusted EBITDA by GAAP net loss adjusted to exclude stock-based compensation expense, business combination related expenses and other one-time, non-recurring items.

    The Company has included Adjusted EBITDA because it is a key measure used by Dragonfly’s management team to evaluate its operating performance, generate future operating plans, and make strategic decisions, including those relating to operating expenses. As such, the Company believes Adjusted EBITDA is helpful in highlighting trends in the ongoing core operating results of the business.

    Adjusted EBITDA has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of net loss or other results as reported under GAAP. Some of these limitations are:

     Adjusted EBITDA does not reflect the Company’s cash expenditures, future requirements for capital expenditures, or contractual commitments;
       
     Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs;
       
     Adjusted EBITDA does not reflect the Company’s tax expense or the cash requirements to pay taxes;
       
     although amortization and depreciation are non-cash charges, the assets being amortized and depreciated will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements;
       
     Adjusted EBITDA should not be construed as an inference that the Company’s future results will be unaffected by unusual or non-recurring items for which the Company may adjust in historical periods; and
       
     other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.

    Reconciliations of Non-GAAP Financial Measures

    EBITDA and Adjusted EBITDA
    The following table presents reconciliations of EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure for each of the periods indicated.

              
      Dragonfly Energy Holdings Corp. 
      Years Ended December 31, 2022 and 2021 
      (in thousands, except share and per share data) 
           2022   2021 
      EBITDA Calculation     
      Net (Loss) Income $(39,571) $4,338 
       Plus: Interest  6,945   518 
       Plus: Taxes  (709)  1,611 
       Plus: Depreciation & Amortization  891   617 
      EBITDA $(32,444) $7,084 
              
      Adjustments to EBITDA     
       Plus: Stock Based Compensation  2,467   734 
       Plus: ERP Implementation  -   233 
       Plus: Promissory Note Forgiveness  469   - 
       Plus: Loss on Disposal of Assets  56   124 
       Plus: Separation Agreement  1,197   - 
       Plus: Debt-Extinguishment  4,824   - 
       Plus: Change in fair market value of warrant liability  (5,446)  - 
       Plus: Business Combination Expenses  21,337   295 
      Adjusted EBITDA $(7,540) $8,470 
              


              
      Dragonfly Energy Holdings Corp. 
      Statement of Operations 
      Quarters Ended December 31, 2022 and 2021 
      (in thousands, except share and per share data) 
          Unaudited  
           2022   2021  
      EBITDA Calculation     
      Net (Loss) Income $(32,115) $(80) 
       Plus: Interest  3,288   394  
       Plus: Taxes  991   (371) 
       Plus: Depreciation & Amortization  243   185  
      EBITDA $(27,593) $128  
              
      Adjustments to EBITDA     
       Plus: Stock Based Compensation  1,312   185  
       Plus: ERP Implementation  -   32  
       Plus: Loss on Disposal of Assets  (6)  -  
       Plus: Separation Agreement  1,197   185  
       Plus: Debt-Extinguishment  4,824   -  
       Plus: Change in fair market value of warrant liability  (5,446)  -  
       Plus: Business Combination Expenses  21,337   295  
      Adjusted EBITDA $(4,375) $825  
              

    Source: Dragonfly Energy Holdings Corp. 


    Primary Logo

Опубликовать