Wed, Aug 14, 8:52 PM (153 days ago)
For the quarter ended June 30, 2024, Dragonfly Energy Holdings Corp. reported a significant decline in financial performance, with net sales decreasing by 31.5% to $13.2 million compared to the same period in 2023. This was largely attributed to lower demand from both direct-to-consumer (DTC) and original equipment manufacturer (OEM) segments, exacerbated by rising interest rates and inflation. The gross profit fell to $3.2 million, reflecting a decrease in sales volume despite a slight improvement in average selling prices. Operating expenses decreased to $9.9 million, driven by reductions in general and administrative costs, yet research and development expenses increased by 43.5% to support ongoing product innovation. The company reported a net loss of $13.6 million, up from $11.9 million in the prior year, primarily due to increased interest expenses and changes in warrant liabilities. As of June 30, 2024, cash reserves were limited to $4.7 million, with a working capital deficit of $4.6 million, raising concerns about the company's ability to meet financial covenants under its term loan agreement. The company is exploring additional capital raising options to support operations and strategic initiatives, amid uncertainties regarding future sales growth and market conditions.