Dragonfly Energy Holdings Corp. Segments Disclosure

Note 14 - REPORTABLE SEGMENTS

 

The Company has two reportable segments: DTC and OEM. The DTC segment pertains to Battle Born, LLC branded batteries which are sold directly to consumers. The OEM segment pertains to Dragonfly branded batteries which are sold to original equipment manufacturers

 

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance for all of its reportable segments based on both segment gross and net profit or loss from operations.

 

For the DTC and OEM, the Chief Operating Decision Maker (“CODM”) uses both segment gross and net profit and loss from operations to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process.

 

Assets information for the reported segments is not disclosed as it is not used by the Chief Operating Decision Maker CODM in evaluating the performance of, or making decisions about, the reported segments.

 

The Company’s reportable segments are strategic business units that offer different branded products. They are managed separately because each segment requires different technology and marketing strategies.

 

The Company’s CODM is the Chief Executive Officer.

 

 

Dragonfly Energy Holdings Corp.

Notes to Consolidated Financial Statements

(in thousands, except share and per share data)

 

Note 14 - Reportable Segments (continued)

 

The following table presents the reportable segments information as of December 31, 2025:

SCHEDULE OF REPORTABLE SEGMENTS INFORMATION 

		DTC				OEM				Other				Total
Net Sales		$	20,696			$	36,934			$	1,000(1)	(1)		$	58,630
Reconciliation of Net Sales
Reconciling items															-
Consolidated Net Sales														$	58,630
Direct material			12,547				22,465				-				35,012
Direct labor			1,458				2,025				-				3,483
Direct overhead and depreciation			1,876				2,612				-				4,488
Total Cost of Goods Sold			15,881				27,102				-				42,983
Gross profit			4,815				9,832				1,000				15,647
Operating Expenses
Research & development			-				-				2,981(2)	(2)			2,981
Sales tax adjustment			1				-				-				1
Credit card & amazon transaction fees			501				-				-				501
Other general & administrative			-				-				22,490(3)	(3)			22,490
Loss on impairment of right-of-use assets			-				-				2,667				2,667
Shipping			1,704				1,062				-				2,766
Sales and marketing stock compensation			38				123				-				161
Sales and marketing wages			978				1,248				-				2,226
Marketing spend			2,487				263				-				2,750
Rent			59				17				-				76
Unallocated sales and marketing stock compensation			-				-				57(4)	(4)			57
Unallocated sales and marketing wages			-				-				1,363(4)	(4)			1,363
Other sales & marketing			-				-				781(4)	(4)			781
Total Operating Expenses			5,768				2,713				30,339				38,820
Loss from operations			(953	)			7,119				(29,339	)			(23,173	)
Other income (expense)			-				-				131				131
Interest expense, net			-				-				(20,265	)			(20,265	)
Loss on extinguishment of debt			-				-				(31,843	)			(31,843	)
Change in FMV of warrant liability			-				-				5,117				5,117
Total Other Income (Expense)			-				-				(46,860(5)	)(5)			(46,860	)
Net Loss Before Taxes			(953	)			7,119				(76,199	)			(70,033	)
Income Tax Benefit			-				-				(94	)			(94	)
Net Income (Loss)		$	(953	)		$	7,119			$	(76,105	)		$	(69,939	)
Reconciliation of net loss
Reconciling items															-
Consolidated net loss														$	(69,939	)

 

 

Dragonfly Energy Holdings Corp.

Notes to Consolidated Financial Statements

(in thousands, except share and per share data)

 

Note 14 - Reportable Segments (continued)

 

(1)

Licensing Revenue which is not considered a segment as it is currently immaterial

(2)

Research and Development expenses including employee costs related to new products

(3)

Administrative and Engineering employee costs along with legal, insurance, professional fees related to administration and other general office expenses

(4)

General sales and marketing employee cost and other marketing expenses

(5)

Interest expense related to debt, change in fair market value of warrant liability, and loss on extinguishment of long-term debt

 

There were no significant customer revenues from the Company’s DTC segment for the year ended December 31, 2025.

 

Revenues from one customer of the Company’s OEM segment represents approximately $15,728, or 27%, of the Company’s consolidated revenues for the year ended December 31, 2025.

 

 

Dragonfly Energy Holdings Corp.

Notes to Consolidated Financial Statements

(in thousands, except share and per share data)

 

Note 14 - Reportable Segments (continued)

 

 

 

Dragonfly Energy Holdings Corp.

Notes to Consolidated Financial Statements

(in thousands, except share and per share data)

 

Note 14 - Reportable Segments (continued)

 

 

There were no significant customer revenues from the Company’s DTC segment for the year ended December 31, 2024.

 

Revenues from one customer of the Company’s OEM segment represents approximately $7,310, or 14%, of the Company’s consolidated revenues for the year ended December 31, 2024.