Dragonfly Energy Holdings Corp. Segments Disclosure

Note 15 - 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 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 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 15 - Reportable Segments (continued)

 

The following table presents the reportable segments information as of December 31, 2024:

SCHEDULE OF REPORTABLE SEGMENTS INFORMATION 

		DTC				OEM				Other						Total
Net Sales		$	22,616			$	27,612			$	417			(1)		$	50,645
Reconciliation of Net Sales
Reconciling items																	-
Consolidated Net Sales																$	50,645
Direct material			13,915				18,308				-						32,223
Direct labor			1,433				1,858				-						3,291
Direct overhead and depreciation			1,529				1,976				-						3,505
Total Cost of Goods Sold			16,877				22,142				-						39,019
Gross profit			5,739				5,470				417						11,626
Operating Expenses
Research & development			-				-				5,451			(2)			5,451
Sales tax adjustment			88				-				-						88
Credit card & amazon transaction fees			556				-				-						556
Loss on settlement			1,126				1,374				-			(5)			2,500
Other general & administrative			-				-				18,749			(3)			18,749
Shipping			1,711				818				-						2,529
Sales and marketing stock compensation			54				157				-						211
Sales and marketing wages			1,156				1,718				-						2,874
Marketing spend			1,411				990				-						2,401
Rent			73				16				-						89
Unallocated sales and marketing stock compensation											54			(4)			54
Unallocated sales and marketing wages											292			(4)			292
Other sales & marketing			-				-				1,591			(4)			1,591
Total Operating Expenses			6,175				5,073				26,137						37,385
Income (Loss) from operations			(436	)			397				(25,720	)					(25,759	)
Other income (expense)			-				-				(36	)					(36	)
Interest expense, net			-				-				(21,504	)					(21,504	)
Change in FMV of warrant liability			-				-				6,684						6,684
Total Other Income (Expense)			-				-				(14,856	)		(6)			(14,856	)
Net Loss Before Taxes			(436	)			397				(40,576	)					(40,615	)
Income Tax Benefit			-				-				-						-
Net Income (Loss)		$	(436	)		$	397			$	(40,576	)				$	(40,615	)
Reconciliation of net loss
Reconciling items																	-
Consolidated net loss																$	(40,615	)

 

 

Dragonfly Energy Holdings Corp.

Notes to Consolidated Financial Statements

(in thousands, except share and per share data)

 

Note 15 - 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)

Loss on settlement from patent licensing litigation

(6)

Interest expense related to debt and change in fair market value of warrant liability

 

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.

 

 

Dragonfly Energy Holdings Corp.

Notes to Consolidated Financial Statements

(in thousands, except share and per share data)

 

Note 15 - Reportable Segments (continued)

 

 

 

Dragonfly Energy Holdings Corp.

Notes to Consolidated Financial Statements

(in thousands, except share and per share data)

 

Note 15 - Reportable Segments (continued)

 

 

There were no significant customer revenues from the Company’s DTC segment for the year ended December 31, 2023.

 

Revenues from one customer of the Company’s OEM segment represents approximately $10,285, or 16%, of the Company’s consolidated revenues for the year ended December 31, 2023.