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Dragonfly Energy Holdings Corp Warrant (DFLIW0.00%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, showing a decrease in net sales to $50.6 million from $64.4 million in the previous year. This decline is attributed to weaker demand from direct-to-consumer customers in core RV and marine markets.
Cost of goods sold for the year was $39.0 million, representing 77% of net sales, compared to 76% in the previous year. The increase in cost ratio is due to lower unit volumes and a change in revenue mix.
The company reported a gross profit of $11.6 million for the year, compared to $15.4 million in the previous year, with the decline attributed to lower unit volumes and increased competition.
Research and development expenses increased to $5.5 million from $3.9 million, primarily due to higher employee-related expenses and new product development costs.
General and administrative expenses decreased to $21.9 million from $26.4 million, mainly due to reduced employee-related costs and lower compliance and professional fees.
Sales and marketing expenses decreased to $10.0 million from $12.6 million, reflecting reduced employee-related costs and lower shipping expenses due to decreased unit volumes.
The company reported a net loss of $40.6 million, compared to a net loss of $13.8 million in the previous year. The increased loss is primarily due to higher interest expenses and a change in the fair market value of warrant liability.
Dragonfly Energy is focused on expanding into new markets, such as trucking and industrials, and anticipates revenue growth as the RV market recovers and new product offerings are introduced.
The company continues to rely on two suppliers for lithium iron phosphate cells and a single supplier for its battery management system, which poses a risk to its supply chain.
Dragonfly Energy has entered into a license agreement with Stryten Energy, expected to bring $30 million in licensing revenues over seven years, with additional revenue expected from contract manufacturing agreements.
The company acknowledges its dependence on positive operating results and potential financing to meet future obligations, with plans to raise additional funds through equity or debt securities.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Dragonfly Energy Holdings Corp Warrant annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.