0001493152-24-045922 | 10-Q | XBRL Viewer | Dragonfly Energy Holdings Corp

Asset Purchase Agreement	9 Months Ended
Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Asset Purchase Agreement	Note 7 - Asset Purchase Agreement Thomason Jones Company, LLC In April 2022, the Company entered into an Asset Purchase Agreement with William Thomason, Richard Jones, and Thomason Jones Company, LLC whereby the Company acquired inventory and intellectual property assets for a price not to exceed $700 cash plus contingent payments of $1,000 each to William Thomason and Richard Jones (the “Earn Out”). The transaction was determined to be a business combination under the guidance in FASB ASC 805: Business Combinations. The Company followed the guidance under ASC 805-10-55 and determined the contingent consideration to be separate from the business combination and the earn out to be recognized as contingent compensation to Mr. Thomason and Mr. Jones as the contingency became probable of being met. The Company concluded the purchase price to be $444 and was allocated in its entirety to inventory. Pursuant to the terms of the agreement dated April 2022, Dragonfly Energy Corp. agreed to a contingent compensation arrangement with Mr. Thomason and Mr. Jones. According to this agreement, if Dragonfly Energy Corp. realizes $3,000 in gross sales from products sold under the Wakespeed brand or which incorporate any portion of the Purchased Intellectual Property within twenty-four months of the acquisition, the Company is obligated to pay each of Thomason and Jones $1,000. The Company may satisfy this obligation in cash or by issuing common stock at its discretion. The Company has determined that this arrangement constitutes compensation for post-acquisition services. Consequently, the Company has recognized this contingent consideration as a compensation expense, measured at its fair value at the acquisition date. The fair value was determined using a probability weighted expected outcome approach, considering the likelihood of reaching the gross sales target. As of December 31, 2023, the Company has recognized $2,000 of compensation expense in connection with this arrangement. During the period January 1, 2024 through the quarter ended September 30, 2024, no compensation expense has been recognized. This expense is reflected in the statement of operations under Sales and marketing expense. The total amount was recognized as compensation expense as of December 31, 2023, since it was deemed earned and no further service performance was required.

Asset Purchase Agreement

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Note 7 - Asset Purchase Agreement

Thomason Jones Company, LLC

In April 2022, the Company entered into an Asset Purchase Agreement with William Thomason, Richard Jones, and Thomason Jones Company, LLC whereby the Company acquired inventory and intellectual property assets for a price not to exceed $700 cash plus contingent payments of $1,000 each to William Thomason and Richard Jones (the “Earn Out”). The transaction was determined to be a business combination under the guidance in FASB ASC 805: Business Combinations. The Company followed the guidance under ASC 805-10-55 and determined the contingent consideration to be separate from the business combination and the earn out to be recognized as contingent compensation to Mr. Thomason and Mr. Jones as the contingency became probable of being met. The Company concluded the purchase price to be $444 and was allocated in its entirety to inventory.

Pursuant to the terms of the agreement dated April 2022, Dragonfly Energy Corp. agreed to a contingent compensation arrangement with Mr. Thomason and Mr. Jones. According to this agreement, if Dragonfly Energy Corp. realizes $3,000 in gross sales from products sold under the Wakespeed brand or which incorporate any portion of the Purchased Intellectual Property within twenty-four months of the acquisition, the Company is obligated to pay each of Thomason and Jones $1,000. The Company may satisfy this obligation in cash or by issuing common stock at its discretion.

The Company has determined that this arrangement constitutes compensation for post-acquisition services. Consequently, the Company has recognized this contingent consideration as a compensation expense, measured at its fair value at the acquisition date. The fair value was determined using a probability weighted expected outcome approach, considering the likelihood of reaching the gross sales target.

As of December 31, 2023, the Company has recognized $2,000 of compensation expense in connection with this arrangement. During the period January 1, 2024 through the quarter ended September 30, 2024, no compensation expense has been recognized. This expense is reflected in the statement of operations under Sales and marketing expense. The total amount was recognized as compensation expense as of December 31, 2023, since it was deemed earned and no further service performance was required.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Principles of consolidation

Principles of consolidation

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and present the consolidated financial statements of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.

Basis of presentation

Basis of presentation

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) set forth in Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These condensed consolidated financial statements should be read along with the 10-K filed with the SEC on April 16, 2024 (as amended April 29, 2024, the “Annual Report”) of the Company for the annual period ended December 31, 2023. The consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements as of and for the year then ended.

Going Concern

Going Concern

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

During the nine months ended September 30, 2024 and 2023, the Company incurred losses from operations and had negative cash flow from operations. As of September 30, 2024, the Company had $8,019 in cash and cash equivalents and a working capital deficit of $9,927. The Company’s ability to achieve profitability and positive cash flow depends on its ability to increase revenue, contain its expenses and maintain compliance with the financial covenants in its outstanding indebtedness agreements.

In connection with the Company’s senior secured term loan facility in an aggregate principal amount of $75,000 (as amended, the “Term Loan”), the Company is obligated to comply with certain financial covenants, which include maintaining a maximum senior leverage ratio, minimum liquidity, a springing fixed charge coverage ratio, and maximum capital expenditures (Note 6). On March 31, 2024, April 29, 2024, June 28, 2024, July 31, 2024, August 30, 2024, September 30, 2024 and October 31, 2024 the Company obtained waivers from the Term Loan administrative agent and lenders of its failures to satisfy the liquidity requirement under the Term Loan for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024 and the fiscal month ended April 30, 2024, July 31, 2024, August 31, 2024, 2024, September 30, 2024, and October 31, 2024 as applicable. If the Company is unable to obtain a waiver or if the Company is unable to comply with such covenants, the lenders have the right to accelerate the maturity of the Term Loan. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Note 2 – Summary of Significant Accounting Policies and Going Concern (continued)

Going Concern (Continued)

In addition, the Company will need to raise additional debt and/or equity financings to fund its operations, strategic plans, and meet its financial covenants. The Company has historically been able to raise additional capital through issuance of equity and/or debt financings and the Company intends to use its equity facility and raise additional capital as needed. However, the Company cannot guarantee that it will be able to raise additional equity, contain expenses, or increase revenue, and comply with the financial covenants under the Term Loan.

Recently issued accounting pronouncements

Recently issued accounting pronouncements:

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures (“ASU 2023-07”) which will require companies to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”). The pronouncement is effective for annual filings for the year ended December 31, 2024. The adoption of ASU 2023-07 will necessitate substantial changes to the notes to the financial statements, specifically in the area of segment disclosures. For a company that operates as a single-segment entity and previously did not need to comply with ASC 280 Segment Reporting (“ASC 280”), the changes include:

●

Single reportable segment entities are required to provide the new disclosures and all disclosures currently required under ASC 280

●

Disclosure of the title and position of the CODM

●

Disclosure of significant segment expenses and “other segment items” for reach reportable segment

●

Disclosure of reportable segment profit or loss and assets in annual and interim periods

●

Disclosure of segment profitability measures used by the CODM provided such measures comply with the use of non-GAAP financial measures

The Company is still in the process of assessing the full impact of adopting this standard on the enhanced disclosure requirements in the notes to the Company’s financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires enhanced annual disclosures regarding the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all short-term debt securities purchased with a maturity of three months or less to be cash equivalents. As of September 30, 2024 and December 31, 2023, the Company held no Cash Equivalents.

From time to time the Company has amounts on deposit with financial institutions that exceed federally insured limits. The Company has not experienced any significant losses in such accounts.

Accounts Receivable

Accounts Receivable

The Company’s trade receivables are recorded when billed and represent claims against third parties that will be settled in cash. Generally, payment is due from customers within 30-90 days of the invoice date and the contracts do not have significant financing components. Trade accounts receivables are recorded gross and are net of any applicable allowance. The allowance for credit losses as of September 30, 2024 and December 31, 2023 were not material.

Inventory

Inventory

Inventories (Note 4), which consist of raw materials and finished goods, are stated at the lower of cost (first in, first out) or net realizable value, net of reserves for obsolete inventory. The Company continually analyzes its slow moving and excess inventories. Based on historical and projected sales volumes and anticipated selling prices, the Company established reserves. Inventory that is in excess of current and projected use is reduced by an allowance to a level that approximates its estimate of future demand. Products that are determined to be obsolete are written down to net realizable value. The inventory reserve as of September 30, 2024 and December 31, 2023 was not material.

Note 2 – Summary of Significant Accounting Policies (continued)

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company utilizes the use of estimates in its calculations for the reserve for obsolete or slow-moving inventory, right of use asset, warrant liability, equity-based compensation, and income taxes.

Revenue Recognition

Revenue Recognition

Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

Revenue is recognized when control of the promised goods is transferred to the customer or reseller, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods and services. Revenue associated with products holding rights of return are recognized when the Company concludes there is not a risk of significant revenue reversal in the future periods for the expected consideration in the transaction. There are no material instances including discounts and refunds where variable consideration is constrained and not recorded at the initial time of sale. Generally, our revenue is recognized at a point in time for standard promised goods at the time of shipment when title and risk of loss pass to the customer.

The Company may receive payments at the onset of the contract before delivery of goods for customers in the retail channel. Payment terms for distributors and OEMs are typically due within 30-90 days after shipment. In such instances, the Company records a customer deposit liability. The Company recognizes these contract liabilities as sales after the revenue criteria are met. As of September 30, 2024 and December 31, 2023, the contract liability related to the Company’s customer deposits were approximately $189 and $201, respectively.

The Company recognized $201 of the contract liability as of December 31, 2023 during the nine months ended September 30, 2024. The Company recognized $230 of the contract liability as of December 31, 2022 during the nine months ended September 30, 2023.

On July 29, 2024, Dragonfly Energy Corp. (“Legacy Dragonfly”), a wholly-owned subsidiary of the Company, and Battle Born Battery Products, LLC (“Battle Born LLC”), a wholly-owned subsidiary of Legacy Dragonfly, entered into a License Agreement (the “License Agreement”) with Stryten Energy LLC (“Stryten”) (Note 8). The $5,000 initial licensing fee is being recognized as revenue on a straight-line basis over five years. For the three and nine months ended September 30, 2024, the Company has recorded $167 in revenue related to the License Agreement. As of September 30, 2024 and December 31, 2023, the contract liability related to the Company’s deferred revenue were approximately $4,833 and $0, respectively. As of September 30, 2024, the Company had $1,000 in short term deferred revenue and $3,833 in long-term deferred revenue related to the License Agreement.

Note 2 – Summary of Significant Accounting Policies (continued)

Disaggregation of Revenue

Disaggregation of Revenue

The following table present our disaggregated revenues by distribution channel:

Sales	2024		2023		2024		2023
	For the Three Months Ended				For the Nine Months Ended
	September 30				September 30
Sales	2024		2023		2024		2023
Direct to customer		5,153		10,305		16,890		30,314
Original equipment manufacture		7,400		5,584		21,376		23,640
License fee revenue		167		-		167		-
Total	$	12,720	$	15,889	$	38,433	$	53,954

During the year ended December 31, 2023, the Company deemed it more appropriate to classify Retail and Distributor revenues as a single line item referred to as direct-to-consumer revenue. The Company has combined previously reported retail and distributor amounts to direct-to-consumer revenue to conform with current year presentation. The consolidation into direct-to-consumer revenue is motivated by the Company’s strategic perspective on its operations and better represents how it evaluates their sales channels.

Product Warranty

Product Warranty

The Company offers assurance type warranties from 5 to 10 years on its products. The Company estimates the costs associated with the warranty obligation using historical data of warranty claims and costs incurred to satisfy those claims. The Company estimates, based upon a review of historical warranty claim experience, the costs that may be incurred under its warranties and record a liability in the amount of such estimate at the time a product is sold. Factors that affect our warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of our recorded warranty liability and adjust the accrual as claims data and historical experience warrants. The Company has assessed the costs of fulfilling its existing assurance type warranties and has determined that the estimated outstanding warranty obligation at September 30, 2024 and December 31, 2023 to be $482 and $307, respectively.

SCHEDULE OF WARRANTY OBLIGATION

	September 30, 2024			December 31, 2023
Beginning warranty obligation		307			328
Provision of warranty expense		433			397
Settlement of warranty claims		(258	)		(418	)
Ending warrant obligation	$	482		$	307

Concentrations

Concentrations

As of September 30, 2024, receivables from Customer A, Customer B, and Customer C comprised approximately 19%, 12% and 10%, respectively, of accounts receivable. As of December 31, 2023, receivables from Customer D and E comprised approximately 28% and 10%, respectively, of accounts receivable.

For the nine months ended September 30, 2024, sales from Customer A comprised approximately 15% of the Company’s total revenue. For the nine months ended September 30, 2023, sales from Customer B accounted for approximately 19% of the Company’s total revenue. For the three months ended September 30, 2024, sales from Customer A comprised approximately 16% of the Company’s total revenue. For the three months ended September 30, 2023, sales from Customer C accounted for approximately 11% of the Company’s total revenue.

Note 2 – Summary of Significant Accounting Policies (continued)

Concentrations (Continued)

As of September 30, 2024, payables to Vendor A and Vendor B comprised approximately 36% and 18%, respectively, of accounts payables. As of December 31, 2023, payables to Vendor A comprised approximately 65% of accounts payables.

For the nine months ended September 30, 2024, Vendor A accounted for approximately 11% of the Company’s total purchases. For the nine months ended September 30, 2023, Vendor B accounted for approximately 16% of the Company’s total purchases. For the three months ended September 30, 2024, Vendor A and Vendor C accounted for approximately 16% and 13%, respectively, of the Company’s total purchases. For the three months ended September 30, 2023, Vendor C, D and E accounted for approximately 14%, 11%, and 10%, respectively, of the Company’s total purchases.

Stock-Based Compensation

Stock-Based Compensation

The Company accounts for stock-based compensation arrangements with employees and non-employee consultants using a fair value method which requires the recognition of compensation expense for costs related to all stock-based payments, including stock options (Note 12). The fair value method requires the Company to estimate the fair value of stock-based payment awards to employees and non-employees on the date of grant using an option pricing model. Stock based compensation costs are based on the fair value of the underlying option calculated using the Black Scholes option pricing model and recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. Restricted stock unit awards (“RSUs”) are valued based on the closing trading value of the Company’s common stock on the date of grant and then amortized on a straight-line basis over the requisite service period of the award. The Company measures equity-based compensation awards granted to non-employees at fair value as the awards vest and recognizes the resulting value as compensation expense at each financial reporting period.

Determining the appropriate fair value model and related assumptions requires judgment, including estimating stock price volatility, expected dividend yield, expected term, risk free rate of return, and the estimated fair value of the underlying common stock. Due to the lack of company specific historical and implied volatility data, the Company has based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. The historical volatility is calculated based on a period of time commensurate with the expected term assumption. The group of representative companies have characteristics similar to the Company, including stage of product development and focus on the lithium-ion battery industry. The Company uses the simplified method, which is the average of the final vesting tranche date and the contractual term, to calculate the expected term for options granted to employees as it does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected term of the stock options. The Company uses an assumed dividend yield of zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock. The Company accounts for forfeitures as they occur.

Income Taxes

Income Taxes

Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss, credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates.

The Company recognizes a tax benefit for an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The Company had a liability of $91 as of September 30, 2024 and December 31, 2023, of uncertain tax positions.

The Company’s accounting policy is to include penalties and interest related to income taxes if any, in selling, general and administrative expenses. The Company regularly assesses the need to record a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

Note 2 – Summary of Significant Accounting Policies (continued)

Net Loss per Common Share

Net Loss per Common Share

Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is calculated using the weighted-average number of common shares outstanding during the period and, if dilutive, the weighted-average number of potential shares of common stock.

The weighted-average number of common shares included in the computation of diluted net loss gives effect to all potentially dilutive common equivalent shares, including outstanding stock options and warrants.

Common stock equivalent shares are excluded from the computation of diluted net loss per share if their effect is antidilutive. In periods in which the Company reports a net loss, diluted net loss per share is generally the same as basic net loss per share since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

The following table sets forth the number of potential shares of common stock that have been excluded from diluted net loss per share because their effect was anti-dilutive:

	September 30, 2024		September 30, 2023
Warrants		32,181,100		23,219,622
Restricted stock units		109,375		217,000
Options		1,748,687		3,274,940
Weighted average number of common shares-basic		34,039,162		26,711,562

Leases

Leases

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement including the use of an identified asset(s) and the Company’s control over the use of that identified asset. The Company elected, as allowed under FASB ASU 2016-02, Leases (“ASC 842”), to not recognize leases with a lease term of one year or less on its balance sheet. Leases with a term greater than one year are recognized on the balance sheet as right-of-use (“ROU”) assets and current and non-current lease liabilities, as applicable.

Segment Reporting

Segment Reporting

Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the Company’s Chief Executive Officer to make decisions with respect to resource allocation and assessment of performance. To date, the Company has viewed its operations and manages its business as one operating segment.

Reclassifications

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation in the condensed consolidated financial statements and these accompanying notes. The reclassifications did not have a material impact on the Company’s unaudited condensed consolidated financial statements and related disclosures. The impact on any prior period disclosures was immaterial.

SCHEDULE OF ROLL FORWARD IN WARRANTS (Details)	9 Months Ended
SCHEDULE OF ROLL FORWARD IN WARRANTS (Details)	Sep. 30, 2024 shares
Warrants outstanding, Ending	32,181,100
Term Loan Including Penny Warrants [Member]
Warrants Outstanding, Beginning	1,884,510
Exercise of warrants
Issuance of warrants	7,670,524
Warrants outstanding, Ending	9,555,034
Investor Warrants [Member]
Warrants Outstanding, Beginning	11,131,900
Exercise of warrants
Issuance of warrants
Warrants outstanding, Ending	11,131,900

Stock-Based Compensation (Details Narrative) - USD ($)										3 Months Ended					6 Months Ended	9 Months Ended		12 Months Ended
Stock-Based Compensation (Details Narrative) - USD ($)	Aug. 26, 2024	Aug. 19, 2024	Jun. 24, 2024	May 22, 2024	Apr. 24, 2024	Apr. 17, 2024	Apr. 12, 2024	Feb. 05, 2024	Feb. 10, 2023	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense										$ 256,000		$ 946,000				$ 759,000	$ 6,387,000
Stock options exercised shares																11,091
Stock options exercised value										1,000	$ 3,000	36,000	$ 230,000	$ 93,000		$ 4,000
Fair value of restricted stock Uunits												$ 121,000
Fair value of unvested restricted stock Uunits																	$ 14,000
Stock Issued During Period, Shares, Conversion of Units				375		3,428
Cash										8,019,000						8,019,000
Consideration											112,000
Disallowed for issuance										$ 959,000	$ 730,000		$ 74,000	$ 597,000
Chief Executive Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issuance of cash and equity awards							$ 1,532,000
Chief Revenue Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issuance of cash and equity awards							490,000
Chief Marketing Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Issuance of cash and equity awards							$ 236,000
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense																$ 154,000
Restricted stock units, vested			21,750				836,295	220,000	461,998			9,000				3,166,377	37,000
Restricted stock units, value												$ 16,000				$ 995,000	$ 3,464,000
Restricted stock units, vested								100,000								109,375
Number of shares authorized for issuance							222,222
Stock Issued During Period, Shares, Conversion of Units				375		4,875
Cash							$ 30,000
Restricted Stock Units (RSUs) [Member] \| Chief Executive Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock units, vested							567,407
Issuance of cash and equity awards							$ 511,000
Restricted Stock Units (RSUs) [Member] \| Chief Revenue Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock units, vested							181,481
Issuance of cash and equity awards							$ 163,000
Restricted Stock Units (RSUs) [Member] \| Chief Marketing Officer [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock units, vested							87,407
Issuance of cash and equity awards							$ 79,000
Restricted Stock Units Unvested [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Restricted stock units, value																$ 95,000
Restricted Stock Units Vested [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense																48,000
Restricted Stock Units RSU One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense																$ 17,000
Restricted stock units, vested		735,000													2,191,377	735,000
Restricted stock units, value																$ 448,000
Restricted Stock Units RSU Two [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense																$ 0
Restricted stock units, vested	20,000															20,000
Restricted stock units, value																$ 12,000
Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock issued in public offering (ATM), net of costs, shares										1,394,928	850,463		25,000	73,500
Stock options exercised shares										2,339	8,752	103,071	69,012	36,009
Stock options exercised value
Share issuance under ESPP											244,774
Consideration
Disallowed for issuance
2022 Stock Incentive Plan [Member] \| Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock issued in public offering (ATM), net of costs, shares																2,464,400		1,500,000
Outstanding shares percentage																		1.00%
2022 Equity Incentive Plan and Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unissued authorized and available for future awards										8,359,925						8,359,925
Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share issuance under ESPP					244,774											305,552
Consideration					$ 112,000
Purchase shares percentage					15.00%
Employee contribution, liability					$ 186,000
Disallowed for issuance										$ 51,000						$ 51,000
Employee stock purchase limit																10,000
Disallowed for issuance										135,000
Employee Stock Purchase Plan [Member] \| Common Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price					$ 0.46
Cost of Sales [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense										21,000		29,000				$ 81,000	104,000
Research and Development Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense										35,000		33,000				136,000	82,000
Selling and Marketing Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense										71,000		62,000				198,000	1,033,000
General and Administrative Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense										$ 129,000		$ 822,000				$ 344,000	$ 5,168,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Cash flows from Operating Activities
Net (Loss)	$ (6,779)	$ (10,367)	$ (10,007)	$ 4,775	$ (30,773)	$ (17,131)
Adjustments to Reconcile Net Loss to Net Cash
Stock based compensation					759	6,387
Amortization of debt discount					4,490	995
Change in fair market value of warrant liability	(4,875)		145		(3,130)	(19,182)
Non-cash interest expense (paid-in kind)					6,590	3,738
Provision for credit losses					40	147
Depreciation and amortization					991	909
Amortization of right of use of assets					1,585	898
Loss on disposal of property and equipment						116
Changes in Assets and Liabilities
Accounts receivable					(2,128)	(3,039)
Inventories					14,765	7,939
Prepaid expenses					38	801
Prepaid inventory					(365)	(72)
Other current assets					(635)	149
Other assets					(445)
Income taxes payable					174	(4)
Accounts payable and accrued expenses					(1,657)	343
Accrued tariffs					168	300
Deferred revenue					4,833
Customer deposits					(12)	(21)
Total Adjustments					26,061	404
Net Cash Used in Operating Activities					(4,712)	(16,727)
Cash Flows From Investing Activities
Purchase of property and equipment					(1,691)	(6,507)
Net Cash Used in Investing Activities					(1,691)	(6,507)
Cash Flows From Financing Activities
Proceeds from public offering						21,640
Proceeds from public offering (ATM), net					1,705	671
Proceeds from note payable, related party					2,700	1,000
Repayment of note payable, related party					(2,700)	(1,000)
Repayment of note payable						(5,275)
Proceeds from exercise of public warrants						747
Proceeds from exercise of options					4	359
Proceeds from exercise of investor warrants						546
Net Cash Provided by Financing Activities					1,709	18,688
Net Decrease in cash and cash equivalents					(4,694)	(4,546)
Beginning Cash and cash equivalents - beginning of period		$ 12,713		$ 17,781	12,713	17,781	$ 17,781
Ending Cash and cash equivalents - end of period	$ 8,019		$ 13,235		8,019	13,235	$ 12,713
Supplemental Disclosures of Cash Flow Information:
Cash paid for income taxes						237
Cash paid for interest					4,782	6,740
Supplemental Non-Cash Items
Purchases of property and equipment, not yet paid					2,460	53
Recognition of right of use asset obtained in exchange for operating lease liability					18,653
Recognition of leasehold improvements obtained in exchange for operating lease liability					4,683
Recognition of warrant liability					6,381	13,762
Settlement of accrued liability for employee stock purchase plan					112
Non-cash impact of cash exercise of liability classified warrants						617
Cashless exercise of liability classified warrants						$ 12,629

Supplier Agreement

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Supplier Agreement

Note 13 - Supplier Agreement

On May 9, 2023, Ioneer Rhyolite Ridge LLC, or the seller, an emerging lithium-boron producer, and the Company announced a commercial offtake agreement partnership whereby the seller is developing the Rhyolite Ridge Project which, once completed, is expected to produce 20 ktpa of lithium carbonate, and 174 ktpa of boic acid (the “project”). Beginning on the Supply Start Date which is the date the seller notifies the Company that the project is fully completed and commissioned in accordance with the engineering, procurement and construction contract, and for the duration of the supply period, the Company shall purchase and receive product from seller, on the terms and conditions of the agreement. The agreement calls for a minimum annual purchase requirement. The agreement becomes effective when the seller has informed the Company that the seller has made a positive financial investment decision in respect of the project.

Warrants (Details Narrative) - $ / shares		3 Months Ended				9 Months Ended		12 Months Ended
Warrants (Details Narrative) - $ / shares	Oct. 07, 2022	Sep. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Jun. 28, 2024	May 13, 2024	Dec. 29, 2023	Oct. 10, 2022
Exercise of public warrants, shares						0
Warrants outstanding		32,181,100				32,181,100	23,219,622
Warrant exercise purchase, description	the Company issued (i) the penny warrants to the Term Loan Lenders exercisable to purchase an aggregate of 2,593,056 shares of Common Stock (the “Original Penny Warrants”) and (ii) the $10 warrants to issue warrants to the Term Loan Lenders exercisable to purchase an aggregate of 1,600,000 shares of Common Stock at $10 per share (the “$10 Warrants” and, together with the Original Penny Warrants, the “Term Loan Warrants”). The $10 Warrants were exercised on a cashless basis on October 10, 2022, with the Company issuing 457,142 shares of Common Stock in connection with such exercise.
Common Stock [Member]
Exercise of public warrants, shares					64,971
Warrants, shares		1,394,928	850,463	25,000	73,500
Public Warrants [Member]
Warrants issued						9,422,529	9,422,529
Warrants outstanding		9,422,529				9,422,529	9,422,529
Private Placement Warrants [Member]
Warrans purchase								3,126,472
Warrants, shares								1,100,000
Warrants outstanding		1,501,386				1,501,386		1,501,386
Penny Warrants [Member]
Warrans purchase	2,593,056
Penny Warrants [Member] \| Common Stock [Member]
Warrans purchase								2,000,000			1,286,671
Penny Warrants [Member] \| Common Stock [Member] \| Lenders [Member]
Warrans purchase								4,783
Warrants 10 [Member]
Warrans purchase	1,600,000											457,142
Share price												$ 10
Warrants 10 [Member] \| Common Stock [Member]
Warrans purchase								1,996,323
May 2024 Penny Warrants [Member]
Share price		$ 1.19				$ 1.19
May 2024 Penny Warrants [Member] \| Common Stock [Member]
Warrans purchase										2,550,000
Exercise price										$ 0.01
Warrants exercisable Term										10 years
June 2024 Penny Warrants [Member]
Share price		0.85				0.85
June 2024 Penny Warrants [Member] \| Common Stock [Member]
Warrans purchase									2,100,000
Exercise price									$ 0.01
September 2024 Penny Warrants [Member]
Share price		$ 0.53				$ 0.53
September 2024 Penny Warrants [Member] \| Common Stock [Member]
Warrans purchase		3,000,000				3,000,000
Exercise price		$ 0.01				$ 0.01

SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total	$ 12,720	$ 15,889	$ 38,433	$ 53,954
Sales Channel, Directly to Consumer [Member]
Disaggregation of Revenue [Line Items]
Total	5,153	10,305	16,890	30,314
Original Equipment Manufacture [Member]
Disaggregation of Revenue [Line Items]
Total	7,400	5,584	21,376	23,640
License Fee Revenue [Member]
Disaggregation of Revenue [Line Items]
Total	$ 167		$ 167

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479941/924-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

Warrants

9 Months Ended

Sep. 30, 2024

Warrants

Warrants

Note 10 - Warrants

Common Stock Warrants classified as Equity

Public Warrants

The Company’s Public Warrants are classified as equity and as of September 30, 2024 and September 30, 2023, there were 9,422,529 Public Warrants issued and outstanding.

During the nine months ended September 30, 2024, no public warrants were exercised.

Common Stock Warrants classified as Liability

Private Placement Warrants

On October 7, 2022, in connection with the merger, the Company assumed the outstanding private placement warrants of CNTQ. There were no Private Placement Warrants outstanding prior to the merger. The Private Placement Warrants (the “Private Warrants”) may not be redeemed by the Company so long as the Private Placement Warrants are held by the initial purchasers, or such purchasers’ permitted transferees. The Private Warrants: (i) will be exercisable either for cash or on a cashless basis at the holders’ option and (ii) will not be redeemable by the Company, in either case as long as the Private Warrants are held by the initial purchasers or any of their permitted transferees (as prescribed in the Subscription Agreement). The Private Warrants may not be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of, the Private Warrants (or any securities underlying the Private Warrants) for a period of one hundred eighty (180) days following the effective date of the Registration Statement to anyone other than any member participating in the Public Offering and the officers or partners thereof, if all securities so transferred remain subject to the lock-up restriction for the remainder of the time period. During the year ended December 31, 2023, private placement warrant holders exercised 3,126,472 warrants on a cashless basis, with the Company agreeing to issue 1,100,000 shares of Common Stock in connection with such exercise. There were 1,501,386 private warrants outstanding as of September 30, 2024 and December 31, 2023, respectively. The Company accounts for the Private Warrants issued in connection with the Initial Public Offering in accordance with the guidance contained in ASC 815-40. Such guidance provides that because the private warrants do not meet the criteria for equity treatment thereunder, each private warrant must be recorded as a liability. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liabilities will be adjusted to its current fair value, with the change in fair value recognized in the Company’s statement of operations. The Company will reassess the classification at each balance sheet date.

Note 10 - Warrants (Continued)

Common Stock Warrants classified as Liability (Continued)

Private Placement Warrants (Continued)

The private placement warrants are classified as Level 2 as the transfer of Private Placement Warrants to anyone who is not a permitted transferee would result in the Private Placement Warrants having substantially similar terms as the Public Warrants (with the exception of a different remaining life). The Company determined, through use of a Binomial Lattice model, that the fair value of each Private Placement Warrant less a discount for the difference in remaining life is equivalent to that of each Public Warrant.

Term Loan Warrants

In connection with the entry into the Term Loan Agreement on October 7, 2022, and as a required term and condition thereof, the Company issued (i) the penny warrants to the Term Loan Lenders exercisable to purchase an aggregate of 2,593,056 shares of Common Stock (the “Original Penny Warrants”) and (ii) the $10 warrants to issue warrants to the Term Loan Lenders exercisable to purchase an aggregate of 1,600,000 shares of Common Stock at $10 per share (the “$10 Warrants” and, together with the Original Penny Warrants, the “Term Loan Warrants”). The $10 Warrants were exercised on a cashless basis on October 10, 2022, with the Company issuing 457,142 shares of Common Stock in connection with such exercise. During the year ended December 31, 2023, Original Penny Warrant holders exercised 2,000,000 warrants on a cashless basis, with the Company agreeing to issue 1,996,323 shares of Common Stock in connection with such exercise. During the year ended December 31, 2023 the Company issued additional Original Penny Warrants to purchase 4,783 shares of Common Stock to the Term Loan Lenders in accordance with the anti-dilution provisions of the Original Penny Warrants with respect to certain sales made by the Company under the ChEF Equity Facility. In addition, pursuant to the Company’s limited waiver agreement on December 29, 2023 between the Company and the Term Loan Lenders and lending agent, the Company agreed to issue to the lenders additional penny warrants exercisable to purchase an aggregate 1,286,671 shares of its Common Stock.

On May 13, 2024, the Company received the May 2024 Waiver in regards to its compliance with the Tests as of the last day of the quarter ended March 31, 2024. The May 2024 Waiver provided for a one-time issuance of the May 2024 Penny Warrants to purchase up to 2,550,000 shares of the Company’s common stock, at an exercise price of $0.01 per share, in connection with the Term Loan Lenders’ agreement to waive the Tests under the Term Loan for the quarter ended March 31, 2024. The May 2024 Penny Warrants were immediately exercisable upon issuance and will expire ten years from the date of issuance.

On June 28, 2024, the Company entered into the First Amendment to the Term Loan with the Term Loan Lenders in regards to its compliance with the Tests for the quarter ended June 30, 2024. The First Amendment provided for a one-time issuance of the June 2024 Penny Warrants to purchase up to 2,100,000 shares of the Company’s common stock, at an exercise price of $0.01 per share, in connection with the Term Loan Lenders’ agreement to waive the Tests under the Term Loan for the quarter ended June 30, 2024 and certain amendments to the Term Loan. The June 2024 Penny Warrants are immediately exercisable upon issuance and will expire ten years from the date of issuance.

Note 10 - Warrants (continued)

Common Stock Warrants classified as Liability (Continued)

On September 30, 2024, the Company entered into the Third Amendment to the Term Loan with the Term Loan Lenders in regards to its compliance with the Tests for the quarter ended September 30, 2024. The Third Amendment provided for a one-time issuance the September 2024 Penny Warrants to purchase up to 3,000,000 shares of the Company’s Common Stock, at an exercise price of $0.01 per share, in connection with the Term Loan Lenders agreement to waive the Tests under the Term Loan for the quarter ended September 30, 2024 and to amend the Term Loan. The September 2024 Penny Warrants are immediately exercisable upon issuance and will expire ten years from the date of issuance. The May 2024 Penny Warrants, the June 2024 Penny Warrants, and the September 2024 Penny Warrants were valued utilizing a Black-Scholes model with the following assumptions:

SCHEDULE OF PENNY WARRANTS

	May 2024 Penny Warrants			June 2024 Penny Warrants			September 2024 Penny Warrants
Stock price	$	1.19		$	0.85		$	0.53
Strike price	$	0.01		$	0.01		$	0.01
Term		10 years			10 years			10 years
Volatility		88	%		91	%		90	%
Risk-free rate		4.5	%		4.4	%		3.8	%

The Company concluded the Penny Warrants are not considered indexed to the Company’s Common Stock and to be accounted for as liabilities under ASC 815. As such, the estimated fair value is recognized as a liability each reporting period, with changes in the fair value recognized within income each period. There were no Term Loan Warrants outstanding prior to the merger.

The following table provides the significant inputs to the Black-Scholes method for the fair value of the Penny Warrants:

SCHEDULE FAIR VALUE WARRANTS

	As of September 30, 2024			As of December 31, 2023
Common stock price	$	0.53		$	0.54
Exercise price		0.01			0.01
Dividend yield		0	%		0	%
Term		8.02			10
Volatility		91.00	%		96.00	%
Risk-free rate		3.70	%		3.90	%
Fair value	$	0.52		$	0.54

The following table provides the significant inputs to the Black-Scholes method for the fair value of the Investor Warrants issued in the June 2023 Offering:

	As of September 30, 2024			As of December 31, 2023
Common stock price	$	0.53		$	0.54
Exercise price	$	2.00		$	2.00
Dividend yield		0	%		0	%
Term		3.72			4.48
Volatility		101.00	%		106.00	%
Risk-free rate		3.60	%		3.90	%
Fair value	$	0.24		$	0.31

Note 10 - Warrants (continued)

The following table presents a roll-forward of the Company’s warrants from January 1, 2024 to September 30, 2024:

SCHEDULE OF ROLL FORWARD IN WARRANTS

Term Loan Warrants (including Penny Warrants):

	Common Stock Warrants
Warrants Outstanding, January 1, 2024		1,884,510
Exercise of warrants		-
Warrants issued		7,670,524
Warrants Outstanding, September 30, 2024		9,555,034

Investor Warrants:

	Common Stock Warrants
Warrants Outstanding, January 1, 2024		11,131,900
Warrants Outstanding, Beginning		11,131,900
Issuance of warrants		-
Exercise of warrants		-
Warrants outstanding, September 30, 2024		11,131,900
Warrants outstanding, Ending		11,131,900

SCHEDULE OF BREAKOUT OF OPERATING LEASES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Operating lease right-of-use assets	$ 20,383	$ 3,315
Short-term operating lease liabilities	2,867	1,288
Long-term operating lease liabilities	23,330	2,234
Total operating lease liabilities	$ 26,197	$ 3,522
Weighted average remaining lease term	8 years 7 months 13 days	2 years 7 months 6 days
Weighted average discount rate	7.84%	5.20%

Long Term Debt

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Long Term Debt

Note 6 - Long Term Debt

Term Loan Agreement

On October 7, 2022 (the “Closing Date”), in connection with the merger, CNTQ, Legacy Dragonfly and CCM Investments 5 LLC, an affiliate of CCM LLC (“CCM 5”, and in connection with the Term Loan, the “Chardan Lender”), and EICF Agent LLC (“EIP”) entered into the Term Loan, Guarantee and Security Agreement (the “Original Term Loan Agreement”) setting forth the terms of the Term Loan. The Chardan Lender backstopped its commitment under the Debt Commitment Letter by entering into a backstop commitment letter, dated as of May 20, 2022 (the “Backstop Commitment Letter”), with a certain third party financing source (the “Backstop Lender” and collectively with EIP, the “Term Loan Lenders”), pursuant to which the Backstop Lender committed to purchase from the Chardan Lender the aggregate amount of the Term Loan held by the Chardan Lender (the “Backstopped Loans”) immediately following the issuance of the Term Loan on the Closing Date. Pursuant to an assignment agreement, the Backstopped Loans were assigned by CCM 5 to the Backstop Lender on the Closing Date.

Pursuant to the terms of the Term Loan Agreement, the Term Loan was advanced in one tranche on the Closing Date. The proceeds of the Term Loan were used (i) to refinance on the Closing Date prior indebtedness (including the obligations underlying the Trust Indenture), (ii) to support the merger and related transactions under the merger agreement, (iii) for working capital purposes and other corporate purposes, and (iv) to pay any fees associated with transactions contemplated under the Term Loan Agreement and the other loan documents entered into in connection therewith, including the transactions described in the foregoing clauses (i) and (ii) and fees and expenses related to the merger. The Term Loan amortizes in the amount of 5.0% per annum (or $937.5 on the first day of each calendar quarter) beginning twenty-four (24) months after the Closing Date and matures on the fourth anniversary of the Closing Date (“Maturity Date”). The Term Loan accrues interest as follows: (i) until October 1, 2024, at a per annum rate equal to adjusted SOFR plus 7.0% payable in cash plus an amount ranging from 4.5% to 6.5%, depending on the senior leverage ratio of the consolidated company, which will be paid in kind; (ii) at all times thereafter, at a per annum rate equal to adjusted SOFR plus a margin ranging from 11.5% to 13.5% payable in cash, depending on the senior leverage ratio of the consolidated company. In each of the foregoing cases, adjusted SOFR will be no less than 1%; (iii) effective April 1, 2024 and thereafter, interest payable to certain lenders subject to regulations of the U.S. Small Business Administration (“SBA”) with outstanding principal on that date of $30,846 will be limited to 14.0% per annum (except for default interest permitted under SBA regulations, as applicable); and (iv) the other outstanding principal will accrue interest from April 1, 2024 thereafter until October 1, 2024, at a per annum rate equal to adjusted SOFR plus 7.0% payable in cash plus an amount ranging from 4.5% to 6.5%, depending on the Company’s senior leverage ratio, and at all times thereafter, at a per annum rate equal to adjusted SOFR plus a margin ranging from 11.5% to 13.5%, depending on the senior leverage ratio of the Company.

Payments of interest based on the Term Loan Agreement, as amended, are as follows:

	(i)	Interest payable on April 1, 2024, was paid in cash.
	(ii)	Interest payable on July 1, 2024, became payable in kind.
	(iii)	Interest payable on October 1, 2024, became payable partly in cash and partly in-kind, at a per annum rate equal to adjusted SOFR plus 7.0% payable in cash plus an amount ranging from 4.5% to 6.5% paid-in-kind, depending on the senior leverage ratio of the consolidated company (subject to the 14.0% limit for lenders subject to SBA regulations).
	(iv)	For each payment date occurring on or after January 1, 2025, interest will be payable in cash.

In each of the foregoing cases, adjusted SOFR will be no less than 1%.

Note 6 - Long Term Debt (continued)

In addition to optional prepayments by the Company upon written notice, the Term Loan Agreement provides for mandatory prepayments upon receipt of proceeds from certain transactions or casualty events. The Company is required to prepay the Term Loan based on excess cash flow, as defined in the agreement, beginning with the financial statements for the year ended December 31, 2023.

During the year ended December 31, 2023 the Company prepaid the first four installments of the Term Loan which amounted to $5,275 and pushed back the first principal payment to October 2025.

In connection with the entry into the Term Loan Agreement, and as a required term and condition thereof, the Company issued (i) the penny warrants to the Term Loan Lenders exercisable to purchase an aggregate of 2,593,056 and (ii) the $10 warrants to issue warrants to the Term Loan Lenders exercisable to purchase an aggregate of 1,600,000 shares of common stock at $10 per share. Refer to Note 10 for further information.

Unless the obligations under the Term Loan are accelerated under the terms of the agreement, the maturity date will be October 7, 2026.

The Term Loan Lenders have been granted a first priority lien, and security interest in, the mortgaged properties underlying the Company’s mortgages.

During the nine months ended September 30, 2024 and 2023, a total of $10,531 and $10,736, respectively, of interest expense was incurred under the debt. During the three months ended September 30, 2024 and 2023, a total of $3,509 and $3,589, respectively, of interest expense was incurred under the debt. Amortization of the debt issuance costs amounted to $4,490 and $995, respectively, during the nine months ended September 30, 2024 and 2023. Amortization of the debt issuance costs amounted to $2,062 and $375, respectively, during the three months ended September 30, 2024 and 2023.

The carrying balance of $24,398 on September 30, 2024, consisted of $69,725 in principal, plus $12,719 PIK interest, less $58,046 in unamortized debt discount related to the debt issuance costs. The carrying balance of $19,683 on December 31, 2023, consisted of $69,725 in principal, plus $6,130 PIK interest, less $56,172 in unamortized debt discount related to the debt issuance costs.

On May 13, 2024, the Company received a waiver from its Administrative Agent and Term Loan Lenders (the “May 2024 Waiver”) in regards to its compliance with the Senior Leverage Ratio and Fixed Charge Coverage Ratio tests (the “Tests”) as of the last day of the quarter ended March 31, 2024. The May 2024 Waiver provided for a one-time issuance of penny warrants (the “May 2024 Penny Warrants”) to purchase up to 2,550,000 shares of the Company’s common stock (the “May 2024 Penny Warrant Shares”). The May 2024 Penny Warrants have an exercise price of $0.01 per share, were valued at $3,022, and recorded as a debt discount. The May 2024 Penny Warrants were issued in connection with the Term Loan Lenders’ agreement to waive the Tests under the Term Loan for the quarter ended March 31, 2024. The May 2024 Penny Warrants were immediately exercisable upon issuance and will expire ten years from the date of issuance.

On June 28, 2024, the Company entered into a Limited Waiver and First Amendment to the Term Loan with the Term Loan Lenders in regards to its compliance with the Tests as of the last day of the quarter ended June 30, 2024 and certain amendments to the Term Loan. The First Amendment provided for a one-time issuance of Penny Warrants to purchase up to 2,100,000 shares of the Company’s Common Stock at an exercise price of $0.01 per share (the “June 2024 Penny Warrants”), valued at $1,767 and recorded as a debt discount. The June 2024 Penny Warrants were issued in connection with the Term Loan Lenders’ agreement to waive the Tests under the Term Loan for the quarter ended June 30, 2024 and to amend the Term Loan. The June 2024 Penny Warrants are immediately exercisable upon issuance and will expire ten years from the date of issuance.

Note 6 - Long Term Debt (continued)

In addition, the First Amendment (i) reduced the liquidity requirement under the Term Loan to be $3.5 million as of the last day of the month ended June 30, 2024, and $10.0 million as of the last day of each fiscal month thereafter commencing with the fiscal month ended July 31, 2024 and (ii) provided for the interest to be paid on the Payment Date (as defined in the Term Loan Agreement) occurred on July 1, 2024 to be solely payable-in-kind.

In connection with the License Agreement, on July 29, 2024, the Company, Legacy Dragonfly and Battle Born LLC entered into a Limited Waiver, Consent and Second Amendment (the “Second Amendment”) to the Term Loan.

Pursuant to the Second Amendment, the Term Loan Lenders (i) consented to the transactions contemplated by the License Agreement and the Trademark Transfer Agreement and (ii) agreed to waive the mandatory prepayment under the Term Loan that would have been due to the Lenders under the Loan Agreement upon Battle Born LLC’s receipt of the Initial Licensing Fee.

In connection with the Second Amendment, Battle Born LLC entered into a Joinder Agreement with the Term Loan Lenders whereby Battle Born LLC became a guarantor and credit party to the Term Loan.

On July 31, 2024, August 30, 2024, September 30, 2024, and October 31, 2024 the Company received waivers from its Administrative Agent and the Term Loan Lenders in regards to its compliance with the Liquidity test as of the last day of the fiscal months ended July 31, 2024, August 31, 2024, September 30, 2024, and October 31, 2024.

On September 30, 2024, the Company entered into a Limited Waiver and Third Amendment (the “Third Amendment”, together with the Original Term Loan Agreement, the First Amendment and the Second Amendment, the “Term Loan Agreement”) to the Term Loan Agreement with the Term Loan Lenders in regards to its compliance with the Tests as of the last day of the quarter ended September 30, 2024 and certain amendments to the Term Loan Agreement. The Third Amendment provided for a one-time issuance of penny warrants (the “September 2024 Penny Warrants”, collectively with the Original Penny Warrants, the May 2024 Penny Warrants and the June 2024 Penny Warrants, the “Penny Warrants”) to purchase up to 3,000,000 shares of the Company’s Common Stock at an exercise price of $0.01 per share (the “September 2024 Penny Warrant Shares”, collectively with the Original Penny Warrants, and the May 2024 Penny Warrants, the “Penny Warrant Shares”), valued at $1,576 and recorded as a debt discount. The September 2024 Penny Warrants were issued in connection with the Term Loan Lenders’ agreement to waive the Tests under the Term Loan for the quarter ended September 30, 2024 and to amend the Term Loan Agreement. The September 2024 Penny Warrants are immediately exercisable upon issuance and will expire ten years from the date of issuance.

In addition, the Third Amendment (i) reduced the liquidity requirement under the Term Loan to be $7.0 million as of the last day of the month ended September 30, 2024, and $10.0 million as of the last day of each fiscal month thereafter commencing with the fiscal month ended July 31, 2024 and (ii) On October 1, 2024, interest is payable (a) $1,500,000 in cash for the pro rata benefit of the Lenders and (b) the remaining interest in-kind, to be capitalized and added to the principal. For Payment Dates occurring on or after January 1, 2025 (including interest accruing from October 1, 2024, through December 31, 2024), all interest shall be paid in cash at a rate equal to Adjusted Term SOFR plus the Applicable Margin.

Note 6 - Long Term Debt (continued)

Financial Covenants

The Company is subject to restrictive financial covenants pertaining to Maximum Senior Leverage Ratio, Liquidity, Fixed Charge Coverage Ratio, and Capital Expenditures as defined in the Term Loan Agreement. As of September 30, 2024, the Company was not in compliance with its financial covenants pertaining to the fixed charge coverage ratio, liquidity, and the maximum senior leverage ratio. On March 31, 2024, April 29, 2024, June 28, 2024, July 31, 2024, August 30, 2024, September 30, 2024, and October 31, 2024, the Company obtained waivers from the Term Loan Lenders and administrative agent in regards to its failure to satisfy the liquidity requirement under the Term Loan for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024, and the fiscal month ended April 30, 2024, July 31, 2024, August 31, 2024, September 30, 2024, and October 31, 2024 as applicable. If the Company is unable to obtain a waiver or if the Company is unable to comply with such covenants, the Term Loan Lenders have the right to accelerate the maturity of the Term Loan Agreement. Because of this, the entire debt is classified as current instead of long-term debt.

At September 30, 2024 the future debt maturities are as follows:

SCHEDULE OF FUTURE DEBT MATURITIES

For Year Ended December 31,
2024		-
2025		938
2026		81,506
Total debt		82,444
Less: Estimated interest paid-in-kind		-
Total debt		82,444
Less: Unamortized debt issuance costs		(58,046	)
Total carrying amount		24,398
Less: Current portion of debt		(24,398	)
Total long-term debt	$	-

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/470/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

+ Details

SCHEDULE FAIR VALUE WARRANTS (Details) - $ / shares	9 Months Ended	12 Months Ended
SCHEDULE FAIR VALUE WARRANTS (Details) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Penny Warrants [Member]
Common stock price	$ 0.53	$ 0.54
Exercise price	$ 0.01	$ 0.01
Dividend yield	0.00%	0.00%
Term	8 years 7 days	10 years
Volatility	91.00%	96.00%
Risk-free rate	3.70%	3.90%
Fair value	$ 0.52	$ 0.54
Investor Warrants [Member]
Common stock price	0.53	0.54
Exercise price	$ 2.00	$ 2.00
Dividend yield	0.00%	0.00%
Term	3 years 8 months 19 days	4 years 5 months 23 days
Volatility	101.00%	106.00%
Risk-free rate	3.60%	3.90%
Fair value	$ 0.24	$ 0.31

Warrants (Tables)

9 Months Ended

Sep. 30, 2024

Warrants

SCHEDULE OF PENNY WARRANTS

	May 2024 Penny Warrants			June 2024 Penny Warrants			September 2024 Penny Warrants
Stock price	$	1.19		$	0.85		$	0.53
Strike price	$	0.01		$	0.01		$	0.01
Term		10 years			10 years			10 years
Volatility		88	%		91	%		90	%
Risk-free rate		4.5	%		4.4	%		3.8	%

SCHEDULE FAIR VALUE WARRANTS

The following table provides the significant inputs to the Black-Scholes method for the fair value of the Penny Warrants:

SCHEDULE FAIR VALUE WARRANTS

	As of September 30, 2024			As of December 31, 2023
Common stock price	$	0.53		$	0.54
Exercise price		0.01			0.01
Dividend yield		0	%		0	%
Term		8.02			10
Volatility		91.00	%		96.00	%
Risk-free rate		3.70	%		3.90	%
Fair value	$	0.52		$	0.54

The following table provides the significant inputs to the Black-Scholes method for the fair value of the Investor Warrants issued in the June 2023 Offering:

	As of September 30, 2024			As of December 31, 2023
Common stock price	$	0.53		$	0.54
Exercise price	$	2.00		$	2.00
Dividend yield		0	%		0	%
Term		3.72			4.48
Volatility		101.00	%		106.00	%
Risk-free rate		3.60	%		3.90	%
Fair value	$	0.24		$	0.31

SCHEDULE OF ROLL FORWARD IN WARRANTS

Term Loan Warrants (including Penny Warrants):

	Common Stock Warrants
Warrants Outstanding, January 1, 2024		1,884,510
Exercise of warrants		-
Warrants issued		7,670,524
Warrants Outstanding, September 30, 2024		9,555,034

Investor Warrants:

	Common Stock Warrants
Warrants Outstanding, January 1, 2024		11,131,900
Warrants Outstanding, Beginning		11,131,900
Issuance of warrants		-
Exercise of warrants		-
Warrants outstanding, September 30, 2024		11,131,900
Warrants outstanding, Ending		11,131,900

Inventory (Tables)

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

SCHEDULE OF INVENTORY

Inventory consists of the following:

SCHEDULE OF INVENTORY

	September 30, 2024		December 31, 2023
Raw material	$	20,692	$	31,604
Finished goods		3,321		7,174
Total inventory	$	24,013	$	38,778

NATURE OF BUSINESS

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF BUSINESS

Note 1 - NATURE OF BUSINESS

Dragonfly Energy Holdings Corp. (“New Dragonfly” or the “Company”) sells lithium-ion battery packs for use in a wide variety of applications. The Company sells to distributors under the Dragonfly Energy brand name, and sells direct to consumers under the trade name Battleborn Batteries. In addition, the Company develops technology for improved lithium-ion battery manufacturing and assembly methods.

SCHEDULE OF BREAKOUT OF FINANCE LEASES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Finance lease right-of-use assets	$ 82	$ 106
Short-term finance lease liabilities	38	36
Long-term finance lease liabilities	37	66
Total finance lease liabilities	$ 75	$ 102
Weighted average remaining lease term	2 years	2 years 8 months 12 days
Weighted average discount rate	5.20%	5.20%

SCHEDULE OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended						9 Months Ended
	Apr. 30, 2022	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of Goods Sold	$ 3,000	$ 9,850			$ 11,291			$ 29,345	$ 40,765
Gross Profit		2,870			4,598			9,088	13,189
Loss From Operations		(6,026)			(5,875)			(18,614)	(24,332)
Interest Expense					(3,987)				(11,981)
Loss Before Taxes		(6,779)			(10,007)			(30,773)	(17,131)
Net Income (Loss)		$ (6,779)	$ (13,627)	$ (10,367)	$ (10,007)	$ (11,899)	$ 4,775	$ (30,773)	$ (17,131)
Net Loss per share - Basic		$ (0.11)			$ (0.17)			$ (0.50)	$ (0.34)
Net Loss per share - Diluted		$ (0.11)			$ (0.17)			$ (0.50)	$ (0.34)
Change in Accrued Tariffs									$ 300
Accumulated Deficit, balance				$ (41,539)	$ (34,846)	(22,947)	(27,722)	$ (41,539)	(27,722)
Accumulated Deficit, balance		$ (72,312)			(44,853)	(34,846)	(22,947)	$ (72,312)	(44,853)
Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of Goods Sold					11,317				40,541
Gross Profit					4,572				13,413
Loss From Operations					(5,901)				(24,108)
Interest Expense					(3,977)				(11,905)
Loss Before Taxes					(10,023)				(16,831)
Net Income (Loss)					$ (10,023)	(11,700)	4,892		$ (16,831)
Net Loss per share - Basic					$ (0.17)				$ (0.34)
Net Loss per share - Diluted					$ (0.17)				$ (0.34)
Change in Accrued Tariffs
Accumulated Deficit, balance					$ (33,941)	(22,241)	(27,133)		(27,133)
Accumulated Deficit, balance					(43,964)	(33,941)	(22,241)		(43,964)
Revision of Prior Period, Reclassification, Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost of Goods Sold					(26)				224
Gross Profit					26				(224)
Loss From Operations					26				(224)
Interest Expense					(10)				(76)
Loss Before Taxes					16				(300)
Net Income (Loss)					16	(199)	(117)		(300)
Change in Accrued Tariffs									300
Accumulated Deficit, balance					(905)	(706)	(589)		(589)
Accumulated Deficit, balance					$ (889)	$ (905)	$ (706)		$ (889)
Revision of Prior Period, Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Loss per share - Basic					$ (0.0)				$ (0.0)
Net Loss per share - Diluted					$ (0.0)				$ (0.0)

SCHEDULE OF WARRANTY OBLIGATION (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Beginning warranty obligation	$ 307	$ 328
Provision of warranty expense	433	397
Settlement of warranty claims	(258)	(418)
Ending warrant obligation	$ 482	$ 307

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES (Details) - USD ($)
$ in Thousands

Sep. 30, 2024

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

December 31, 2024

^[1]

$ 1,187

4,817

4,376

3,588

3,695

19,325

36,988

Less imputed interest

10,791

Total operating lease liabilities

$ 26,197

$ 3,522

[1]	Represents scheduled payments for the remaining three-month period ending December 31, 2024.

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

SCHEDULE OF BREAKOUT OF OPERATING LEASES

The following table presents the breakout of the operating leases as of:

	September 30, 2024			December 31, 2023
Operating lease right-of-use assets	$	20,383		$	3,315
Short-term operating lease liabilities		2,867			1,288
Long-term operating lease liabilities		23,330			2,234
Total operating lease liabilities	$	26,197		$	3,522
Weighted average remaining lease term		8.62 years			2.6 years
Weighted average discount rate		7.84	%		5.2	%

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES

At September 30, 2024, the future minimum lease payments under these operating leases are as follows:

Fiscal Years Ending
December 31, 2024⁽¹⁾	$	1,187
December 31, 2025		4,817
December 31, 2026		4,376
December 31, 2027		3,588
December 31, 2028		3,695
Thereafter		19,325
Total lease payments		36,988
Less imputed interest		10,791
Total operating lease liabilities	$	26,197

⁽¹⁾	Represents scheduled payments for the remaining three-month period ending December 31, 2024.

SCHEDULE OF LEASE COST

		For The Three Months Ended September 30,				For The Nine Months Ended September 30,
Lease cost	Classification	2024		2023		2024		2023
Operating lease cost	Cost of goods sold	$	310	$	345	$	1,001	$	1,040
Operating lease cost	Research and development		204		22		357		67
Operating lease cost	General and administration		676		11		1,708		35
Operating lease cost	Selling and marketing		11		11		34		35
Total lease cost		$	1,201	$	389	$	3,100	$	1,177

SCHEDULE OF BREAKOUT OF FINANCE LEASES

The following table presents the breakout of the financing leases as of:

	September 30, 2024			December 31, 2023
Finance lease right-of-use assets	$	82		$	106
Short-term finance lease liabilities		38			36
Long-term finance lease liabilities		37			66
Total finance lease liabilities	$	75		$	102
Weighted average remaining lease term		2.0 years			2.7 years
Weighted average discount rate		5.2	%		5.2	%

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER FINANCE LEASES

At September 30, 2024, the future minimum lease payments under these operating leases are as follows:

Fiscal Years Ending
December 31, 2024⁽¹⁾	$	10
December 31, 2025		41
December 31, 2026		24
December 31, 2027		4
Total lease payments		79
Less imputed interest		4
Total operating lease liabilities	$	75

⁽¹⁾	Represents scheduled payments for the remaining three-month period ending December 31, 2024.

Inventory

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Inventory

Note 4 - Inventory

Inventory consists of the following:

SCHEDULE OF INVENTORY

	September 30, 2024		December 31, 2023
Raw material	$	20,692	$	31,604
Finished goods		3,321		7,174
Total inventory	$	24,013	$	38,778

Common Stock (Tables)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE

For the nine months ended September 30, 2024 and 2023, the Company had reserved shares of common stock for issuance as follows:

	September 30, 2024		September 30, 2023
Options issued and outstanding		1,748,687		3,274,940
Common stock outstanding		62,767,982		58,880,712
Warrants outstanding		32,181,100		23,219,622
Earnout shares		25,000,000		40,000,000
Shares available for future issuance		8,359,925		4,470,153
Total		130,057,694		129,845,427

Long Term Debt (Details Narrative) - USD ($)			1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
Long Term Debt (Details Narrative) - USD ($)	Apr. 01, 2024	Oct. 07, 2022	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Jul. 31, 2024	Jun. 30, 2024	Jun. 28, 2024	May 13, 2024	Dec. 29, 2023	Oct. 10, 2022
Debt Instrument [Line Items]
Loan principal amount	$ 30,846,000
Debt instrument interest rate	14.00%
Long term debt			$ 82,444,000	$ 82,444,000		$ 82,444,000
Paid in kind interest						6,590,000	$ 3,738,000
Unamortized debt discount			58,046,000	58,046,000		58,046,000
Penny warrants value											$ 1,767	$ 3,022
Warrans purchase						4,490,000	995,000
Term Loan [Member]
Debt Instrument [Line Items]
Long term debt			7,000,000.0	7,000,000.0		7,000,000.0			$ 10,000,000.0	$ 3,500,000
Interest payable			$ 1,500,000	$ 1,500,000		$ 1,500,000
Penny Warrants [Member]
Debt Instrument [Line Items]
Warrans purchase		2,593,056
Penny Warrants [Member] \| Common Stock [Member]
Debt Instrument [Line Items]
Warrans purchase								2,000,000					1,286,671
Warrants 10 [Member]
Debt Instrument [Line Items]
Warrans purchase		1,600,000												457,142
Share price														$ 10
Warrants 10 [Member] \| Common Stock [Member]
Debt Instrument [Line Items]
Warrans purchase								1,996,323
May 2024 Penny Warrants [Member]
Debt Instrument [Line Items]
Share price			$ 1.19	$ 1.19		$ 1.19
May 2024 Penny Warrants [Member] \| Common Stock [Member]
Debt Instrument [Line Items]
Warrans purchase												2,550,000
Exercise price												$ 0.01
Warrants exercisable Term												10 years
June 2024 Penny Warrants [Member]
Debt Instrument [Line Items]
Share price			$ 0.85	$ 0.85		$ 0.85
June 2024 Penny Warrants [Member] \| Common Stock [Member]
Debt Instrument [Line Items]
Warrans purchase											2,100,000
Exercise price											$ 0.01
Original Penny Warrants [Member] \| Common Stock [Member]
Debt Instrument [Line Items]
Warrans purchase			3,000,000	3,000,000		3,000,000
Exercise price			$ 0.01	$ 0.01		$ 0.01
Warrants exercisable Term			10 years	10 years		10 years
Warrans purchase			$ 1,576,000
Term Loan Agreement [Member]
Debt Instrument [Line Items]
Prepayment of debt installment								$ 5,275,000
Term Loan Agreement [Member] \| Senior Notes [Member]
Debt Instrument [Line Items]
Loan principal amount			69,725,000	$ 69,725,000		$ 69,725,000		69,725,000
Interest expense debt, excluding amortization				3,509,000	$ 3,589,000	10,531,000	10,736,000
Amortization of debt issuance costs				2,062,000	$ 375,000	4,490,000	$ 995,000
Long term debt			24,398,000	24,398,000		24,398,000		19,683,000
Paid in kind interest						12,719,000		6,130,000
Unamortized debt discount			$ 58,046,000	$ 58,046,000		$ 58,046,000		$ 56,172,000
Term Loan Agreement [Member] \| Penny Warrants [Member]
Debt Instrument [Line Items]
Warrans purchase			2,593,056	2,593,056		2,593,056
Term Loan Agreement [Member] \| Warrants 10 [Member]
Debt Instrument [Line Items]
Warrans purchase			1,600,000	1,600,000		1,600,000
Share price			$ 10	$ 10		$ 10
Senior Secured Term Loan Facility [Member] \| Term Loan [Member]
Debt Instrument [Line Items]
Loan principal amount			$ 75,000,000	$ 75,000,000		$ 75,000,000
Senior Secured Term Loan Facility [Member] \| Term Loan Agreement [Member]
Debt Instrument [Line Items]
Debt instrument, amortization percentage		5.00%
Debt instrument, amortization amount		$ 937,500
Debt instrument, amortization period		24 months
Senior Secured Term Loan Facility [Member] \| Term Loan Agreement [Member] \| After April 1, 2023 Until October 1, 2024 [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument [Line Items]
Variable rate, payable in kind	7.00%	7.00%
Senior Secured Term Loan Facility [Member] \| Term Loan Agreement [Member] \| After April 1, 2023 Until October 1, 2024 [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Variable rate, payable in kind	11.50%	11.50%
Variable rate, payable in kind	4.50%	4.50%
Senior Secured Term Loan Facility [Member] \| Term Loan Agreement [Member] \| After April 1, 2023 Until October 1, 2024 [Member] \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Variable rate, payable in kind	13.50%	13.50%
Variable rate, payable in kind	6.50%	6.50%
Basis spread on variable rate		1.00%

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares					3 Months Ended	9 Months Ended
	Jun. 24, 2024	Apr. 12, 2024	Feb. 05, 2024	Feb. 10, 2023	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of Shares, Unvested shares beginning balance						47,000
Weighted-Average Fair Market Value, Unvested shares beginning balance						$ 2.69
Number of Shares, Granted and unvested	21,750	836,295	220,000	461,998	9,000	3,166,377	37,000
Weighted-Average Fair Market Value, Granted and unvested						$ 0.49
Number of Shares, Forfeited						(10,000)
Weighted-Average Fair Market Value, Forfeited						$ 2.87
Number of Shares, Vested			(100,000)			(109,375)
Weighted-Average Fair Market Value, Vested						$ 0.71
Number of Shares, Unvested shares ending balance						3,094,002
Weighted-Average Fair Market Value, Unvested shares ending balance						$ 0.51

Revisions of Previously Issued Financial Statements

9 Months Ended

Sep. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Revisions of Previously Issued Financial Statements

Note 14 - Revisions of Previously Issued Financial Statements

The Company has revised the previously issued financial statements for the quarter ended September 30, 2023 for the underpayment of tariffs to U.S. Customs and Border Protection (“CBP”) related to the improper classification and valuation of certain of the products used in its batteries. The Company has reported the underpayment to CBP. The underpayment of tariffs was primarily the result of utilizing an improper tariff rate. The additional amount of the tariffs was allocated between inventory and cost of goods sold based on the status of imported items (i.e. included in the inventories held vs included in the inventories already sold to customers.

In accordance with Staff Accounting Bulletin (“SAB”) 99, Materiality, and SAB 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the materiality of the error from qualitative and quantitative perspectives, and concluded that the error was immaterial to any prior annual or interim financial statements. Notwithstanding this conclusion, management has revised the accompanying condensed consolidated financial statements for the quarter ended September 30, 2023 and related notes included herein to correct this error for the financial statements for the quarter ended September 30, 2023 presented.

Note 14 - Revisions of Previously Issued Financial Statements (Continued)

The following tables present the effect of correcting this error on the Company’s previously issued financial statements.

Consolidated Statements of Operations	As previously reported			Adjustment			As revised
	For the three months ended September 30, 2023
Consolidated Statements of Operations	As previously reported			Adjustment			As revised
Cost of Goods Sold		11,317			(26	)		11,291
Gross Profit		4,572			26			4,598
Loss From Operations		(5,901	)		26			(5,875	)
Interest Expense		(3,977	)		(10	)		(3,987	)
Loss Before Taxes		(10,023	)		16			(10,007	)
Net Loss		(10,023	)		16			(10,007	)
Net Loss per share - Basic & Diluted		(0.17	)		(0.0	)		(0.17	)

Consolidated Statements of Operations	As previously reported			Adjustment			As revised
	For the nine months ended September 30, 2023
Consolidated Statements of Operations	As previously reported			Adjustment			As revised
Cost of Goods Sold		40,541			224			40,765
Gross Profit		13,413			(224	)		13,189
Loss From Operations		(24,108	)		(224	)		(24,332	)
Interest Expense		(11,905	)		(76	)		(11,981	)
Loss Before Taxes		(16,831	)		(300	)		(17,131	)
Net Loss		(16,831	)		(300	)		(17,131	)
Net Loss per share - Basic & Diluted		(0.34	)		(0.0	)		(0.34	)

Consolidated Statements of Cash Flows	As previously reported			Adjustment			As revised
	For the Period Ended September 30, 2023
Consolidated Statements of Cash Flows	As previously reported			Adjustment			As revised
Net Loss		(16,831	)		(300	)		(17,131	)
Change in Accrued Tariffs		-			300			300

Note 14 - Revisions of Previously Issued Financial Statements (Continued)

Consolidated Statements of Stockholders’ Equity	As previously reported			Adjustment			As revised
	For the Period Ended September 30, 2023
Consolidated Statements of Shareholder’s Equity	As previously reported			Adjustment			As revised
Accumulated Deficit - January 1, 2023		(27,133	)		(589	)		(27,722	)
Net Income		4,892			(117	)		4,775
Accumulated Deficit - March 31, 2023		(22,241	)		(706	)		(22,947	)
Net Loss		(11,700	)		(199	)		(11,899	)
Accumulated Deficit - June 30, 2023		(33,941	)		(905	)		(34,846	)
Accumulated Deficit, balance		(33,941	)		(905	)		(34,846	)
Net Loss		(10,023	)		16			(10,007	)
Net Income (Loss)		(10,023	)		16			(10,007	)
Accumulated Deficit - September 30, 2023		(43,964	)		(889	)		(44,853	)
Accumulated Deficit, balance		(43,964	)		(889	)		(44,853	)

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	250,000,000	250,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares issued	62,767,982	60,260,282
Common stock, shares outstanding	62,767,982	60,260,282

Related Party (Details Narrative) - USD ($) $ in Thousands				1 Months Ended	3 Months Ended		9 Months Ended
Related Party (Details Narrative) - USD ($) $ in Thousands	Apr. 12, 2024	Nov. 07, 2023	Apr. 26, 2023	Feb. 28, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Feb. 27, 2024	Jan. 26, 2024	Mar. 05, 2023
Related Party Transaction [Line Items]
Stock options exercised							11,091
Gneral and administrative expense					$ 4,361	$ 6,005	$ 14,878	$ 23,114
Chief Legal Officer [Member]
Related Party Transaction [Line Items]
Due to related party			$ 720
Share based compensation			$ 76
March Note [Member]
Related Party Transaction [Line Items]
Promissory note											$ 1,000
Loan fee amount											$ 100
January Note [Member]
Related Party Transaction [Line Items]
Promissory note										$ 1,000
Loan fee amount										$ 50
February Note [Member]
Related Party Transaction [Line Items]
Promissory note									$ 1,700
Loan fee amount									$ 85
Chief Operating Officer [Member]
Related Party Transaction [Line Items]
Repayment to officer							100
Due to related party					$ 1,000		$ 1,000
Stock options exercised		100,000
Stock options expired		76,316
Gneral and administrative expense				$ 116
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Issuance of cash and equity awards	$ 1,532
Chief Revenue Officer [Member]
Related Party Transaction [Line Items]
Issuance of cash and equity awards	490
Chief Marketing Officer [Member]
Related Party Transaction [Line Items]
Issuance of cash and equity awards	$ 236

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net Sales	$ 12,720	$ 15,889	$ 38,433	$ 53,954
Cost of Goods Sold	9,850	11,291	29,345	40,765
Gross Profit	2,870	4,598	9,088	13,189
Operating Expenses
Research and development	1,631	1,385	4,495	3,332
General and administrative	4,361	6,005	14,878	23,114
Selling and marketing	2,904	3,083	8,329	11,075
Total Operating Expenses	8,896	10,473	27,702	37,521
Loss From Operations	(6,026)	(5,875)	(18,614)	(24,332)
Other (Expense) Income
Interest expense, net	(5,615)	(3,987)	(15,253)	(11,981)
Other expense	(13)		(36)
Change in fair market value of warrant liability	4,875	(145)	3,130	19,182
Total Other (Expense) Income	(753)	(4,132)	(12,159)	7,201
Net Loss Before Taxes	(6,779)	(10,007)	(30,773)	(17,131)
Income Tax (Benefit) Expense
Net Loss	$ (6,779)	$ (10,007)	$ (30,773)	$ (17,131)
Loss Per Share- Basic	$ (0.11)	$ (0.17)	$ (0.50)	$ (0.34)
Loss Per Share- Diluted	$ (0.11)	$ (0.17)	$ (0.50)	$ (0.34)
Weighted Average Number of Shares - Basic	62,328,555	58,736,013	61,092,021	50,166,320
Weighted Average Number of Shares - Diluted	62,328,555	58,736,013	61,092,021	50,166,320

SCHEDULE OF FUTURE DEBT MATURITIES (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Debt Disclosure [Abstract]
2024
2025	938
2026	81,506
Total debt	82,444
Less: Estimated interest paid-in-kind
Total debt	82,444
Less: Unamortized debt issuance costs	(58,046)
Total carrying amount	24,398
Less: Current portion of debt	(24,398)
Total long-term debt

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION

A summary of the Company’s option activity and related information follows:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (in years)		Aggregate intrinsic value
Balances, January 1, 2024		2,364,787		$	2.69	$	1.57		7.60	$	60
Options granted		-			-		-		-		-
Options forfeited		(228,888	)		2.94		1.63		-		-
Options expired		(376,121	)		2.87		1.60		-		2
Options exercised		(11,091	)		0.35		0.53		-		4
Balances, September 30, 2024		1,748,687		$	2.63	$	1.56		6.71	$	55

At September 30, 2024
Vested and Exercisable		1,469,296		$	2.44				6.60	$	55
Vested and expected to vest		1,748,687		$	2.63				6.71	$	55

SCHEDULE OF RESTRICTED STOCK UNITS ACTIVITY

The following table presents the RSUs activity for the nine months ended September 30, 2024:

	Number of Shares			Weighted-Average Fair Market Value
Unvested shares, January 1, 2024		47,000		$	2.69
Granted and unvested		3,166,377			0.49
Forfeited		(10,000	)		2.87
Vested		(109,375	)		0.71
Unvested shares, September 30, 2024		3,094,002		$	0.51

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 29, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Apr. 01, 2024
Product Information [Line Items]
Cash and cash equivalents		$ 8,019,000		$ 8,019,000
Working capital				9,927,000
Loan amount								$ 30,846,000
Restricted cash		0		0		$ 0
Customer deposits		189,000		189,000		201,000
Contract liability recognized				201,000	$ 230,000	201,000	$ 230,000
Licensing fee	$ 5,000,000
License fee revenue		12,720,000	$ 15,889,000	38,433,000	$ 53,954,000
Long term deferred revenue		3,833,000		3,833,000
Warranty obilgation outstanding		482,000		482,000		307,000	$ 328,000
Uncertain tax positions		$ 91,000		$ 91,000		$ 91,000
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer A [Member]
Product Information [Line Items]
Concentration risk, percentage				19.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer B [Member]
Product Information [Line Items]
Concentration risk, percentage				12.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer C [Member]
Product Information [Line Items]
Concentration risk, percentage				10.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer D [Member]
Product Information [Line Items]
Concentration risk, percentage						28.00%
Accounts Receivable [Member] \| Customer Concentration Risk [Member] \| Customer E [Member]
Product Information [Line Items]
Concentration risk, percentage						10.00%
Revenue from Contract with Customer Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer A [Member]
Product Information [Line Items]
Concentration risk, percentage		16.00%		15.00%
Revenue from Contract with Customer Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer B [Member]
Product Information [Line Items]
Concentration risk, percentage					19.00%
Revenue from Contract with Customer Benchmark [Member] \| Customer Concentration Risk [Member] \| Customer C [Member]
Product Information [Line Items]
Concentration risk, percentage			11.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Vendor A [Member]
Product Information [Line Items]
Concentration risk, percentage				36.00%		65.00%
Accounts Payable [Member] \| Supplier Concentration Risk [Member] \| Vendor B [Member]
Product Information [Line Items]
Concentration risk, percentage				18.00%
Total Purchases [Member] \| Supplier Concentration Risk [Member] \| Vendor A [Member]
Product Information [Line Items]
Concentration risk, percentage		16.00%		11.00%
Total Purchases [Member] \| Supplier Concentration Risk [Member] \| Vendor B [Member]
Product Information [Line Items]
Concentration risk, percentage					16.00%
Total Purchases [Member] \| Supplier Concentration Risk [Member] \| Vendor C [Member]
Product Information [Line Items]
Concentration risk, percentage		13.00%	14.00%
Total Purchases [Member] \| Supplier Concentration Risk [Member] \| Vendor D [Member]
Product Information [Line Items]
Concentration risk, percentage			11.00%
Total Purchases [Member] \| Supplier Concentration Risk [Member] \| Vendor E [Member]
Product Information [Line Items]
Concentration risk, percentage			10.00%
License Agreement [Member]
Product Information [Line Items]
Licensing fee	$ 5,000,000
Estimated useful life	5 years
License fee revenue		$ 167,000		$ 167,000
Deferred revenue		4,833,000		4,833,000		$ 0
Short term deferred revenue		1,000,000		1,000,000
Long term deferred revenue		3,833,000		$ 3,833,000
Minimum [Member]
Product Information [Line Items]
Payment term for distributors and OEMs				30 days
Term of product warranty provided				5 years
Maximum [Member]
Product Information [Line Items]
Payment term for distributors and OEMs				90 days
Term of product warranty provided				10 years
Senior Secured Term Loan Facility [Member] \| Term Loan [Member]
Product Information [Line Items]
Loan amount		$ 75,000,000		$ 75,000,000

License Agreement (Details Narrative) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Jul. 29, 2024	Sep. 30, 2024	Sep. 30, 2024
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Licensing fee	$ 5,000
License Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Licensing fee	5,000
Payment of quarterly license fee	$ 25,000
Initial licensing fee recognized revenue description			straight-line basis over five years
Amortization of license agreement		$ 167	$ 167
Royalty payments received or earned		$ 0	0
Short term deferred revenue			1,000
Long term deferred revenue			$ 3,833

Cover - $ / shares	9 Months Ended
Cover - $ / shares	Sep. 30, 2024	Nov. 12, 2024
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	001-40730
Entity Registrant Name	DRAGONFLY ENERGY HOLDINGS CORP.
Entity Central Index Key	0001847986
Entity Tax Identification Number	85-1873463
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	1190 Trademark Drive #108
Entity Address, City or Town	Reno
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89521
City Area Code	(775)
Local Phone Number	622-3448
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		63,128,135
Entity Listing, Par Value Per Share	$ 0.0001
Common Stock, par value $0.0001 per share
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	DFLI
Security Exchange Name	NASDAQ
Redeemable Warrants, exercisable for common stock at an exercise price of $11.50 per share, subject to adjustment
Title of 12(b) Security	Redeemable Warrants, exercisable for common stock at an exercise price of $11.50 per share, subject to adjustment
Trading Symbol	DFLIW
Security Exchange Name	NASDAQ

- Details

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Period Type:

Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 12 - Stock-Based Compensation

Share-based compensation expense for options and RSUs totaling $759 and $6,387 was recognized in the Company’s consolidated statements of operations for the nine months ended September 30, 2024 and 2023, respectively. Share-based compensation expense for options and RSUs totaling $256 and $946 was recognized in the Company’s consolidated statements of operations for the three months ended September 30, 2024 and 2023, respectively.

Of the $759 of share-based compensation incurred during the nine months ended September 30, 2024, $81 is allocated to cost of goods sold, $136 to research and development, $198 to selling and marketing, and $344 to general and administrative expenses. Of the $6,387 of share-based compensation incurred during the nine months ended September 30, 2023, $104 is allocated to cost of goods sold, $82 to research and development, $1,033 to selling and marketing, and $5,168 to general and administrative expenses.

Of the $256 of share-based compensation incurred during the three months ended September 30, 2024, $21 is allocated to cost of goods sold, $35 to research and development, $71 to selling and marketing, and $129 to general and administrative expenses. Of the $946 of share-based compensation incurred during the three months ended September 30, 2023, $29 is allocated to cost of goods sold, $33 to research and development, $62 to selling and marketing, and $822 to general and administrative expenses.

The Company maintains the Dragonfly Energy Holdings Corp. Employee Stock Purchase Plan (the “ESPP”) which is designed to allow eligible employees and the eligible employees of the Company’s participating subsidiaries to purchase shares of the Company’s common stock, at semi-annual intervals, with their accumulated payroll deductions. A total of 2,464,400 shares of the Company’s common stock were initially available for issuance under the ESPP. The share limit will automatically increase on the first trading day in January of each year by an amount equal to lesser of (1) 1% of the total number of outstanding shares of the Company’s common stock on December 31 in the prior year, (2) 1,500,000 shares, or (3) such number as determined by the Company’s board of directors.

Note 12 - Stock-Based Compensation (continued)

A summary of the Company’s option activity and related information follows:

	Number of Options			Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (in years)		Aggregate intrinsic value
Balances, January 1, 2024		2,364,787		$	2.69	$	1.57		7.60	$	60
Options granted		-			-		-		-		-
Options forfeited		(228,888	)		2.94		1.63		-		-
Options expired		(376,121	)		2.87		1.60		-		2
Options exercised		(11,091	)		0.35		0.53		-		4
Balances, September 30, 2024		1,748,687		$	2.63	$	1.56		6.71	$	55

At September 30, 2024
Vested and Exercisable		1,469,296		$	2.44				6.60	$	55
Vested and expected to vest		1,748,687		$	2.63				6.71	$	55

During the nine months ended September 30, 2024, the Company issued 11,091 shares as a result of exercised stock options upon the receipt of proceeds of approximately $4.

Restricted Stock Units

On February 10, 2023, the Company granted 461,998 restricted stock units (“RSUs”) under the 2022 plan, which vested immediately. The fair value of these restricted stock units on the grant date was $3,464, and the full amount was recorded as compensation expense during the nine months ended September 30, 2023. No related expense was recorded during the three months ended September 30, 2023. During the nine months ended September 30, 2023, the Company also granted 37,000 additional RSUs. The fair value of these unvested RSUs was $121, with $14 of expense recorded during both the three and nine months ended September 30, 2023. Additionally, during the three months ended September 30, 2023, the Company granted another 9,000 RSUs. The fair value of these RSUs on the grant date was $16, and no expense was recognized for this grant during the three months ended September 30, 2023.

On February 5, 2024, the Company granted 220,000 RSUs of which 100,000 vested immediately. The fair value of the 220,000 RSUs was $95 and an expense of $48 was recorded as compensation expense during the nine months ended September 30, 2024.

On April 12, 2024, the Company issued a total of 836,295 RSUs to the following employees: (i) 567,407 RSUs to the Chief Executive Officer; (ii) 181,481 RSUs to the Chief Revenue Officer; and (iii) 87,407 RSUs to the Chief Marketing Officer. Each of the RSUs granted will vest in three equal annual installments, with the first vesting date on the one (1) year anniversary of the date of issuance and the following two vesting dates on each subsequent anniversary of the date of issuance, subject to each employees’ continued employment as of each vesting date.

On April 12, 2024, the board of directors authorized the issuance of 222,222 RSUs to each director in connection with their service as directors for the year ended December 31, 2023. The RSUs will vest in three equal annual installments, with the first vesting date on the one (1) year anniversary date of their issuance, subject to the directors continued service on with the Company on each vesting date.

On April 17, 2024, the Company issued 3,428 shares in exchange for 4,875 vested RSU’s less shares deducted to cover taxes.

On May 22, 2024, the Company issued 375 shares in exchange for 375 vested RSU’s.

On June 24, 2024, the Company granted 21,750 RSUs. The fair value of the 2,191,377 RSUs granted during the three months ended June 30, 2024 was $995 and an expense of $154 was recorded as compensation expense during the nine months ended September 30, 2024.

Note 12 - Stock-Based Compensation (continued)

Restricted Stock Units (Continued)

In addition to the restricted stock unit awards, the Board also approved the following cash awards to the above referenced employees: (i) $511 to the Chief Executive Officer; (ii) $163 to the Chief Revenue Officer; and (iii) $79 to the Chief Marketing Officer. Each of the approved cash awards will not be paid out to the employees until the Company has achieved a minimum cash balance of $30,000, and are subject to each employee’s continued employment on the date of payment.

On August 19, 2024, the Company issued a total of 735,000 RSUs. Each of the RSUs granted will vest in three equal annual installments, with the first vesting date on the one (1) year anniversary of the date of issuance and the following two vesting dates on each subsequent anniversary of the date of issuance, subject to each employees’ continued employment as of each vesting date. The fair value of the 735,000 RSUs was $448 and an expense of $17 was recorded as compensation expense during the nine months ended September 30, 2024, respectively.

On August 26, 2024, the Company issued a total of 20,000 RSUs. Each of the RSUs granted will vest in three equal annual installments, with the first vesting date on the one (1) year anniversary of the date of issuance and the following two vesting dates on each subsequent anniversary of the date of issuance, subject to each employees’ continued employment as of each vesting date. The fair value of the 20,000 RSUs was $12 and no expense was recorded as compensation expense during the nine months ended September 30, 2024.

The following table presents the RSUs activity for the nine months ended September 30, 2024:

	Number of Shares			Weighted-Average Fair Market Value
Unvested shares, January 1, 2024		47,000		$	2.69
Granted and unvested		3,166,377			0.49
Forfeited		(10,000	)		2.87
Vested		(109,375	)		0.71
Unvested shares, September 30, 2024		3,094,002		$	0.51

As of September 30, 2024 there were 8,359,925 shares of unissued authorized and available for future awards under the 2022 Equity Incentive Plan and the ESPP.

Note 12 - Stock-Based Compensation (continued)

Employee Stock Purchase Plan

The Company maintains the ESPP which permits eligible employees to purchase shares at not less than 85% of the market value of the Company’s common stock on the offering date or the purchase date of the applicable offering period, whichever is lower. The plan was adopted by the Company’s Board of Directors on May 13, 2022. On April 24, 2024, the Company issued 244,774 common shares in connection with its Employee Stock Purchase Plan for a total consideration of approximately $112. The ESPP allows employees to purchase shares at a 15% discount to the lesser of the stock price at the beginning or the end of the offering period, which was October 1, 2023, and April 1, 2024, respectively. The discount resulted in an exercise price of $0.46 per share. During the three and nine months ended September 30, 2024, the Company did not recognize any compensation expense. On April 1, 2024, the Company commenced a second offering under the ESPP, which ran through September 30, 2024, with the same terms as the first offering. As of September 30, 2024, the Company had 305,552 shares reserved for issuance in connection with the second ESPP offering. The Company recorded a liability of approximately $186 related to employee contributions. However, $51 of this amount was disallowed for issuance due to the 10,000-share purchase limit. The remaining $135 was settled after the third quarter ended September 30, 2024, and the corresponding shares were issued.

License Agreement

9 Months Ended

Sep. 30, 2024

License Agreement

License Agreement

Note 8 - License Agreement

On July 29, 2024, Legacy Dragonfly and Battle Born LLC, a wholly-owned subsidiary of Legacy Dragonfly, entered into the License Agreement with Stryten. Under the terms of the License Agreement, Battle Born LLC granted Stryten an exclusive, worldwide license to use certain trademarks associated with the Company’s lithium-ion battery brand, Battle Born Batteries®, for business-to-business battery sales in specified markets. In exchange, Stryten paid an initial licensing fee of $5,000 and will make additional mid-single digit royalty payments to be paid based on net sales to be paid quarterly utilizing the licensed trademarks, with total royalties capped at $25,000. Once the cap is reached, Stryten will be required to pay a nominal annual license fee. The License Agreement is perpetual unless terminated in accordance with its terms. Concurrently, the Company transferred all intellectual property rights related to the licensed trademarks to Battle Born LLC and retained a worldwide license outside of Stryten’s designated markets. The $5,000 initial licensing fee is being recognized as revenue on a straight-line basis over five years. For the three and nine months ended September 30, 2024, the Company has recorded $167 in revenue related to the amortization of the License Agreement and no royalty payments have been received or earned. As of September 30, 2024, the Company has recorded $1,000 in short term deferred revenue and $3,833 in long-term deferred revenue related to the license agreement.

Subsequent Events

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Note 15 - Subsequent Events

From October 1, 2024 through November 12, 2024, the Company issued and sold approximately 53,719 shares of Common Stock under the ChEF Equity Facility, resulting in additional net cash proceeds of $26,660. In addition, from October 1, 2024 through November 12, 2024, the Company issued certain Penny Warrants to purchase 419 shares of Common Stock to the Term Loan Lenders in accordance with the anti-dilution provisions of the Penny Warrants with respect to certain sales the Company made under the ChEF Equity Facility.

SUMMARY OF RESERVED SHARES OF COMMON STOCK FOR ISSUANCE (Details) - shares	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Equity [Abstract]
Options issued and outstanding	1,748,687	2,364,787	3,274,940
Common stock outstanding	62,767,982	60,260,282	58,880,712
Warrants outstanding	32,181,100		23,219,622
Earnout shares	25,000,000		40,000,000
Shares available for future issuance	8,359,925		4,470,153
Total	130,057,694		129,845,427

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (6,779)	$ (13,627)	$ (10,367)	$ (10,007)	$ (11,899)	$ 4,775	$ (30,773)	$ (17,131)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Asset Purchase Agreement (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 30, 2022	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Asset Acquisition [Line Items]
Cost of sales	$ 3,000	$ 9,850	$ 11,291	$ 29,345	$ 40,765
Selling and Marketing Expense [Member]
Asset Acquisition [Line Items]
Compensation expense						$ 2,000
Thomason and Jones [Member]
Asset Acquisition [Line Items]
Payment of related party	1,000
Inventory and Intellectual Property Assets [Member]
Asset Acquisition [Line Items]
Purchase price for acquiring machinery and equipment				$ 444
Inventory and Intellectual Property Assets [Member] \| Richard Jones [Member]
Asset Acquisition [Line Items]
Contingent payments	1,000
Inventory and Intellectual Property Assets [Member] \| Maximum [Member]
Asset Acquisition [Line Items]
Purchase price for acquiring machinery and equipment	$ 700

Common Stock (Details Narrative) - USD ($) $ in Thousands		9 Months Ended
Common Stock (Details Narrative) - USD ($) $ in Thousands	Oct. 07, 2022	Sep. 30, 2024	Sep. 30, 2023
Penny Warrants [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Peny warrants		20,524
Purchase Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Aggregated purchase price	$ 150,000
Number of shares issue		2,245,391	98,500
Aggregate net proceeds		$ 1,705	$ 671

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS UNDER FINANCE LEASES (Details) - USD ($)
$ in Thousands

Sep. 30, 2024

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

December 31, 2024

^[1]

$ 10

Less imputed interest

Total operating lease liabilities

$ 75

$ 102

[1]	Represents scheduled payments for the remaining three-month period ending December 31, 2024.

SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET LOSS PER SHARE (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of common shares-basic	34,039,162	26,711,562
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of common shares-basic	32,181,100	23,219,622
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of common shares-basic	109,375	217,000
Share-Based Payment Arrangement, Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average number of common shares-basic	1,748,687	3,274,940

Revisions of Previously Issued Financial Statements (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Changes and Error Corrections [Abstract]

SCHEDULE OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The following tables present the effect of correcting this error on the Company’s previously issued financial statements.

Consolidated Statements of Operations	As previously reported			Adjustment			As revised
	For the three months ended September 30, 2023
Consolidated Statements of Operations	As previously reported			Adjustment			As revised
Cost of Goods Sold		11,317			(26	)		11,291
Gross Profit		4,572			26			4,598
Loss From Operations		(5,901	)		26			(5,875	)
Interest Expense		(3,977	)		(10	)		(3,987	)
Loss Before Taxes		(10,023	)		16			(10,007	)
Net Loss		(10,023	)		16			(10,007	)
Net Loss per share - Basic & Diluted		(0.17	)		(0.0	)		(0.17	)

Consolidated Statements of Operations	As previously reported			Adjustment			As revised
	For the nine months ended September 30, 2023
Consolidated Statements of Operations	As previously reported			Adjustment			As revised
Cost of Goods Sold		40,541			224			40,765
Gross Profit		13,413			(224	)		13,189
Loss From Operations		(24,108	)		(224	)		(24,332	)
Interest Expense		(11,905	)		(76	)		(11,981	)
Loss Before Taxes		(16,831	)		(300	)		(17,131	)
Net Loss		(16,831	)		(300	)		(17,131	)
Net Loss per share - Basic & Diluted		(0.34	)		(0.0	)		(0.34	)

Consolidated Statements of Cash Flows	As previously reported			Adjustment			As revised
	For the Period Ended September 30, 2023
Consolidated Statements of Cash Flows	As previously reported			Adjustment			As revised
Net Loss		(16,831	)		(300	)		(17,131	)
Change in Accrued Tariffs		-			300			300

Note 14 - Revisions of Previously Issued Financial Statements (Continued)

Consolidated Statements of Stockholders’ Equity	As previously reported			Adjustment			As revised
	For the Period Ended September 30, 2023
Consolidated Statements of Shareholder’s Equity	As previously reported			Adjustment			As revised
Accumulated Deficit - January 1, 2023		(27,133	)		(589	)		(27,722	)
Net Income		4,892			(117	)		4,775
Accumulated Deficit - March 31, 2023		(22,241	)		(706	)		(22,947	)
Net Loss		(11,700	)		(199	)		(11,899	)
Accumulated Deficit - June 30, 2023		(33,941	)		(905	)		(34,846	)
Accumulated Deficit, balance		(33,941	)		(905	)		(34,846	)
Net Loss		(10,023	)		16			(10,007	)
Net Income (Loss)		(10,023	)		16			(10,007	)
Accumulated Deficit - September 30, 2023		(43,964	)		(889	)		(44,853	)
Accumulated Deficit, balance		(43,964	)		(889	)		(44,853	)

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current Assets
Cash and cash equivalents	$ 8,019	$ 12,713
Accounts receivable, net of allowance for credit losses	3,727	1,639
Inventory	24,013	38,778
Prepaid expenses	734	772
Prepaid inventory	1,746	1,381
Prepaid income tax	345	519
Other current assets	753	118
Total Current Assets	39,337	55,920
Property and Equipment
Machinery and equipment	18,128	16,714
Office furniture and equipment	338	319
Leasehold improvements	9,032	1,727
Vehicle	33	33
Total	27,531	18,793
Less accumulated depreciation and amortization	(3,815)	(2,824)
Property and Equipment, Net	23,716	15,969
Operating lease right of use assets, net	20,383	3,315
Other assets	445
Total Assets	83,881	75,204
Current Liabilities
Accounts payable	10,128	10,258
Accrued payroll and other liabilities	8,672	7,107
Accrued tariffs	1,881	1,713
Customer deposits	189	201
Deferred revenue, current portion	1,000
Uncertain tax position liability	91	91
Notes payable, current portion, net of debt issuance costs	24,398	19,683
Operating lease liability, current portion	2,867	1,288
Financing lease liability, current portion	38	36
Total Current Liabilities	49,264	40,377
Long-Term Liabilities
Deferred revenue, net of current portion	3,833
Warrant liabilities	7,714	4,463
Accrued expenses-long term		152
Operating lease liability, net of current portion	23,330	2,234
Financing lease liability, net of current portion	37	66
Total Long-Term Liabilities	34,914	6,915
Total Liabilities	84,178	47,292
Commitments and Contingencies (See Note 5)
Stockholders’ (Deficit) Equity
Preferred stock, 5,000,000 shares at $0.0001 par value, authorized, no shares issued and outstanding as of September 30, 2024 December 31, 2023, respectively
Common stock, 250,000,000 shares at $0.0001 par value, authorized, 62,767,982 and 60,260,282 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively	6	6
Additional paid in capital	72,009	69,445
Accumulated deficit	(72,312)	(41,539)
Total Stockholders’ (Deficit) Equity	(297)	27,912
Total Liabilities and Stockholders’ (Deficit) Equity	$ 83,881	$ 75,204

SCHEDULE OF LEASE COST (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
SCHEDULE OF LEASE COST (Details) - USD ($) $ in Thousands	Feb. 02, 2022	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Loss Contingencies [Line Items]
Operating lease cost	$ 23	$ 1,201	$ 389	$ 3,100	$ 1,177
Cost of Sales [Member]
Loss Contingencies [Line Items]
Operating lease cost		310	345	1,001	1,040
Research and Development Expense [Member]
Loss Contingencies [Line Items]
Operating lease cost		204	22	357	67
General and Administrative Expense [Member]
Loss Contingencies [Line Items]
Operating lease cost		676	11	1,708	35
Selling and Marketing Expense [Member]
Loss Contingencies [Line Items]
Operating lease cost		$ 11	$ 11	$ 34	$ 35

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 7,714	$ 4,463
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	7,714	4,463
Fair Value	7,714	4,463
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	11	15
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	7,703	4,448
Fair Value, Recurring [Member] \| Term Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	5,017	1,014
Fair Value	5,017	1,014
Fair Value, Recurring [Member] \| Term Loan [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Fair Value, Recurring [Member] \| Term Loan [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Fair Value, Recurring [Member] \| Term Loan [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	5,017	1,014
Fair Value, Recurring [Member] \| June Public Offering [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	2,686	3,434
Fair Value	2,686	3,434
Fair Value, Recurring [Member] \| June Public Offering [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Fair Value, Recurring [Member] \| June Public Offering [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Fair Value, Recurring [Member] \| June Public Offering [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	2,686	3,434
Fair Value, Recurring [Member] \| Private Placement Warrants [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	11	15
Fair Value	11	15
Fair Value, Recurring [Member] \| Private Placement Warrants [Member] \| Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value
Fair Value, Recurring [Member] \| Private Placement Warrants [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	11	15
Fair Value, Recurring [Member] \| Private Placement Warrants [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value

Commitments and Contingencies (Details Narrative) $ in Thousands			3 Months Ended		9 Months Ended
	Apr. 12, 2024 USD ($) ft²	Feb. 02, 2022 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Loss Contingencies [Line Items]
Monthly base rent		$ 230
Operating lease costs		23	$ 1,201	$ 389	$ 3,100	$ 1,177
Estimated monthly property taxes		$ 21
Percentage of escalation of monthly base rent		3.00%
Percentage of escalation of fix operating expense costs		2.40%
Area of land \| ft²	64,000
Rent for the premises payable	$ 45
Lease term percentage	3.00%
Landlord security deposit	$ 50
Minimum [Member]
Loss Contingencies [Line Items]
Lease payments					$ 111
Finance lease term			3 years		3 years
Maximum [Member]
Loss Contingencies [Line Items]
Lease payments					$ 309
Finance lease term			5 years		5 years

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 5 - Commitments and Contingencies

Litigation

From time to time the Company may be named in claims arising in the ordinary course of business. Currently, no legal proceedings, governmental actions, administrative actions, investigations or claims are pending against the Company or involve the Company that, in the opinion of the Company’s management, could reasonably be expected to have a material adverse effect on the Company’s business and financial condition.

Operating Leases

The Company has leases related to the main office, warehouse space, research and development lab, engineering office, and sales office, all located in Reno, Nevada. The leases require annual escalating monthly payments ranging from $111 to $309. On February 2, 2022, the Company entered into a 124-month lease agreement in Reno, Nevada. The lease calls for monthly base rent of $230, $23 of fixed operating expense costs, and estimated monthly property taxes of $21. The monthly base rent and fixed operating expense costs are subject to escalation of 3% and 2.4%, respectively, on an annual basis. A certificate of substantial completion has been issued and the lease commencement date was March 25, 2024. The Company began paying monthly rent under the lease on July 24, 2024.

On April 12, 2024 the Company entered into a lease agreement, pursuant to which the Company agreed to lease an approximately 64,000 square foot facility (the “Premises”) located in Fernley, Nevada, to be used for general, warehousing, assembly/light manufacturing, painting of products, storage fulfillment, distribution of the Company’s products, and other uses as permitted under the Fernley Lease Agreement (the “Fernley Lease Agreement”). The effective date of the lease is April 1, 2024 (the “Lease Commencement Date”). However, the initial term of the Fernley Lease Agreement (the “Term”) is for a period of sixty (60) months, effective June 1, 2024 (the “Rent Commencement Date”). The base rent for the Premises, payable monthly, is $45 for the first ten months, starting June 1, 2024, and is subject to a three percent (3.0%) increase on the anniversary of the Lease Commencement Date each year. The Company also will be responsible for twenty-five percent (25%) of any operating expenses, taxes and insurance expenses incurred by the Landlord in connection with the building in which the Premises are located (the “Expenses”) as well as utility expenses. The Expenses are subject to recalculation and increase upon the completion of the Initial Improvements (as defined in the Fernley Lease Agreement). The Landlord is responsible for completing the Initial Improvements. The Fernley Lease Agreement also contains customary default provisions allowing the Landlord to terminate the Fernley Lease Agreement if the Company fails to cure certain breaches of its obligations under the Fernley Lease Agreement within a specified period of time upon written notice to the Company. Concurrent with the execution of the Fernley Lease Agreement, the Company paid the Landlord a security deposit of $50.

Note 5 - Commitments and Contingencies (continued)

The following table presents the breakout of the operating leases as of:

	September 30, 2024			December 31, 2023
Operating lease right-of-use assets	$	20,383		$	3,315
Short-term operating lease liabilities		2,867			1,288
Long-term operating lease liabilities		23,330			2,234
Total operating lease liabilities	$	26,197		$	3,522
Weighted average remaining lease term		8.62 years			2.6 years
Weighted average discount rate		7.84	%		5.2	%

Assumptions used in determining the Company’s incremental borrowing rate include its implied credit rating and an estimate of secured borrowing rates based on comparable market data.

At September 30, 2024, the future minimum lease payments under these operating leases are as follows:

Fiscal Years Ending
December 31, 2024⁽¹⁾	$	1,187
December 31, 2025		4,817
December 31, 2026		4,376
December 31, 2027		3,588
December 31, 2028		3,695
Thereafter		19,325
Total lease payments		36,988
Less imputed interest		10,791
Total operating lease liabilities	$	26,197

⁽¹⁾	Represents scheduled payments for the remaining three-month period ending December 31, 2024.

SCHEDULE OF LEASE COST

		For The Three Months Ended September 30,				For The Nine Months Ended September 30,
Lease cost	Classification	2024		2023		2024		2023
Operating lease cost	Cost of goods sold	$	310	$	345	$	1,001	$	1,040
Operating lease cost	Research and development		204		22		357		67
Operating lease cost	General and administration		676		11		1,708		35
Operating lease cost	Selling and marketing		11		11		34		35
Total lease cost		$	1,201	$	389	$	3,100	$	1,177

All lease costs included in the schedule above are fixed.

Note 5 - Commitments and Contingencies (continued)

Financing Leases

The Company entered into finance lease agreements for equipment to support the Company’s operations. Payments under the finance lease agreements are fixed for a term of 3-5 years. The leased assets are recognized in property plant & equipment.

The following table presents the breakout of the financing leases as of:

	September 30, 2024			December 31, 2023
Finance lease right-of-use assets	$	82		$	106
Short-term finance lease liabilities		38			36
Long-term finance lease liabilities		37			66
Total finance lease liabilities	$	75		$	102
Weighted average remaining lease term		2.0 years			2.7 years
Weighted average discount rate		5.2	%		5.2	%

Assumptions used in determining our incremental borrowing rate include our implied credit rating and an estimate of secured borrowing rates based on comparable market data.

At September 30, 2024, the future minimum lease payments under these operating leases are as follows:

Fiscal Years Ending
December 31, 2024⁽¹⁾	$	10
December 31, 2025		41
December 31, 2026		24
December 31, 2027		4
Total lease payments		79
Less imputed interest		4
Total operating lease liabilities	$	75

⁽¹⁾	Represents scheduled payments for the remaining three-month period ending December 31, 2024.

Other Contingencies

See Note 7 for further discussion regarding contingent consideration arising from the April 2022 Asset Purchase agreement with Thomason Jones Company, LLC.

SCHEDULE OF PENNY WARRANTS (Details)	9 Months Ended
SCHEDULE OF PENNY WARRANTS (Details)	Sep. 30, 2024 $ / shares
May 2024 Penny Warrants [Member]
Class of Warrant or Right [Line Items]
Stock price	$ 1.19
Strike price	$ 0.01
Term	10 years
Volatility	88.00%
Risk-free rate	4.50%
June 2024 Penny Warrants [Member]
Class of Warrant or Right [Line Items]
Stock price	$ 0.85
Strike price	$ 0.01
Term	10 years
Volatility	91.00%
Risk-free rate	4.40%
September 2024 Penny Warrants [Member]
Class of Warrant or Right [Line Items]
Stock price	$ 0.53
Strike price	$ 0.01
Term	10 years
Volatility	90.00%
Risk-free rate	3.80%

SCHEDULE OF OPTION ACTIVITY AND RELATED INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]
Number of Options, Balance at the beginning		2,364,787
Weighted- Average Exercise Price - Balances at the beginning		$ 2.69
Weighted- Average Grant Date Fair Value, Balances at the beginning		$ 1.57
Weighted- Average Remaining Contractual Life (in years)			7 years 7 months 6 days
Aggregate Intrinsic value Balances at the beginning		$ 60
Number of Options granted
Weighted- Average Exercise Price Options granted
Weighted- Average Grant Date Fair Value, Options granted
Aggregate Intrinsic value Options granted
Number of Options forfeited		(228,888)
Weighted- Average Exercise Price Options forfeited		$ 2.94
Weighted- Average Grant Date Fair Value, Options forfeited		$ 1.63
Aggregate Intrinsic value Options forfeited
Number of Options expired		(376,121)
Weighted- Average Exercise Price Options expired		$ 2.87
Weighted- Average Grant Date Fair Value, Options expired		$ 1.60
Aggregate Intrinsic value Options expired		$ 2
Number of Options exercised		(11,091)
Weighted- Average Exercise Price Options Exercised		$ 0.35
Weighted- Average Grant Date Fair Value, Options exercised		$ 0.53
Aggregate Intrinsic value Options exercised		$ 4
Number of Options, Balance at the end	3,274,940	1,748,687	2,364,787
Weighted- Average Exercise Price Balances at the end		$ 2.63	$ 2.69
Weighted- Average Grant Date Fair Value, Balances at the end		$ 1.56	$ 1.57
Weighted- Average Remaining Contractual Life (in years)		6 years 8 months 15 days
Aggregate Intrinsic value Balances at the end		$ 55	$ 60
Number of Options, Vested and Exercisable		1,469,296
Weighted- Average Exercise Price Vested and Exercisable		$ 2.44
Weighted- Average Remaining Contractual Life (in years), Vested and Exercisable		6 years 7 months 6 days
Aggregate Intrinsic value Vested and Exercisable		$ 55
Number of Options, Vested and expected to vest		1,748,687
Weighted- Average Exercise Price Vested and expected to vest		$ 2.63
Weighted- Average Remaining Contractual Life (in years), Vested and expected to vest		6 years 8 months 15 days
Aggregate Intrinsic value Vested and expected to vest		$ 55

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

SCHEDULE OF FAIR VALUE OF ASSETS AND LIABILITIES

The following table presents assets and liabilities that were measured at fair value in the Condensed Consolidated Balance Sheets on a recurring basis as of September 30, 2024:

	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
	As of September 30, 2024
Liabilities
Warrant liability- Term Loan	$	5,017	$	5,017	$	-	$	-	$	5,017
Warrant liability- June Public Offering		2,686		2,686		-		-		2,686
Warrant liability- Private Placement Warrants		11		11		-		11		-
Total liabilities	$	7,714	$	7,714	$	-	$	11	$	7,703

The following table presents assets and liabilities that were measured at fair value in the Condensed Consolidated Balance Sheets on a recurring basis as of December 31, 2023:

	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
	As of December 31, 2023
Liabilities
Warrant liability- Term Loan	$	1,014	$	1,014	$	-	$	-	$	1,014
Warrant liability- June Public Offering		3,434		3,434		-		-		3,434
Warrant liability- Private placement warrants		15		15		-		15		-
Total liabilities	$	4,463	$	4,463	$	-	$	15	$	4,448

SCHEDULE OF FAIR VALUE ON RECURRING BASIS USING SIGNIFICANT UNOBSERVABLE INPUTS

The changes for Level 3 items measured at fair value on recurring basis using significant unobservable inputs are as follows:

	Warrant Liability – Term Loan			Warrant liability- June Public Offering
Fair value as of January 1, 2024	$	1,014		$	3,434
Warrant Issued
Warrant exercises
Change in fair value, gain included in net loss⁽¹⁾		(4	)		(220	)
Fair value as of March 31, 2024		1,010			3,214
Warrants Issued		4,796			-
Change in fair value, (gain) loss included in net loss⁽¹⁾		(304	)		2,277
Fair value as of June 30, 2024		5,502			5,491
Warrants Issued		1,585			-
Change in fair value, (gain) loss included in net loss⁽¹⁾		(2,070	)		(2,805	)
Fair value as of September 30, 2024	$	5,017		$	2,686

	Warrant Liability – Term Loan			Warrant liability- June Public Offering
Fair value as of January 1, 2023	$	30,841		$	-
Warrants Issued
Warrant exercises		(8,822	)		-
Change in fair value, gain included in net loss⁽¹⁾		(17,998	)		-
Fair value as of March 31, 2023		4,021			-
Warrants Issued		-			13,762
Warrant exercises		(2,462	)		-
Change in fair value, gain included in net loss⁽¹⁾		(684	)		(150	)
Fair value as of June 30, 2023		875			13,612
Fair value, balance		875			13,612
Change in fair value, loss included in net loss⁽¹⁾		36			154
Warrant exercises		-			(617	)
Fair value as of September 30, 2023	$	911		$	13,149
Fair value, balance	$	911		$	13,149

⁽¹⁾	Changes in fair value of warrant liabilities are disclosed separately in the Condensed Consolidated Statements of Operations

SCHEDULE OF FAIR VALUE ON RECURRING BASIS USING SIGNIFICANT UNOBSERVABLE INPUTS (Details) - USD ($)
$ in Thousands

3 Months Ended

Sep. 30, 2024

Jun. 30, 2024

Mar. 31, 2024

Sep. 30, 2023

Jun. 30, 2023

Mar. 31, 2023

Term Loan [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Fair value, balance

$ 5,502

$ 1,010

$ 1,014

$ 875

$ 4,021

$ 30,841

Warrants Issued

1,585

4,796

Warrant exercises

(2,462)

(8,822)

Change in fair value, loss included in net loss

^[1]

(2,070)

(304)

(4)

(684)

(17,998)

Fair value, balance

5,017

5,502

1,010

911

875

4,021

June Public Offering [Member]

Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]

Fair value, balance

5,491

3,214

3,434

13,612

Warrants Issued

13,762

Warrant exercises

(617)

Change in fair value, loss included in net loss

^[1]

(2,805)

2,277

(220)

154

(150)

Fair value, balance

$ 2,686

$ 5,491

$ 3,214

$ 13,149

$ 13,612

[1]	Changes in fair value of warrant liabilities are disclosed separately in the Condensed Consolidated Statements of Operations

SCHEDULE OF INVENTORY (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw material	$ 20,692	$ 31,604
Finished goods	3,321	7,174
Total inventory	$ 24,013	$ 38,778

Insider Trading Arrangements	6 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Subsequent Events (Details Narrative) - USD ($)	1 Months Ended
Subsequent Events (Details Narrative) - USD ($)	Nov. 12, 2024	Sep. 30, 2024	Sep. 30, 2023
Subsequent Event [Line Items]
Number of warrants issued		32,181,100	23,219,622
Subsequent Event [Member]
Subsequent Event [Line Items]
Shares issued	53,719
Net cash proceed	$ 26,660
Number of warrants issued	419

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

SCHEDULE OF DISAGGREGATED REVENUES BY DISTRIBUTION CHANNEL

The following table present our disaggregated revenues by distribution channel:

Sales	2024		2023		2024		2023
	For the Three Months Ended				For the Nine Months Ended
	September 30				September 30
Sales	2024		2023		2024		2023
Direct to customer		5,153		10,305		16,890		30,314
Original equipment manufacture		7,400		5,584		21,376		23,640
License fee revenue		167		-		167		-
Total	$	12,720	$	15,889	$	38,433	$	53,954

SCHEDULE OF WARRANTY OBLIGATION

	September 30, 2024			December 31, 2023
Beginning warranty obligation		307			328
Provision of warranty expense		433			397
Settlement of warranty claims		(258	)		(418	)
Ending warrant obligation	$	482		$	307

SCHEDULE OF POTENTIAL SHARES OF COMMON STOCK EXCLUDED FROM DILUTED NET LOSS PER SHARE

The following table sets forth the number of potential shares of common stock that have been excluded from diluted net loss per share because their effect was anti-dilutive:

	September 30, 2024		September 30, 2023
Warrants		32,181,100		23,219,622
Restricted stock units		109,375		217,000
Options		1,748,687		3,274,940
Weighted average number of common shares-basic		34,039,162		26,711,562

Common Stock

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Common Stock

Note 11 - Common Stock

No dividends on common stock had been declared by the Company.

For the nine months ended September 30, 2024 and 2023, the Company had reserved shares of common stock for issuance as follows:

	September 30, 2024		September 30, 2023
Options issued and outstanding		1,748,687		3,274,940
Common stock outstanding		62,767,982		58,880,712
Warrants outstanding		32,181,100		23,219,622
Earnout shares		25,000,000		40,000,000
Shares available for future issuance		8,359,925		4,470,153
Total		130,057,694		129,845,427

Note 11 - Common Stock (continued)

ChEF Equity Facility

On October 7, 2022, the Company and Chardan Capital Markets LLC, a New York limited liability company (“CCM LLC”) entered into a purchase agreement (the “Original Purchase Agreement”) and a Registration Rights Agreement in connection with the merger. Pursuant to the Original Purchase Agreement, the Company has the right to sell to CCM LLC an amount of shares of Common Stock, up to a maximum aggregate purchase price of $150 million, pursuant to the terms of the Purchase Agreement (the “ChEF Equity Facility”). In addition, the Company appointed LifeSci Capital, LLC as “qualified independent underwriter” with respect to the transactions contemplated by the Purchase Agreement. On May 20, 2024, the Company entered into an amendment to the Original Purchase Agreement (the “A&R Purchase Agreement”, together with the Original Purchase Agreement, the “Purchase Agreement”) with CCM LLC to update the volume weighted average price purchase mechanics of the equity facility to permit Intraday VWAP Purchases (as defined in the A&R Purchase Agreement). Under the terms of the Purchase Agreement, the Company issued 98,500 shares pursuant to the Purchase Agreement with CCM LLC for aggregate net proceeds to the Company of $671 from the period January 1, 2023 through September 30, 2023. The Company issued 2,245,391 shares pursuant to the Purchase Agreement with CCM LLC for aggregate proceeds to the Company of $1,705 from the period January 1, 2024 through September 30, 2024. In accordance with the anti-dilution provisions of the penny warrants with respect to certain sales made by the Company under the ChEF Equity Facility, 20,524 penny warrants were issued from the period January 1, 2024 through September 30, 2024.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (a)
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-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-Paragraph 13
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

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-Section 50
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Long Term Debt (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

SCHEDULE OF FUTURE DEBT MATURITIES

At September 30, 2024 the future debt maturities are as follows:

SCHEDULE OF FUTURE DEBT MATURITIES

For Year Ended December 31,
2024		-
2025		938
2026		81,506
Total debt		82,444
Less: Estimated interest paid-in-kind		-
Total debt		82,444
Less: Unamortized debt issuance costs		(58,046	)
Total carrying amount		24,398
Less: Current portion of debt		(24,398	)
Total long-term debt	$	-

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 4	$ 38,461	$ (27,722)	$ 10,743
Balance, shares at Dec. 31, 2022	43,272,728
Net income (loss)			4,775	4,775
Stock compensation expense		4,487		4,487
Common stock issued in public offering (ATM), net of costs		597		597
Common stock issued in public offering (ATM), net of costs, shares	73,500
Exercise of stock options		93		93
Exercise of stock options, shares	36,009
Exercise of public warrants		747		747
Exercise of public warrants, shares	64,971
Cash exercise of liability classified warrants	$ 1	10,166		10,167
Cashless exercise of liability classified warrants, shares	2,348,294
Balance at Mar. 31, 2023	$ 5	54,551	(22,947)	31,609
Balance, shares at Mar. 31, 2023	45,795,502
Balance at Dec. 31, 2022	$ 4	38,461	(27,722)	10,743
Balance, shares at Dec. 31, 2022	43,272,728
Net income (loss)				(17,131)
Balance at Sep. 30, 2023	$ 6	68,293	(44,853)	23,446
Balance, shares at Sep. 30, 2023	58,880,712
Balance at Dec. 31, 2022	$ 4	38,461	(27,722)	10,743
Balance, shares at Dec. 31, 2022	43,272,728
Balance at Dec. 31, 2023	$ 6	69,445	(41,539)	27,912
Balance, shares at Dec. 31, 2023	60,260,282
Balance at Mar. 31, 2023	$ 5	54,551	(22,947)	31,609
Balance, shares at Mar. 31, 2023	45,795,502
Net income (loss)			(11,899)	(11,899)
Stock compensation expense		954		954
Common stock issued in public offering (ATM), net of costs		74		74
Common stock issued in public offering (ATM), net of costs, shares	25,000
Exercise of stock options		230		230
Exercise of stock options, shares	69,012
Shares issued for vested restricted stock units
Shares issued for vested restricted stock units, shares	461,998
Cash exercise of liability classified warrants		2,462		2,462
Cashless exercise of liability classified warrants, shares	748,029
Common stock issued in public offering, net of costs	$ 1	7,877		7,878
Common stock issued in public offering, net of costs, shares	11,405,000
Balance at Jun. 30, 2023	$ 6	66,148	(34,846)	31,308
Balance, shares at Jun. 30, 2023	58,504,541
Net income (loss)			(10,007)	(10,007)
Stock compensation expense		946		946
Exercise of stock options		36		36
Exercise of stock options, shares	103,071
Cash exercise of liability classified warrants		1,163		1,163
Cashless exercise of liability classified warrants, shares	273,100
Balance at Sep. 30, 2023	$ 6	68,293	(44,853)	23,446
Balance, shares at Sep. 30, 2023	58,880,712
Balance at Dec. 31, 2023	$ 6	69,445	(41,539)	27,912
Balance, shares at Dec. 31, 2023	60,260,282
Net income (loss)			(10,367)	(10,367)
Stock compensation expense		266		266
Balance at Mar. 31, 2024	$ 6	69,711	(51,906)	17,811
Balance, shares at Mar. 31, 2024	60,260,282
Balance at Dec. 31, 2023	$ 6	69,445	(41,539)	27,912
Balance, shares at Dec. 31, 2023	60,260,282
Net income (loss)				(30,773)
Exercise of stock options				$ 4
Exercise of stock options, shares				11,091
Exercise of public warrants, shares				0
Balance at Sep. 30, 2024	$ 6	72,009	(72,312)	$ (297)
Balance, shares at Sep. 30, 2024	62,767,982
Balance at Mar. 31, 2024	$ 6	69,711	(51,906)	17,811
Balance, shares at Mar. 31, 2024	60,260,282
Net income (loss)			(13,627)	(13,627)
Stock compensation expense		237		237
Common stock issued in public offering (ATM), net of costs		730		730
Common stock issued in public offering (ATM), net of costs, shares	850,463
Share issuance under ESPP		112		112
Share issuance under ESPP, shares	244,774
Share cancellation
Share cancellation, shares	(441)
Exercise of stock options		3		3
Exercise of stock options, shares	8,752
Shares issued for vested restricted stock units
Shares issued for vested restricted stock units, shares	3,803
Balance at Jun. 30, 2024	$ 6	70,793	(65,533)	5,266
Balance, shares at Jun. 30, 2024	61,367,633
Net income (loss)			(6,779)	(6,779)
Stock compensation expense		256		256
Common stock issued in public offering (ATM), net of costs		959		959
Common stock issued in public offering (ATM), net of costs, shares	1,394,928
Exercise of stock options		1		1
Exercise of stock options, shares	2,339
Shares issued for vested restricted stock units
Shares issued for vested restricted stock units, shares	3,082
Balance at Sep. 30, 2024	$ 6	$ 72,009	$ (72,312)	$ (297)
Balance, shares at Sep. 30, 2024	62,767,982

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN

Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND GOING CONCERN

Principles of consolidation

Basis of presentation

Going Concern

Note 2 – Summary of Significant Accounting Policies and Going Concern (continued)

Going Concern (Continued)

Recently issued accounting pronouncements:

●

Single reportable segment entities are required to provide the new disclosures and all disclosures currently required under ASC 280

●

Disclosure of the title and position of the CODM

●

Disclosure of significant segment expenses and “other segment items” for reach reportable segment

●

Disclosure of reportable segment profit or loss and assets in annual and interim periods

●

Disclosure of segment profitability measures used by the CODM provided such measures comply with the use of non-GAAP financial measures

The Company is still in the process of assessing the full impact of adopting this standard on the enhanced disclosure requirements in the notes to the Company’s financial statements.

Cash and Cash Equivalents

From time to time the Company has amounts on deposit with financial institutions that exceed federally insured limits. The Company has not experienced any significant losses in such accounts.

Accounts Receivable

Inventory

Note 2 – Summary of Significant Accounting Policies (continued)

Use of Estimates

Revenue Recognition

Note 2 – Summary of Significant Accounting Policies (continued)

Disaggregation of Revenue

The following table present our disaggregated revenues by distribution channel:

Sales	2024		2023		2024		2023
	For the Three Months Ended				For the Nine Months Ended
	September 30				September 30
Sales	2024		2023		2024		2023
Direct to customer		5,153		10,305		16,890		30,314
Original equipment manufacture		7,400		5,584		21,376		23,640
License fee revenue		167		-		167		-
Total	$	12,720	$	15,889	$	38,433	$	53,954

Product Warranty

SCHEDULE OF WARRANTY OBLIGATION

	September 30, 2024			December 31, 2023
Beginning warranty obligation		307			328
Provision of warranty expense		433			397
Settlement of warranty claims		(258	)		(418	)
Ending warrant obligation	$	482		$	307

Concentrations

Note 2 – Summary of Significant Accounting Policies (continued)

Concentrations (Continued)

Stock-Based Compensation

Income Taxes

Note 2 – Summary of Significant Accounting Policies (continued)

Net Loss per Common Share

The following table sets forth the number of potential shares of common stock that have been excluded from diluted net loss per share because their effect was anti-dilutive:

	September 30, 2024		September 30, 2023
Warrants		32,181,100		23,219,622
Restricted stock units		109,375		217,000
Options		1,748,687		3,274,940
Weighted average number of common shares-basic		34,039,162		26,711,562

Leases

Segment Reporting

Reclassifications

Related Party

9 Months Ended

Sep. 30, 2024

Related Party

Note 9 - Related Party

On October 25, 2022, the Company entered into a separation and release of claims agreement with its Chief Operating Officer (the “COO”). As consideration for the COO’s execution of the agreement, the Company agreed to pay the employee a lump sum payment of $100 which is included in general and administrative expenses in the statements of operations, payments equivalent to $1,000 divided into twenty-four (24) monthly payments commencing on December 1, 2022, and all outstanding equity-based compensation awards to become fully vested and exercisable. The COO shall have 12 months from the termination date to exercise outstanding options. The twelve (12) month period ended on November 7, 2023 in which the COO exercised 100,000 options and 76,316 options expired

In February 2023, the Company entered into an agreement with its former COO in which the COO waived their rights to a transaction bonus resulting from the merger transaction in lieu of a Company van. The Company accounted for the cost of the van as an employee bonus, resulting in $116 of general and administrative expense for the prior year.

On March 5, 2023, the Company entered into a convertible promissory note (the “Note”) with a board member in the amount of $1,000, or the Principal Amount. Upon execution of the Note and funding of the original principal sum, a payment of $100 (the “Loan Fee”) was fully earned as of the date of the Note and was due and payable in full in cash on April 4, 2023. The Company paid the Principal Amount and the Loan Fee on April 1, 2023 and April 4, 2023, respectively.

On April 26, 2023, the Company entered into a separation and release of claims agreement with its former Chief Legal Officer (the “CLO”). As consideration for the CLO’s execution of the agreement, the Company agreed to pay the employee payments equivalent to $720 divided into twenty-four (24) monthly payments commencing on June 1, 2023, and all outstanding equity-based compensation awards to become fully vested and exercisable at an expense of $76. The CLO shall have three (3) months from the termination date to exercise outstanding options. The three (3) month period ended on July 26, 2023 in which the options were not exercised and the options were forfeited as a result.

On January 26, 2024, the Company entered into a convertible promissory note (the “January Note”) with a board member in the amount of $1,000, or the January Principal Amount. Upon execution of the January Note and funding of the original principal sum, a payment of $50 (the “January Loan Fee”) was fully earned as of the date of the January Note and was due and payable in full in cash on February 2, 2024. The Company paid the January Principal Amount and the January Loan Fee on February 1, 2024.

Note 9 - Related Party (Continued)

On February 27, 2024, the Company entered into a convertible promissory note (the “February Note”) with a board member in the amount of $1,700, or the February Principal Amount. Upon execution of the February Note and funding of the original principal sum, a payment of $85 (the “February Loan Fee”) was fully earned as of the date of the February Note and was due and payable in full in cash on March 1, 2024. The Company paid the February Principal Amount and the February Loan Fee on March 1, 2024.

Effective April 12, 2024, the Company entered into amendments to the employment agreements with its Chief Executive Officer, its Chief Revenue Officer and its Chief Marketing Officer to amend the terms of their annual equity compensation (the “Amended Employee Agreements”). The Amended Employee Agreements allow the Company to issue a combination of cash and equity awards on an annual basis up to a specified amount ($1,532 for the Chief Executive Officer, $490 for the Chief Revenue Officer, and $236 for the Chief Marketing Officer), subject to approval and such other terms and conditions imposed by the compensation committee of the board of directors.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
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-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
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-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Publisher FASB
-URI https://asc.fasb.org/850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 3 - Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances.

ASC 820 identifies fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tier fair value hierarchy that distinguishes between the following:

●	Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
●	Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for a similar asset or liability, either directly or indirectly.
●	Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Note 3 - Fair Value Measurements (continued)

The following table presents assets and liabilities that were measured at fair value in the Condensed Consolidated Balance Sheets on a recurring basis as of September 30, 2024:

	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
	As of September 30, 2024
Liabilities
Warrant liability- Term Loan	$	5,017	$	5,017	$	-	$	-	$	5,017
Warrant liability- June Public Offering		2,686		2,686		-		-		2,686
Warrant liability- Private Placement Warrants		11		11		-		11		-
Total liabilities	$	7,714	$	7,714	$	-	$	11	$	7,703

The following table presents assets and liabilities that were measured at fair value in the Condensed Consolidated Balance Sheets on a recurring basis as of December 31, 2023:

	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
	As of December 31, 2023
Liabilities
Warrant liability- Term Loan	$	1,014	$	1,014	$	-	$	-	$	1,014
Warrant liability- June Public Offering		3,434		3,434		-		-		3,434
Warrant liability- Private placement warrants		15		15		-		15		-
Total liabilities	$	4,463	$	4,463	$	-	$	15	$	4,448

The carrying amounts of accounts receivable and accounts payable are considered level 1 and approximate fair value as of September 30, 2024 and December 31, 2023 because of the relatively short maturity of these instruments.

The carrying value of the Term Loan as of September 30, 2024 and December 31, 2023 approximates fair value as the interest rate does not differ significantly from the current market rates available to the Company for similar debt and is considered level 2.

Note 3 - Fair Value Measurements (continued)

Level 3 Roll forward

Fair value measurements categorized within Level 3 are sensitive to changes in assumptions or methodology used to determine fair value, and such changes could result in a significant increase or decrease in the fair value.

The changes for Level 3 items measured at fair value on recurring basis using significant unobservable inputs are as follows:

	Warrant Liability – Term Loan			Warrant liability- June Public Offering
Fair value as of January 1, 2024	$	1,014		$	3,434
Warrant Issued
Warrant exercises
Change in fair value, gain included in net loss⁽¹⁾		(4	)		(220	)
Fair value as of March 31, 2024		1,010			3,214
Warrants Issued		4,796			-
Change in fair value, (gain) loss included in net loss⁽¹⁾		(304	)		2,277
Fair value as of June 30, 2024		5,502			5,491
Warrants Issued		1,585			-
Change in fair value, (gain) loss included in net loss⁽¹⁾		(2,070	)		(2,805	)
Fair value as of September 30, 2024	$	5,017		$	2,686

	Warrant Liability – Term Loan			Warrant liability- June Public Offering
Fair value as of January 1, 2023	$	30,841		$	-
Warrants Issued
Warrant exercises		(8,822	)		-
Change in fair value, gain included in net loss⁽¹⁾		(17,998	)		-
Fair value as of March 31, 2023		4,021			-
Warrants Issued		-			13,762
Warrant exercises		(2,462	)		-
Change in fair value, gain included in net loss⁽¹⁾		(684	)		(150	)
Fair value as of June 30, 2023		875			13,612
Fair value, balance		875			13,612
Change in fair value, loss included in net loss⁽¹⁾		36			154
Warrant exercises		-			(617	)
Fair value as of September 30, 2023	$	911		$	13,149
Fair value, balance	$	911		$	13,149

⁽¹⁾	Changes in fair value of warrant liabilities are disclosed separately in the Condensed Consolidated Statements of Operations

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details